Oil producer EnQuest PLC (LON:ENQ) reiterated its full-year production guidance after an operational update, though the market seemed mildly disappointed in output year-to-date.
Production average 42,752 barrels of oil equivalent per day (boepd) in the first four months of the year, down from 43.4k barrels in the second half of 2015, but up 39% on the corresponding period of 2015.
Broker Mirabaud said production year-to-date looked “slightly light”, although volumes recovered to 45.9k boepd in April.
EnQuest said it still expects to pump out between 44k and 48k boepd this year.
“The under-performance appears to be down to [the] Alma/Galia field which contributed just 5.6k boepd, although volumes recovered to 9k boepd in April and further enhancement initiatives are planned including acidisation,” Mirabaud noted.
The keenly anticipated Kraken development project continues on schedule, while the Scolty/Crathes tie-back development is also on track, with drilling ahead of plan and under budget.
The Scolty well was as expected and the Crathes reservoir was ahead of expectation, EnQuest said.
The North Sea-focused company said it is on pace to meet its cost reduction targets of delivering unit operating expenditure in the range of US$25-27 a barrel overall for 2016, and into the low twenties when it releases the Kraken.
As at the end of April, net debt was around U$1.63bn, up from US$1.55bn at the end of 2015.
“Net debt of $1.63bn gets only a fleeting mention but the management, maybe for the first time, is less gung-ho about taking over the world and maybe even a seller of assets, how things change…,” commented industry analyst Malcolm Graham-Wood.
Shares dipped a penny to 35.5p but RBC Capital Markets said this may have more to do with the lower oil price overnight rather than what it described as “a good trading update”.