Enquest Falls to Record Low as Barclays Says Most Exposed

Enquest Plc fell to a record low after Barclays Plc said it and two other U.K. explorers were more exposed to an oil drop and after a well in Malaysia was plugged and abandoned.

The shares fell 2.7 percent to 64.15 pence at the close in London trading, the lowest close since April 7, 2010.

Enquest, Afren Plc and Ophir Energy Plc are the most exposed if the oil outlook moves toward $70 a barrel, Barclays’s investment-banking unit said in the note today. Brent, used to price more than half the world’s crude, has plunged 30 percent since June and is trading below $80 a barrel.

“Debt leverage combined with a limited tax cushion increase the impact of lower oil prices relative to other producer/developers,” Barclays said of Enquest and Afren.

Enquest’s well off Sabah in Malaysia in which it has a 42.5 percent stake encountered no hydrocarbons, according to the operator Lundin Petroleum AB, which also holds 42.5 percent.

Enquest, based in London, was downgraded to “neutral” from “outperform” by Macquarie Ltd. In October, Enquest and Afren slumped after UBS AG said they’re more exposed than some peers to declining oil prices.

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