Interim Management Statement

PRODUCTION AND PROJECT EXECUTION ON TRACK

INTERIM MANAGEMENT STATEMENT HIGHLIGHTS

Production summary

  • Production from 1 January to 31 October 2012 averaged 21,569 Boepd, in line with EnQuest’s expectations and reflecting the second half weighted phasing of the 2012 drilling programme
  • EnQuest anticipates delivering 2012 average production around the middle of previous full year guidance of between 20,000 Boepd and 24,000 Boepd

Major projects are on track

  • The Alma/Galia development remains on schedule for first oil in Q4 2013 and the farm out to KUFPEC has been completed
  • The proposed development of the Kraken discovery is on schedule for field development plan (‘FDP’) submission in H1 2013
  • The Heather rig reactivation is progressing according to plan, ahead of new drilling in early 2013
  • The next stage of the Thistle field life extension project is moving ahead and an application for the new Brown Field Allowance (as recently announced by HM Treasury) will be made shortly

UK licensing round

  • DECC has offered EnQuest eleven licences in the 27th UK licensing round

EnQuest has started to establish a presence in two new oil basins outside the UK North Sea, as part of executing its long term growth strategy

  • Norway: EnQuest has applied to pre-qualify as an operator in the Norwegian North Sea
  • Malaysia: EnQuest has acquired Nio Petroleum (Sabah) Limited (‘Nio’) – including an appraisal opportunity at the Bambazon oil discovery and other exploration targets – for initial cash payments of approximately $3m, plus a further contingent consideration up to $20m

Amjad Bseisu, Chief Executive, said

EnQuest continues to deliver on our targets with a successful 14 well programme for 2012. Our execution in all of our major programmes at Thistle, the Dons and Alma is on track, which is a testament to the skills and technical strength of our people.  Our financial performance, production and cash generation are on track for another strong year. The execution of our major development projects Alma and Kraken will secure our medium term production and reserves growth.  

We have also announced today our first steps outside of the UK North Sea, preparatory moves to replicate our existing model by targeting previously underdeveloped assets in a small number of other maturing regions; complementing our operations and utilising our deep skills in the UK North Sea.

Please find attached a PDF of the full press release.

For further information please contact:

EnQuest PLC                                                                                  Tel: +44 (0)20 7925 4900

Michael Waring (Head of Communications &Investor Relations)                                            

RLM Finsbury                                                                                 Tel: +44 (0)20 7251 3801

James Murgatroyd

Conor McClafferty

Dorothy Burwell

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.  It is a constituent of the FTSE 250 index.  Its assets include the Thistle, Deveron, Heather, Broom, West Don, Don Southwest and Conrie producing fields and the Alma and Galia development.  At the end of June 2012, EnQuest had interests in 29 production licences covering 36 blocks or part blocks in the UKCS, of which 22 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.

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