EnQuest PLC Magnus and Thistle Options exercised (9089C)
October 04 2018 - 2:00AM
UK Regulatory
TIDMENQ
RNS Number : 9089C
EnQuest PLC
04 October 2018
EnQuest PLC, 4 October 2018
Magnus and Thistle Options exercised
EnQuest PLC ('EnQuest'), an independent oil and gas production
and development company listed on the London and Stockholm stock
exchanges (ENQ.L and ENQ.ST), is pleased to announce that following
Shareholder approval at the Company's General Meeting on 1 October
2018, it has exercised its options with BP relating to the Magnus
field and associated infrastructure and the Thistle and Deveron
fields.
The Magnus acquisition, which is targeted for completion by
year-end 2018, subject to requisite regulatory and third party
consents, is expected to add approximately $500 million of net
present value to the Group with a significant increase to both
existing 2P reserves and annual production.
Exercising the Thistle option results in EnQuest receiving $20
million in cash in exchange for increasing its total payment
obligation of BP's decommissioning costs of the Thistle and Deveron
fields to 7.5% from 4.5% previously. The cap on EnQuests total
payment obligation also increases by GBP42 million to GBP99
million. The funds are expected to be received from BP within 10
business days.
Ends
For further information please contact:
EnQuest PLC Tel: +44 (0)20 7925 4900
Amjad Bseisu (Chief Executive)
Jonathan Swinney (Chief Financial Officer)
Ian Wood (Communications & Investor Relations)
Tulchan Communications Tel: +44 (0)20 7353 4200
Martin Robinson
Martin Pengelley
Notes to editors
ENQUEST
EnQuest is one of the largest UK independent producers in the UK
North Sea. EnQuest PLC trades on both the London Stock Exchange and
the NASDAQ OMX Stockholm. Its operated assets include
Thistle/Deveron, Heather/ Broom, the Dons area, Magnus, the Greater
Kittiwake Area, Scolty/Crathes Alma/Galia and Kraken; EnQuest also
has an interest in the non-operated Alba producing oil field. At
the end of June 2018, EnQuest had interests in 20 UK production
licences and was the operator of 18 of these licences.
EnQuest believes that the UKCS represents a significant
hydrocarbon basin, which continues to benefit from an extensive
installed infrastructure base and skilled labour. EnQuest believes
that its assets offer material organic growth opportunities, driven
by exploitation of current infrastructure on the UKCS and the
development of low risk near field opportunities.
EnQuest is replicating its model in the UKCS by targeting
previously underdeveloped assets in a small number of other
maturing regions; complementing its operations and utilising its
deep skills in the UK North Sea. In which context, EnQuest has
interests in Malaysia where its operated assets include the
PM8/Seligi Production Sharing Contract and the Tanjong Baram Risk
Services Contract.
Forward-looking statements: This announcement may contain
certain forward-looking statements with respect to EnQuest's
expectation and plans, strategy, management's objectives, future
performance, production, reserves, costs, revenues and other trend
information. These statements and forecasts involve risk and
uncertainty because they relate to events and depend upon
circumstances that may occur in the future. There are a number of
factors which could cause actual results or developments to differ
materially from those expressed or implied by these forward-looking
statements and forecasts. The statements have been made with
reference to forecast price changes, economic conditions and the
current regulatory environment. Nothing in this announcement should
be construed as a profit forecast. Past share performance cannot be
relied on as a guide to future performance.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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