EnQuest reduces net debt to $880 million on $332 million H1 cashflow

LONDON (Reuters) - British North Sea focused oil producer EnQuest cut its debt to $880 million on the back of $332 million in second-half cashflow, it said on Tuesday.

EnQuest, with a market capitalisation of around $636 million as of Monday, produced just 50,000 barrels of oil equivalent per day (boed) in the three months to the end of June, it said in an operations update.

Its debt stood at $1.2 billion in February.

EnQuest had free cashflow of $142 million in the second half of last year, when its production was around 46,000 boed and oil prices were much lower.

It said cashflow in the second half was hit by planned maintenance work on its fields and the 25% windfall tax imposed by the government on the sector.

EnQuest hedged 3.4 million barrels of its output through December at an average floor price of $60 a barrel and an average ceiling price of $79 a barrel.

Out of next year's production it hedged a similar amount between average prices of $57 and $77 a barrel.

(Reporting by Shadia Nasralla; Editing by Kirsten Donovan)