EnQuest Lowers Production Target for 2011
EnQuest updated 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.