StockMarketWire.com - EnQuest said production in 2017 was in line with guidance as its Kraken project was delivered on schedule and below budget while significant production grow is expected in 2018.

For 2018, the company expects to ramp up production by between 33% and 55% at c.50,000 to 58,000 Boepd after reporting group production averaged 37,405 Boepd in 2017, in line with guidance.

Kraken first oil in Q2 2017, was reported on schedule and under budget with gross production rates of over 40,000 Bopd achieved. In January, Kraken gross production averaged 35,000 Bopd, delivering the targeted 50,000 Bopd (gross) as planned.

Enquest said it expects to report operating expenditure of approximately $350m in 2017, with unit opex of c.$25.5 per boe, while cash capital expenditure is expected to be approximately $370m, below guidance range.

Both unit opex and cash capital expenditure is expected to fall in 2018 to c.$24 per boe and $250m, respectively.

EnQuest CEO Amjad Bseisu said: '2017 was a transformational year for EnQuest. Delivering the Kraken project on schedule and below budget was a huge achievement.'

'As one of the largest developments in the North Sea in recent years, it demonstrated EnQuest's ability to deliver complex projects, while the acquisition of the Magnus oil field and Sullom Voe Oil Terminal provides further opportunities for us to apply our cost focused life extension capabilities and for growth.'

'Performance at Kraken continues to improve, and along with the full year impact of Magnus underpins our expectations for material production growth in 2018. The resulting increase in operating cash flow combined with lower capital expenditure will enable us to begin reducing our debt.'




At 8:26am: [LON:ENQ] EnQuest Plc share price was +1.65p at 30.65p



Story provided by StockMarketWire.com