TIDMENQ
RNS Number : 4801A
EnQuest PLC
24 May 2023
EnQuest PLC, 24 May 2023
Operations update
Good production performance year to date; full year guidance
remains unchanged
EnQuest Chief Executive, Amjad Bseisu, commented :
"EnQuest has continued to deliver strong operational performance
across our operated portfolio during the early part of the year,
with production to the end of April above the top end of 2023
guidance.
"Production enhancement at Magnus is continuing, following the
successful execution of our 2022 planned shutdown and well
programme, including the drilling of North West Magnus well. We are
now drilling the North West Magnus injector well, which is expected
to come online at the end of May. We expect to drill two further
infill wells later in 2023.
"We have improved asset reliability and integrity across our
operated assets, resulting in delivery of strong uptime across our
portfolio, including production efficiency of c.89% at Magnus,
c.94% at the Greater Kittiwake Area and at Kraken, where we
continue to deliver top quartile FPSO performance, and over 92% at
PM8/Seligi in Malaysia.
"We are building a strong track record in decommissioning with
24 well abandonments executed at Heather and Thistle last year and
another 23 well abandonments planned for this year, while we have
also reached an important milestone in the Thistle project by
awarding the contract for the topsides and jacket removal and
disposal to Saipem.
"We are also making good progress in respect of our new energy
and decarbonisation plans at the Sullom Voe Terminal and I was very
pleased to receive the offer of four carbon storage licences as
part of the first round of UK sequestration licences issued by the
North Sea Transition Authority.
"In response to changes in the UK Energy Profits Levy, we are
optimising our capital allocation by prioritising organic
investments with quick pay backs while remaining focused on
deleveraging and pursuing accretive M&A opportunities."
Operating performance
-- Average Group production in the four months to end April 2023
was above the top end of our guidance range at 47,725 Boepd, based
upon strong uptime across the portfolio
-- The 2023 Magnus well work programme is underway, with three
wells returned to service following P seal repairs/replacement. The
North West Magnus injector is progressing well and is expected to
be available to provide support to the producer by the end of
May
-- In May, we signed an agreement with PETRONAS to provide
additional gas from the Seligi field through existing
infrastructure until the end of 2025. This agreement is expected to
increase EnQuest's gas production by around 25 mmscf per day (50
mmscfd gross)
Liquidity and net debt
-- At 31 March April 2023, the Group's net debt position was
c.$678 million, a decrease of c.$39 million since 31 December 2022
but an increase of c.$54 million versus 28 February 2023, primarily
driven by the unwind of the c.$50 million positive February working
capital position. Cash and available facilities totalled c.$276
million at 31 March.
-- For the period May to December 2023, EnQuest has hedged c.3.6
MMbbls of oil, through the combination of 2.7 MMbbls of put options
and 0.9 MMbbls of costless collars. The average floor price is
c.$59/bbl and the ceiling associated with the costless collars is
c.$76/bbl.
-- For 2024, EnQuest has hedged c.3.2 MMbbls of oil through put
options with an average floor price of c.$60/bbl.
Guidance unchanged
-- 2023 average net Group production is expected to be between
42,000 Boepd and 46,000 Boepd, noting shutdowns and periods of
single train operations planned at Magnus and Kraken, respectively,
in the third quarter
-- Operating expenditure is expected to be approximately $425
million
-- Cash capital expenditure is expected to be around $160
million
-- Decommissioning expenditure is expected to be around $60
million
Production details
Average daily 1 Jan 2023 to 1 Jan 2022 to
production on a 30 Apr 2023 30 Apr 2022
net working interest
basis (Boepd)
----------------------- -------------- --------------
(Boepd) (Boepd)
UK Upstream
- Magnus 16,505 12,880
- Kraken 15,910 19,862
- Golden Eagle 4,496 7,551
- Other Upstream
(1) 3,058 4,158
Total UK 39,969 44,451
-------------- --------------
Total Malaysia 7,756 5,910
-------------- --------------
Total EnQuest 47,725 50,361
-------------- --------------
(1) Other Upstream: Scolty/Crathes, Greater Kittiwake Area and
Alba
Magnus
Average production for the first four months of 2023 was 16,505
Boepd, with production efficiency of 89% for the period. The
Group's programme of well work is underway, with three wells
returned to service following P seal repair/replacement works.
Excluding this legacy wellhead remediation, which is now able to be
carried out offline from the rig operations, Magnus production
efficiency would be around 95%. In addition, the North West Magnus
injector well is nearing completion and is expected to deliver
water injection support to the North West Magnus producer well from
the end of this month.
The Group remains focused on further production enhancement
activity, with infill drilling of two further wells planned for
later in 2023.
Kraken
During the first four months of 2023, average net production was
15,910 Boepd net, driven by natural field decline. The floating,
production, storage and offloading ('FPSO') vessel continues to
deliver top quartile performance, with production efficiency and
water injection efficiency both at c.94% as at the end of
April.
Golden Eagle
Production to the end of April was 4,496 Boepd and production
efficiency remained high at 92%. EnQuest continues to work with the
operator and the joint venture partners to identify opportunities
to enhance performance.
Infill drilling is ongoing, with completion underway and
progressing in line with the revised plan. First oil is expected in
June 2023. Further to completion of the 2022 drilling campaign, a
platform well programme is expected to commence later in the year,
subject to joint venture approval.
Other UK upstream assets
Production for the first four months of 2023 averaged 3,058
Boepd, with strong uptime of c.94% and the reinstatement of the
Grouse well at the Greater Kittiwake Area combining to deliver a
robust production performance.
