The Group’s upstream operations include its Magnus, Kraken, Golden Eagle, Greater Kittiwake Area, Scolty/Crathes and Alba assets.
EnQuest’s acquisition of an initial interest in Magnus in 2017 and the increasing of its interest to 100% in 2018, was welcomed by all stakeholders as having the “right assets, in the right hands” and reflected our production improvement and life-extension successes at our other assets. The acquisition has increased production and cash flow through the addition of significant low-cost 2P reserves. Magnus also has significant potential, with 2C resources of c.35 MMboe at the end of 2020, offering the Group significant low-cost drilling opportunities in the medium term, in addition to an estimated c.250 MMbbls of remaining mobile oil in place that requires further evaluation to identify future drilling and tie-back prospects.
Kraken is a heavy oil producing asset and is the largest single asset in EnQuest’s portfolio. First oil was delivered in June 2017, with the field development plan completed around the end of the first quarter of 2019. Since then, the Group has embarked on the next stage of the field's development, with a producer and injector pair drilled into the western area during 2020. More than 46 million barrels of oil equivalent have been produced since first oil to 30 June 2021 and there is a continued focus on optimising production. The joint venture partnership recently completed a successful seismic campaign which has acquired valuable data to fully evaluate the development potential at the western area.
Kraken is expected to have a long field life of over 20 years with the prospect of relatively low decommissioning costs.
EnQuest’s purchase of a 26.69% non-operated equity interest in the low-cost Golden Eagle Area Development, which includes the Golden Eagle, Solitaire and Peregrine fields, adds material production, reserves and resources and cash generating capability. Golden Eagle was brought onstream in late 2014 and the partnership recently successfully completed a 4-well infill drilling campaign. There remains significant development potential, including further sub-sea and platform infill drilling, with an anticipated field life extending into the early 2030's.
The GKA area comprises five offshore oil fields: Kittiwake, Mallard, Gadwall, Goosander and Grouse. Through successful rejuvenation of the well stock, improving water injection capability and a focus on debottlenecking the production system, significant increases in volume and uptime have been achieved.
The Scolty/Crathes development consists of a single horizontal well drilled in to each of the Scolty and Crathes fields. The fields are tied back to the Kittiwake platform and have greatly extended the useful life of this production hub.
Alba is the Group’s only non-operated producing asset, and is operated by Ithaca Energy.
In January 2021, EnQuest completed the transaction to buy a 40.81% interest and operatorship in the Bressay oil field, from Norwegian oil company Equinor, which retains a 40.81% interest in the field. The remaining 18.38% interest is held by Chrysaor.
Bressay is a heavy oil field east of the Shetland Islands, approximately 12 kilometres northeast of the Kraken field. Discovered in 1976, Bressay is believed to be one of the largest undeveloped oil fields in the UK continental shelf (‘UKCS’), with around 115MMbbls of net 2C resources.