EnQuest Background
EnQuest PLC (www.enquest.com) is an independent oil and gas production and development company focused on the UK Continental Shelf . Its assets include the Thistle, Deveron, Heather, Broom, West Don and Don Southwest fields. Gaffney, Cline & Associates (GCA) certified that as at 1 January 2010, EnQuests assets had total net proved plus probably oil and NGL reserves of 80.5MMBbl. As at 1 January 2010, GCA has also net certified oil and gas best estimate (2C) contingent resources for individual assets. The aggregate of the oil 2C contingent resources on an unrisked basis is 67.5MMBbl, and of the gas contingent resources is 30.6Bcf .

On 6 April 2010, EnQuest was formed from the demerged UK North Sea assets of Petrofac Limited and Lundin Petroleum AB. EnQuest was admitted to trading on both the London Stock Exchange and the NASDAQ OMX Stockholm. On listing, EnQuest PLC went into the FTSE 250 index and OMX Nordix Index. Its assets include the Thistle, Deveron, Heather, Broom, West Don and Don Southwest fields. It has interests in 16 production licences covering 26 blocks or part blocks in the UKCS, of which 15 licenses are operated by EnQuest.

EnQuest believes that the UKCS represents a significant hydrocarbon basin in a low-risk region, which continues to benefit from an extensive installed infrastructure base and skilled labour. EnQuest believes that its assets offer material organic growth opportunities, driven by exploitation of current infrastructure on the UKCS and the development of low-risk near field opportunities, rather than exploitation of high-risk exploration opportunities.

EnQuest intends to deliver sustainable growth in shareholder value by focusing on exploiting its existing reserves, commercialising and developing discoveries, converting its significant contingent resources into reserves and pursuing selective acquisitions. EnQuest is focused on increasing production from its existing assets in its core hub areas. It believes that it has excellent operational, execution, subsurface and integration skills and it seeks to become the development partner of choice in the UKCS.

EnQuest believes that it has the technical skills, the operational scale and the financial strength to achieve its objectives and to take advantage of the production and development opportunities in the UKCS.

http://www.nasdaqomxnordic.com/aktier/shareinformation?Instrument=SSE75073

Anyone know if these are stamp duty free to buy like PFC which they came from please?

Stamp duty to pay.also on omx.

any thoughts on this share, only going one way at the moment.

Don't think that it is Company specific Irlee as most oilers on my watch list have been down over the last couple of days. Not including oil engineering outfits that is.

thanks for that.

one of my most soporific shares in my portfolio is wakening up today.

the wake up continues.

Lorito Holdings dumping continues, below the 10% announcement today.

The Treasury has buckled under pressure from the energy industry by trimming its 2bn windfall tax on North Sea oil producers to provide loopholes for early stage, less profitable offshore drilling operations. Just four months after Osborne imposed a special levy on oil and gas exploration to fund a drop in petrol duty, the Government yesterday altered its plans by allowing companies to offset greater start-up costs against tax.

News not had an effect on the SP of ENQ.. so far.

StockMarketWire.com
EnQuest has sanctioned the development of the Alma and Galia fields, subject to anticipated regulatory approvals.

The $850m project will add a fourth hub to EnQuest's existing operating base, will increase its net 2P oil reserves by 29 MMboe and is expected to increase production levels to over 40,000 Boepd in 2014.

CEO Amjad Bseisu said: "The Alma and Galia development shows the continuing growth of EnQuest and the breadth and depth of its capabilities, from subsurface to production.

"The project reuses existing facilities and is designed to ensure that abandonment costs will be minimised.

"Alma, formerly the Argyll field, was the first oil field in the UK and was abandoned at relatively low water cut using the technology available at the time.

"With current technology field life can be extended significantly. This type of opportunity fits the EnQuest model of finding fresh opportunities in mature assets."

Proving a good little trading outfit this.

The Amjad Bseisu Trust adding a few more today.

Volume up again in these today, wonder if somethings cooking?

http://www.bbc.co.uk/news/uk-scotland-scotland-business-19515932 So that's why they are up today then.

These have had a good run (and more to come "perhaps") but taking a profit for now.

Enquest Widens it's net http://www.moneyam.com/action/news/showArticle?id=4481215

Baillie Gifford & Co add today to go above a 5% holding today.

Recovered well after yesterdays North Sea leak and dip in SP, good recovery play and should be more to come here in the near future IMHO and DYOR.

Back up to 125p with more to come hopefully.

Limit orders taking me out 125p. Will do for now.

Up to 128 now.. damn it!

EnQuest announces its entry into North Africa http://www.moneyam.com/action/news/showArticle?id=4603338

Half Yearly report http://www.moneyam.com/action/news/showArticle?id=4649584

Norges Bank go above 3% http://www.moneyam.com/action/news/showArticle?id=4665672

EnQuest acquires 50% of Greater Kittiwake area

Interim Management Statement http://www.moneyam.com/action/news/showArticle?id=4706628

Montanaro Asset Management Limited sell a few: http://www.moneyam.com/action/news/showArticle?id=4866323

Half Year Report: http://www.moneyam.com/action/news/showArticle?id=4867499

Be very sceptical of anything EnQuest advise. A PFC style move is highly likely IMO

Not to be trusted eh B/A? Thanks for the heads up.

http://www.moneyam.com/action/news/showArticle?id=4930535

Anyone shorting this must have made a few bucks.

Sounds reassuring on the face of this: http://www.moneyam.com/action/news/showArticle?id=4963866

Up 30% and a well run company.

Part of the Merrill Lynch note today:
"We believe 2015 will show resurgence in M&A, driven by distressed sales, both asset and corporate: the buyers’ market becoming even more attractive. Whilst wellfunded firms will likely be able to defer divestment programmes until sentiment improves, those with stretched balance sheets may be left with little choice. Within our coverage, we believe EnQuest, Premier Oil and Tullow Oil are companies most likely to seek asset sales in order to strengthen leveraged balance sheets.
According to our analysis, the European E&P space prices in an implied long term price of US$66/boe, ranging from US$49/boe (DNO) to US$86/boe (RKH). However should the current c. US$50/boe oil price environment persist longer term (esp. as 2015 oil price hedges roll off), we believe a number of the E&Ps would have material downside risk: Africa Oil, EnQuest, Premier Oil, Rockhopper and Tullow."

Where are the results? Thought they were today? Hmm.

They are BA but not on Stockwatch for some reason http://www.enquest.com/media-centre/press-releases/2015/19-03-2015.aspx

Well received as well, up 19%.

Found them later that day on the Enquest website, Stan. Cheers.

Well received indeed, but tailed off a bit. Obviously with the hedging position they've put off what might have been judgement day, but they really need to increase production. Alma/Galia must perform, but that remains to be seen this summer. ;)

Hi Al - are these worth a punt?

20 Mar 15 Westhouse Securities Buy 39.63 75.00 75.00 Reiterates

20 Mar 15 JP Morgan Cazenove Neutral 39.63 54.00 62.00 Reiterates

Deutsche Bank AG go below 6% http://www.moneyam.com/action/news/showArticle?id=5002321

skinny - sorry, just got back to this. Let me first say I know many people working for the company, but will limit my comments to what has been released to the market for obvious reasons.

Personally I would not touch them until we know about Alma. Despite numerous promises, the Enquest Producer remains on the Tyne. My understanding is there are still serious problems and even when it sails this will solely be to produce "good news". There is still a lot of work to do before it is capable of producing the field. Maybe not a bad thing in a year of lower prices, but this company desperately, desperately needs cashflow. Promises on this vessel have come and gone with every announcement.

I've been looking over the results and previous releases. In January they had hedged at $80 - extremely prudent. Yet not long after that they've realised "a gain of $100 million" to rehedge at $65. Why do that unless your desperate for cash?

The debt is huge and as I said previously the only reason they've not gone down the "Afren route" was that the covenants were relaxed. Without that they were potentially bust.

Why on earth would anyone invest in any company that even mentions having to negotiate covenants? Nuts. Coupled with the aforementioned ongoing troubles, excessive cost overruns and you have a company in really dire straits. The end game has only just been delayed until things fundamentally change.

