Scotland business

Oil firm EnQuest reports new North Sea discovery

EnQuest workers Image copyright ENQUEST
Image caption EnQuest said its 2016 drilling performance in the Central North Sea had been "excellent"

Oil firm EnQuest has reported a new discovery in the Central North Sea.

The Aberdeen-based company announced the "encouraging" find after completing drilling at an Eagle exploration well in the Greater Kittiwake Area (GKA).

EnQuest said initial analysis indicated "excellent reservoir properties".

EnQuest anticipates gross total recoverable reserves to be similar in size to those in the nearby Gadwall producing oil field, which was returned to production by the firm last year.

It has estimated total gross recovery from Gadwall at about six million stock tank barrels.

The company said it was continuing to evaluate the Eagle results.

In February 2014, EnQuest acquired a 50% stake as well as operatorship of GKA, which includes the Kittiwake field.

The company also has a 100% interest in the Kittiwake to Forties oil export pipeline.

'Excellent performance'

In an update, EnQuest also reported that its 2016 drilling performance in the Central North Sea had been "excellent".

It said drilling of the Scolty/Crathes development wells was completed ahead of schedule and under budget, while the Crathes reservoir "exceeded expectations", with a small reserves upgrade.

Neil McCulloch, from EnQuest, said: "Following last year's production growth and unit operating cost reduction successes at GKA, this latest success demonstrates EnQuest's ability to create value from maturing assets and from near field exploration opportunities."

In March, EnQuest reported that its pre-tax losses more than doubled last year to about $1.3bn after it took a hit from the oil price slump.

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