EnQuest Says Higher Production, Prices Boosted 2010 Profit

U.K. North Sea-focused oil and gas company EnQuest PLC (ENQ.LN) said Tuesday that 2010 pretax profit rose around five-fold and revenue more than doubled as oil and gas production and commodity prices increased significantly.

Pretax profit in 2010 was $55.8 million, compared with $11.0 million in 2009, and revenue rose to $583.5 million from $234.0 million a year earlier.

The company has raised its 2011 production target 26% to 26,500 barrels of oil equivalent per day, or boepd, after 2010 pro forma average production increased 55% to 21,074 boepd.

EnQuest 2P--proven plus probable--reserves rose around 10% to 88.5 million barrels of oil equivalent.

For 2011, the company has earmarked around $300 million for capital expenditure with $250 million on development drilling and facilities and $50 million on exploration and appraisal. In 2010, capital expenditure was around $196.3 million on a pro forma basis.

In April 2010, EnQuest acquired the demerged U.K. North Sea assets of Petrofac Limited (PFC.LN) and Lundin Petroleum AB (LUP.T).

The year-end balance sheet had a net cash balance of $41.4 million, after the repayment of $88.8 million of net debt.

Shares closed Monday at 137.6 pence.

-By Iain Packham, Dow Jones Newswires; 44-20-7842-9269; [e-mail]