EnQuest PLC, 15 May 2013. Interim Management Statement
PRODUCTION AND MAJOR PROJECTS ON TRACK
PRODUCTION SUMMARY
Production from 1 January to 30 April 2013 averaged 20,494 Boepd, reflecting the
third party shutdowns of the Brent pipeline in Q1 2013. EnQuest confirms
production guidance of between 22,000 Boepd and 27,000 Boepd for the full year.
Amjad Bseisu, Chief Executive, said
"EnQuest's growth and execution remain on course. We are on track to submit the
field development plan ('FDP') for Kraken by mid-year and to sanction the
project later in 2013. The well results in north Kraken are in line with
expectations and give further confidence in the field development. We
completed our acquisition of 8% of the Alba field in Q1 2013, which has similar
characteristics to Kraken. Alba adds four non-operated wells to the twelve
wells that EnQuest had originally planned for 2013. The Alma/Galia project
remains on track for first production in Q4 2013 and dry dock work on the vessel
is now complete. With the increase in scope for a potential second phase, our
schedule is challenging but achievable. Since the publication of our 2012
results, production continues to be in line with our guidance, driving strong
cash flow generation.
We continue to look at opportunities to acquire assets in the UK, as well as
other regions, such as in the Norwegian North Sea, South East Asia and North
Africa, where our expertise and capabilities can be applied to maturing assets
and development opportunities."
INTERIM MANAGEMENT STATEMENT HIGHLIGHTS
· Alma/Galia. The Alma/Galia development project remains on track for the
production of first oil in Q4 2013. The main elements of the subsea system are
now in place and the EnQuest Producer vessel has left dry dock on schedule and
is now alongside the quay in Hamburg for the remainder of the work.
· Kraken. EnQuest remains on track for submission of the Kraken FDP in Q2
2013. Subject to anticipated regulatory approval, EnQuest's sanction of the
Kraken development is expected later in 2013. An appraisal well has been drilled
at Kraken and confirms the north Kraken area.
Net Production
Daily average1 Jan' 2013 to Daily average1 Jan' 2012 to
30 April 2013 30 April 2012
(Boepd) (Boepd)
Thistle/Deveron 4,614 7,408
Dons 11,401 9,161
Heather/Broom 4,080 4,407
Alba 399* -
Total 20,494 20,976
* Net production since the completion of the acquisition at the end of March
2013, averaged over the four months to the end of April.
Further details
· Thistle/Deveron. Production was down year on year due to the shutdown of
the third party Brent pipeline, as well as water injection downtime due to an
outage of the old 'B' turbine generator and to commissioning of the new 'D'
turbine. Water injection has been re-instated following commissioning of the
new D turbine and refurbishment of the B turbine should be completed in June
2013. Drilling is currently underway on the next production well in the Western
Fault block
· Dons. Although the Don fields were also impacted by the Brent pipeline
shutdowns, the West Don W6/W4 producer/injector pair performed well, following
the tie-in of the new W6 injector well in Q1 2013. This contributed to 25% year
-on-year production growth from the Don fields. The Don Southwest Area 6 DS
producer is scheduled to be brought online in Q2 2013, with an associated water
injector to be drilled later in the year
· Heather/Broom. The drilling programme at Heather will start in Q3 2013,
following the completion of drilling on Thistle and the commissioning of the
refurbished rig on Heather. The Broom field has been performing as expected
· Alba. Platform well A38z (S36) is currently being drilled, part of a 2013
programme which includes three platform wells and one subsea well
Alma/Galia
· Following the batch drilling of six wells in 2012, the manifold and subsea
'Xmas tree' systems were installed in Q2 2013 and the umbilical and the riser
installation projects are underway. The mooring pile fabrication has also been
completed
· In Hamburg, work continues on the EnQuest Producer 'FPSO' (Floating
Production, Storage and Offloading vessel). The vessel has now left dry dock
and moved to the quay. The Electric Power Module and Process Module have been
lifted onto the FPSO. The Boiler Module has been completed and is en route to
Hamburg. Work continues on the Degasser and the Water Injection Modules
Kraken
· The results of the appraisal well drilled in Q2 2013 confirm the north
Kraken area. The reservoir is oil filled and the thickness of the sand is as
expected. PVT (fluid) samples have been taken for analysis
ENDS
For further information please contact:
EnQuest PLC
Tel: +44 (0)20 7925 4900
Michael Waring (Head of Communications & Investor Relations)
RLM Finsbury
Tel: +44 (0)20 7251 3801
James Murgatroyd
Conor McClafferty
Dorothy Burwell
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 assets include the Thistle, Deveron,
Heather, Broom, West Don, Don Southwest and Conrie producing fields and the Alma
and Galia development. At the end of 2012, including the licences EnQuest was
offered through the UK's 27th Licensing Round, EnQuest had interests in 39
production licences covering 55 blocks or part blocks in the UKCS, of which 31
licences are operated by EnQuest. In addition, EnQuest also has an interest in
two blocks offshore in Sabah, Malaysia.
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.
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.
Interim Management Statement
| Source: EnQuest PLC