Enquest, a FTSE 250 oil and gas company, has delivered first-half production of 20,253 barrels of oil equivalent per day (boepd), already beating the lower-end of its target for the full year of between 20,000 boepd and 24,000 boepd.
However, this came in lower than the same period the previous year when production was 25,210 boepd.
As a result, revenue for the period came in at $440m, 13.9% below the $511.4m delivered in the same period the previous year, despite the realised oil price per barrels rising 4.6% from $106.72 to $111.58.
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Profit before tax (and net finance costs) dropped 10.5% from $215.2m to $192.6m, largely the result of the 19.7% decrease in production, which was partly caused by adverse weather conditions in the first quarter and third party pipeline shutdowns in the second quarter.
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Earnings before interest, tax, depreciation and amortisation (EBITDA) were down 12.2% from $327m to $287.2m. Cash flow from operations took a significant hit of 29.2%, down from $338.4m to $239.6m, or 42.3 cents per share to 29.8c. The cost of sales declined from $279m to $236m.
The 6-P1 area on the Thistle/Deveron asset is due to come on stream in the fourth quarter and will be followed by a planned workover of a water injection well. The new Thistle gas turbine generator will be commissioned and is expected to start providing power during the same period.
The S10 well at Dons/Conrie is expected to come on stream at Don southwest later during the current half. In the west, W2 will be sidetracked and a new water injection well W5 will be drilled.
Rig operations are due to begin at the end of the year on the Heather asset, while at Kraken, the firm is working towards a field development plan (FDP) for submission in the first half of next year.
Drilling has begun on the three wells targeting the Devonian reservoir on the Alma/Galia asset, which first oil continues to be expected in 2013. Approval for a FDP at Galia is expected soon.
The firm said it remains on target to deliver the compound annual production growth rate of around 20% per annum, as had been previously indicated for the years from 2009 to 2014.
The share price fell 0.95% to 114.90p by 08:52.
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