EnQuest Falls on Damped Expectations for 2013 Oil Production
EnQuest Plc (ENQ), a North Sea oil and gas producer, fell in London trading after saying output this year will be in the lower half of its range.
Shares slipped as much as 3.2 percent and traded at 123.2 pence as of 8:20 a.m. local time. The company said production will be closer to 22,000 barrels a day than to 27,000 barrels a day in 2013. Profit after tax and finance costs dropped 24 percent to $97.7 million in the first half, while output in the period rose 6 percent to 21,455 barrels a day.
EnQuest is stepping up investment and said that its Alma/Galia field will produce first oil in early 2014, adding 13,000 barrels a day. The company predicts the development of Alma and the Kraken field will help bring the company’s output to 50,000 barrels a day over the next few years.
“We had a solid first half performance,” Chief Executive Officer Amjad Bseisu said in a telephone interview. “We’re not giving production guidance for 2014 yet, but with Alma we should have significant growth.”
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