Malaysian operations
For the first four months of 2023, average production in
Malaysia was 7,756 Boepd, with production efficiency of c.92%.
Production at PM8/Seligi was boosted by the first of 11 Idle Well
Restoration ('IWR') candidate wells coming online during the first
quarter. It is expected that first oil from the first of two well
workovers in 2023 will be achieved in July.
Following the recent agreement to provide additional gas from
the Seligi field, it is expected that an additional net 25 mmscf
will be recognised as EnQuest production from May onwards, with
c.15% attributed to PM8 through the existing PSC arrangement and
c.85% attributed to gas where revenue arising from this production
effectively represents a transportation fee.
Infrastructure and New Energy
The Sullom Voe Terminal ('SVT') and its related infrastructure
maintained safe and reliable performance throughout the first four
months of 2023, delivering 100% export service availability.
The Group continued to make good progress against its plans to
repurpose the terminal site and connected offshore infrastructure,
in support of its ambitions to advance world-scale decarbonisation
opportunities. Within carbon capture and storage ('CCS'), the Group
has successfully secured the offer of carbon storage licences as
part of the first round of UK carbon sequestration licences issued
by the North Sea Transition Authority ('NSTA'). EnQuest has plans
to develop a low-cost carbon megastore that will initially be
capable of receiving and storing up to ten million tonnes of CO(2)
per annum from emitters in UK, Europe and beyond. The Group also
continues to progress innovative proposals to harness local
renewable power and SVT's advantaged location to offer robust and
commercially attractive electrification solutions to facilitate new
asset developments in the North Sea basin and to support UK energy
security. EnQuest is also exploring opportunities to aggregate and
use the excess energy produced by the wind power from onshore and
offshore wind farms being developed near the Sullom Voe site to
produce green hydrogen and derivatives, which could help to
decarbonise a number of industries, both locally and globally. We
continue to maintain a capital-light approach and believe we are
well placed to deliver on these ambitions in conjunction with
potential strategic and financial partners.
UK Decommissioning
A total of eight wells have been plugged and abandoned at
Heather and Thistle (five and three wells, respectively) during the
first four months of 2023, with the decommissioning team targeting
a total of 23 wells to be completed by year end.
The contract for the removal and disposal of the Thistle
topsides and jacket was awarded to Saipem during May and will
utilise Saipem's S7000 heavy lift vessel.
Liquidity and net debt
During the first quarter of 2023, the Group made repayments
totalling $118 million reducing cash drawn under the RBL facility
to $282 million at 30 April 2023. The Group remains ahead of its
accelerated amortisation requirements following the revisions made
to EPL.
Net debt as at 31 March 2023 was $678 million, with cash and
available facilities of $276 million, including restricted funds
and ring-fenced funds held in joint venture operational accounts
totalling $139 million.
EnQuest remains focused on deleveraging the balance sheet and
optimising its capital structure.
2023 outlook unchanged
The Group remains on track to achieve net production between
42,000 and 46,000 Boepd, with low cost, quick payback well activity
planned, most notably at Magnus, partially offset by maintenance
shutdowns planned at both Magnus and Kraken in the third quarter
and natural declines.
Operating expenditures are expected to be approximately $425
million, cash capital expenditure is expected to be $160 million
and abandonment expenditure is expected to be around $60
million.
EnQuest hedged a total of c.7.9 MMbbls for 2023 predominantly
using costless collars, with an average floor price of c.$58/bbl
and the average ceiling price associated with the 3.3 MMbbls of
costless collars of c.$75/bbl. For the period May to December 2023,
EnQuest has hedged c.3.6 MMbbls of oil, predominantly through the
combination of puts and costless collars. The average floor price
is c.$59/bbl and the ceiling associated with the remaining 0.9
MMbbls of costless collars is c.$76/bbl.
EnQuest expects to announce its 2022 half year results in
September 2023.
Ends
For further information please contact:
EnQuest PLC Tel: +44 (0)20 7925
4900
Amjad Bseisu (Chief Executive)
Salman Malik (Chief Financial Officer)
Ian Wood (Head of Communications & Investor
Relations)
Craig Baxter (Senior Investor Relations Manager)
Tulchan Communications Tel: +44 (0)20 7353
4200
Martin Robinson
Martin Pengelley
Harry Cameron
Notes to editors
ENQUEST
EnQuest is providing creative solutions through the energy
transition. As an independent production and development company
with operations in the UK North Sea and Malaysia, the Group's
strategic vision is to be the operator of choice for maturing and
underdeveloped hydrocarbon assets by focusing on operational
excellence, differential capability, value enhancement and
financial discipline.
EnQuest PLC trades on both the London Stock Exchange and the
NASDAQ OMX Stockholm.
Please visit our website www.enquest.com for more information on
our global operations.
Forward-looking statements: This announcement may contain
certain forward-looking statements with respect to EnQuest's
expectations and plans, strategy, management's objectives, future
performance, production, reserves, 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 announcement should
be construed as a profit forecast. Past share performance cannot be
relied upon as a guide to future performance.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
UPDAIMATMTBTMRJ
(END) Dow Jones Newswires
May 24, 2023 02:00 ET (06:00 GMT)
Enquest (LSE:ENQ)
Gráfica de Acción Histórica
De Mar 2024 a Abr 2024
Enquest (LSE:ENQ)
Gráfica de Acción Histórica
De Abr 2023 a Abr 2024