Results for the six months ended
Strong production performance and targeted free cash flow breakeven on track
Unless otherwise stated, all figures are on a Business performance basis and are in US Dollars.
Comparative figures for the income statement relate to the period ended
Alternative performance measures are reconciled within the 'Glossary - Non-GAAP measures' at the end of the Financial Statements.
Good performance in a challenging environment
- Group net production averaged 66,055 Boepd in the six months to end
- Operations materially unaffected by COVID-19
- Strong performance on Kraken with gross production of 38,967 Bopd (net 27,472 Bopd), c.19% higher than the same period in the prior year. Full year production is expected to be towards the upper part of the 30,000 Bopd to 35,000 Bopd (gross) guidance range
- Revenue of
- Operating expenditure decreased to
- Robust cash generated from operations at
- Free cash flow generation of
- Lower oil price assumptions resulted in non-cash post-tax impairments of
End June net debt reduced by
- At
- Tanjong Baram Project Finance Facility of
- For full year 2020, the Group's hedge programme covers c.11.4 MMbbls. Approximately 10.3 MMbbls are hedged at an average floor price of
Significant, low-cost 2C resource addition in the
- Signed sale and purchase agreement for 40.81% equity interest in and operatorship of Bressay licences in July
- Low-cost addition of up to 115 MMbbls (net) 2C resources; opportunity for long-term, low-risk, phased sub-sea tie-back project
"The Group continues to perform well in challenging conditions, including COVID-19 and the early shutdown of a number of our assets. The safety of our people and our assets remains our priority. With our ongoing focus on operational excellence, we have continued to exceed our operational targets, including production of around 66,000 Boepd in the first half of 2020.
"Our difficult and early decisions to shut down our higher cost assets have resulted in a substantial cost reduction programme, which is on track. We remain confident that we will achieve our 2020 targets, with free cash flow breakeven for the full year at c.
"Even with the most challenging macro and oil price environment since our genesis as a company, we have been able to generate around
"Looking further ahead, I am delighted we have agreed the acquisition of a material operating interest in the Bressay field. The addition of up to 115 MMbbls of net 2C resources materially increases our 2C resource base and provides
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https://news.cision.com/enquest-plc/r/enquest-plc-half-year-results-2020,c3187937
https://mb.cision.com/Main/344/3187937/1301693.pdf
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