Bli medlem
Bli medlem

Du är här

2016-05-19

EnQuest PLC: Operational Update

ENQUEST PLC, 19 MAY 2016. OPERATIONAL UPDATE.

Production up 39% on 2015
Kraken and Scolty/Crathes are continuing on schedule
Delivering targeted capex and opex reductions

Highlights

· Production averaged 42,752 Boepd for the four months to the end of
April 2016, up 39% on 2015; average production in April was 45,933
Boepd, benefitting from improving well performance at Alma/Galia.
2016 production from the rest of EnQuest's North Sea fields was up
19% year on year, with Malaysia up 27%. This reflected continuing
high levels of production efficiency.

· Full year production guidance is reiterated at between 44,000
Boepd and 48,000 Boepd.

· The Kraken development project continues on schedule. The
Scolty/Crathes tie-back development is also on schedule. Drilling is
ahead of programme and under budget. The Scolty well was as expected
and the Crathes reservoir was ahead of expectations.

· Alma/Galia production now has six production wells available.
Average net production of 9,017 Boepd was realised in April. Good
uptimes are being delivered and average production volumes are
expected to increase with performance enhancements such as
acidisation being undertaken.

· EnQuest is well on track to meet its cost reduction targets of
delivering unit opex in the range $25 - 27/bbl overall for 2016, and
into the low $20s after the Kraken development is fully onstream. ?

· The time saved from the excellent drilling performance on
Scolty/Crathes, has created the opportunity to accelerate drilling of
the Eagle prospect into Q2/Q3 2016.

· As at 30 April 2016, EnQuest's net debt was approximately $1.63
billion.

EnQuest CEO Amjad Bseisu said
"EnQuest continues to focus on its strategic priorities in this low
oil price environment: strengthening the balance sheet, delivering on
production and execution targets and streamlining operations. The
targeted reductions in capex and opex announced in March are being
realised, in conjunction with continuing excellent operational
performance.

Production to the end of April, averaged 42,752 Boepd, up 39% year on
year, with 45,933 Boepd in April, benefiting from the production rise
of Alma/Galia. The production statistics show the breadth and depth
of the operated asset base, with good performances across the board;
Thistle and Heather/Broom delivered growth of 19% and 45%
respectively. We reconfirm our production guidance for 2016 at
between 44,000 Boepd and 48,000 Boepd.

EnQuest's high operating efficiency and execution capability enable us
to realise the optimal performance potential in maturing oil fields,
with our low cost delivery vital in current market conditions."

2016 net production statistics

+-----------------------+++-----------------+-----------------+
|Production on a working|||Net daily average|Net daily average|
|interest basis ||| 1 Jan' 2016 to| 1 Jan' 2015 to|
| ||| 30 April 2016| 30 April 2015|
+-----------------------+++-----------------+-----------------+
| ||| (Boepd)| (Boepd)|
+-----------------------+++-----------------+-----------------+
|Thistle/Deveron ||| 9,314| 7,809|
+-----------------------+++-----------------+-----------------+
|Dons/Ythan ||| 6,567| 6,587|
+-----------------------+++-----------------+-----------------+
|Heather/Broom ||| 6,149| 4,238|
+-----------------------+++-----------------+-----------------+
|Kittiwake ||| 3,678| 2,774|
+-----------------------+++-----------------+-----------------+
|Alma/Galia ||| 5,594| |
+-----------------------+++-----------------+-----------------+
|Alba ||| 1,101| 1,192|
+-----------------------+++-----------------+-----------------+
|Total UKCS ||| 32,403| 22,601|
+-----------------------+++-----------------+-----------------+
|PM8/Seligi ||| 9,003| 8,167|
+-----------------------+++-----------------+-----------------+
|Tanjong Baram ||| 1,346| -|
+-----------------------+++-----------------+-----------------+
|Total Malaysia ||| 10,349| 8,167|
+-----------------------+++-----------------+-----------------+
|Total EnQuest ||| 42,752| 30,768|
+-----------------------+++-----------------+-----------------+

Performance by individual production and development asset

UK North Sea

Thistle/Deveron

· The 2015 drilling programme achieved industry leading execution
performance and was completed ahead of budget. The programme
consisted of three electrical submersible pump workovers, which
exceeded performance expectations, also three sidetracks; these are
performing well and are on track to recover expected reserves.
Overall, the programme has delivered better cashflow than forecast.

