Agenda Overview Amjad Bseisu, CEO Financials Jonathan Swinney, CFO Operations overview: Kraken Richard Hall Head of Major Projects UK and Malaysia Bob Davenport Managing Director - North Sea Summary Amjad Bseisu, CEO
EnQuest performance A transformational year 2017 Kraken first oil delivered in Q2; full cycle gross project capital expenditure further reduced Acquisition of interests in Magnus and the Sullom Voe Oil Terminal completed in…
EnQuest 2018 and beyond Well placed to deliver long-term sustainable growth 2018 outlook Guidance range of c.50,000 to 58,000 Boepd; Kraken gross production has averaged around 38,000 Bopd in the first two months of 2018 Unit opex…
EnQuest 2018 and beyond cont. Well placed to deliver long-term sustainable growth Beyond 2018 Significant potential within the existing portfolio, particularly at Kraken, Magnus and PM8/Seligi Acquisition of the Magnus oil field and…
Jonathan Swinney Chief Financial Officer
Results summary Full year to December 2017 Unless otherwise stated all figures are before exceptional items and depletion of fair value uplift and are in US Dollars US Dollars 2017 2016 Change % Production (Boepd) 37,405 39,751 (5.9)…
Summary income statement Year to December 2017 US Dollars 2017 2016 Business Business performance performance million million Revenue 635.2 849.6 Cost of sales (569.5) (653.5) Gross profit 65.7 196.1 Exploration and evaluation…
Post-tax exceptional items Year to December 2017 27.3 million post-tax loss on exceptionals, primarily made up of: Post-tax impairment of oil and gas assets 107.2 million; partially offset by Excess of fair value over cost of 48.7…
Focus on cost control 2014 2015 2016 2017 2018 Actual Actual Actual Actual Outlook Cost of sales ( million) 654.1 733.4 653.5 569.5 Unit operating cost1 (/Boe) - Production costs 31.5 23.4 20.4 21.0 c.20.0 Incl. Alma/Galia…
Reducing cash capital expenditure Year to December 2017 m 429 252 113 69 50 34 8 3 9 9 Kraken NNS CNS Malaysia Exploration 2016 2017 11
Reducing cash capital expenditure cont. Year to December 2017 m 1,058 751 609 368 c.250 2014 2015 2016 2017 2018 Outlook 12
Group tax position No material UK cash CT/SCT on operational activities expected UK Tax Allowances m Tax losses at 31 December 2016 2,894 2017 net additions plus RFES 262 Prior year true up (35) Tax losses at 31 December 2017 3,121…
Net debt and cash flow Year to 31 December 2017 77.1 1,991.4 m 52.0 1,900.9 367.6 1,796.5 (301.8) Opening net Net cash flow Cash capital Net financing & Non-cash Closing net debt Closing net debt debt from operations…
Outlook information 2018 outlook Production guidance between c.50,000 Boepd and 58,000 Boepd Average unit opex anticipated to be c.24/Boe Cash capital expenditure expected to be c.250 million G&A to be in the single digit…
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Operations overview Bob Davenport Richard Hall Managing Director - North Sea Head of Major Projects
Kraken Richard Hall
Kraken - overview Focus areas since 2017 Half Year Results were: Crew familiarisation Process control instrumentation Plant stability Performance of facilities and reservoir has been good Total gross project capex further…
Performance 240 days since last LTI Process and water injection facilities uptime has been strong in January and February Average water injection rate for February was around 66,000 Bwpd Average gross production rate for February…
Subsurface highlights Good understanding of a productive reservoir Kraken outline and development well locations High quality Heimdal sands that exhibit excellent reservoir properties High confidence in extensive subsurface imaging…
Wells 21 wells completed and on-stream - 11 x Producers and 10 x Injectors; DC4 drilling commences Q4 2018 Total footage drilled: 218,930ft (41.5 miles) Gross Reservoir interval drilled: 57,391ft World record: Longest Optipac…
NNS, CNS and Malaysia Bob Davenport
Production performance Year to 31 December 2017 Boepd1 2017 production: 37,405 Boepd 18,885 15,627 11,718 9,148 8,938 8,131 4,709 0 2 3 4 NNS CNS Malaysia Kraken 1 Net working interest. 2016 2017 2 2017 includes…
Northern North Sea Effective well and reservoir management; new drilling in 2018 2017 performance Improved H2 production following successful production enhancement activities: Resolution of water injection issues at Thistle, Heather…
Central North Sea Plans in progress to address 2017 production issues 2017 performance Alma/Galia ESP issues and storm-related outages impacted production; more reliable field uptime in H2 High levels of plant uptime from Greater…
Malaysia Effective asset management; EnQuests first wells in 2018 2017 performance Excellent safety performance, zero LTIs Stable production: improved reliability on key rotating machinery; planned shutdown completed ahead of…
Amjad Bseisu Chief Executive
EnQuest 2018 and beyond Well placed to deliver long-term sustainable growth Guidance Production range of c.50,000 to 58,000 Boepd Unit opex c.24/Boe Cash capital expenditure c.250 million Increased cash flow should enable…
Well set for substantial growth Q&A Strong CAGR (c.16.5% to 2018 mid-point) Average net production (Boepd) 60000 50,000 - 58,000* 50000 40000 30000 20000 10000 0 2009 2010 2011 2012 2013 2014 2015 2016 2017…
Appendices
EnQuest: 8 Hubs A strong platform for growth Heather/Broom Kraken Thistle/Deveron The Dons Magnus Alma/Galia Greater Kittiwake Area PM8/Seligi 32
Strong reserves growth in first eight years Reserve life c. 17 years Net 2P reserves 2010 to end of 2017 209 210 MMboe MMboe 81 (80) MMboe MMboe Net 2P reserves Production Additions to Net 2P reserves at end 2017 start 2010…
EnQuests North Sea asset base As at 31 December 2017 Licence Block(s) Name P073 21/12a Goosander P193 211/7a, 211/12a Magnus P2131 16/26a Alba P236 211/18a Thistle & Deveron P236 211/18a Don SW & Conrie P236 / P1200 211/18b & 211/13b…
Group tax position Effective tax rate reconciliation ETR % ms Loss Before Tax (244) UK CT Rate 40 (98) PRT (1) 4 RFES 38 (93) UK and overseas tax rate differences 0 1 Permanent items (11) 26 Prior year adjustments (6) 14…
Forward-looking statements This presentation may contain certain forward-looking statements with respect to EnQuests expectation and plans, strategy, managements objectives, future performance, production, costs, revenues, reserves…
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