Press release

Unless otherwise stated, all figures are on a Business performance basis and are in US Dollars. Comparative figures for the Income Statement relate to the period ended 30 June 2022 and the Balance Sheet as at 31 December 2022. Alternative performance measures are reconciled within the ‘Glossary – Non-GAAP measures’ at the end of the Financial Statements.

EnQuest Chief Executive, Amjad Bseisu, said: 

“Strong operational performance, including the efficient return to service of Kraken, has enabled free cash flow generation totalling $140 million in the first half of 2023, driving further reduction in EnQuest net debt to $592 million. Within the core business, we have a significant work programme in the second half of the year, including further drilling at Magnus and at Golden Eagle and a continuation of well plug and abandonment activities at Heather and Thistle, which we expect to deliver in line with 2023 guidance.

“EnQuest continues to play an active role in supporting the UK’s twin objectives of delivering energy security and decarbonisation. Following the successful awards of carbon capture and storage licenses, I’m delighted that the Board has established a commitment for EnQuest to reach net zero for scope 1 and scope 2 emissions by 2040.

“The UK’s oil and gas sector faces significant challenges and loss of competitiveness due to uncertainty following the adverse changes to the fiscal regime. While we appreciate the Government’s intentions to improve the attractiveness of the sector through the Energy Security Investment Mechanism, we believe timely legislative reform is required to restore confidence in the UK oil and gas sector to protect jobs and deliver both energy security and decarbonisation.

“As we navigate the challenges posed by the EPL, we remain focused on further strengthening our Balance sheet, to unlock organic and inorganic growth opportunities, as well as our differentiated tax advantage, to grow the business and deliver returns to shareholders.”

H1 2023 performance

• Group net production averaged 45,480 Boepd (2022: 49,726 Boepd)
• Revenue and other operating income of $732.7 million (2022: $943.5 million) and adjusted EBITDA of $399.2 million (2022: $536.3 million) reflects lower realised oil prices of $75.8/Boe (2022: $89.9/Boe) and lower production
• Operating costs were $162.7 million (2022: $208.4 million), reflecting higher lease charter credits reflecting unplanned downtime at Kraken, as well as lower maintenance and well intervention costs at Magnus and at PM8/Seligi
• Reported profit before tax was $112.9 million (2022: $182.6 million). Reported loss after tax was $21.2 million (2022: profit of $203.5 million) driven by the impact of the UK Energy Profits Levy
• Reported cash generated from operations was $370.4 million (2022: $522.7 million); with cash capital expenditure of $80.0 million (2022: $54.7 million) and cash abandonment expenditure of $29.3 million (2022: $28.2 million)
• Free cash flow generation, including favourable working capital movements, of $140.0 million (2022: $332.1 million)
• Awarded four carbon storage licences by the North Sea Transition Authority

End June EnQuest net debt reduced by $125.0 million from year end; EnQuest net debt to adjusted EBITDA maintained at 0.7x

• At 30 June 2023, EnQuest net debt reduced to $592.1 million (end 2022: $717.1 million). EnQuest net debt to last-12 months adjusted EBITDA ratio as at 30 June 2023 remains at 0.7x, as it was at the end of 2022
  • At the end of June, $247.0 million (end 2022: $400.0 million) remained outstanding on the Group’s senior secured debt facility (‘RBL’) following accelerated repayments totalling $153.0 million
  • At 30 June, EnQuest retained strong liquidity with total cash and available facilities of $385.2 million (end 2022: $348.9 million)
• At 31 August 2023, EnQuest net debt increased to $615.2 million due to the July payment of $50 million contingent consideration in relation to the Golden Eagle acquisition.
  • The outstanding RBL, which matures in April 2027, was reduced by a further $7.0 million to $240.0 million
• In August 2023, the Group agreed a term loan facility totalling $150.0 million, maturing in July 2027, which will rank junior to the existing RBL as a secured second lien instrument within the capital structure. The loan proceeds, which can be used for general corporate purposes, provide an additional source of liquidity for the Group in advance of the October settlement of the 7% Sterling retail bond
• The remaining October 2023 7% Sterling retail bond in issue is £111.3 million and is expected to be settled in cash at maturity

