March 19, 2020 / 7:36 AM / 22 days ago

EnQuest to break even in 2020 at $38/bbl oil price, shuts fields

LONDON (Reuters) - EnQuest (ENQ.L) aims to break even this year at $38 a barrel and does not expect to restart its Heather and Thistle/Deveron fields, which produced 6,000 barrel of oil equivalent per day (boed) last year, the British North Sea oil and gas producer said on Thursday.

EnQuest said it expected to produce between 57,000 and 63,000 boed this year, even after slashing operating costs by 30% to $375 million and investment cuts of $80 million (69.58 million pounds) to $150 million.

It added its 2021 production is likely to be impacted by these cuts, but that its breakeven was due to fall to around $35 a barrel.

EnQuest hedged a fifth of its 2020 output, or 2.9 million barrels, at an average floor price of $65 a barrel and 1.1 million barrels at an average floor of $52 a barrel.

“There are no further repayments of the Group’s senior credit facility due in 2020, with the facility maturing in October 2021,” EnQuest said, adding that its net debt was $1.367 billion at the end of February.

It said it had liquidity in the form of cash and available debt facilities of $268.2 million as of February 28.

Its market capitalisation stood at around $156 million before trading on Thursday.

Reporting by Shadia Nasralla; editing by Jason Neely

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