EnQuest plc reported strong operational performance for the first four months of the year with production at the top end of guidance range for 2023.
OPERATIONS
Average group production was 47,725 boepd, based upon strong “uptime” across the company’s portfolio.
EnQuest said that the 2023 Magnus well work programme was underway, with three wells returned to service following P seal repairs/replacement.
The North West Magnus injector is progressing well and expected to be available to provide support to the producer by the end of May.
The company expects to drill two further infill wells later in 2023.
During this month, the company signed an agreement with Petronas to provide additional gas from the Seligi field through existing infrastructure until the end of 2025.
This agreement is expected to increase EnQuest’s gas production by around 25 mmscf per day (50 mmscfd gross).
FINANCES
At 31 March 2023, the group’s net debt position was $678 million, a decrease of $39m since 31 December 2022.
However, the figure was an increase of $54m compared with 28 February 2023, primarily driven by the unwind of the $50 million positive February working capital position.
Cash and available facilities totalled $276m at 31 March.
OUTLOOK
Average net group production for 2023 is expected to be between 42,000 and 46,000 boepd.
This also notes shutdowns and periods of single train operations planned at Magnus and Kraken, respectively, during the third quarter.
Expenditure for operations is expected to be approximately $425m, for cash capital at around $160m, and decommissioning for around $60m.
“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,” said chief executive Amjad Bseisu.
The company executed 24 well abandonments at Heather and Thistle last year and another 23 well abandonments planned for this year.