EnQuest reiterates FY output guidance

EnQuest has reiterated its full-year production guidance for 44,000-48,000 barrels of oil equivalent per day (Boepd), and said it is on track to meet its cost-reduction targets.

The oil and gas development and production company said production averaged 42,752 Boepd in the four months to end-April, up 39% on the year. Average output in April was 45,933 Boepd, benefiting from improving well performance at Alma/Galia.

EnQuest added that 2016 production from the rest of its North Sea fields was up 19% on the year, with Malaysia up 27%. It linked this achievement to high levels of production efficiency.

"EnQuest is well on track to meet its cost reduction targets of delivering unit operating expenditure in the range $25/bbl-27/bbl overall for 2016, and into the low $20s after the Kraken development is fully onstream," it said in a statement.

"The time saved from the excellent drilling performance on Scolty/Crathes, has created the opportunity to accelerate drilling of the Eagle prospect into Q2/Q3 2016," it added.

The Kraken development project continued on schedule, as did the Scolty/Crathes tie-back development. "Drilling was ahead of programme and under budget. The Scolty well was as expected and the Crathes reservoir was ahead of expectations."

Alma/Galia production now had six production wells available. Average net production of 9017 Boepd was realised in April.

"Good uptimes are being delivered and average production volumes are expected to increase with performance enhancements such as acidisation being undertaken."