Thanks for the reply Al - I hope things are well with you.

Not too bad at all, thanks. Still pottering away at the markets, but on a much longer timeframe. Not day traded anything for a number of years. Can't complain about the returns though. Retirement not too far away. ;)

Hope you're making a buck here and there!! :)

Similar here Al - not too bad and still managing to eke out a living - although a bit more conservative these days, with 90-95% 'invested' as opposed to traded.

19th August is a key date.

We expect to hear about Alma production (promised for "mid year", but nothing yet). Don't bet on it. ;)

Expect to hear that the Gadwall well has come in at very good rates indeed. Good news.

News from Alma may not be that good. Still nothing is the word on the street and that word is they are throwing everything at it so as not to disappoint the market yet again on this flagship development. Even if first oil is announced, do not expect things to continue, or at a great rate. The Enquest Producer is currently far from capable of driving all wells that have been ready to go for some time. Not good news.

Interesting week ahead.

Just to confirm I have no position either way at present.

Schroders plc go below 5%

KEEP an EYE
@ 28.75p ( 28.50 / 29p )

Oil prices spiking up and most shares prices has gone up by 3% to 7%, but this one is only 2%. Directors comment " EnQuest has responded well to the lower oil price environment, delivering a strong performance driven by production gains and cost reductions, both core areas of expertise, and by a well executed hedging programme. EnQuest now anticipates that 2016 full year unit opex will be in the low $30s/bbl."
Positive news today....EnQuest has confirmed first oil from the Alma/Galia development in blocks 30/24c and 30/25c respectively, 310km south-east of Aberdeen, in the Central North Sea. Production is via the EnQuest producer floating production, storage and offloading vessel ('FPSO').

An old article and never materialise on the up to ...42.50p or more

By Trends and Targets | Mon, 20th July 2015 - 22:13

ENQUEST (LSE:ENQ), is our next 'punt' share. As the chart shows, it's got a BLUE line and the price is threatening it. In the event of closure now above 42.5p, we're looking for movement to an initial 51.5p with secondary a longer term (presumably) 59p. While both numbers are fairly handy, the share risks a longer term issue as it really cannot be taken seriously until the price closes above the 'high' before the trend break.

The implication from this is it needs close above 61p before true recovery to a long term 77p becomes extremely probable. If we'd to guess, while our 59p thing makes sense, the share will probably stutter for a while just below the 61p level until either the market as a whole improves or the company issue positive news.

Of course, there's always a risk of it all going wrong as we can never be confident until a share actually closes above its downtrend. And even then, we're still wimps. In the next few days, we'd tend regard any spike upward at the open with extreme caution as invariably this is a harbinger of coming doom. For instance, we the market to spike it in the opening seconds to around 44p, this would easily give sufficient force for reversal to 36p initially with secondary 24p. Worse, until such time it actually closes above BLUE, it's trading in a zone with ultimate bottom of 9p. But if it starts trading intraday above 42.5p, we'd be inclined to take it pretty seriously.

 Follow @TrendsTargets

Has started well this morning and better yet this afternoon after the Oil price is spike up again this afternoon.

Down like most oils but what a chart from May.

Was 60p in May.

The silence is deafening, isn't it? :)

If they were not connected with PFC they may well go under the way oilers are these days.

Stan - odds on they go under if oil stays this low? Massive funding required once the hedging ends this year. It was, after all, the smartest thing they've done (probably) ever!! Things ain't good is the word on the street.

Forgot to say, I'm still trying to figure out whether it's good or bad the CEO has such a large stake. Does it colour your judgement? It's a conundrum.

A big holding by one person I usually think is bad B/A but it's arguably the PFC connection that underpins it.. in theory.

These did interest me when they were listed but that's in the past now and I don't hold.

Indecently Swedbank Robur Fonder AB go below 5% today http://www.moneyam.com/action/news/showArticle?id=5205499

Layoffs announced last week, Alma still struggling to give meaningful payback. The bad news is endless and likely to be for a very, very long time.

Not a place for anyone's money methinks.

Acquisition of additional interest in Kraken http://www.moneyam.com/action/news/showArticle?id=5217237

This is a very interesting one, Stan.

First Oil went into administration. It seems they couldn't find a buyer for assets including Kraken so Enquest and Cairn had to somehow stump up the cash to take their pro-rata split of First Oil's share. They had no option, clearly. However, it is known that not so long ago Enquest were trying to offload part of their share in Kraken. This is a complete u-turn. I guess if they had not then Kraken would have been in a bad place? Naturally, this has been funded by further debt.

When you read the Fisrt Oil statement after heading into administration, it was the bankers that pulled the plug. I'd expect this kind of thing to continue.

How many other banks will pull the plug on oil & gas companies, including Enquest? Still wouldn't touch this company.

Very intriguing to put it mildly as you say Big Al, and avoiding these does seem to be the best policy.

I also note they failed to give any update in January, as is their normal practice. I guess we will wait until next month for the final results for more news. It will be interesting to see what spin is taken on them. I do know things continue to be bad, particularly with Alma where they are still struggling to get all wells online. Progress is being made, however. At well over 2 years overdue, this rates as an unmitigated disaster for the company.

All a bit odd isn't it, I have always thought that the PFC connection has had some sort of underpinning with this lot but could be wrong.

Preliminary results, EnQuest's earning fall http://www.moneyam.com/action/news/showArticle?id=5241782

Schroders plc go above 5% http://www.moneyam.com/action/news/showArticle?id=5289045

back in good luck

Shroders go below 5% http://www.moneyam.com/action/news/showArticle?id=5299051

CREDIT SUISSE GROUP AG goes above 3% http://www.moneyam.com/action/news/showArticle?id=5310184

Amazing, could have nearly trebled your money in 4 months! The trouble is that many of these pumpers are presumably going to produce poor figures for the last financial year.

So, do we believe the Telegraph or yesterday's rebuttal? :)

Statement in response to media comment
EnQuest notes The Telegraph article at the weekend about the UK Oil and Gas Authority's possible North Sea contingency plans. EnQuest routinely engages with the OGA and with the UK and Scottish Governments on industry matters, but is not involved in any company-specific discussions such as were implied by the article.

http://www.telegraph.co.uk/business/2016/06/18/uk-government-is-preparing-contingency-plans-for-north-sea-bankr/

That's the Telegraph article. I'm surprised ENQ felt the need to issue that statement. No smoke without fire springs to mind.

Interims this month? Normally, so let's see what the debt pile is now. Some weird and wonderful deals happening around this company to keep it afloat.

KEEP an EYE

25.375p ( 25.25/25.50p)

Ready to move forward as the oil price is spiking up again. There is a seller on the order book @ 25.50p but once is gone should be motoring.

Ready to move forward again now 26p offer, only a few 436 shares left

47K at bid 25.75p
DEPTH 48 v 36

After the usual very slow start and marked down ( not helping this morning as oil prices are lower ) , is now moving forward once again and just now has gone to yesterday's close price

Someone paid over the offer price 26p but naturally was a large size buy 200K
looking good
MM at 26p has now gone, but is an order book stock so there is some stock left at 26p offer

10:06:57
26.1095p
200,000

Another large trade paying premium

10:36:51
26.0065p
133,885

29p +1p

ORDER BOOK Strong again
stronger on the bid side as oil price is bouncing again and Brent at $49.20
a move UP after being hold lower since yesterday mosts oils are still down for the day

DEPTH was earlier 54 v 41 now 62 v 42

top up at 28.50p a few minutes ago

31p +1p

31.25p as opener UT

A higher breakout on the UPtrend as the order book opened with a 31.25p UT

19-Aug-16
08:00:13
31.25p
92,072K UT

Telegraph - Tara Cunningham, business reporter - 20 AUGUST 2016

From bear to bull market in 16 days: Oil hits highest level since Brexit vote

Brent crude has surged to its highest level since before the Brexit vote,a day after it charged into bull market territory. It jumped by as much as 0.65pc to $51.22 in intraday trade amid an unexpected fall in US crude stock piles and as the world’s biggest oil producers prepared to discuss a possible output freeze at next month’s Opec meeting in an attempt to curb the global supply glut.

