EnQuest Achieves Strong 2H Production, Lower Opex

North Sea-focused independent producer EnQuest reported Tuesday that it achieved strong production so far during the second half of this year.

In an operations update EnQuest said that between July and November it saw its production increase by 26 percent, compared to the same period in 2014, to 35,022 barrels of oil equivalent per day. For 2016, the firm expects its production to average between 44,000 boepd and 48,000 boepd.

EnQuest also confirmed that it is continuing to reduce its operating costs. These, it said, are now ahead of target and expected to be between $31 and $32 per barrel for 2015. In 2016, EnQuest expects Opex to fall to between $26 and $28 per barrel.

The Alma/Galia field achieved first oil on October 27, reaching average net daily production of 4,000 barrels per day during November. The Galia well, having been brought on stream in the second half of November, achieved approximately 7,000 barrels per month during the last few days of the month.The Kraken project continues on schedule to produce first oil during the first half of 2017, with capital spending costs having been reduced by more than 10 percent

Meanwhile, EnQuest revealed that it has approved and sanctioned the $125-million Scolty/Crathes field development plan – which is scheduled to achieve first oil in 2017.

EnQuest CEO Amjad Bseisu commented in a company statement:

"EnQuest is addressing its priorities in this low oil price environment: delivering on production and execution targets, streamlining operations and strengthening the balance sheet."

Analysts who follow the firm at London-based investment bank FirstEnergy noted that "compared to our expectations production at Thistle/Deveron, the Dons area, Heather/Broom and PM8/Seligi has been very strong". First Energy also noted that Opex guidance for 2015 and 2016 was also ahead of its previous expectations.



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