EnQuest reveals £75m cash boost

Oil firm EnQuest said today that it had received a multi-million pound cash boost as part of its ongoing drive to improve liquidity.

The London-listed firm said it had agreed a £60million ($80million) oil prepayment transaction with Mercuria Energy Trading.

EnQuests said the deal involved payments in monthly instalments over an 18 month period for the delivery of about 1.8million barrels of oil.

EnQuest will receive the average Brent price subject to a floor of $45 per barrel and a cap of $64 per barrel. 

The company has also agreed a £28million ($37.25million) refinancing for its Tanjong Baram project in Malaysia with Castleton Commodities Merchant Asia.

The deal is intended to replace the existing £8.5million financing with the Development Bank of Singapore. 

EnQuest said the two new transactions directly provided it with more than £75million ($100million) worth of additional financial resources.

In June, the company achieved first oil from the North Sea Kraken field to deliver another major boost to its coffers.

About a year ago, EnQuest said it was restructuring financially to help it bring Kraken on stream.



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