Since hitting a nadir of $41.80 on August 2, oil has rallied by almost 22pc. The latest leg up in the black stuff is pinned on the hopes that Opec’s meeting in Algeria on September 26 to 28, which takes place on the sidelines of the International Energy Forum, will revive talks on freezing production levels to help bolster prices. It was also lifted by the weak dollar which makes commodities cheaper for other currency holders.

However, the oil price bounce comes less than three weeks after it fell into bear market territory, having fallen by more than 20pc between June 8 to August 2 amid oversupply concerns and pressures about slowing economic growth.

In afternoon trade, Brent crude eased back as the dollar nudged up, before 6pm it was trading down 0.43pc on the day at $50.67 - but remained in bull market territory.

Iraq Will Boost Oil Exports After Agreement on Kirkuk Fields - August 21, 2016

Iraq, OPEC’s second-biggest producer, will increase crude exports by about 5 percent in the next few days after an agreement to resume shipments from three oil fields in Kirkuk.

Shipments will increase by about 150,000 barrels a day as exports resume from the Baba Gorgor, Jambour and Khabbaz fields, Fouad Hussein, a member of the oil and energy committee of the Kirkuk provincial council, said by phone Sunday. The three oil fields are operated by the state-run Northern Oil Co. but their export pipeline is controlled by the semi-autonomous Kurdistan Regional Government.

The NOC halted exports from those fields in March due to a payment dispute with the KRG. Iraq’s new oil minister Jabbar al-Luaibi, on his first day in the job, said last week he saw ways to resolve the dispute with the self-governed Kurds, and Prime Minister Haidar Al-Abadi ordered the oil ministry to resume oil pumping into the pipeline.
Iraq has struggled to boost oil exports this year, with shipments from the northern part of the country hampered by the dispute with the KRG. Iraq’s exports were 3.71 million barrels a day in July, according to the International Energy Agency, including oil sold by the KRG. Calls to the KRG for comment weren’t answered and text messages weren’t immediately returned.

Pumping Operations
“Pumping operations started with test pumping at 70,000 barrels a day last Thursday and the Northern Oil Co. aims to boost it to its normal rate at 150,000 barrels a day this week,” Hussein said. “This is a good step and significant initiative to strengthen relations between KRG and the federal government.”

The Kurds generated $800 million a month from oil sales after deciding in June 2015 to export oil independently of the central government but revenue dropped later to about $400 million a month, due partly to lower crude prices. Benchmark Brent crude dropped 35 percent last year.

The Kirkuk-Ceyhan pipeline was exporting about 600,000 barrels a day of crude before the payment dispute, including 150,000 barrels from the NOC’s fields. It carried 457,000 barrels a day in July from KRG-operated fields, according to information on the KRG website. Exports in February and March were lower due to damage to a section of the pipeline in Turkey.

Kurds Control
Control of Kirkuk’s oil is split between the central government and the KRG. The Kurds control two oil fields in the province, Bai Hassan and Avana, which export about 150,000 barrels a day.
Iraq, the second-biggest producer in the Organization of Petroleum Exporting Countries, holds the world’s fifth-largest oil reserves. The drop in crude prices over the past two years has squeezed state revenue at the same time when the government waged a costly campaign against Islamic State militants, who have seized parts of northern Iraq. The country was producing 4.78 million barrels a day in July compared with 4.44 million at the end of last year, according to data compiled by Bloomberg and Iraq’s oil ministry.

http://www.bloomberg.com/news/articles/2016-08-21/iraq-will-boost-oil-exports-this-week-after-agreement-on-kirkuk

Brent price 1 month chart

North Sea FPSO Operations On Track - Published at 10:21AM - 29/08/16

North Sea FPSO (floating production storage and offloading) unit Armada Kraken is now on track to be delivered to Bumi Armada before it starts operating in the North Sea, Keppel Shipyard announced.

Keppel Offshore & Marine’s subsidiary Keppel Shipyard disclosed on Sunday the completion of the harsh-environment unit designed to operate in the North Sea for 25 years without dry-docking.

“We are happy to be entrusted by our long-standing client Bumi Armada, to deliver its first FPSO unit to operate in the North Sea. The Armada Kraken project has further strengthened our track record in converting sophisticated FPSOs that are designed to operate under harsh-environment conditions,” Keppel Offshore & Marine’s Managing Director Michael Chia, said.

North Sea FPSO Operations On Track
Keppel Shipyard’s work scope for the Armada Kraken project includes refurbishment and life extension works, the upgrade of the living quarters to accommodate 90 personnel, the installation of an internal turret mooring system and the installation and integration of topside process modules.

Kraken is one of the biggest heavy oil projects in the UK sector of the North Sea, operated by EnQuest.

“Armada Kraken marks Bumi Armada’s entry into the North Sea and it underscores our commitment to deliver a high quality bespoke FPSO, that is designed to meet the challenges posed by the North Sea’s harsh environment using proven technology, and incorporates a number of unique features to ensure a safe, reliable and economical operation,” Bumi Armada Chief Executive Offshore, Leon Harland, said.

FPSO Armada Kraken Starts Production in Q4-2016
Earlier this year, Bumi Armada said the FPSO should leave the Singapore yard during the third quarter and initial production at the Kraken field was estimated to begin in November 2016.

The Armada Kraken FPSO is able to handle a peak fluid rate of 460,000 barrels per day (bpd) and 80,000 barrels of oil per day (bopd), 275,000 bpd of water injection, 20 million cubic feet of gas handling and has a storage capacity of 600,000 barrels.

“The FPSO is built in compliance with the strict regulatory guidelines as defined by the UK Health and Safety Executive and Department of Energy & Climate Change regulations and is classed by DNV GL,” he added.

Bumi to pay $65m to EnQuest for Kraken delay - 16 September 2016 22:30

Malaysian floater contractor Bumi Armada has agreed to pay a $65 million refund to EnQuest after the delivery of a floating production, storage and offloading unit for the Kraken field off the UK was delayed.

Bumi to pay $65m to EnQuest for Kraken delay - 16 September 2016 22:30

Malaysian floater contractor Bumi Armada has agreed to pay a $65 million refund to EnQuest after the delivery of a floating production, storage and offloading unit for the Kraken field off the UK was delayed.
--------------------
Bumi Armada Bhd is still in negotiations with UK client EnQuest plc on a US$65 million (RM267.57 million) refund and liquidation damages claim by the latter due to a delay in Armada Kraken, one of the former’s biggest projects to date, according to sources.

Bumi Armada argued the delay was due to the client’s requests for additional equipment, according to a source with knowledge of the matter.

“EnQuest's announcement during the briefing was a surprise,” said the source. Progress on Armada Kraken had been seemingly on schedule during the first-half of the year.

The dispute is bringing to light a growing fear that more claims by clients and financiers could be seen at Malaysia’s oil and gas (O&G) contractors, some already buckling under the pressures of the weak energy price environment, the source said.............

http://themalaysianreserve.com/new/story/bumi-armada-still-talks-enquest-refund-fpso-delay

Good reading by "dangeroushamster"...........
New day, new begginings - Today 06:25

I think Amjad is doing a great job. Nobody could have predicted that this downturn would have been has hard and as long as it has been. Enquest had already committed to two multi billion dollar projects, one of which has just been completed and the other which is close. We know that Kraken is costing around 2.5 billion and Alma Galia was (unfortunately) probably a similar amount, if not more, so to be in debt of 1.7 billion dollars (plus remaining kraken costs) is pretty impressive.

The same people keep coming on here saying sail away of kraken has been delayed yet Enquest have only ever stated sail away to be 2nd half of this year, with first oil in the first half of 2017. If anybody can prove otherwise please do so.

