StockMarketWire.com - EnQuest reports good progress in delivering the ramp up of Kraken, with average production increasing each month.

The group said Kraken was achieving month on month increases in production and by early November average production rates were around 23,000 bopd gross.

It said the second production processing train was brought onstream later in November, with rates of over 40,000 bopd gross being achieved.

It added: 'The second and third cargo offloads were completed in October and November respectively.

'The quality of the crude has been well received by buyers; the latest sale of a cargo was contracted at a discount to Brent of less than $5 per barrel, this level of pricing has been achieved earlier than targeted.'

It said that on the basis of this performance and subject to continued progress on plant uptime, EnQuest continued to expect production at Kraken to reach 50,000 bopd gross during H1 2018.

EnQuest said group production averaged 35,410 boepd in the 10 months to end October 2017, reflecting Q3 scheduled maintenance shutdowns of around two to four weeks at most of the existing producing assets and one additional unscheduled two week shutdown at Thistle.

It said the fields also experienced natural declines where there has been no recent drilling.

EnQuest confirmed that 2017 full year average production guidance range remains unchanged. EnQuest said it has continued its close dialogue with its lending banks and as part of EnQuest's ongoing liquidity management strategy, it has proactively sought and has agreed relaxation of covenants and the amortisation schedule of its Term Loan and Revolving Credit Facility.

Chief executive Amjad Bseisu said: 'We are making good progress in delivering the ramp up of Kraken, with average Kraken production increasing each month.

'We have now achieved production rates of over 40,000 bopd gross with DC3 wells online earlier than planned.

'We are on track to deliver a Kraken production rate of 50,000 Bopd gross during H1 2018.

'We had a significant planned maintenance programme in Q3 2017, which reduced production in the ten months to the end of October by c.1,800 Bopd.

'Overall, our non-Kraken assets are now delivering as per our plan post this programme.

'We have hedged c.4 mm bbls at c.$59\bbl for H1 2018 and with our large capital programmes behind us, are on plan to reduce our debt in 2018.'




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