EnQuest said yesterday it remained on track for its 2010 production target of an average of 20,000 barrels of oil equivalent per day (boepd).
Amjad Bseisu, chief executive of the Aberdeen-based oil and gas operator, said: “In the 10 months to the end of October we achieved production growth of 47% over the same period in 2009.
“I can confirm that we remain on track to deliver our overall 2010 production target of 20,000boepd, having increased that target from 18,000boepd in August.
“We completed our first acquisition, (Stratic Energy) which provides us with a meaningful increase in our proven and probable reserves and increases our equity in the West Don field. This year we have completed five production wells in three different fields and finished upgrading the drilling rig on the Thistle platform.”
Mr Bseisu added that EnQuest was pleased with its success in the UK’s 26th licensing round, in which it gained all five licences for which it applied, four of them as operator.
EnQuest, formed from the demerged UK North Sea assets of Petrofac and Lundin Petroleum in April this year, said in the first half of 2010 its unit cost of sales for production and transport costs was running at slightly more than $28 a barrel of oil equivalent (boe).
It added that full-year unit costs were expected to increase as a result of factors including the costs of maintaining and operating the Sullom Voe Terminal, where the operator of the plant had advised that costs would be greater than previously expected. This and other costs would add up to $2.50-$3.50 per boe, it said.
The company said capital expenditure for 2010 was now expected to be about £125million rather than the £150million previously estimated, as a consequence of moving £25million of expenditure into 2011.
EnQuest assets include the Thistle, Deveron, Heather, Broom, West Don and Don Southwest fields.
AGR Petroleum Services said yesterday it was to continue its 3
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