Guidance and outlook

• 2023 average net Group production is still expected to be within the guidance range of 42,000 Boepd to 46,000 Boepd reflecting strong first half performances across the majority of the portfolio and the efficient return to service at Kraken, which mitigated losses associated with a period of production shut-in following the decision to accelerate maintenance work originally planned for the third quarter 
• Operating costs, cash capital and abandonment expenditures are all expected to be in line with prior guidance of c.$425 million, c.$160 million and c.$60 million, respectively, with operating costs expected to be higher in the second half of the year in line with increased activity
• EnQuest has hedged a total of c.3.8 MMbbls in the second half of 2023 with an average floor of c.$60/bbl through the use of put options. For the first half of 2023, the Group hedged a total of c.5.9 MMbbls with an average floor price of c.$57/bbl and an average ceiling price of c.$76/bbl applicable to 3.1 MMbbls
• EnQuest has hedged a total of c. MMbbls in 2024 and a total of 0.1 MMbbls in 2025 through the use of put options, all with the same floor of $60/bbl

Production and financial information

Notes:
¹ Production figure for first half of 2023 includes 660 Boepd associated with Seligi gas
² Including realised losses of $22.2 million (2022: realised losses of $162.3 million) associated with EnQuest’s oil price hedges
³ See reconciliation of alternative performance measures within the ‘Glossary – Non-GAAP measures’ starting on page 32. Note, EnQuest defines net debt as excluding finance lease liabilities
⁴ Including net realised and unrealised gain of $15.4 million (2022: net realised and unrealised losses of $267.0 million) associated with EnQuest’s oil price hedges
⁵ Excludes foreign exchange impact of $(0.3) million (2022: $(16.4) million)

Summary financial review

 (all figures quoted are in US Dollars and relate to Business performance unless otherwise stated)

Revenue for the six months ended 30 June 2023 was $732.7 million, 22.3% lower than the same period in 2022 ($943.5 million), reflecting lower realised prices and lower production. Revenue is predominantly derived from crude oil sales, which for the first half of 2023 totalled $540.1 million, 36.5% lower than in the same period of 2022 ($851.2 million). Revenue from the sale of condensate and gas in the period was $213.2 million (2022: $252.9 million), primarily reflecting lower market prices. Gas revenue mainly relates to the onward sale of third-party gas purchases not required for injection activities at Magnus.

The Group’s commodity hedges and other oil derivatives contributed $22.2 million of realised losses (2022: realised losses of $162.3 million), as a result of the timing at which the hedges were entered into. The Group’s average realised oil price excluding the impact of hedging was $79.0/bbl for the six months ended 30 June 2023, compared to $111.0/bbl received during the first half of 2022. The Group’s average realised oil price including the impact of hedging was $75.8/bbl in the first half of 2023, 15.7% lower than during the first half of 2022 ($89.9/bbl).

Total cost of sales were $493.1 million for the six months ended 30 June 2023, 15.8% lower than in same period of 2022 ($585.6 million).

Operating costs decreased by $45.7 million to $162.7 million, primarily reflecting lower production costs for the first half of 2023. This decrease was driven by higher lease charter credits, reflecting unplanned downtime at the Kraken Floating, Production, Storage and Offloading (‘FPSO’) in the second quarter of 2023, and lower maintenance and well intervention costs at Magnus
and at PM8/Seligi. Unit operating costs decreased by 13.2% to $19.7/Boe (2022: $22.7/Boe), primarily reflecting lower costs partially offset by lower production.

Total cost of sales included non-cash depletion expense of $147.9 million, 15.1% lower than in the same period in 2022 ($174.2 million), mainly reflecting lower production volumes.

Also within cost of sales, the credit relating to the Group’s lifting position and hydrocarbon inventory for the six months ended 30 June 2023 was $15.3 million (2022: credit of $29.9 million). The credit in the period reflects an increase in the net underlift position to $15.8 million at 30 June 2023 from a $0.8 million net underlift position at 31 December 2022.