We now have the certainty that the markets need. Ithaca went through the same thing and look at them now, their share price is triple ours, yet they produce 1/5 of the oil we do. Yes our debt is greater, but we should, and I believe will, at some point overtake Ithaca. We used to be just behind Ithaca on share price, maybe 5 to 10p.

I've said it before, but Enquest is much more than just Kraken, look at the rest of the companies assets. Look at how they have turned assets around and squoze every ounce of value out of them. The value of sterling has fallen giving Enquest bigger profits, oil has risen and will continue to do so if OPEC make this deal stick.

I think the company is in good hands and will survive this downturn.

EnQuest agrees $400m finance package

Cash and debt deal will allow company to continue until $2.6bn Kraken oilfield begins production - FT - SEPTEMBER 15, 2016

EnQuest has agreed a debt restructuring and equity fundraising package that will strengthen its balance sheet by $400m in a deal designed to keep the company afloat until its $2.6bn Kraken oilfield in the North Sea begins production next year.

The independent UK oil company has been battling to keep Kraken — one of the biggest new heavy oil developments in the North Sea — on track at a time when revenues from its existing production are under pressure from weak oil prices.

A deal agreed on Thursday involved a share issue of up to £82m ($100m) and a capital restructuring worth about $300m to EnQuest in the form of extended repayment schedules and reduced debt service charges..............

EnQuest agrees $400m finance package

Oct 13, 2016,
the consensus forecast amongst 17 polled investment analysts covering Enquest Plc advises investors to hold their position in the company. This has been the consensus forecast since the sentiment of investment analysts deteriorated on Jun 28, 2016.
The previous consensus forecast advised that Enquest Plc would outperform the market.

Recommendations
1yr ago Latest
Buy
2 2
Outperform
3 5
Hold
9 8
Underperform
3 1
Sell
1 1

Rating Action: Moody's affirms EnQuest's CFR at Caa1, downgrades PDR to Ca-PD, negative outlook

London, 14 October 2016 -- Moody's Investors Service, ("Moody's") has today affirmed EnQuest Plc's corporate family rating (CFR) at Caa1 and senior unsecured rating on the $650 million notes at Caa2. At the same time, Moody's has downgraded the company's probability of default rating (PDR) to Ca-PD from Caa1-PD. The outlook on all ratings remains negative. Moody's will likely view the proposed restructuring of its debt as a distressed exchange if executed as announced, which would be considered a default as per Moody's definitions.

This rating action follows the company's announcement on 13 October 2016 of a proposed financial restructuring. The restructuring will include the implementation of the proposed changes to the existing RCF facility and senior unsecured notes, renewal of the Surety Bond Facilities and the issuance of equity. The existing RCF starts amortising in Q4 2017 and the $650 million notes and GBP155 million retail bond mature in April 2022 and February 2022, respectively. The RCF and the notes in aggregate comprise the bulk of the company's outstanding indebtedness.

RATINGS RATIONALE

On 13 October 2016, EnQuest announced a proposal for a debt restructuring of the group as the company does not expect to make the interest payment due on 17 October 2016 on its $650 million 2022 notes. The key proposed amendments to the existing RCF include extending the final maturity date to October 2021 from October 2019, amend the amortisation profile and the margins and reset certain financial covenants. The proposed key changes to the bonds include interest payments to be capitalised if oil price is lower than $65/bbl over the last 6 months, amend the maturity dates of the bonds to April 2022, with an option exercisable by the company at its discretion to extend it further to October 2023. The company has also launched an equity offering of $100 million, which is partly committed and funded by the CEO.

As per Moody's definition, a restructuring would be considered a distressed exchange if (1) an issuer offers creditors a new or restructured debt, or a new package of securities, cash or assets that amount to a diminished financial obligation relative to the original obligation and 2) the exchange has the effect of allowing the issuer to avoid a bankruptcy or payment default in the future. Under Moody's definition a distressed exchange is considered as a default.

If the company does not make the interest payment due on 17 October within the 30 day grace period; this would be a missed payment default. Also, if the restructuring is executed successfully, Moody's will likely view this as a distressed exchange, which is a default as per Moody's definitions. The PDR of Ca-PD reflects this high probability of default.

The Caa1 CFR reflects EnQuest's high leverage (Moody's adjusted) of 5.2x in 2015 and execution risk to bring Kraken into production even if the restructuring is successfully executed, although Moody's notes that production from Kraken should support cash flow generation in 2017 and lead to an improvement in liquidity and deleveraging thereafter. Moody's also notes that should the restructuring be completed successfully, the additional $100 million of equity financing will support the company's liquidity profile. The CFR of Caa1 balances the current weak capital structure with high leverage, stretched liquidity, and the high likelihood of a default, against the expectation that there will be no loss of principal to lenders as part of the imminent restructuring and no certainty that such a haircut will be needed in future to restore the company's viability.

Rating Outlook

The negative outlook on the ratings reflects the execution risk on the proposed restructuring and the liquidity pressure in 2016-2017 combined with operating risks until Kraken is on stream in 2017.

What Could Change the Rating - Up

Although less likely in the near term, successfully executing the restructuring process resulting in a stronger liquidity position and ramping up of the Kraken project leading to deleveraging could lead to an upgrade on the rating.

What Could Change the Rating - Down

The Caa1 corporate family rating could come under pressure if (i) the restructuring is not executed successfully leading to a default for e.g. a missed payment; or (ii) a material delay and/or cost overruns in the development of Kraken oil field, delayed growth or operating issues.

The principal methodology used in these ratings was "Global Independent Exploration and Production Industry" published in December 2011. Please see the Rating Methodologies page on www.moodys.com for a copy of this methodology.

EnQuest Plc (EnQuest) is an independent oil and gas development & production company with the majority of its asset base on the United Kingdom Continental Shelf (UKCS) region of the North Sea. The company also is building new production base in Malaysia, which contributed about 22% of total production in H1 2016. EnQuest pursues a development led strategy, with a focus on acquiring and developing producing or near-production assets.

At the end of 2015 EnQuest had 2P reserves of 216mmboe, with an average daily production of 36,567 boepd in 2015, up from 27,895 boepd in 2014.

For Open Offer shareholders........... 4 New shares for every 9 Existing Shares @ 23p.

314,232,124 New Ordinary Shares under the Placing and Open Offer have been conditionally placed with institutional investors for a price of 23 pence per New Ordinary Share subject to clawback to satisfy valid applications by Qualifying Shareholders under the terms of the Open Offer.

The Open Offer will comprise, in aggregate, 356,738,114 New Ordinary Shares at an Issue Price of 23 pence per New Ordinary Share on the basis of 4 New Ordinary Shares for every 9 Existing Ordinary Shares.

Please see below the anticipated key transaction dates (a more detailed timetable is included in Appendix II):
. 20 October 2016: Ex-entitlement date for the Open Offer
· 14 November 2016: Shareholder General Meeting
· 14 November 2016: Scheme Meeting
· 16 November 2016: Open Offer Period ends
· 16 November 2016: Scheme sanction hearing
· 17 November 2016: Chapter 15 recognition obtained. Results of Placing and Open Offer (allocations confirmed to investors)
· 21 November 2016: Restructuring becomes effective. Settlement of newly issued shares (T+2) - Transaction close

25.125p ( 25 / 25.25p )

Bought back again @ 25.175p

On the process of Open offer @ 23p and has come down from 32p, this morning was further down but since has bounced, could be time for the return to good things again.
Bid price 25p is well supported at the moment with 490K for 68K at offer



-----------------
Will Enquest plc be forced to ask shareholders for fresh cash?
By The Motley Fool Oct 28, 2016

The oil market may be starting to recover, but a number of popular oil stocks have been left with huge debt hangovers.
Figures released today show that Tullow Oil (LSE: TLW) now has net debt of $4.7bn -- nearly 50% more than its market cap of £2.6bn ($3.2bn). The situation is more extreme at Enquest (LSE: ENQ), where net debt of $1.7bn is more than five times the group's £254m market cap.
Both companies are nearing the end of big projects that started just as the oil market crashed. Completing these projects has required extra debt to offset falling cash flow from oil production.


