**EnQuest Shares Up As New Assets Help Drive Production Up 19.2% **
LONDON (Alliance News) – EnQuest PLC (LON:ENQ) saw its shares rise early Wednesday after it reported a 19.2% increase in production for the first 10 months of the year, helped by acquisitions in Malaysia and Tunisia, and reiterated its guidance for the whole of 2014.
The oil and gas producer said production in the 10 months to October 31 was 27,567 barrels of oil equivalent a day, buoyed by 2,688 barrels from its newly acquired assets in Malaysia and Tunisia, its first assets outside the North Sea. The company reiterated its 2014 production guidance of between 25,000 and 30,000 barrels of oil equivalent a day.
“The 19% growth in production to the end of October reflects continuing strong reservoir performance and top quartile production efficiency from our existing producing assets. It also reflects a substantial initial contribution from PM8/Seligi and Didon, our first producing oil fields outside the North Sea,” Chief Executive Amjad Bseisu said in a statement.
“With Alma due onstream in mid-2015 and Kraken on schedule for first oil in 2017, EnQuest is set for substantial production growth from its UK hubs,” he added.
The company said it had hedged about 22,000 barrels of oil equivalent a day in 2015, helping underpin its planned capital investment programme.
“Whilst budgets are still being finalised, the indicative level of the UK capex programme in 2015 is in the approximate range of USD700 million to USD800 million, weighted towards the second half of the year. Additional limited amounts of international investment will be subject to approval and are expected to be cash flow neutral in 2015,” it said.
EnQuest shares were up 5.8% at 74.00 pence early Wednesday, the best-performing stock on the FTSE 250.
By Steve McGrath; firstname.lastname@example.org; @stevemcgrath1
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