ENQUEST PLC, 8 September 2016.
Chairmanship: Retirement of Dr James Buckee and appointment of Mr Jock Lennox
EnQuest PLC (‘EnQuest’ or ‘the Company’) announces that after over six years in the role, Dr James (‘Jim’) Buckee (70) is retiring as Chairman of the Company, with effect on the publication of EnQuest’s half year results today, 8 September 2016.
The Board would like to thank Jim Buckee for his important contribution to the Company since its inception. During his tenure, EnQuest has grown reserves and production of 80.5 MMboe and 13,613 Boepd respectively at the start, to reserves of 216 MMboe at the beginning of 2016 and to production of 42,520 Boepd in the first half of this year.
EnQuest is pleased to announce that Mr John (‘Jock’) Lennox, currently an EnQuest Non-Executive Director, will, also with immediate effect, become Chairman of the EnQuest Board.
Jim Buckee said:
"Despite the challenges of the oil price environment in recent years, EnQuest started 2016 with a net 2P reserve base of 216 MMboe, an excellent net 167% increase since EnQuest’s formation just over six years ago, equating to 18% growth per annum, with the substantial established potential reserves life of 18 years.
I am delighted that Jock Lennox will succeed me as Chairman of the Company. It is good news that as EnQuest progresses through the challenges and opportunities the current climate is presenting to the industry, that it will be chaired by a businessman with Jock’s breadth and depth of experience, both in the UK and internationally."
Jock Lennox said:
"EnQuest has a very strong team of people and an asset base which has material growth potential. Operationally EnQuest has been working hard and is performing well in addressing the challenges of the prevailing level of oil prices. It has the high efficiency and low cost capabilities required to cope with these macro conditions and even modest increases in oil prices would have a significant positive impact on future cash flows and growth. Currently, EnQuest’s priority continues to be to to deliver a business and a balance sheet which are robust in this environment and I am very pleased to be becoming Chairman at this important time in the Company’s development."
Also with immediate effect, Jock Lennox replaces Jim Buckee as Chairman of the Nomination Committee and Jock Lennox stands down as Chairman of the Audit Committee and as a member of the Risk Committee; Jock Lennox continues as a member of the Audit Committee. EnQuest Non-Executive Director Dr Philip Nolan takes over as Chairman of the Audit Committee on an interim basis and also becomes a member of the Risk Committee.
EnQuest Chief Executive, Amjad Bseisu said:
"On behalf of the Board and the management team, I thank Jim for his guidance and wise counsel over the past six years and personally I am particularly appreciative for his support to me as Chief Executive. Jim has been an important part of the growth of EnQuest in providing a unique depth and breadth of knowledge. I will personally miss him on the Board. I very much welcome Jock as Chairman, his experience of a wide range of businesses and boardrooms will prove invaluable in this role.
Jock Lennox biographical notes:
Appointed to the EnQuest Board: 22 February 2010.
Jock Lennox holds a Law degree and in 1980 qualified as a chartered accountant with Ernst & Young LLP (‘EY’), Edinburgh and is a member of the Institute of Chartered Accountants of Scotland. In 1988 Jock became a partner at EY. In his time at EY Jock was seconded to work in Seattle, US in the early 1980s. Throughout his career he worked with a range of multinational clients, working on projects in many countries. He also held a number of EY Global and UK leadership positions. Jock retired from EY in 2009.
Other principal external appointments: Non-executive director of Dixons Carphone plc, Hill & Smith Holdings plc and A&J Mucklow Group plc. Jock is also senior independent director of Oxford Instruments plc and a trustee of the Tall Ships Youth Trust. He will be retiring from the Boards of Oxford Instruments and A&J Mucklow in September 2016 and November 2016 respectively.
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
This announcement has been determined to contain inside information.
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.