Other cost of sales, which forms part of the total cost of sales balance, for the six months ended 30 June 2023 of $197.9 million were lower than the same period in 2022 ($232.9 million), reflecting the lower cost of Magnus-related third-party gas purchases following the decrease in the market price for gas and which is offset by gas sales presented in revenue.

Adjusted EBITDA for the six months ended 30 June 2023 was $399.2 million, down 25.6% compared to the same period in 2022 ($536.3 million), driven by lower revenue offset partially by lower operating costs.

The tax charge for the six months ended 30 June 2023 of $131.8 million (2022: $142.4 million tax charge), reflects a $45.5 million non-cash deferred tax impact on the Group’s profit before tax, $10.3 million overseas current tax charge and a $76.0 million current tax charge associated with the EPL (noting EPL was substantively enacted in July 2022).

Remeasurements and exceptional items resulting in a post-tax net loss of $27.9 million have been disclosed separately for the six month period ended 30 June 2023 (2022: profit of $23.5 million).

Revenue included unrealised gains of $37.6 million in respect of the mark-to-market movement on the Group’s commodity contracts (2022: unrealised losses of $104.7 million). Cost of sales included unrealised gains of $9.9 million relating to the markto- market movement on the Group’s foreign exchange contracts and forward UKA purchase contracts (2022: unrealised losses of $0.5 million). Other remeasurements and exceptional items includes a non-cash impairment charge of $96.5 million (2022: $10.1 million reversal) and a $43.5 million gain (2022: $31.0 million loss) in relation to the fair value recalculation of the Magnus contingent consideration reflecting an increase in the discount rate. A net tax charge of $2.3 million, which includes a net tax charge of $5.8 million related to the EPL, (2022: credit of $163.4 million, with nil impact from EPL) has been presented as exceptional, representing the tax effect on the above items. While the Group has lowered its near-term oil price assumptions, there is no change in recognition of undiscounted deferred tax assets at 30 June 2023 (2022: $107.9 million recognition due to the Group’s increased short-term oil price assumptions) as there remains sufficient headroom in the Group’s forecast future cash flows to support full recognition of relevant tax losses.

The Group’s IFRS profit before tax was $112.9 million (2022: profit of $182.6 million), and IFRS loss after tax was $21.2 million (2022: profit of $203.5 million). The Group’s effective tax rate for the period was 118.8% (charge), primaily reflecting the current tax impact of EPL and its high level of non-deductible expenditures related to financing and decommissioning costs (2022: (11.5)% credit, primarily reflecting the non-cash recognition of $107.9 million of undiscounted deferred tax assets).

EnQuest has recognised UK North Sea corporate tax losses of $2,318.8 million at 30 June 2023 (31 December 2022: $2,497.7 million).

The Group’s reported net cash flow from operations for the six months ended 30 June 2023 was $371.0 million (2022: $498.4 million), and included favourable working capital movements, including the receipt of a joint venture advance cash call, and the March refund of the Group’s EPL instalment payment in December 2022. Free cash flow for the six months ended 30 June 2023
was $140.0 million (2022: $332.1 million) which was utilised as part of the Group’s repayments totalling $153.0 million on the Reserve Based Lending (‘RBL’) facility.

EnQuest net debt at 30 June 2023 was $592.1 million, a decrease of 17.4% compared to 31 December 2022 ($717.1 million) and includes $26.3 million of payment in kind interest (“PIK interest”) that has been capitalised to the principal of the facility and bonds (31 December 2022: $25.1 million). As at 31 August 2023, EnQuest net debt had increased to $615.2 million due to the $50 million Golden Eagle contingent payment made in July. In August 2023, the Group entered into a new $150.0 million term loan facility, maturing in July 2027, which will rank junior to the existing RBL as a secured second lien instrument within the capital structure. The loan proceeds, which can be used for general corporate purposes, provide an additional source of liquidity for the Group ahead of the October settlement of the remaining October 2023 7% Sterling retail bond in issue of £111.3 million.