After £82m placing, will Enquest need more cash?
Enquest has already raised some funds from shareholders. The group sold £82m of new shares earlier this month in order to help fund the completion of its Kraken and Scolty/Crathes projects.

None of this cash was used to repay debt. Even if it had been, £82m wouldn't have been enough to make a dent in Enquest's $1,681m net debt. To help put this in context, Enquest's net debt is 16 times its 2017 forecast net profit of $100m.
Enquest's position is more extreme than that of Tullow and I believe the shares carry a lot of risk. My view is that this month's equity raise is intended to tide the firm over until Kraken production starts next year. At this point, a more comprehensive refinancing may be necessary.

Am I paranoid?
It's worth pointing out that if the price of oil rises strongly, my concerns could prove groundless. But there's no guarantee that will happen.

What's certain is that lower levels of forward hedging mean that both firms will be more exposed to oil price movements next year than they have been so far. In my opinion, Enquest and Tullow are still too risky for equity investors. I believe there are better buys elsewhere.

A good finish at the end of the day 25.25 v 25.50p meaning unchanged, considering at the afternoon the oil price has moved lower again

The buying size is larger than the small sell and on that the order book got stronger as the day goes on, at this rate I see the offer moving to 25.75p

spread 25.50 v 25.75p +0.25p

the expected 25.75p offer is now on and the DEPTH is still very strong on the bid side so with time could move further up

Oil prices bounce as OPEC promises a cut is on the cards

* Oil producers plan cut following Nov. 30 OPEC meeting
* But producers disagree on who should reduce output
* Market fundamentals remain weak, analysts say (Adds ICE data on net longs)

LONDON, Nov 7 (Reuters) - Oil rose more than 1 percent on Monday, boosted by a commitment from OPEC to stick to a deal to cut output, but prices remained more than $7 below last month's high due to persistent doubts over the feasibility of the group's plan.

Brent crude traded at $46.20 per barrel at 1157 GMT, up 62 cents, or 1.36 percent, from the previous close.
U.S. West Texas Intermediate (WTI) crude was up 75 cents, or 1.7 percent, at $44.82 a barrel.

The secretary-general of the Organization of the Petroleum Exporting Countries said the group was committed to an output-cutting deal made in Algiers in September.
"We as OPEC, we remain committed to the Algiers accord that we ... put together. All OPEC 14 (members), we remain committed to the implementation," Mohammed Barkindo told reporters at a conference in Abu Dhabi.

Despite this, many analysts doubt OPEC's ability to coordinate a cut sufficient to balance the market.
"Market belief that OPEC can reach a credible deal has collapsed and prices are now $8 a barrel off the post-Algiers highs," David Hufton, managing director of PVM Oil Associates, said in a note.

He cited record OPEC production in October, infighting between Iran and Saudi Arabia, as well as calls from Iraq for its own exemption from any cut.
"The numbers show that the best deal OPEC are likely to come up with is well short of what is needed to achieve a balanced market in 2017," Hufton said.

Hedge fund and money manager cut bets on rising Brent crude for the third consecutive week in the week to November 1, data from the InterContinental Exchange showed.
Oil futures posted their biggest weekly percentage decline since January last week with Brent falling as low as $45.08, its weakest since Aug. 11, and WTI hitting $43.57, its lowest since Sept. 20.

There are also risks that the oil glut, which has dogged markets for over two years, could continue as OPEC's de-facto leader Saudi Arabia threatened to increase production.

Even if Saudi Arabia does not follow through on that threat, its exports could rise.
"Saudi local oil demand is falling, and just maintaining current output could imply higher exports," Barclays bank said.

There were also signs of rising future U.S. output as the number of drilling rigs looking for new oil rose by nine to 450 in the week to Nov. 4, the highest level since February.

After loosing all the gains and more by 15:30pm late on the day the oil price had a rally........

Oil rises on Clinton election optimism but dollar, OPEC doubts weigh

* U.S. stocks rally on improved Clinton prospects
* Weekly drop of 442,077 bbls at U.S. Cushing hub - Genscape
* U.S. stockpiles likely rose 1.1 mln bbls weekly - Reuters poll
* OPEC reiterates commitment to cut production
* But producers have disagreed on who should reduce output

NEW YORK, Nov 7 (Reuters) - Oil prices settled more than 1 percent higher on Monday, supported by news that U.S. Democratic presidential candidate Hillary Clinton will not face charges over her emails.

Gains, however, were capped by a rallying dollar on Clinton's improved prospects, making greenback-denominated oil more expensive for holders of other currencies, and by doubts over OPEC's planned production cuts.

U.S. West Texas Intermediate (WTI) crude settled at $44.89 per barrel, up 82 cents, or 1.9 percent. Brent crude ended 57 cents, or 1.3 percent, higher at $46.15 a barrel.

The Federal Bureau of Investigation said on Sunday it would not press charges against Clinton over her using a private email server. That indicated worse prospects for Republican candidate Donald Trump, whose stance on foreign policy, trade and immigration have unnerved markets.

On the eve of the election, U.S. stocks were set for their biggest one-day percentage gain since March 1, while a volatility measure was set for its biggest drop since late June.

But the price of oil is unlikely to rise further on U.S. politics, said David Thompson, executive vice-president at Powerhouse, an energy-specialized commodities broker in Washington.

"Will there be a larger rally after Clinton is elected? I'm not so sure," he said of the candidate's potential victory, citing not her policies for the rally, but "fear of the unknown" in the case of a Trump win.

WTI futures were also helped by a weekly drop of 442,077 barrels of oil at the delivery hub for crude futures in Cushing, Oklahoma, for the week ended Nov. 4, according to traders citing energy monitoring service Genscape.

Still, analysts polled by Reuters forecast total U.S. crude inventories rose 1.1 million barrels last week after a record build in the previous week.

The Organization of the Petroleum Exporting Countries' Secretary-General Mohammed Barkindo reiterated on Monday the cartel's commitment to a deal to cut output made in Algiers late September.

But many analysts doubt its ability to coordinate a cut sufficient to balance the market.

"Market belief that OPEC can reach a credible deal has collapsed," David Hufton, managing director of PVM Oil Associates, said in a note.

He cited record OPEC production in October, infighting between Iran and Saudi Arabia, as well as calls from Iraq for its own exemption from any cut.

Intraday Oil price futures - WTI light sweet --------------------------------------------------- BRENT crude ---------------------

26.25p +1.25p (+5.00%)

Yesterday Market Makers marked down the stock and others for no reason and as the days went on the peers recovered ground but kept ENQ down due to being the last day of open offer take up.

today the game is over and let it go to its own rhythm

28.50p 1p (+3.64%)

EnQuest announces production and development update
MONDAY, NOVEMBER 21, 2016

EnQuest's Kraken FPSO vessel sail away

EnQuest PLC is pleased to announce that following good progress on commissioning the water systems, the Floating, Production, Storage and Offloading ('FPSO') vessel, Armada Kraken for the Kraken field development, is expected to sail away in the coming days, from deep water anchorage off the coast of Singapore, for the North Sea. The journey should complete around mid-January 2017. The Kraken development project remains on course to deliver first oil in H1 2017. Meanwhile drilling is progressing to plan at Drill Centre Two following completion of Drill Centre One.

Scolty/Crathes First Oil

Following the successful drilling of the Scolty and Crathes wells in Q2 2016 and subsequent full completion of subsea and topsides scopes, including commissioning of the integrated system the Scolty/Crathes development is proceeding ahead of the schedule previously indicated, the first production wing valve is now open and the first well is flowing.

EnQuest therefore confirms the delivery of first oil from the Scolty/Crathes development ahead of schedule and under budget, approximately a year after the Field Development Plan ('FDP') was approved and the project was sanctioned. This was the only offshore pure oil FDP approval in the UK North Sea in 2015. Unit operating costs are expected to be under $15/bbl in the initial peak volume years and production is anticipated to continue until 2025.

