REG - EnQuest PLC - Sale of 15% of Bressay and EnQuest Producer FPSO

EnquestAnnouncement

22/12/2023 07:00

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RNS Number : 7004X  EnQuest PLC  22 December 2023

 

 

 

EnQuest PLC, 22 December 2023

 

Sale of 15% interest in Bressay and EnQuest Producer FPSO

 

EnQuest PLC ('together with its subsidiaries, 'EnQuest'), an independent
energy company with operations in the UK North Sea and Malaysia, is pleased to
announce that it has today reached agreement with Viaro Energy's subsidiary,
RockRose UKCS 10 Ltd ('RockRose'), to sell a 15% working interest in each of
the Bressay field and the EnQuest Producer floating production, storage and
offloading vessel ('FPSO'), both located in the UK North Sea.

Under the terms of the agreement, total consideration in respect of the
Bressay field and FPSO is £46.0 million and will involve an initial payment
by RockRose to EnQuest of £34.75 million, which will be used for general
corporate purposes, with the remaining £11.25 million to be paid from future
Bressay cash flows. RockRose will pay its equity share of capital expenditure
associated with the Bressay development, pursuant to an agreed schedule and
approvals.

Steve Bowyer, GM North Sea for EnQuest said, "We continue to progress the
development of the wider Kraken area, including a Bressay gas tie-back
solution to reduce Kraken emissions, as well as an early production solution
project at Bressay. We look forward to working with Rockrose, Waldorf (our
Kraken JV partner) and the NSTA to move the project forward."

Ends

For further information please contact:

EnQuest PLC
 
            Tel: +44 (0)20 7925 4900

Amjad Bseisu (Chief Executive Officer)

Salman Malik (Chief Financial Officer)

Craig Baxter (Head of Investor Relations)

 

Teneo
 
Tel: +44 (0)20 7353 4200

Martin Robinson

Martin Pengelley

Harry Cameron

 

Notes to editors

Total gross assets associated with Bressay and the EnQuest Producer as of 31
October 2023 were £8.6 million, with the original field new build cost
associated with the FPSO being £586 million. Given that Bressay and the
EnQuest Producer FPSO are not currently in a production phase, EnQuest
currently has no profits attributable to the subjects of this transaction.

EnQuest currently holds an operated 100% working interest in Bressay, which is
located across four UK licence blocks: P234, P493, P920 and P977. Bressay is a
heavy oil field in the Northern North Sea located in 110 metres water depth
and 12 kilometres Northeast of the EnQuest-operated Kraken heavy oil field. It
is one of the largest undeveloped oil fields in the UKCS with an estimated
stock-tank oil initially in place ('STOIIP') of 600 to 1,050 MMbbls. The field
was discovered in 1976 and has been appraised through the drilling and testing
of four further wells, with flow rates of up to 2,900 bopd achieved.

 

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 for more information on our global
operations.

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