EnQuest forecasts 20% production jump in 2019 despite Kraken glitches

Around 350 EnQuest workers will move from 3:3 to a 3:4, 3:5 rota pattern
Around 350 EnQuest workers will move from 3:3 to a 3:4, 3:5 rota pattern

EnQuest today reported a near-50% increase in production across the group last year, and predicted a 20% jump in 2019.

London-listed EnQuest pumped out 55,447 barrels of oil equivalent per day (boepd) last year, in line with expectations.

The company revised its full-year production guidance range to 54-56,000 boepd at the start of December, from 50-58,000 previously.

The Magnus field exceeded expectations, delivering 21,528 boepd in December. EnQuest completed the acquisition of the remaining 75% of Magnus from BP that month.

But the Kraken field was hampered by FPSO and weather-related outages, coming in at 30,310 barrels per day.

Net debts totalled £1.35 billion at the end of last year, with cash and available bank facilities of around £235 million.

Production is expected to grow by about a fifth to between 63-70,000 boepd this year.

EnQuest chief executive Amjad Bseisu said“The group delivered on its operational targets for 2018, growing production by 48%.

“This performance and higher realised prices has facilitated accelerated repayments of the group’s credit facility.

“Completing the acquisition of additional interests in assets from BP has delivered a set of assets with a strong strategic fit into our portfolio, with the Magnus asset in particular bringing a significant step change in the group’s ability to generate positive cash flow.

“We expect material production growth of around 20% in 2019. Our capital programme includes new wells at Magnus, Kraken and PM8/Seligi as well our pipeline projects at Thistle/Deveron and the Dons and Scolty/Crathes.

“The successful delivery of this programme will underpin production during 2019 and beyond. Our focus on cost control and capital discipline, combined with our improved cash generation capability enables further repayment of debt, which remains the priority for the group.”