2016 Production

EnQuest has been informed that the third party maintenance shutdown of the Brent Pipeline System ('BPS') may commence this week, for approximately three weeks, which would be a longer shutdown and later start date than previously anticipated. The Thistle and Dons fields would therefore also be fully shutdown for the entire BPS maintenance period as well as an additional short period either side, for ramp-down and ramp-up.

Average production for the ten months to the end of October was 40,857 Boepd, up 25% on the same period in 2015. This production reflects the successful planned maintenance shutdowns on Kittiwake and on PM8/Seligi in H2 2016, which are both now complete. Production at the end of the year is expected to benefit from the Scolty/Crathes development coming on stream and from the new production well K7 coming on line at Alma/Galia.

Taking into account the impact of the extended third party shutdown of the Brent Pipeline System, EnQuest would anticipate average daily full year 2016 production to be broadly around the average daily production level delivered to the end of October of 40,857 Boepd, and below its prior guidance of between 42,000 and 44,000 Boepd. Such an extended maintenance shutdown would not be expected to have an impact on the recovery of reserves as the reduced December 2016 production would be moved to later periods. Accordingly there would be no significant impact expected on the Company's assets and liabilities, financial position, profits and losses, or prospects.

Placing and Open Offer Admission

Further to the announcement made by EnQuest on 17 November 2016 in respect of the Placing and Open Offer, it is expected that LSE Admission will become effective and that dealings in the New Ordinary Shares will commence at 8.00 a.m. today and Stockholm Admission will become effective on or around 21 November 2016 and that dealings (for normal settlement) in the New Ordinary Shares will commence on the same day.

28.25p - 0.50p

Finally The tanker ARMADA KRAKEN is on the move From Singapore harbour

current speed and direction as of 09:42 Speed/Course: 5.2kn / 286°

Http://www.marinetraffic.com/en/ais/details/ships/shipid:754152/mmsi:566489000/imo:9320726/vessel:ARMADA_KRAKEN

28.25p offer will not last now
Today 11:33
There was a 284,966 Buy at full offer 28.25p just now so the double number 33K on the order book offer will not last long
--------------
Today 12:00
another 100K buy at full offer and the offer price has not move up yet- strange
----------------
12:26
single figures (3K ) left at offer price 28.25p

So much playing around, so some more ........


Russia reiterates willingness to freeze its oil output ahead of technical meeting

(ShareCast News) - Russia reiterated that it was willing to freeze its oil production in 2017, but cast a degree of doubt on its willingness to actually cut output ahead of a technical meeting between OPEC and non-member countries to try and reach an agreement.

According to Russia's Energy Minister, Alexander Novak, a freeze would mean that the country would in fact be pumping between 200,000 to 300,000 barrels less than it had originally planned to do so in 2017.

In parallel, Azerbaijan's Energy Minister Natig Aliyev reportedly told a newspaper that the oil cartel had asked non-members to slash their production by up to 880,000 barrels a day.

For their part, OPEC countries themselves were expected to try and reach a deal to reduce their own combined output to between 32.5m to 33.0m b/d from its current level in a meeting scheduled for 30 November in Vienna.

In October, the cartel's average production stood at 33.64m b/d, according to secondary sources cited by OPEC.

Two days before the meeting in the Austrian capital, several non-OPEC countries, including Russia, Azerbaijan and Mexico were due to meet with experts from the cartel to try and reach a deal on production cuts.

As of 1130 GMT, front month Brent crude futures were edging higher by 0.18% to $49.04 per barrel on the ICE.

Crude up 4%.

BREAKOUT

35.50p +5.75 (+19.33%)

Since late yesterday on moving above 29.50p, no wonder of the large rise today with a big volume also 18M supporting the rise

37.375p +1.875p

Another good rise as the breakout goes on

Macquarie today reaffirms its outperform investment rating on EnQuest Plc (LON:ENQ) and cut its price target to 79p (from 80p).
"EnQuest is our pick for further oil price leverage combined with low risk project progression (Kraken first oil expected 1H17). Although the rest of the sector now reflects a much higher discounted oil price than it did four months ago, EnQuest is still discounting US$63/bbl, the same number it was back in August 2016. We believe the valuation gap will be narrowed in the coming months once the market starts to believe in Kraken delivery."

Macquarie today downgrades its investment rating on EnQuest Plc (LON:ENQ) to underperform (from outperform) and cut its price target to 30p (from 79p).

Bought some at below 42.75p

KEEP an EYE

ENQ 42.625p ( 42.50/42.75p )

The retracement done with a marked down after the start on reaching the lower Bollinger Band at 41.75/42p. Order book getting stronger on the bid side, after a very weak start of the day as the oil price was lower overnight but now also recovering.

Armada Kraken ( ship ) leaving Rotterdam tomorrow for the kraken field.
Some large buying trades on the last 30 minutes

--

46.50 v 47p +2p

she is certainly going places as the order book got very strong on the bid side
just now a 200K buy will make a difference on the order book soon

DEPTH 85 v 39

13:34:57
46.9999p
200,000K

Someone's calculation if ENQ, on IAE offer price

IAE offer to value ENQ:

IAE's production forecast 19k boped to 22k boped with Stella start up. The offer was £1.20/share, thus Mcap is £497m + debt £478m = £975m total value, divide this by production (low end) 19k = ratio of 51.3

Applying that ratio for ENQ production to determine its relative share price: 2017 production forecast is 51k x 51.3 = 2,616m, minus debt £1,441m =1,175m, thus share price is 1,175/1,159 = £1.01, discount by say 10% (for Delek offer) gives 91p.
On 2018 production 80k boped gives a sp target of over £2, at the lower PB ratio (IAE 22k boped gives a PB of 44.3) it's a sp target of about £1.80.

North Sea set to roll out the barrels again as UK oil industry is thrown an unlikely lifeline
TELEGRAPH - 11 FEBRUARY 2017 • 1:17PM
In the North Sea, there are fears that the oil basin might not survive a late-life market shock

After a vicious two-year oil collapse that brought the Granite City to its knees, Britain’s oil and gas industry is daring to hope again.

“In Aberdeen people are being embarrassingly nice to me,” says Philip Kirk, weeks after steering oil minnow Chrysoar through an audacious multi-billion pound deal to become one of the largest independent operators in the North Sea at a stroke.

“We’ve had a massively positive reaction to the deal. People want to hear someone talk up what might be achievable. What we need now as an industry is to show what the future could look like and give people something to focus on and look forward to – some sense of optimism after a particularly difficult year for the workforce,” he says.

Global oil prices have dragged through a price rout longer and deeper than the North Sea workforce can remember.

Since the historic lows early last year, the oil and gas industry has lost a quarter of its staff and its capital city of Aberdeen has shrunk by almost a fifth, leaving a trail of insolvencies and mortgage arrears in its wake.

Major oil-producing regions across the globe have been battered as project plans were were left in tatters and booming profits turned to loss.

In the North Sea, fears that the oil basin might not survive a late-life market shock have added extra weight to the gloom.

These fears have been grossly overplayed, says Kirk.

The $100-a-barrel boom years may have left producers bloated with unnecessary costs and rising debt, but the need for leaner operations in the “super-mature” North Sea was becoming clear even before the market crash.

Oil production costs have slipped from $35 a barrel to the low $20s and are expected to fall further still. Government has slashed taxes and smoothed the tax rules for dismantling projects in the coming years. A new regulator is stepping in to streamline a new vision for the industry.

It has been an unprecedented collaboration that has protected the North Sea from collapse and lay the foundation for a new chapter.

http://www.telegraph.co.uk/business/2017/02/11/north-sea-set-roll-barrels-region-thrown-unlikely-lifeline/

50 v 50.50p +1.50 (+3.08%)

The strength of the order book has been reflected on the spike not long go, and managing to keep most of the gains so far.

DEPTH
62 v 43

volume at spread price 33K v 83K

Kraken FPSO Arrives At Hook-Up Location
Published in Oil Industry News on Monday, 13 February 2017

EnQuest’s Kraken development off the UK remains on track as the Armada Kraken arrives on-site at it's hook up location, keeping the project on track for first oil in the coming weeks.