Operating review

Production details

¹ Other Upstream: Scolty/Crathes, Greater Kittiwake Area and Alba
² Malaysia production figure for first half of 2023 includes 660 Boepd associated with Seligi gas

Upstream operations

UK operations

Magnus

Average production for the first six months of 2023 was 16,530 Boepd, 29.6% higher than the first half of 2022 (12,754 Boepd). Production efficiency for the period was 91.4% (2022: 73.0%), driven by improvements to rotating equipment performance, including gas compressors and power generation units, following 2022 investment to optimise equipment and reduce obsolescence. Other improvements relate to the test separator system, where enhancements have been made to enable the resumption of well testing and increase the Group’s understanding of well composition and characteristics. The Group’s drilling programme is ongoing, with the North West Magnus injector brought online in May to provide pressure support for the production well. In addition, slot recovery activity continued to enable the delivery of future infill drilling opportunities, with the completion of the B6 well plug and abandonment (‘P&A’). Subsequently, the new B6 infill well came online on 4 August. The programme in the second half of the year includes the completion of a further infill well.

Work is ongoing to optimise the ongoing maintenance shutdown, originally planned for 24 days, with the Magnus team aiming to align to the Ninian Central outage and shorten the shutdown duration.

Kraken

Average production of 13,082 Boepd (18,556 Boepd gross) (2022: 19,527 Boepd net; 27,698 Boepd gross) reflected an efficientreturn to service of the FPSO following the anomalous failure of hydraulic submersible pump (‘HSP’) transformer units during May. Working alongside the vessel owner, Bumi Armada, the EnQuest asset team limited the impact on production, resuming production on a single train basis on 12 June and then reaching 80-90% production capacity through the refurbishment and reinstatement of a transformer unit in July. On 7 August, a further transformer unit was brought back into service, following a rebuild, returning Kraken to full production. New transformer units were proactively ordered from the manufacturer and are due for delivery in September, providing further resilience to production capacity.

The Group reacted quickly to mitigate production losses by executing maintenance work, originally planned for the third quarter shutdown during two periods of single train operations. No further planned maintenance outages are anticipated during 2023.

In light of the direct impact of the EPL on the Group’s available cash flow and the indirect contribution to underlying inflationary pressures through incentivisation of industry-wide investment within a defined timeline, the Group took the decision to delay its plans to progress the Kraken drilling programme. However, near-field drilling and subsea tie-back opportunities continue to be assessed, with interpretation of 3D seismic data ongoing to access the significant opportunity in terms of main field side-track drilling opportunities, along with further drilling within the Pembroke and Maureen sands, with c.33 Mmboe of 2C resources available at Kraken. Until drilling resumes, Kraken production will be subject to natural field decline.

Golden Eagle

Average production in the first half of the year was 4,545 Boepd net (2022: 7,060 Boepd), while production efficiency remained high at 91% (2022: 95%). The planned 26-day shutdown was optimised to a 12-day programme of work, which was completed during August.

The delayed 2022 drilling campaign was completed in the first half of 2023, with first oil from the new well delivered on 24 June 2023. Preparations are underway for the next drilling campaign, which includes a two-well infill programme, with further well options, utilising a heavy duty jack up rig and which is expected to run from September 2023.

Other Upstream assets

Production for the first six months of 2023 averaged 3,105 Boepd (2022: 4,081 Boepd). This was driven by uptime of 95% (2022: 92%) at the Greater Kittiwake Area (‘GKA’), and the positive impact of the reinstatement of the Grouse well. The planned three-week GKA shutdown was deferred from April and has recently been completed, with production resuming on 19 August following a shutdown of 23 days.

At Bressay, we continue to progress evaluation of the project through creative development options with potential partners, in light of the EPL.

Malaysia Operations

For the first six months of 2023, average production in Malaysia was 8,218 Boepd, representing a 30% increase over the same period last year. This increase includes 660 Boepd associated with Seligi gas, to which Petronas hold the entitlement, and which is produced and handled by EnQuest in exchange for a gas handling and delivery fee. In addition, production in the first half of the year has benefitted from the workover campaign and three horizontal wells delivered during 2022. Thus far in 2023, two well workovers have been completed which, when coupled with the delivery of idle well restoration work, is expected to add an incremental 2.5 kboed to PM8/Seligi production.

