Enquest to re-develop UK's original oil field

Shares in oil exploration firm Enquest jumped this morning after it upped production guidance after deciding to develop two new fields.

Enquest said it would begin an $850m development of its Alma and Galia fields, subject to anticipated regulatory approvals.

First production is anticipated in the fourth quarter of 2013, with peak production of over 20,000 barrels of oil equivalent per day (boepd).

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Alma, formerly known as the Argyll field, was the first oil field in the UK, the firm said, but had to be abandoned due to the technology available at the time.

The company issued new medium term production guidance, including the anticipated positive production impact from Alma and Galia.

Based on today's guidance, EnQuest would deliver a compound annual growth rate of over 20% per annum between 2009 and 2014, it said.

EnQuest is anticipating average annual production of between 20,000 boepd and 24,000 boepd for 2012, between 25,000 boepd and 30,000 boepd for 2013 and in excess of 40,000 boepd for 2014.

It predicts adding further production through business development opportunities.

The firm's shares rose over 9% in early trading.