Full year 2021 guidance remains unchanged
Operations update
Full year 2021 guidance remains unchanged
"
"We have continued to pursue opportunities to enhance our portfolio with our agreements to acquire the Golden Eagle and Bentley assets.
"The various workstreams in relation to the Golden Eagle acquisition continue on track and operationally we are focused on improving production across our portfolio."
Operating performance
- Average net Group production in the four months to end
April 2021 was 46,158 Boepd, within the Group's full year 2021 guidance range which remains unchanged at between 46,000 and 52,000 Boepd (net)- Strong production at Kraken and PM8/Seligi reflects high production efficiency at both assets and the acceleration of well restoration activities at PM8/Seligi
- Production at Magnus has been lower than expected reflecting power and third-party outages and slower execution of the well intervention program
- Multiple production adding projects across our assets continue to be developed and implemented, underpinning full year guidance
Effective liquidity management
- Hedged c.9.0 MMbbls of oil for 2021 with an average floor price of c.
$59 /bbl and an average ceiling price of$68 /bbl -
Refinancing of the senior credit facility as part of the proposed
Golden Eagle acquisition is on track
No change to guidance
- 2021 average net Group production is expected to be between 46,000 Boepd and 52,000 Boepd; Kraken gross production is expected to be between 30,000 Bopd and 35,000 Bopd (21,150 Bopd to 24,675 Bopd net)
-
Operating expenditure is expected to be approximately
$265 million -
Combined cash capital and abandonment expenditure is expected to be approximately
$120 million -
Signed agreement to acquire non-operating interest in
Golden Eagle ; expected to complete around the end of the third quarter - Signed agreement to purchase the Bentley discovery
Production details
Average daily production on a net working interest basis (Boepd) | |||
(Boepd) | (Boepd) | ||
- Magnus | 14,250 | 18,330 | |
- Kraken | 22,689 | 26,871 | |
- Other Upstream1 | 4,080 | 8,047 | |
41,019 | 53,238 | ||
508 | 4,111 | ||
Total | 41,527 | 57,359 | |
Total | 4,631 | 8,579 | |
Total | 46,158 | 65,938 |
1 Other Upstream: Scolty/Crathes, Greater Kittiwake Area and Alba
2
Magnus
Average production for the first four months of 2021 was 14,250 Boepd, reflecting an unplanned third-party outage and power related failures in the first quarter, which have been rectified, and slower execution of the well intervention program. The Group remains focused on improving production through a well intervention programme, increased water injection and facility optimisation.
Kraken
During the first four months of 2021, average gross production was 32,183 Bopd, in line with 2021 full year guidance of between 30,000 and 35,000 Bopd (21,150 and 24,675 Bopd net). The floating, production, storage and offloading vessel continues to perform well, with production efficiency of 86% and water injection efficiency of 89%. A tether was successfully replaced in March, with the field shut in for approximately three days. Subsurface and well performance remains good, with aggregate water cut stable.
Other upstream assets
Production for the first four months of 2021 averaged 4,080 Boepd, in line with expectations. This was driven by good performance from Scolty/Crathes, reflecting the positive impact of compression uptime and gas lift, partially offset by lower production at the Greater Kittiwake Area, primarily as a result of a failure of an umbilical providing power to the Mallard and Gadwall wells impacting production. Reinstatement of power is expected in the third quarter of 2021.
Alba continues to perform broadly in line with Group expectations.
Midstream1
1 Includes the
Average production of 508 Boepd was lower than in 2020, primarily reflecting the cessation of production at Alma/Galia in
Malaysian operations
For the first four months of 2021, average production in
Business development
In February, the Group signed an agreement with Suncor to purchase Suncor's entire 26.69% non-operated equity interest in the Golden Eagle area, comprising the producing
In April, a share purchase agreement was signed with
The Group also signed an agreement with Anasuria Hibiscus to farm-down an 85% working interest in, and transfer operatorship of, the Eagle discovery located in the
1
COVID-19 Update
The health, safety and wellbeing of our employees is our top priority. The Group remains compliant with
2021 outlook (based on the Group's existing portfolio)
The Group remains on track with net production expected to be between 46,000 and 52,000 Boepd, with a number of production enhancing projects planned at several of the Group's assets through 2021, including the pipeline and riser re-instatement at PM8/Seligi in the second half of the year.
Operating expenditures are expected to be approximately
Ends
For further information please contact:
Tel: +44 (0)20 7925 4900 | |
Tel: +44 (0)20 7353 4200 | |
Notes to editors
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
This information is provided by RNS, the news service of the
https://news.cision.com/enquest-plc/r/operations-update,c3345784
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