EnQuest output at top end of previously downgraded guidance
EnQuest Plc (LON:ENQ) told investors it produced an average of 65,938 barrels oil equivalent per day in the four months to the end of April, which is pitched at the top end of the previously reduced guidance rate for 2020 (57,000 to 63,000 boepd).
The company said its performance remains materially unaffected by the coronavirus (COVID-19), albeit the impact of the virus on crude prices impacts its financials.
Production growth of 36% was measured at the Kraken field during the four-month period, with the part-owned operation yielding 38,000 boepd gross, and, at the same time the Scolty/Crathes performed ahead of expectations. New wells were added to the Magnus field in March.
EnQuest added that the implementation of its cost-cutting programme is ‘on track’ and its forecast free cash flow breakeven remains unchanged at around US$33 per barrel for the whole, equating to US$25 per barrel over the remainder of the year.
It also continues to target free cash flow breakeven of c.$27 per boe for 2021.
Chief executive Amjad Bseisu said: “With the strong performance in the year to date and continued focus on delivering our cost programme, we expect that for the remainder of the year we need to realise an average oil price of around US$25/Boe to achieve free cash flow breakeven, and remain confident in meeting our targets.”