Enquest PLC (AIM:ENQ) said it has agreed a proposed US$833 million acquisition of offshore Malaysian oil and gas interests that would more than double group production and tilt the business further towards South East Asia.
The deal, which is big enough to qualify as a reverse takeover, will cover participating interests in four production sharing contracts through three farm-out agreements with PETRONAS.
In London, EnQuest shares soared some 20% in Wednesday morning's trade, adding 3.89p to 23p.
EnQuest said US$554 million would be payable upfront on completion, with US$189 million deferred over three years, and up to US$90 million is contingent, tied to final investment decisions for certain projects.
The acquisition assets produced 57,400 barrels of oil equivalent per day in 2025, on a net participating interest basis.
Assuming all three deal packages complete, EnQuest expects its enlarged group production would rise to above 100,000 boepd, which mark a 134% increase over 2025 output; meanwhile, 2P reserves would rise by 85% to about 300 million boe.
It would also greatly shift EnQuest's geographic footprint, with South East Asia set to account for 69% of new group profile, moving the UK North Sea portfolio to around 31% of the company.
Chief executive Amjad Bseisu said the proposed acquisitions mark “a decisive step in the evolution” of the business, expanding EnQuest’s South East Asia position while maintaining balance sheet discipline.
EnQuest noted that the consideration is expected to be funded from existing debt facilities and cash resources.
