EnQuest reports strong production growth in H1 2014

EnQuest has released its financial and operational results for the first half of 2014, reporting an 18% increase in production compared to H1 2013.

Highlights

• Production in H1 2014 was 25,292 boepd, up 17.9% on H1 2013, as a result of strong reservoir performance and high production efficiency, which are expected to continue in the second half of the year.
• 2014 full year average production guidance is maintained at between 25,000 boepd and 30,000 boepd.
• Revenue was US$ 503.8 million, with EBITDA of US$ 284.0 million and cash flow of US$ 318.2 million generated from operations.
• The acquisition of ‘PM8/Seligi’ in Malaysia completed as planned at the end of June.
• Significant progress has been made on the FPSO for the Alma/Galia development, with sailaway planned for spring 2015, with first oil in the middle of the year.
• Kraken is proceeding on time and on budget, with progress continuing on the host vessel.
• The Kraken West appraisal well ‘Tyrone’ will be drilled in H2 2014.
• EnQuest completed the acquisition of the Greater Kittiwake area hub (GKA) and was awarded the Tanjong Baram field development in Malaysia.
• The company was also awarded the Don North East licence, following which a Field Development Plan for ‘Ythan’ has been submitted.
• Successful exploration and appraisal wells were drilled at Cairngorm and Avalon.

Comments

Commenting on the results, EnQuest CEO, Amjad Bseisu, said: “In 2014 so far, EnQuest has again delivered good growth in reserves and production. Production was up 18% in the first half of 2014 and acquisitions, combined with the new development contract award in Malaysia are expected to result in an incremental increase of approximately 20 million boe in net 2P reserves.

“With our UK North Sea activities set for substantial growth from our new hubs, we have been complementing our UK business by establishing EnQuest in South East Asia, through the Tanjong Baram field development and the acquisition of PM8/Seligi. Seligi was once the largest oil field in Peninsular Malaysia and we are evaluating the potential from infill drilling and workovers at PM8/Seligi.

“I am delighted that in Oil & Gas UK’s latest production efficiency rankings, EnQuest again performed very strongly and was in the top quartile. Production efficiency has been an important driver of the strong performance from our existing assets in H1 2014 and we see this continuing in the second half of the year. EnQuest will soon have six producing hubs, and over 15 producing fields, giving diversity to our portfolio.”

Adapted from press release by Katie Woodward

Read the article online at: https://www.oilfieldtechnology.com/drilling-and-production/13082014/enquest-reports-h1-2014-results-1258/