Interim Management Statement

Highlights

EnQuest is on track to achieve its 2011 average production target of 26,500 Boepd, 26% above 2010:

-          Production in the first four months averaged 25,402 Boepd, up 55% on the equivalent 2010 period

-          The Thistle NWFB-P1 well came in better than prognosis and was drilled ahead of schedule and on budget

-          The Don Southwest S8 producer and S9 injector wells were also better than prognosis and  were drilled ahead of schedule and on budget

-          The Area E exploration well at Don Southwest was successful, it is now called the Conrie field.  It is scheduled to come onstream in the fourth quarter of 2011

EnQuest recently announced an agreement to acquire 32% of the Crawford and Porter fields, taking the working interest to 51% and assuming operatorship of the development

EnQuest CEO Amjad Bseisu said:

“EnQuest’s production and operational performance remains on track, with a busy period ahead of us to achieve our 26% growth target for the year.  We also continue to work towards a possible sanction of the Ardmore field this year.  Last week, EnQuest agreed a farm in to Crawford, whereby our position will be consolidated both by an increase in our equity to 51% and by our new role as operator.  We are working towards sanction of this development during 2012.

We have previously stated that we were disappointed with the UK budget increase in the supplementary charge on North Sea oil and gas production.  We, and the industry, continue discussions with the government, seeking ways to mitigate the impact on investment. There remains significant potential in our development and production programme.  We are confident in our ability to deliver EnQuest’s growth objectives from our UKCS production and from further afield.”

Please see attachment for the full announcement