EnQuest Plc (LON:ENQ) boasted strong cash flow generation and reducing debt as it confirmed a 24% rise in production for 2019.
Group production averaged 68,606 barrels oil equivalent per day, near the top end of guidance for the year which was pitched at 63,000 to 70,000 boepd.
The company noted a strong performance at the Magnus operation and said that the Kraken field yielded gross production of 35,704 boepd which exceeded expectations thanks to improved performance on the field’s floating production vessel.
At US$1.41bn at the end of December, net debt reduced by around US$361mln for the year.
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"The group has again delivered on its operational targets, growing production by 24%. Kraken performance in particular has been excellent, with production efficiency above 90% for much of the second half of the year,” said Amjad Bseisu, EnQuest chief executive.
"This performance has facilitated accelerated material repayments of the Group's credit facility.”
Looking to 2020, EnQuest expects group production of 61,00 to 68,000 boepd, and, it said the 70% owned Kraken field is expected to achieve gross production of 30,000 to 35,000 boepd.
EnQuest said it expects capital expenditure of US$230mln in 2020, whilst OPEX is guided at US$525mln.
Bseisu noted that EnQuest’s anticipated production volumes reflect the impact of natural decline rates plus ongoing shutdowns at the Thistle and Heather fields though the company expects this will be partially offset by new wells at Magnus and Kraken.
"I am delighted with the progress we have made at Kraken and in strengthening our balance sheet,” Bseisu added.
“We have now set a platform to use our capabilities for continuous improvement and to be able to enhance value for shareholders."