EnQuest Cuts Production, CAPEX

Development and production company EnQuest has cut its average production guidance for 2016 to between 42,000 and 44,000 barrels of oil equivalent per day and expects its 2016 capital expenditure to be reduced by around $30 million.

The lower production guidance reflects a slow ramp-up from the UK Alma/Galia development and low production from the Dons/Ythan asset on the UK Continental Shelf, according to FirstEnergy Capital. EnQuest’s CAPEX is expected to be reduced as a result of the further phasing of milestone payments, said the company in its first half results for the year.

EnQuest produced an average of 42,520 boepd in 1H 2016 and recorded gross profit of $117.7 million. The company continued further reductions in operating costs during the first half of the year, with unit operating expenditure coming in at $23 per barrel, and revealed that it was still conducting negotiations for the farm out of a 20 percent working interest in the exploration and production licenses in the Kraken field to the Delek Group.

“With very substantial structural reductions in our cost base already delivered, the long term potential of EnQuest’s business model remains compelling,” said EnQuest CEO Amjad Bseisu in a company statement.

“EnQuest’s overriding priority continues to be delivering a business which is robust in this challenging environment,” he added.

FirstEnergy anticipated that the market will react slightly negatively to EnQuest’s latest announcement due to its “low production and the transaction with Delek appearing still uncertain”.

A graduate in journalism from Cardiff University, Andreas has eight years of experience as a business journalist. Email Andreas at andreas.exarheas@rigzone.com

WHAT DO YOU THINK?

Click on the button below to add a comment.
Post a Comment
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

Related Companies
Events  SUBSCRIBE TO OUR NEWSLETTER

Our Privacy Pledge
SUBSCRIBE

More from this Author
Andreas Exarheas
Assistant European Editor | Rigzone
 -  Analysts: OPEC Deal will see Brent Hit... (Dec 2)
 -  Ex-Oil Workers Look to Grow Aberdeen B... (Dec 1)
 -  Centrica: Oda Field to see $634M Inves... (Nov 30)
 -  Environmental Report on UK Oil, Gas In... (Nov 29)
 -  PGNiG: 6 Oil, Gas Workers Kidnapped in... (Nov 28)


Most Popular Articles

From the Career Center
Jobs that may interest you
US Houston: Division Finance & Accounting Manager
Expertise: Accounting|Financial Analyst
Location: Houston, TX
 
SharePoint Project Manager
Expertise: IT - Programming & Database|Project Management
Location: Houston, TX
 
Commercial Director - Terminals
Expertise: Business Development
Location: South Carolina, 
 
search for more jobs

Brent Crude Oil : $54.46/BBL 0.96%
Light Crude Oil : $51.68/BBL 1.21%
Natural Gas : $3.44/MMBtu 1.99%
Updated in last 24 hours