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

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.