ENQUEST PLC, Production and Development Update.
2011 Production Target
EnQuest is today updating its production targets for the full year 2011. The S7 production well in the Conrie field, discovered earlier this year, and the S8Z well in area 6 of the Don Southwest field both started production during August 2011. The S7 Conrie well came on production at lower than expected rates. The S8Z well started production at the expected initial rate, but has declined more quickly than anticipated. EnQuest is in the process of testing and assessing the well results. EnQuest does not expect a material change in ultimate recovery of reserves in the Don Southwest field and is studying whether a further well or sidetrack is needed.
As a result of the production uncertainty on both wells, EnQuest expects average production for the full year 2011 in a range between 23,000 Boepd to 24,500 Boepd.
Alma Development Project
EnQuest has submitted the first draft of the proposed Field Development Plan (‘FDP’) for the Alma (formerly Ardmore) Development in the Central North Sea. This first draft FDP has been submitted to DECC specifically for the Alma field, with a separate FDP to follow shortly for the Galia (formerly Duncan) field; final approval of these FDP’s is anticipated in time for full project sanction before year end. If approved, the project is scheduled to start production in the second half of 2013; peak production is expected to be in excess of 20,000 Boepd. EnQuest is looking forward to being in a position to provide full details on the Alma and Galia development project following full project sanction.
For further information please contact:
EnQuest PLC Tel: +44 (0)20 7925 4900
Jonathan Swinney (Chief Financial Officer)
Michael Waring(Head of Communications & Investor Relations)
Finsbury Tel: +44 (0)20 7251 3801
Notes to editors
EnQuest is the largestUKindependent producer in the UK North Sea. EnQuest PLC trades on both the London Stock Exchange and the NASDAQ OMX Stockholm. It is a constituent of the FTSE 250 index and OMX Nordix index. Its assets include the Thistle, Deveron, Heather, Broom, West Don and Don Southwest producing fields. At the end of the first half of 2011, EnQuest had interests in 20 production licences covering 25 blocks or part blocks in the UKCS, of which 18 licences are operated by EnQuest.
EnQuest believes that the UKCS represents a significant hydrocarbon basin in a low-risk region, 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.
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, 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.