Independent UK oil development and production company, EnQuest PLC, performed strongly in the first half of 2011, with a 35% increase in production over the first half of 2010. Cash flow from operations was $338.4m, resulting in net cash of $265.7m at the end of the period. Business development momentum continues with EnQuest building up its asset positions in the Crawford development, in the Broom field and in the Crathes and Moon prospects.

Highlights

■Successful drilling programme in H1'11, on track for its full year 2011 average export production target of 26,500 Boepd, a 26% increase on the 2010 equivalent ■$338.4m cash flow from operations, resulting in $265.7m of net cash at the end of H1'11; $327.0m EBITDA in H1'11, up 97% on the pro-forma EBITDA in H1'10 ■4.6 MMboe was produced in H1'11; this has been more than replaced by the anticipated addition of approximately 11.5 MMboe of 2P reserves, from increased working interests in Broom and Crawford and as a consequence of the success of the Area E exploration well ■Acquired a 32% stake to take a controlling interest in the proposed development of the Crawford and Porter fields. The work programme to sanction in 2012 has now been defined ■Increasing EnQuest's interest in the Broom field from 55% to 63% ■Acquired a 40% interest in the Crathes and Moon prospects, close to the Scolty discovery ■Moving towards the sanctioning of the Alma (formerly Ardmore) and Galia (formerly Duncan) field redevelopment EnQuest CEO Amjad Bseisu said: "In the first half of 2011, EnQuest has again delivered a strong financial and operational performance. We have consolidated our positions by increasing our interest in the Broom field and in the Crawford block and by becoming the operator of Crawford. Across our asset base we have increased net reserves by approximately 11.5 MMboe, the equivalent of 120% of our expected full year production. Our project execution teams continue to make good progress towards the planned sanction of the Alma and Galia development in the second half of 2011 and the Crawford development in the first half of 2012. We have also farmed into and taken operatorship of the Crathes and Moon prospects, near our Scolty discovery, and will be drilling these prospects later this year.

With our on schedule drilling programme in the first half of the year, we remain confident in our ability to achieve our 2011 full year production target of 26,500 Boepd. There is significant organic growth potential from the Alma and Crawford development projects alone. We continue to pursue actively external business development opportunities in the UKCS and also further afield. All of which underpins our confidence in EnQuest's ability to sustain the delivery of our longer term growth objectives."

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