EnQuest reports oil production in line with expectations

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LONDON (ShareCast) - North Sea operator EnQuest (LSE: ENQ.L - news) has unveiled an operational update reporting that oil production is in line with its guidance.

The company reported that average daily production stood at 22,802 barrels of oil equivalent per day (boepd) in 2012, in line with the guidance range of average production of 20,000 to 24,000 boepd.

The group further reported that its board had approved an increase in the scope and specification of its Alma-Galia project.

The update reported that the planned changes to the Alma-Galia project, were expected to extend the FPSO (floating production storage and offloading) vessel life by up to 15 years, and to add additional wells in any second development phase.

Amjad Bseisu, Chief Executive Officer of EnQuest, said: "It is good to be able to report average production of 22,802 boepd for 2012, above the middle of the range of our guidance, which is a testament to the success of our drilling programme and good reservoir management."

He added: "First (Other OTC: FSTC - news) oil for the Alma-Galia project is still anticipated for the fourth quarter of 2013. The first phase of the project is now expected to generate significantly greater returns than those foreseen at the time of sanction."

"The further increase to 34 MMboe (Million Barrels of Oil Equivalent) in gross 2P reserves for Alma/Galia represents a more attractive first phase development and, with the newly sanctioned improvements, more potential reserves with a second phase."

MF