ENQUEST PLC, 17 March 2016.  Results for the year ended 31 December 2015

Strong 2015 production, up 31% year on year, above upper end of guidance range

Further capex and opex reductions
c.$500 million of liquidity available

2015 Highlights

• Production averaged 36,567 Boepd in 2015, up 31% on 2014 and above EnQuest's guidance range.  In both November and December, EnQuest production averaged over 50,000 Boepd.  This reflected a very good operating performance in 2015, with continuing high levels of production efficiency.
• Continued to reduce operating costs, with full year 2015 unit opex at $29.7/bbl, compared to $42.1/bbl in 2014.

• Revenue of $906.6 million and EBITDA** of $464.8 million, reflecting the strong operational performance.

• Projects: Alma/Galia was brought onstream on 27 October 2015. The Kraken project continued on schedule and overall project savings of c.$300 million were achieved compared to the original sanctioned level of capital expenditure.

• Net 2P reserves of 216 MMboe as at start of 2016, down 4 MMboe after 2015 production of 13.3 MMboe, also reflecting the impact of lower oil price assumptions and of EnQuest's 10.5% additional interest in the Kraken development, acquired at the start of 2016. Net contingent resources were 146 MMboe at end of 2015.

• Non-cash post-tax tangible oil and gas asset impairments of $626.2 million, due to the significant reduction in the oil price, particularly in the near term.

• Net debt at the year end, was $1,548.0 million, EnQuest was therefore well within its net debt to EBITDA covenant of five times, for 2015. 

2016 Priorities and Outlook Highlights

• Hedging remains in place for 2016: 10 million barrels are hedged across 2016, at an average of $68 per barrel.
   
• Further cost reductions: Unit opex: EnQuest is now on course to achieve further reductions in average unit opex, in the range $25 - 27/bbl overall for 2016 and into the low $20s after the Kraken development is fully onstream. Total EnQuest 2016 cash capex has been reduced again, now at the low end of the previously announced $700 million to $750 million, despite including additional capex associated with the 10.5% increase in EnQuest's Kraken working interest.  This is down from an equivalent initial 2016 cash capex budget of c.$950 million.
• EnQuest remains focused on its balance sheet strength and is also pursuing a range of further opportunities for debt reduction, including potential asset sales and continuing opex and capex cost reductions.  As at 31 December 2015, cash and undrawn facilities totalled $496.0 million, giving sufficient liquidity to fund Kraken through first oil at prevailing prices. 
• EnQuest reaffirms its production guidance for the full year 2016 at an average of between 44,000 Boepd to 48,000 Boepd.
• Projects: Six Alma/Galia production wells have now been commissioned and are all expected to be onstream by early Q2 2016.  The Kraken FPSO is on course for departure from Singapore in 2016, and the development is continuing on schedule for first oil in 2017.   Since capex savings of c.$300 million were announced in 2015, a further c.$125 million reduction has been made against Kraken's full cycle gross capex budget.  

* Unless otherwise stated, all figures are on a business performance basis and are in US dollars.

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