Enquest reiterates production guidance after 19% growth in 2014

12th Nov 2014 09:24

North Sea-focused oil explorer Enquest has said that production so far this year has risen by almost a fifth as it reiterated its output guidance for 2014.Production from 1 January to 31 October averaged 27,567 barrels of oil equivalents per day (boepd), up 19.2% on the same period in 2013.The company said this was due to strong output from its existing hubs and from its newly acquired assets in Malaysia and Tunisia, which produced 2,688boepd.Full-year production is still expected to average 25,000-30,000boepd, up from 22,802boepd in 2013."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," said chief executive Amjad Bseisu."It also reflects a substantial initial contribution from PM8/Seligi and Didon, our first producing oil fields outside the North Sea."Meanwhile, as part of its regular programme to underpin planned capital investment in the year ahead, Enquest said it has hedged 22,000boepd in 2015.This "should provide a bit more comfort in the near-term given the lower oil price environment", according to analysts at Westhouse Securities, who said that this accounts of around 75% of estimated 2015 output.Bseisu acknowledged that the oil and gas industry has been recently "adjusting its plans" in light of the recent slump in the price of oil. Enquest's planned capital expenditure programme for 2015 will be set out in detail with its full-year results in March next year.The stock was up 0.8% of 0.55p at 70.50p by 09:30 on Wednesday, paring initial gains that sent it to a high of 75.30p in early deals.