REG - EnQuest PLC - Operations Update

EnquestAnnouncement

20/11/2024 07:00

For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20241120:nRST8650Ma&default-theme=true

RNS Number : 8650M  EnQuest PLC  20 November 2024

 

 

 

EnQuest PLC, 20 November 2024

Operations update

 

EnQuest PLC ('EnQuest' or the 'Group') announces the following operational
updates, with revisions to guidance for the year ending 31 December 2024.

In early November an unplanned outage at the third-party operated Ninian
Central Platform ('Ninian') shut in all system users, including Magnus
production. EnQuest led a short dive support vessel ('DSV') campaign to
inspect and repair the subsea hydraulic system, with production now returned
to pre-outage levels. This event disrupted what was otherwise a good second
half performance across EnQuest's upstream portfolio, with annual shutdowns
completed on time and to cost, with good subsequent field delivery and
continued high operational uptime.

Due to the impact of the Ninian outage, EnQuest now expects its full year
production to be slightly below its 41 to 45 Kboepd guidance range.

EnQuest has accelerated an investment in flare gas recovery at Magnus to
further enhance asset performance, reduce emissions, and optimise free cash
flow in 2025. As a result, 2024 capital expenditure is expected to total
c.$250 million, with a net reduction in 2024 free cashflow of c.$15 million.
Group 2024 operating and decommissioning expenditure guidance is maintained at
c.$415 million and c.$70 million, respectively.

At Kraken, the joint venture partners were unable to agree a 2025 asset
drilling programme. EnQuest therefore has reached an agreement with Dolphin
Drilling to terminate the rig contract, at a net cost of $14.6 million. This
cancellation provides the opportunity to reduce 2025 net capex by c.$60
million. EnQuest plans to reschedule the Kraken infill wells as part of a
wider programme of drilling in 2026.

- Ends -

 

For further information, please contact:

 

 EnQuest PLC                                                      Tel: +44 (0)20 7925 4900
 Amjad Bseisu (Chief Executive Officer)
 Jonathan Copus (Chief Financial Officer)
 Craig Baxter (Head of Investor Relations and Corporate Affairs)

 Teneo                                                            Tel: +44 (0)20 7353 4200
 Martin Robinson
 Harry Cameron

 

Notes to editors

This announcement has been determined to contain inside information. The
person responsible for the release of this announcement is Chris Sawyer,
General Counsel.

 

ENQUEST

EnQuest is providing creative solutions through the energy transition. As an
independent energy company with operations in the UK North Sea and Malaysia,
the Group's strategic vision is to be the partner of choice for the
responsible management of existing energy assets, applying its core
capabilities to create value through the transition.

EnQuest PLC trades on the London Stock Exchange.

Please visit our website www.enquest.com (http://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 (mailto:rns@lseg.com)
 or visit
www.rns.com (http://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 (https://www.lseg.com/privacy-and-cookie-policy)
.   END  UPDEAXFNFSFLFFA