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

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.