Enquest reports strong production growth in H1 2015.

Production averaged 29 665 boe/d, up 17.3%, on H1 2014, reflecting a strong operational performance and continued high levels of production efficiency. EnQuest’s Malaysian assets contributed 7777 boe/d.

2015 full year guidance is maintained at an average of between 33 000 boe/d and 36 000 boe/d, including first production from Alma/Galia.

Revenue of US$444.0 million and EBITDA of US$226.7 million reflected the decline in the oil price, partially offset by the positive impact of the hedging programme.

Alma/Galia: Commissioning of subsea and topside systems is largely complete, with first oil expected within a few weeks.

Kraken: The project continues to be on budget and on schedule for first oil in 2017. Batch drilling of the top-holes at the first drill centre has been completed. The FPSO continues to be on track for delivery in 2016.

The programme of cost reduction initiatives continues and is on track for unit Opex of an average of US$38/bbl in 2015, and average unit Opex in the low US$30s/bbl is now anticipated in 2016.

EnQuest CEO Amjad Bseisu said:

EnQuest has responded well to the lower oil price environment, delivering a strong performance driven by production gains and cost reductions, both core areas of expertise, and by a well executed hedging programme. EnQuest now anticipates that 2016 full year unit Opex will be in the low US$30s/bbl.

“EnQuest achieved continuing high levels of operating efficiency in the North Sea and a good production performance in Malaysia, with PM8/Seligi’s first H1 contribution. Our two major developments are progressing well and we expect first oil from Alma/Galia within a few weeks.

“EnQuest delivered an H1 2015 EBITDA of US$226.7 million, approximately 20% lower than in H1 2014; a strong performance, given the almost 50% drop in the oil price.

“As the current capital programme reduces over the next two years and EnQuest benefits from lower cost operations and higher production, we expect to move into positive free cashflow at prevailing oil prices.

Adapted from a press release by David Bizley

Published on 20/08/2015

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