EnQuest plc announced its average net group production in the first four months of 2021 was within the full year guidance range for its operations in the UK and Malaysia.
In its review for the period, the group said it remained on course to deliver its targets as it recorded 46,158 boepd within guidance range which remains at 46,000 to 52,000 boepd (net).
EnQuest reported strong production at Kraken and PM8/Seligi, although Magnus was lower than expected, and the company continued to add and develop multiple projects.
The refinancing of the senior credit facility as part of the proposed Golden Eagle acquisition was reported as being on track.
The group’s operating expenditure is expected to be approximately $265 million with combined cash capital and abandonment expenditure expected at $120m.
TRANSACTIONS
In February, EnQuest signed an agreement with Suncor to purchase its entire 26.69% non-operated equity interest in the Golden Eagle area, comprising the producing Golden Eagle, Peregrine and Solitaire fields for an initial consideration of $325 million.
In April, EnQuest signed a share purchase agreement with Whalsay Energy for its 100.00% equity interest in the P1078 licence containing the proven Bentley heavy-oil discovery.
EnQuest 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 UK North Sea.
OPERATIONS
MAGNUS
Average production for the first four months of 2021 was 14,250 boepd, reflecting an unplanned third-party outage and power-related failures, which have been rectified, and slower execution of the well intervention programme.
KRAKEN
During the period, 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).
EnQuest said that the floating, production, storage and offloading vessel continued 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 EnQuest’s expectations.
There was good performance from Scolty/Crathes although partially offset by lower production at the Greater Kittiwake Area due to a failure of an umbilical providing power to the Mallard and Gadwall wells.
Reinstatement of power is expected during the third quarter of 2021.
Alba continues to perform broadly in line with group expectations.
MALAYSIA
Average production was better at PM8/Seligi fields than EnQuest expected at 4,631 boepd due to the acceleration of initial production recovery activities following the riser detachment in late 2020.
The group anticipates replacement of the pipeline and riser by the end of the third quarter 2021.