Half Year 2021 EnQuest PLC Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: James Thompson - JPMorgan Chase & Co, Research Division - Analyst : Thanks very much for the presentation. Amjad, I guess, first of all, maybe thinking sort of bigger picture. The balance sheet is as strong as it's been for several years now and at least from a leverage perspective, macro conditions is better and cash CapEx is only $16 million in the first half of 2021. I mean that's obviously unsustainable. Can you maybe just talk a little bit about how you're thinking about development of the contingent resource base in the portfolio? You mentioned sort of timing wise and Jonathan obviously alluded to that in terms of debt being a priority short term. But just maybe you could paint a picture of how you're going to grow or how you're going to capture these contingent resources over the next few years, particularly given clearly, the stronger commodity backdrop at the moment?

Question: James Thompson - JPMorgan Chase & Co, Research Division - Analyst : Okay. So still prioritizing the debt for next year, CapEx will be relatively low. I guess, we'll see sort of flat to slightly down production next year and then maybe ramp after that. I guess just in terms of the sort of nearer term and your guidance sort of for the full year in terms of production. I mean is the expectation there that obviously, the remedial work being completed on various assets means that H2 production should be higher than H1? Or is it the case of sort of natural decline on the asset? It means H2 is going to be very, very similar to H1. I'm just trying to get a sense of whether the second half is more a kind of 49-50 type outcome versus the [46] in the first half?