Enquest sees lower production in 2021; to acquire equity interest in Golden Eagle development

  • Feb 04, 2021
  • Stock Market Wire

Enquest sees lower production in 2021; to acquire equity interest in Golden Eagle development StockMarketWire.com - Oil and gas company Enquest said it expected lower production in 2021 as it would cease production at the Dons field in the first quarter for planned maintenance.

The company said 2021 average net production was expected to be between 46,000 boepd and 52,000 boepd, well below the average production of 59,116 Boepd reported in 2020.

Operating expenditure for 2021 was expected to be approximately $265 million.

In a separate statement company also said it had agreed to acquire Suncor Energy UK's 26.69% stake in Golden Eagle area for an initial consideration of $325 million, with an additional consideration payment in H2 2023 of up to US$50 million.

Golden Eagle area, comprising the producing Golden Eagle, Peregrine and Solitaire fields would add production of about 10 kboepd, close to 18 million barrels to net 2P reserves and about 5 million barrels to net 2C resources.,

If between July 2021 and June 2023 the dated Brent average crude price equals or exceeds US$55/bbl, US$25 million be paid, or £50 million would paid if dated Brent average crude price equals or exceeds US$65/bbl.

At 9:00am: [ LON:ENQ] EnQuest Plc share price was 0p at 10.74p

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