With crude oil prices at around seven year lows (Brent down 4% on Monday at US$41.30 per barrel) it is going to take something spectacularly reassuring to excite investors in Enquest (LON:ENQ).
Nevertheless, whatever enthusiasm there is for oil stocks, investors will no doubt be keen to see news of production rates from the Alma/Galia project, which came online in late October.
The project was planned to ramp up to 20,000 barrels oil equivalent per day (gross), which equates to 13,000 barrels to Enquest, once an initial six wells have been ‘tied in’.
This target rate is anticipated in early 2016, according to Martin, who also highlighted that Enquest expects overall group production to meet its formal production guidance of 33-36,000 boepd regardless of Alma/Galia.
Martin, in a recent note, also told investors to look out for guidance on the group’s operating and capital costs.
He also highlighted that there was some potential for new project sanctions.
“Enquest could announce the sanctioning of the Scolty/Crathes development in the North Sea as a tieback to GKA but if sanctioned this is only a modest contribution to value.
“If this project is sanctioned we would expect Enquest to look to defer the bulk of capex until after first oil.”
Other significant announcements for Tuesday:
Finals: CareTech Holdings (LON:CTH), Infrastrata (LON:INFA), Victrex (LON:VCT), Zytronic (LON:ZYT), RWS Holdings (LON:RWS)
Interims: Daily Internet (LON:DAIP),Hornby (LON:HRN), Polar Capital Technology Trust (LON:PCT)
Economic: US – NFIB small business optimism; UK – BRC like-for-like sales, industrial production, manufacturing output, NIESR GDP; Eurozone – GDP. China – Trade.