EnQuest Plunges After Cutting 2011 Oil Production Forecast
EnQuest Plc (ENQ), a North Sea oil company, fell the most in five months in London trading after saying that “production uncertainty” at two wells near the Shetland Islands will cut full-year output.
EnQuest retreated 11.15 pence, or 10 percent, to 96.55 pence, the sharpest drop since March 23. The stock has fallen 31 percent this year, valuing the London-based explorer at 775 million pounds ($1.3 billion).
Average production for 2011 will be 23,000 to 24,500 barrels of oil equivalent a day, compared with a previous target of 26,500 barrels a day. Production at the S7 well in the Conrie field and well S8Z in the Don Southwest field was lower than expected, EnQuest said in a Sept. 2 statement
Output in the first half climbed to 25,210 barrels of oil equivalent a day from 18,708 a year earlier, EnQuest said Aug. 12. Chief Executive Officer Amjad Bseisu, who took charge when the company started as a spinoff from Petrofac Plc and Lundin Petroleum AB (LUPE) in 2010, has increased EnQuest’s stakes in existing blocks and added to reserves.
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