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EnQuest forecasts annual production at lower end of prior range

By Reuters

– Oil producer EnQuest said on Thursday it expects its annual production at the lower end of its previous forecast range of between 46,000 and 52,000 barrels of oil equivalent per day (boepd), after first-half production fell.

Oil companies are facing pressure from fresh concerns about global fuel demand due to surging Delta variant cases of the coronavirus, after benefiting from a rally in oil prices in the first half of the year.

EnQuest flagged lower production activity at its Magnus oilfield due to natural declines, power outages and slower execution of a well intervention programme to improve output.

The British North Sea-focused oil and gas producer secured $750 million in June for debt refinancing to support its purchase of the low-cost Golden Eagle field. EnQuest bought the field in February to add about 10,000 boepd to its output.

EnQuest, which had net debt of about $1.18 billion as of June-end, said its free cash flow rose 63% to $141.5 million in the first half of the year.

($1 = 0.7260 pounds)