The FPSO which set sail from Singapore towards the end of last year is designed to handle 460,000 barrels per day of fluids with 275,000 barrels per day of water-injection capacity, and storage capacity of 600,000 barrels.

EnQuest has forecast 2017 output to range between 45,000 and 51,000 boepd, with the final figure being dependant on the time of the Kraken start-up.

EnQuest chief executive Amjad Bseisu said: "EnQuest is delivering reductions in operating and capital expenditure and we continue to streamline our operations,”

“Our low cost operating structure and our low cost approach to operatorship are integral parts of our way of doing business ­ whilst always retaining safe operations as our number one priority.”

Https://www.oilandgaspeople.com/news/13399/kraken-fpso-arrives-at-hook-up-location/

49.25p +1.25p

The much awaited already known news on the BB's are finally released....

ENQUEST PLC, 17 February 2017
Development update: Kraken FPSO in the field and hooked up

The Kraken development

The Kraken Floating Production Storage and Offloading ('FPSO') vessel arrived at the field on Monday 13 February, anticipating good weather conditions. The hook up of the Submerged Turret Production ('STP') buoy mooring system, to the FPSO was completed on 15th February and a full rotation test performed so that the vessel is now on station and securely moored. Commissioning work will continue on the topsides. Reconstruction of the turret area pipework and connection of the risers and umbilicals to the swivel stack is being undertaken followed by commissioning of the subsea infrastructure. Delivery of first oil in Q2 2017 is on track.

The Oil Man: Jersey Oil & Gas, EnQuest, Ithaca, Bowleven -Malcolm Graham-Wood | Fri, 17th February 2017 - 12:37

EnQuest

Good news from EnQuest (ENQ) this morning as news from Kraken is that the FPSO has arrived and has been hooked up successfully. With delivery of first oil on track for Q2 this year things are beginning to look up for ENQ and it probably deserves a better reception than that given by the market this morning.

Good article in The Times yesterday.
Author thinks Ithaca has been undervalued with recent bid. Stating Enquests field a long with Ithacas are amongst the largest in the north sea to have passed significant milestones. The tone suggests further rises to come with noting negative stated

----------
The Times - February 18 2017, 12:01am,

First oil from Stella field lifts Ithaca
Greig Cameron, Scottish Business Editor

The Stella field is forecast to more than double Ithaca’s daily production to between 19,000 and 22,000 barrels this year

ITHACA ENERGY
Two of the largest North Sea fields have passed significant milestones with Ithaca Energy’s Stella site producing its first oil while a floating production vessel has been moored on Enquest’s Kraken acreage off Shetland.

Stella has had a troubled gestation with the date for first oil originally pencilled in for the end of 2014.

The timetable was pushed back several times, mainly because work to build a floating production facility at a shipyard in Poland fell behind schedule. Since the vessel arrived in November last year, the weather has caused further delays.

Yesterday Ithaca, which is subject to a £517 million takeover proposal by Delek, the Israeli group, said: “Production has been started from the field and oil export to the adjacent shuttle tanker has…........

Http://www.thetimes.co.uk/edition/business/first-oil-from-stella-field-lifts-ithaca-fq8cwd5rf

50.25p +0.75p (+1.52%)

What a change today from opening lower ( all depends of orders being place on the order book ) and there were not many and more on the offer side, to slowly the bid side getting some orders and almost being equal.

But now the amount are well reverse and the DEPTH has gone to 77 v 38

Bought some @ 42.975p

Looks like an intraday double bottom at this price seem like a good support after the shark spike down, with a Fibonacci retracement of over the maximum 78.6%

Charting Brent oil

It's from Soc Gen via Alphaville. The comment from Bryce Elder at Alphaville sums it up neatly.

Brent gave a break below the triangle pattern within which it was constricted since early January at $54.74 and this level also coincides with the weekly Moving Average. The correction has deepened and almost fetched the earlier highlighted support at $52.00/51.70, the lower band of a short-term down channel and the 61.8% retracement of the up move that occurred form last November to last December.

Weekly RSI indicator is now closing in on a 1-year channel floor (horizontal blue line) and emphasizes the proximity of crucial supports, such as $51.70 and more importantly $50.60/50.00. Indeed, $50.60/50.00 appears pivotal as it represents the uptrend in force since January 2016 cyclical lows ($27.29) and the 38.2% retracement of the following uptrend. Thus, the current correction appears to be transitory and embedded within the overall uptrend, so long $50.60/50.00 holds. In an alternative scenario, a break below $50.60/50.00 would prompt accrued negative signals and mean a prolonged correction to last November low and also March 2016 high at $46.82, and to $45.14, last August low and the 61.8% of the whole uptrend.

Thus, near term levels are standing out at $51.70 and $54.74, and it will take a break above the latter i.e. the reintegration within the previous range for Brent to stage a rebound initially towards $55.75 and then to the short-term channel upper band at $56.75/57.00.
$53.86 is an immediate resistance.

I top up just under 41.50p

Why?

The share price performance of this morning is much the same as yesterday, with another Intraday double bottom at around 41.25p.

Then he order book is hardly changing for the last 20 minutes and much the same for the trades but if any are now buys, what gives me the idea that the selling must be over.

Order book is still weak on the bid side but is well supported by 3 MMs @ 41p, if it was the other way round it would be well up by now, But I am expecting that to happen soon.

1 - What is the free cash flow POO number for ENQ after which it can pay down debt or pursue growth given substantial hedging of $68 has disappeared from 2016?

2 - Also given Candian heavy oil is trading at $35 pb, what is the benchmark Kraken oil gonna be selling at?

3 - And one last question, is debt gonna keep on increasing from $1.8bn if interest is not being paid on it i.e. compounding debt ?

1. $32

2. $18 over Canadian heavy oil

3. Debt starts reducing, slowly, in late 2018.

ENQ
chart and comment by various sources.........

Https://90efcf5696fb6d91896e-62c980cafddf9881bf167fdfb702406c.ssl.cf1.rackcdn.com/data/tvc_99329fb8b4690f0f94df5a1f79ab513b.png

Next support could be 100% fib from swing low 22nd Dec at 37.75, the 76.4% fib at 42 only just failed to support the sp, but only just - intraday low was 41, so may have a second go at holding the sp. The support for poo is more likely to dictate the price movement for ENQ, crude has support at 47.4 about 3% below its current price, that would put ENQ at about 40.25.

TBH who knows, TA can be a self fulfilling prophecy but then again pick a number, any number, this will be driven by poo and poo is driven by a multitude of factors - Baker Hughes count this evening, possible noise from OPEC the weekend, a bidding war for BP, Bentley, Delek, etc,

ENQUEST PLC, 21 March 2017. Results for the year ended 31 December 2016*.
Kraken on track and 2017 guidance reiterated
Magnus/SVT acquisition progressing to plan

2016 results highlights
· Production averaged 39,751 Boepd in 2016, up 8.7% on 2015
· 2016 unit operating costs of $24.6/bbl compared to $29.7/bbl in 2015
· 2016 cash capex of $609.2 million compared to $751.1 million in 2015
· Revenue of $849.6 million and EBITDA** of $477.1 million, reflecting EnQuest's strong operational performance and hedging activities
· Cash generated from operations of $408.3 million, up from $221.7 million in 2015
· Net 2P reserves of 215 MMboe at the end of 2016, 5.9% up on the 203 MMboe at the end of 2015
· Comprehensive financial restructuring significantly improved EnQuest's liquidity position
· Net debt at the year end, was $1,796.5 million, compared to $1,548.0 million at the end of 2015

2017 update and outlook

· The Kraken development continues under budget and on track for first oil in Q2 2017
· EnQuest's confirms 2017 average production guidance, in the range of 45,000 Boepd to 51,000 Boepd for the full year - dependent on the timing of Kraken first oil
· EnQuest also remains on course to reduce average unit opex further in 2017 to be within the range of $21/bbl to 25/bbl including Kraken production, driven by further cost reductions across the supply chain. Cash capex is set to be in the range $375 million to $425 million in 2017, the majority of which is being invested in the Kraken development
· Hedging of c.6 million barrels for 2017, at an average of c.$51/bbl
· Total debt facilities of c.$2.1 billion remain in place
· The proposed EnQuest acquisition of interests in the Magnus oil field and the Sullom Voe terminal was announced on 24 January. Transition activities have begun and are ongoing; the process is expected to take 6-12 months, with no cash outlay for EnQuest

The company, which targets production of 45,000-51,000 barrels per day (bpd) this year, said the North Sea would benefit from further deals like one it concluded in January with BP when it bought a 25 percent stake in BP's Magnus oil field and surrounding assets.

