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Mid-cap oiler EnQuest preparing to release the Kraken

The Kraken in this case is not some giant, mythical, squid-like beast, but a rather large North Sea

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The discovery is a beast of a field

Mid-cap oiler EnQuest (LON:ENQ) is preparing to release the Kraken (that’s a reference to the 1981 epic Clash of Titans).

Anyway, the Kraken in this case is not some giant, mythical, squid-like beast, but a rather large North Sea oil field with reserves of around 137mln barrels of oil.

EnQuest owns 60% of the operation, which is slated to come on stream by the end of next month.

The contribution from the new field should change the company’s production profile going forward, according to the latest update from the company.

Output for the four months to the end of April averaged just under 38,000 barrels a day of the black stuff (down from a figure of almost 43,000 over the same period last year).

EnQuest sees that number rising to between 45,000 and 51,000 barrels a day once drilling is complete.

Apparently “excellent progress” is being made with regard to tapping into the Kraken reservoir.

Chief executive Amjad Bseisu told investor: "EnQuest is on track to achieve first oil from Kraken before the end of June and to deliver on its production, unit opex and capex targets for 2017. 

“Our strategic priorities continue to be increasing production by delivering on operational and development execution, whilst also continuing to reduce the operating cost base.  

“First production from the Kraken development will give EnQuest its seventh operated hub and will mark a turning point in EnQuest's progress from a period of heavy investment to one focused on cash generation and deleveraging the balance sheet.”

Quick facts: Enquest Plc

Price: 19.1 GBX

AIM:ENQ
Market: AIM
Market Cap: £323.9 m
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