EnQuest plc reported strong operational performance for the first quarter of the year with production at the top end of guidance range for 2023.
INTEGRITY
Average group production was 47,725 boepd, based upon strong “uptime” across the company’s portfolio.
Magnus well work programme for 2023 has started, with three wells returned to service following P seal repairs/replacement.
The North West Magnus injector is “progressing well” and expected to be ready to support the producer by the end of May.
The company expects to drill two further infill wells later in 2023.
During this month, the company agreed for Petronas to provide additional gas from the Seligi field through existing infrastructure until the end of 2025.
The agreement is expected to increase EnQuest’s gas production by around 25 mmscf per day (50 mmscfd gross).
As at 31 March 2023, the group held net debt of $678 million, a decrease of $39m since 31 December 2022.
Cash and available facilities totalled $276m at 31 March.
OUTLOOK
Average net group 2023 production is expected to be 42,000 to 46,000 boepd, taking into account shutdowns and periods of single train operations planned at Magnus and Kraken, respectively, during Q3.
Operations expenditure is anticipated to be approximately $425m with cash capital of $160m, and $60m for decommissioning.
Chief executive Amjad Bseisu commented: “We have improved asset reliability and integrity across our operated assets, resulting in delivery of strong uptime across our portfolio, including production efficiency of c.89% at Magnus, c.94% at the Greater Kittiwake Area and at Kraken, where we continue to deliver top quartile FPSO performance, and over 92% at PM8/Seligi in Malaysia.”
The company completed 24 well abandonments at Heather and Thistle last year and plans a further 23 well abandonments this year.