Swinney said the UK government's review of its decommissioning tax and transfer of asset losses was positive for dealmaking in the mature basin.

EnQuest's strategy has been to buy up interests in mature fields for bargain prices and to apply new technologies and stricter spending programmes to squeeze more out of ageing infrastructure.

"Pushing out decommissioning and getting more out of mature fields is absolutely what we do extremely well. Anything that the government does to help that I think we are very keen to be part of," Swinney said.

Kraken a bright spot in an otherwise disappointing performance. Also, strong links with PFC seem to be recognised by the market, fairly IMO.

I did think that links with PFC was a positive, not now though for obvious reasons.

ENQ and PFC are falling in unison.

Certainly... is 6 & 4%!

EnQuest looks to cut debt with $700m a year from new field - 10 JUNE 2017 • 7:34PM

One of the North Sea’s largest new oil fields will begin pumping its first oil within weeks, giving its small-cap operator a $700m (£549m) a year boon.

Production at the Kraken field in the East Shetland basin could begin within days to bring a significant reversal of fortunes for EnQuest, which survived a major debt refinancing late last year.

Kraken could generate free cash flow of $700m a year for EnQuest, according to analysts, even at oil prices of $55 a barrel, by bolstering its production rate by as much as almost 50pc.

EnQuest’s production fell to 37,000 barrels of oil a day earlier this year but with Kraken its full-year average production for 2017 is expected to climb to between 45,000 and 51,000 barrels, depending on how fast the project takes to reach its full potential.

Amjad Bseisu, EnQuest’s chief executive, has said the start of Kraken “will mark a turning point in EnQuest’s progress”, from a period of heavy investment to one focused on generating cash and cutting debt.

The £4bn Kraken field was the largest industrial investment in 2013 and remains one of the UK’s largest heavy oil projects of recent years.

Since then EnQuest has cut project costs by almost half and will deliver the field ahead of schedule after a major debt restructuring, without which the downturn-hit producer would have faced a £2bn debt crunch this summer.

Mark Wilson, an analyst at Jefferies, said that within the small-cap oil space US investors have a “specific interest” in EnQuest ahead of Kraken’s first oil because it is expected to cut the group’s debt, even at low oil prices.

The project will drive down its breakeven cost for producing oil in the UK to between $21 and $25 a barrel, meaning even at $50-a-barrel market prices the group will be able to start chipping away at its debt pile.

The company ran up the debt by continuing to spend heavily through the downturn to develop Kraken. The project also lost a developer after First Oil Expro fell into administration in the wake of the oil price crash, requiring the already stretched company, and minority partner Cairn Energy, to take on a greater stake in the project.

EnQuest ended last year with net debt of $1.8bn, slightly lower than expected but still towards the upper limit of its $2.1bn facility.

Taken some @ 32.75p

Wanted to get in from early this morning at a better price but has been moving higher all the time.

All looks set for better things from this point

1 - The lows of last week at around 30p were just like the oil price holding at lows for some time.
2 - Kraken production is approaching and could begin within days
3 - Oil price rising today
4 - Order book very strong all morning

Brent Oil price on the rise again for the last 30 minutes and moving over $49

Order book getting ready to move forward
DEPTH 55 v 45

Intraday Oil price futures -- BRENT crude ---

Down, down, down. :)

EnQuest confirms first oil from Kraken

EnQuest has confirmed that first oil from the Kraken development was delivered on 23 June.

It said that during the initial ramp-up period, the 13 wells that had been drilled and completed to date - 7 producers and 6 injectors - were being brought online in a phased manner, to maximise long term productivity and value.

Story provided by StockMarketWire.com

They've used this template before, managing to get the good news out just in the nick of time. You can't help wondering what the true story is. There's still a long way to go with Kraken. At least it can't be any worse than Alma/Galia I would hope. :)

Comment on the Telegraph - 26 JUNE 2017 • 12:31PM......

North Sea’s largest new oil project in a decade begins flowing

The £4bn Kraken field was the largest industrial investment in 2013 and could produce as much as 50,000 barrels of oil a day at its peak

The North Sea’s largest new oil project in a decade has begun oil flows in a major milestone for the embattled oil basin in the wake of a brutal industry downturn.

Oil producer Enquest said the two out of three drilling centres began producing oil for the first time last Friday.

The £4bn Kraken field was the largest industrial investment in the UK in 2013 and could produce as much as 50,000 barrels of oil a day at its peak.

Andy Samuel, chief executive of the Oil and Gas Authority, said the Kraken start-up was positive news for the whole basin.

“It has the potential to open up additional heavy oil opportunities in the Northern North Sea, with other developments in the pipeline,” he said

For the small-cap oil explorer, Kraken is expected to increase its production capacity by almost 50pc and deliver revenues that are key to chipping away at its enormous debt pile.

EnQuest boss Amjad Bseisu said more Kraken wells were expected to come on stream next year to lock in further production growth into 2018.

Enquest shares bounced almost 10pc higher to 32.25p, but equity analysts have tempered the heady gains with a caution that the debt-wracked oil explorer is not out of the woods yet.

The £364m company ran up £1.8bn of debt by the end of last year by continuing to spend heavily through a downturn in the oil price to develop Kraken. The eye-watering debt burden required a complete financial restructuring last year to stop the group from burning through its £2.1bn lending facility.

The project is estimated to generate free cash flow of $700m a year for EnQuest, according to analyst forecasts based on oil prices of $55 a barrel.

But oil prices are currently around $46 a barrel, raising concerns that Enquest may face a much longer battle to erode its debt.

James Hosie, an analyst with Barclays Capital, cautioned that the group’s half year results in August could provide a clearer picture of the project’s performance.

“Past experience tells us development risks remain through the production ramp-up phase,” he said.

Nonetheless the OGA, formed in 2015 to help boost the long-term health of the North Sea, said it was pleasing to see a project delivered under budget.

Enquest was able to drive down Kraken’s costs by almost half, in part due to the collapse of the oil market in recent years. Keeping costs low is particularly important in the North Sea, which is more expensive than emerging oil basins off the coast of Africa and Asia.

Richard Hall, EnQuest’s head of major projects, said “rigorous planning, simplification of specifications and clarity in execution” helped the group to deliver “the highly complex project”.

Deirdre Michie, chief executive of trade body Oil and Gas UK, added that its effective partnership working with the supply chain had also played an important part.

“First oil from Kraken is good for EnQuest and good for our industry. It demonstrates once again what the North Sea can still deliver with the right approach and investment,” she said.

Interims can't be far off

Interim RNS today ......

27.875p +2.75p

from being down at the start after the news, is now well up
There is signs of forming an INVERTED HEAD & SHOULDERS on the chart

EnQuest PLC, 3 December 2018

Completion of Magnus Transaction


EnQuest PLC ('EnQuest'), an independent oil and gas production and development company listed on the London and Stockholm stock exchanges (ENQ.L and ENQ.ST), is pleased to announce that it has completed the acquisition of the remaining 75% interest in the Magnus oil field ('Magnus'), an additional 9.0% interest in the Sullom Voe Oil terminal and supply facility ('SVT') and additional interests in associated infrastructure from BP as planned.

Major transaction https://www.moneyam.com/action/news/showArticle?id=6286973

Good to see this lot down where they deserve to be. Really poor business plan essentially with a CEO who apparently runs the company like his own personal fiefdom. Not a great combo!!