Interim Management Statement


EnQuest PLC 16 May 2014
Interim Management Statement

GOOD PRODUCTION GROWTH

PRODUCTION SUMMARY

Production from 1 January to 30 April 2014 averaged 25,597 Boepd, up 25% on the
same period last year. EnQuest reiterates production guidance of an average of
between 25,000 Boepd and 30,000 Boepd for the full year.

HIGHLIGHTS

  · Alma/Galia. First oil from the Alma field is expected in H2 this year, as
outlined at the full year results in March. Finishing and commissioning work
continues on the EnQuest Producer. The subsea infrastructure is in place, with
risers and mooring systems pre-installed, awaiting arrival of the FPSO. The 2014
wells completion programme also remains on track.

  · Kraken. The Kraken vessel arrived at the shipyard in Singapore on schedule,
commencement of the conversion scope has now begun; the Kraken development
project is moving ahead according to plan. Preparatory work continues ahead of
the planned appraisal drilling of ‘Western Feature’, due to commence in Q3 2014.

  · Avalon. The drilling of the Avalon well has confirmed a discovery;
preliminary analysis indicates an 85 ft vertical column of reasonable quality
mobile oil in good quality high permeability sands. Further evaluation is
ongoing.

  · Malaysia. EnQuest has secured a small field development with Petroliam
Nasional Berhad ("PETRONAS"), the national oil company for Malaysia, for the
development and production of petroleum from the Tanjong Baram field ("Tanjong
Baram") offshore Sarawak, Malaysia. Net 2P reserves are c.3.5 MMboe, start-up is
expected in late 2015 / early 2016.

Amjad Bseisu, Chief Executive, said

“Production of 25,597 Boepd to the end of April marks a good start to the year,
reflecting strong reservoir and production efficiency performances from all of
EnQuest’s hubs, and from Thistle in particular.

We have taken another positive step forward in Malaysia with a small development
in Tanjong Baram, our first operating partnership with PETRONAS. We have also
had a discovery in Avalon and are now evaluating the well results towards a
potential development. Avalon is in close proximity to our Scolty/Crathes
discoveries and further enhances the potential of the Greater Kittiwake Area.”

Net Production

                      Daily average   Daily average
                     1 Jan’ 2014 to  1 Jan’ 2013 to
                      30 April 2014   30 April 2013
                            (Boepd)         (Boepd)
Thistle/Deveron               9,354           4,614
Dons                         10,079          11,401
Heather/Broom                 4,030           4,080
Alba                          1,289            399*
Kittiwake                     845**               -
Total                        25,597          20,494

* Net production since the completion of the acquisition at the end of March
2013, averaged over the four months to the end of April 2013.
** Net production since the completion of the acquisition at the start of March
2014, averaged over the four months to the end of April 2014.

Producing fields

  · Thistle/Deveron. Thistle/Deveron continued to benefit from the new
production well which came onstream in H2 2013 and from investment in a
significantly improved power supply. In 2014, further capital investment is
being made in the ongoing Thistle field life extension project.
  · Dons. Following the recent award of the Don North East licence, it is
intended to submit a field development plan (‘FDP’) application around the end
of this year; this will include at least one production well in Area 24 (to be
renamed ‘Ythan’) potentially to come onstream around mid-2015. Production
optimising projects are continuing, production efficiency remains very strong
and a new production well is now being drilled in Don Southwest, in Area 22
(‘TJ’).
  · Heather/Broom. Following commencement of rig operations in Q1 2014, the
workover of the H56 well was successfully completed in Q2 and the rig started on
a sidetrack of H44 as a new injection well.
  · Kittiwake. Following the completion of the acquisition at the start of
March, Kittiwake is being fully integrated into EnQuest’s operations; Goosander
and Grouse have been delivering steady production and an early workover of
Mallard is planned for around the middle of the year. The nearby Avalon
discovery is EnQuest’s latest move in creating and enhancing the new Kittiwake
hub and further exploration opportunities in the area are also being actively
assessed.

Business development
Malaysia, Tanjong Baram

  · EnQuest expects the project to recover approximately 5 MMboe gross with peak
gross production of 3,400 Boepd. EnQuest will be the operator of Tanjong Baram
and hold a 70% interest. EnQuest will incur upfront costs for development and
operations and will be reimbursed from field production. PETRONAS will remain
the owner of the licence. EnQuest will recover its capital and operating
expenditures and will be paid a remuneration fee, linked to performance
variables. The contract has a term of nine years and total capital expenditure
in the base case two well development is anticipated to be approximately $70
million net over a period of time, which is reimbursable through production.

  · Tanjong Baram will be developed as a near field tieback to the West Lutong A
complex. The development plan includes up to two wells, depending on results of
the first development well. Capacity for an additional two wells has been
included in the facilities design.

UK 28th Licensing Round

  · EnQuest has submitted applications as part of the UK 28th North Sea
Licensing Round.

Financial

  · In Q1 2014, EnQuest successfully concluded the offering of $650 million of
7.00% senior unsecured notes due 2022 to be used for general corporate purposes.
  · EnQuest’s capital expenditure program remains on track and will be weighted
towards the first half as a result of expenditure on Kraken and in particular
payments in respect of the FPSO, expenditure on Alma and Galia, including the
final payment to BVR, and the completion payment for the Kittiwake acquisition.

ENDS

EnQuest PLC
Tel: +44 (0)20 7925 4900
Amjad Bseisu (Chief Executive)
Jonathan Swinney (Chief Financial Officer)
Michael Waring (Head of Communications & Investor
Relations)

Tulchan Communications
Tel: +44 (0)20 7353 4200
Martin Robinson
Martin Pengelley

Notes to editors
EnQuest is the largest UK independent producer in the UK North Sea. EnQuest PLC
trades on both the London Stock Exchange and the NASDAQ OMX Stockholm. It is a
constituent of the FTSE 250 index. Its operated assets include the Thistle,
Deveron, Heather, Broom, West Don, Don Southwest, Conrie, Kittiwake, Mallard,
Gadwall, Goosander and Grouse producing fields and the Alma/Galia and Kraken
developments; EnQuest also has an interest in the non-operated Alba producing
oil field. EnQuest had 31 UK production licences at the start of 2014. This
increases to 37 production licences with the inclusion of the assets from the
acquisition of the Greater Kittiwake Area which completed in Q1 2013 and the Don
North East area licence which was offered ‘out of round’ to EnQuest in Q1 2014;
these licences cover 47 blocks or part blocks in the UKCS, 30 of the licences
are operated by EnQuest.

EnQuest believes that the UKCS represents a significant hydrocarbon basin in a
low risk region, which continues to benefit from an extensive installed
infrastructure base and skilled labour. EnQuest believes that its assets offer
material organic growth opportunities, driven by exploitation of current
infrastructure on the UKCS and the development of low risk near field
opportunities.

EnQuest has begun replicating its existing model in the UKCS by targeting
previously underdeveloped assets in a small number of other maturing regions;
complementing our operations and utilising its skills in the UK North Sea.

Forward looking statements: This announcement may contain certain forward
-looking statements with respect to EnQuest’s expectation and plans, strategy,
management’s objectives, future performance, production, costs, revenues,
reserves and other trend information. These statements and forecasts involve
risk and uncertainty because they relate to events and depend upon circumstances
that may occur in the future. There are a number of factors which could cause
actual results or developments to differ materially from those expressed or
implied by these forward looking statements and forecasts.   The statements have
been made with reference to forecast price changes, economic conditions and the
current regulatory environment. Nothing in this presentation should be construed
as a profit forecast. Past share performance cannot be relied on as a guide to
future performance.