Kraken (EnQuest Plc 70.5% Operator - Cairn 29.5%) production rate on plan:

- Kraken is achieving month on month increases in production and by early November average production rates were around 23,000 Bopd gross. The second production processing train was brought onstream later in November, with rates of over 40,000 Bopd gross being achieved.

- The second and third cargo offloads were completed in October and November respectively. The quality of the crude has been well received by buyers; the latest sale of a cargo was contracted at a discount to Brent of less than $5 per barrel, this level of pricing has been achieved earlier than targeted.

- The final DC2 production well has been brought online. Excellent drilling performance has continued with the drilling of the DC3 wells nearing completion and ahead of time. The process of bringing the DC3 wells onstream has commenced early and plans to drill DC4 in 2018 are being developed.

- On the basis of this strong performance and subject to continued progress on plant uptime, EnQuest continues to expect production at Kraken to reach 50,000 Bopd gross during H1 2018.

EnQuest CEO Amjad Bseisu said:
“We are making good progress in delivering the ramp up of Kraken, with average Kraken production increasing each month. We have now achieved production rates of over 40,000 bopd gross with DC3 wells online earlier than planned. We are on track to deliver a Kraken production rate of 50,000 Bopd gross during H1 2018.

About EnQuest

EnQuest is one of the largest UK independent producers in the UK North Sea. EnQuest PLC trades on both the London Stock Exchange and the NASDAQ OMX Stockholm. Its operated assets include Thistle/Deveron, Heather/ Broom, the Dons area, the Greater Kittiwake Area, Scolty/Crathes and Alma/Galia, also the Kraken development; EnQuest also has an interest in the non-operated Alba producing oil field. At the end of December 2016, EnQuest had interests in 25 UK production licences, covering 35 blocks or part blocks and was the operator of 23 of these licences.

EnQuest believes that the UKCS represents a significant hydrocarbon basin, which continues to benefit from an extensive installed infrastructure base and skilled labour. EnQuest believes that its assets offer material organic growth opportunities, driven by exploitation of current infrastructure on the UKCS and the development of low risk near field opportunities.

EnQuest is replicating its model in the UKCS by targeting previously underdeveloped assets in a small number of other maturing regions; complementing its operations and utilising its deep skills in the UK North Sea. In which context, EnQuest has interests in Malaysia where its operated assets include the PM8/Seligi Production Sharing Contract and the Tanjong Baram Risk Services Contract.

About Cairn Energy PLC

Cairn is one of Europe's leading independent oil and gas exploration and development companies and is listed on the London Stock Exchange. Cairn has discovered and developed oil and gas reserves in a variety of locations around the world.
Cairn’s business operations are focused on frontier exploration acreage in North West Europe, North West Africa and the North Atlantic, underpinned by interests in development assets in the North Sea.
Cairn has its headquarters in Edinburgh, Scotland supported by operational offices in London, Norway and Senegal.