EnQuest today provides an update on its operational performance for the year to the end of October 2021
EnQuest Chief Executive, Amjad Bseisu, said: 'We are delighted to have completed the acquisition of the Golden Eagle area. As a highly cash generative, low-cost asset, delivering material incremental production, reserves and resources, Golden Eagle is a great addition to our portfolio, further strengthening the Company.
'Revenue and cash flow continues to be positively impacted by the prevailing strong price environment and we expect this to continue through the end of the year.
'Group production has been challenging, largely driven by performance at Magnus and a recent unplanned shutdown at Kraken, combined with a supplier driven delay in the pipeline replacement in Malaysia. We now expect production for the year to be around 45,000 Boepd, including the contribution from Golden Eagle since completion.'
Golden Eagle completion
Successfully completed the Golden Eagle transaction on 22 October. In the ten months to the end of October, the asset produced 10,556 Boepd (on a net working interest basis)
Initial consideration of c.$325 million was financed by a $125 million drawdown from the Reserve Based Lending facility, c.$125 million from EnQuest's available cash and c.$75 million of interim period post-tax cash flows from Golden Eagle
Two cargo liftings are anticipated prior to year-end
Good revenue generation
Revenue in the ten months to end October 2021 of c.$950 million, including c.$110 million related to Magnus crossover gas, reflecting the strong price environment and the realised impact of the Group's hedging programme
The Group's average realised oil price including the impact of hedging was $66.0/bbl in the period, c.63% higher than during the ten months to October 2020 ($40.6/bbl)
Higher revenues enabled the Group to finance a larger portion of the Golden Eagle acquisition from cash flow, resulting in a lower than expected drawdown on the Group's RBL facility. At the end of October, the RBL facility was drawn to $485 million with an early voluntary repayment of around $50 million expected to be made before the year-end
2021 year-end net debt is expected to be around the closing net debt position in 2020, after the Golden Eagle acquisition and the c.$60 million early settlement of the Magnus BP vendor payment (subject to year-end working capital movements)
COVID-19 Update
The Group remains compliant with UK, Malaysia and Dubai government and industry policy and continues to work with a variety of stakeholders to ensure its operational response and advice to its workforce is appropriate and commensurate with the prevailing expert advice and level of risk. The Group's day-to-day operations continue without being materially affected by COVID-19.
Contact:
Tel: +44 (0)20 7925 4900
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.
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.
ENQUEST PLC 
