Bli medlem
Bli medlem

Du är här

2016-11-21

EnQuest PLC: Production and development update

ENQUEST PLC, 21 November 2016.
Production and development update

EnQuest's Kraken FPSO vessel sail away

EnQuest PLC is pleased to announce that following good progress on
commissioning the water systems, the Floating, Production, Storage
and Offloading ('FPSO') vessel, Armada Kraken for the Kraken field
development, is expected to sail away in the coming days, from deep
water anchorage off the coast of Singapore, for the North Sea. The
journey should complete around mid-January 2017. The Kraken
development project remains on course to deliver first oil in H1
2017. Meanwhile drilling is progressing to plan at Drill Centre Two
following completion of Drill Centre One.

Scolty/Crathes First Oil

Following the successful drilling of the Scolty and Crathes wells in
Q2 2016 and subsequent full completion of subsea and topsides scopes,
including commissioning of the integrated system the Scolty/Crathes
development is proceeding ahead of the schedule previously indicated,
the first production wing valve is now open and the first well is
flowing.

EnQuest therefore confirms the delivery of first oil from the
Scolty/Crathes development ahead of schedule and under budget,
approximately a year after the Field Development Plan ('FDP') was
approved and the project was sanctioned. This was the only offshore
pure oil FDP approval in the UK North Sea in 2015. Unit operating
costs are expected to be under $15/bbl in the initial peak volume
years and production is anticipated to continue until 2025.

2016 Production

EnQuest has been informed that the third party maintenance shutdown of
the Brent Pipeline System ('BPS') may commence this week, for
approximately three weeks, which would be a longer shutdown and later
start date than previously anticipated. The Thistle and Dons fields
would therefore also be fully shutdown for the entire BPS maintenance
period as well as an additional short period either side, for
ramp-down and ramp-up.

Average production for the ten months to the end of October was 40,857
Boepd, up 25% on the same period in 2015. This production reflects
the successful planned maintenance shutdowns on Kittiwake and on
PM8/Seligi in H2 2016, which are both now complete. Production at the
end of the year is expected to benefit from the Scolty/Crathes
development coming on stream and from the new production well K7
coming on line at Alma/Galia.

Taking into account the impact of the extended third party shutdown of
the Brent Pipeline System, EnQuest would anticipate average daily
full year 2016 production to be broadly around the average daily
production level delivered to the end of October of 40,857 Boepd, and
below its prior guidance of between 42,000 and 44,000 Boepd. Such an
extended maintenance shutdown would not be expected to have an impact
on the recovery of reserves as the reduced December 2016 production
would be moved to later periods. Accordingly there would be no
significant impact expected on the Company's assets and liabilities,
financial position, profits and losses, or prospects.

Placing and Open Offer Admission

Further to the announcement made by EnQuest on 17 November 2016 in
respect of the Placing and Open Offer, it is expected that LSE
Admission will become effective and that dealings in the New Ordinary
Shares will commence at 8.00 a.m. today and Stockholm Admission will
become effective on or around 21 November 2016 and that dealings (for
normal settlement) in the New Ordinary Shares will commence on the
same day.

Ends

Kraken notes

There are two fields in the Kraken development, located in Block 9/2b
in the UK North Sea, approximately 350km North East of Aberdeen. The
field area is approximately 12 x 3.5 km. The water depth is c.110m.
It is a heavy oil development (14 Deg API), with good flow
properties.

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

This announcement has been determined to contain inside information
for the purpose of the Market Abuse Regulation (EU No. 596/2014).

Additional 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 end
of June 2016, EnQuest had interests in 29 UK production licences,
covering 41 blocks or part blocks and was the operator of 26 of these
licences.

EnQuest believes that the UKCS represents a significant hydrocarbon
basin, 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 is replicating its model in the UKCS by targeting previously
underdeveloped assets in a small number of other maturing regions;
complementing its operations and utilising its deep skills in the UK
North Sea. In which context, EnQuest has interests in Malaysia where
its operated assets include the PM8/Seligi Production Sharing
Contract and the Tanjong Baram Risk Services Contract.

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, reserves, costs, revenues 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.

-----------------------------------------------------------
http://news.cision.com/enquest-plc/r/production-and-development-update,c...
http://mb.cision.com/Main/344/2127096/592864.pdf

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.