The planned three-week shutdown at PM8/Seligi to undertake asset integrity and maintenance activities was optimised and the updated 14-day work programme was completed ahead of schedule during August, with the completed scopes expected to help improve reliability and efficiency at the field. Well P&A work will also continue, primarily funded by a centralised investment fund to which EnQuest contributes, with six well abandonments planned for 2023 with one delivered to date.

The Group continues to undertake preparatory work ahead of plans to drill a multi-well infill programme during 2024. On Block PM409, an area containing several undeveloped discoveries and situated close to the Group’s existing PM8/Seligi PSC hub, the Group is currently drilling its commitment well, with results expected in our next operational update.

Decommissioning

Heather and Thistle P&A campaigns are progressing well with seven wells completed at Heather and a further seven wells completed at Thistle during the first half of 2023. The Group continues to demonstrate and develop capability in delivering these significant decommissioning projects and remains on track to complete the P&A of 23 wells (12 at Heather and 11 at Thistle) in 2023.

The Heather project team is looking for further opportunities to perform P&A activities using supplementary equipment, which will increase efficiency of the main platform rig, and will further underpin its expectation that the target to disembark the platform in the fourth quarter of 2024 will be met. At Thistle, the team aim to complete disembarkation by the end of the third quarter of 2025. Both assets remain on track to meet their post-cessation of production well P&A targets of 39 wells at Heather and 41 wells at Thistle by the end of 2024.

EnQuest is also planning the P&A of 33 subsea wells at the Alma/Galia, Dons and Broom fields and aims to be execution-ready during the second quarter of 2024 and, to that end, aims to put in place a rig commitment by the end of 2023. The EnQuest team continues to work on the basis that subsea decommissioning activities can be optimised by utilising a portfolio approach across the fields.

The EnQuest Producer FPSO remains in warm stack at Nigg Energy Park while the Group continues to evaluate options, which include utilisation on a future project or sale.

Infrastructure and New Energy

The Sullom Voe Terminal (‘SVT’) and its related infrastructure maintained safe and reliable performance, with 100% export service availability during the first half of 2023.

EnQuest continues to develop cost-effective and capital-efficient plans to transform the terminal and prepare and repurpose the site to progress decarbonisation opportunities at scale, focused on carbon capture and storage (‘CCS’), production of green hydrogen and derivatives and electrification. The terminal site offers several unique competitive advantages, including a 1,000- acre tier 1 COMAH industrial site with access to existing utilities, oil and gas pipeline infrastructure, a deep-water port and jetties, the highest wind capacity factor across Europe, and a highly skilled workforce and local supply chain. In advancing its Infrastructure and New Energy business, the Group will maintain its focus on capital discipline and, having secured exclusive rights from the Shetland Islands Council to progress new energy opportunities on the site, the Group is well placed to deliver on its new energy ambitions alongside strategic delivery partners in a capital-light manner. Delivery of these opportunities is anticipated to create material value for EnQuest, the Council and the Shetland Community, contribute to emissions reduction and retain and create significant local jobs.

Carbon Capture and Storage

The availability of the deep-water port and jetties and a pipeline network linked to several well-understood offshore reservoirs presents the opportunity to repurpose infrastructure to import and permanently store material quantities of CO₂ from isolated emitters in the UK, Europe or further afield.

EnQuest has successfully secured four carbon storage licences, incorporating storage sites in the Magnus and Thistle fields currently operated by EnQuest, as well as the non-operated Tern and Eider fields. These sites are large, well characterised deep storage formations connected by significant existing infrastructure to the Sullom Voe Terminal ('SVT') in Shetland. EnQuest plans to have carbon dioxide ('CO₂') shipped to SVT in liquid form, received at the existing jetties at the terminal before being transported via the existing East of Shetland pipeline for injection and permanent storage offshore. The flexibility afforded by a shipped solution for carbon storage is expected to enable a service to be provided to isolated emitter clusters in the UK, Europe and further afield who may not otherwise be able to access storage infrastructure. The capability of the existing infrastructure, including the EnQuest-operated East of Shetland pipeline system, and storage sites is expected to support a project that could store up to 10 million tonnes of CO₂ per annum. This quantity of potential carbon storage represents a multiple of the Group’s existing direct emissions.

