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In Brief:
EnQuest (LON:ENQ/ENQ SS – 28p/SEK3.09) – Coming Together
In Brief
EnQuest (LON:ENQ/ENQ SS – 28p/SEK3.09) – Coming Together: While the Company has faced significant headwinds fiscally, which to some extent will continue for some time to come, there is no doubt that operationally at least the Company has been firing on all cylinders. With the announcement of first oil from Scolty/Crathes and the impending sail away of the Kraken FPSO, we believe that provided oil prices don’t experience another significant downward leg, that the combined effect of Scolty/Crathes and Kraken (want is commissioned) will see the fiscal outlook of the Company improve significantly. Whilst further fundraising can’t be ruled out, the further into 2017 it goes without undertaking of fundraising, the less likely it comes. While investors can be rightly nonplussed at the way that the Company has run its finances, specifically failing to address the risks associated with its indebtedness, we believe that management has done well to get to this point and place the Company on more secure footing.