Don fields/Ythan

· Reservoir performance for the Dons wells is above expectation and
production is ahead of forecast. The first phase of the planned scale
treatment programme was successfully completed on Don Southwest and
preparations are underway for the second phase and a similar
programme on West Don. Modifications to an export pump have increased
plant efficiency and reduced platform fuel costs.

Heather/Broom

· Production rates from Heather and Broom are increasing as a result
of 2015 drilling and ongoing water injection optimisation. Production
efficiency continues to be very strong.

Greater Kittiwake Area, including the Scolty/Crathes tie-back
development

· The Greater Kittiwake Area achieved good levels of production
efficiency at the start of the year. Production optimisation trials
are progressing. Sand clean-up operations, lifeboat upgrades and gas
turbine controls upgrades have been successfully completed.

· On Scolty/Crathes, there has been excellent drilling performance
on both wells, completed ahead of schedule and under budget. The
Crathes reservoir has exceeded expectations and Scolty is on
prognosis. Offshore construction is progressing as per schedule on
the Kittiwake platform and subsea construction is planned for summer
2016.

Alma/Galia

· Good uptimes are being achieved on the EnQuest Producer. All six
production wells are now available and production is being optimised.
Production volumes are expected to increase with performance
enhancements such as acidisation being undertaken. The fourth cargo
off-take was successfully completed in May.

Kraken
Overall the project remains on schedule and on budget, with first oil
anticipated in H1 2017.

Floating production, storage and offloading vessel ('FPSO')

· Key FPSO modules for fuel gas and separation were lifted on board
the FPSO in early April. Final deliveries of outstanding materials
were received for a water injection/hydraulic submersible pump
module. Fuel gas compressors were mechanically completed and access
platforms were fabricated and integrated. The two complete units will
soon be lifted into the module infrastructure. Integration work on
piping continues ahead of schedule and cable pulling is progressing
where modules are now in place. Pre-commissioning work of sub-systems
is ramping up. Work continues on marine systems, tank works are
complete and work was concluded on helideck and aft deck areas. Good
progress made on equipment installation, cabling and fit-out.

Subsea umbilical riser and flowline / subsea production systems

· Drill centre 2 (DC2) production and water injection manifolds have
been installed successfully. A vessel is currently infield working at
DC2, installing jumpers and relocating glass reinforced plastic
covers which were previously wet stored. At the end of April, a pipe
laying vessel started mobilising for the Kraken DC3 rigid pipeline
installation campaign.

Drilling

· The subsea trees for two injector and two producer wells were
batch set onto the respective wellheads with all four trees being
handled at the same time by the drilling rig. A further injector well
was drilled through the reservoir, which encountered all geobodies as
prognosed, and the well was completed successfully and tested. An
injectivity test provided better results than prognosed.

Malaysia

PM8/Seligi

· The PM8/Seligi assets averaged just over 9,000 Boepd, representing
an increase of 10% compared to the same period last year. This strong
performance was supported by very high production efficiency and the
successful ongoing idle well restoration program.

· This year's infrastructure work programme continues focus on
integrity and reliability, supporting safe and cost efficient
operations. Longer term, EnQuest will extend field life by investing
in idle well restoration, facility improvements and upgrades, and
technical studies supporting development drilling and secondary
recovery projects to increase ultimate recovery.

Tanjong Baram

· Tanjong Baram production averaged c.1,350 net Boepd for the
period, with intervention work scheduled in May, aiming to further
increase field production.

Financial

· As at 30 April 2016, EnQuest's net debt was approximately $1.63
billion. EnQuest remains focused on its balance sheet strength and is
pursuing a range of opportunities and mitigations in this respect, on
which EnQuest continues to work closely with its facility providers.
Potential measures include asset sales and further cost reductions.

Ends

For further information please contact:

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. Its operated assets include the Thistle/Deveron,
Heather/ Broom, Dons area, the Greater Kittiwake Area and Alma/Galia,
also the Kraken and the Scolty/Crathes developments; EnQuest also has
an interest in the non-operated Alba producing oil field. At the
start of 2016, EnQuest had interests in 30 UK production licences,
covering 42 blocks or part blocks and was the operator of 25 of these
licences.
<...

Författare WKR

Tala om vad ni tycker

Tala om vad ni tycker

Ni är just nu inne på en betaversion av nya aktiespararna. Lämna gärna feedback på vad ni tycker i formuläret nedan.