Additional geological formations in this area of the North Sea, which could be connected to SVT infrastructure in the future, have the potential to store in excess of one billion tonnes of CO₂.

Green Hydrogen

The Group is working closely with strategic partners, including renewable developers and potential local customer offtakers to explore opportunities to aggregate and use the excess energy produced by local wind power from onshore and offshore wind farms to produce green hydrogen and derivatives. The Group is working on developing a first phase project aimed at decarbonising local industry with a further scale-up to service customers globally, leveraging the existing export capabilities and advantaged renewable power potential.

Electrification

EnQuest continues to progress innovative proposals to harness local renewable power and SVT’s advantaged location to offer robust and commercially attractive electrification solutions to facilitate new asset developments in the North Sea basin and to support UK energy security. In leveraging the Group’s existing infrastructure and subsea projects expertise to facilitate the electrification of nearby offshore oil and gas assets and planned developments by way of a grid connection supplemented with renewable power, it is anticipated that realisation of this opportunity would lead to significant emissions reductions for platforms which are expected to operate into the 2050s.

Liquidity and EnQuest net debt

The Group generated $140.0 million in free cash flows during the first half of 2023, incorporating favourable working capital movements, including receipt of a joint venture advanced cash call, and the March refund of the Group’s EPL instalment payment in December 2022, resulting in EnQuest net debt of $592.1 million at 30 June 2023, down $125.0 million since the end of 2022. This reduction was driven by accelerated repayments totalling $153.0 million on the Group’s RBL facility, with drawings of $247.0 million at 30 June 2023, significantly ahead of the required amortisation schedule. EnQuest’s net debt to adjusted EBITDA ratio at 30 June 2023 was 0.7x and the Group had total cash and available facilities of $385.2 million, including restricted funds and ring-fenced funds held in joint venture operational accounts totalling $124.1 million (31 December 2022: $348.9 million and $174.3 million, respectively).

EnQuest net debt has increased to $615.2 million at the end of August, predominantly due the scheduled contingent consideration payment of $50 million in relation to the Golden Eagle acquisition. The outstanding RBL facility, which matures in April 2027, was reduced to $240.0 million during the month of July.

On 25 August, the Group entered into a new $150.0 million term loan facility, maturing in July 2027, which will rank junior to the existing RBL as a secured second lien instrument within the capital structure. The loan proceeds, which can be used for general corporate purposes, will provide an additional source of liquidity for the Group ahead of the October settlement of the remaining October 2023 7% Sterling retail bond in issue of £111.3 million.

2023 outlook 

The Group remains on track to achieve net production between 42,000 and 46,000 Boepd, with ongoing drilling campaigns at Magnus and at Golden Eagle, partially offset by natural declines and planned maintenance shutdowns at Magnus and GKA in the third quarter.

Full year expectations for operating, cash capital and abandonment expenditures remain unchanged from the Group’s original guidance at approximately $425 million, $160 million and $60 million, respectively, with spending expected to be higher during the second half of the year, in line with activity. EnQuest remains focused on cost discipline and continues to employ a proactive approach to engagement with its global supply chain to mitigate the impacts of cost inflation across all contracts.

EnQuest will pay cash tax in the UK in accordance with the Energy Profits Levy (‘EPL’), with the expected October 2023 cash payment of c.$75 million reflecting the Group’s 2022 tax liability.

EnQuest hedged a total of c.9.7 MMbbls for 2023 predominantly using put options, with an average floor price of c.$58/bbl. For the period July to December 2023, c.3.8 MMbbls of production remains hedged with an average floor price of c.$60/bbl.

