Investors in EnQuest expect the North Sea explorer to provide a timeline for the development of the Kraken field later this week, an analyst was quoted as saying in a news report.
Niki Kouzmanov, an analyst at Jefferies, said investors were concerned EnQuest could eat through its remaining financing facilities if the project is hit by delays, the Telegraph reported yesterday.
They are looking for reassurances that EnQuest can bring in sufficient funding for Kraken, which is located east of Shetland.
The firm will publish its first-half results on Thursday.
“We’ll be expecting the company to offer more concrete planning around the Kraken timeline this week,” Kouzmanov said, the Telegraph reported.
“All eyes remain on Kraken first oil in the first half of next year and the potentially tight liquidity ahead of that production start-up.”
EnQuest came under pressure earlier this year when First Oil Expro (FOE) went into voluntary administration after its bank pulled out of lending on the basis of oil reserves.
It meant EnQuest had to increase its stake in the Kraken development, splitting FOE’s 15% share with Cairn Energy.
Media reports said EnQuest had hired debt specialists to help manage its portfolio, though the firm denied taking this step.
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