Environmental, Social and Governance

The Group has continued to make excellent progress in reducing its absolute Scope 1 and 2 emissions, with the achievement of national emissions reduction targets and the drive to net zero being a core focus area. Since 2018, EnQuest’s UK Scope 1 and 2 emissions have reduced by more than 40%, which is significantly ahead of the UK Government’s North Sea Transition Deal target of achieving a 10% reduction in Scope 1 and 2 CO2 equivalent emissions by 2025 and close to the 50% reduction targeted by 2030. Among the three discrete and scalable decarbonisation opportunities being progressed by the Group’s Infrastructure and New Energy business, the CCS project alone has the potential to store up to 10 million tonnes of CO2 per annum, which represents a multiple of the Group’s existing emissions footprint, providing the opportunity to go beyond net zero. In support of its decarbonisation ambitions, and recognising the unique part that the Group can play in the energy transition, EnQuest’s Board recently committed to reach net zero for scope 1 and scope 2 emissions by 2040.

The health, safety and wellbeing of EnQuest’s people is its top priority and the Group has continued to perform better than the Offshore Energies UK (‘OEUK’) benchmark in this regard in the six months to end June, recording a Lost Time Incident (‘LTI’) frequency¹ of 0.79 (Full year 2022: 0.57). Given the increased frequency rate, which was linked to two LTIs recorded during routine activities in the first half of 2023, the Group has taken steps to re-emphasise the need for increased supervision, focus on situational awareness and dynamic risk assessment. EnQuest has a strong HSEA and process safety culture and leadership remain focused on continuous improvement to of systems and procedures for maintaining safe process operations and preventing personal injuries, dangerous occurrences and hydrocarbon releases.

¹ Lost Time Incident frequency represents the number of incidents per million exposure hours worked (based on 12 hours for offshore and eight hours for onshore). OEUK LTIF benchmark is 1.27.

Corporate governance is an essential part of EnQuest’s governance framework, supporting both risk management and the Group’s core Values. The Board remains focused on Board and executive succession planning. As part of the Group’s rotation of Directors, Howard Paver, Carl Hughes and John Winterman stepped down from the Board of Directors following the Group’s AGM in June. The process to appoint new Board members is ongoing, with the clear aim to enhance the Board with skills required for the next phase in EnQuest’s evolution. Accordingly, EnQuest has appointed Michael Borrell as a Non-Executive Director with effect from 5 September 2023 (see separate announcement).

EnQuest has announced plans to apply for de-listing of the Company’s shares from Nasdaq Stockholm. The formal application to de-list will be submitted to Nasdaq Stockholm no earlier then three months from 5 September (see separate announcement).

Ends

For further information please contact:

EnQuest PLC    
Tel: +44 (0)20 7925 4900
Amjad Bseisu (Chief Executive)    
Salman Malik (Chief Financial Officer)     
Craig Baxter (Head of Investor Relations)    

Teneo Communications    
Tel: +44 (0)20 7353 4200
Martin Robinson    
Martin Pengelley    
Harry Cameron 

Notes to editors

This announcement has been determined to contain inside information. The person responsible for the release of this announcement is Paul Massie, General Counsel Delegation of Authority and Interim Company Secretary.

ENQUEST

EnQuest is providing creative solutions through the energy transition. As an independent energy company with operations in the UK North Sea and Malaysia, the Group's strategic vision is to be the partner of choice for the responsible management of existing energy assets, applying its core capabilities to create value through the transition.

EnQuest PLC trades on both the London Stock Exchange and the NASDAQ OMX Stockholm.

Please visit our website www.enquest.com for more information on our global operations.

Forward-looking statements: This announcement may contain certain forward-looking statements with respect to EnQuest’s expectations and plans, strategy, management’s objectives, future performance, production, reserves, costs, revenues and other trend information. These statements and forecasts involve risk and uncertainty because they relate to events and depend upon circumstances that may occur in the future. There are a number of factors which could cause actual results or developments to differ materially from those expressed or implied by these forward-looking statements and forecasts. The statements have been made with reference to forecast price changes, economic conditions and the current regulatory environment. Nothing in this announcement should be construed as a profit forecast. Past share performance cannot be relied upon as a guide to future performance.