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EnQuest exits Tunisia farm-in deal

02nd February 2015

EnQuest has exited from its proposed farm-in to Tunisia’s Didon oilfield and the Zarat permit after failing to receive approval within the time frame

EnQuest has exited from its proposed farm-in to Tunisia’s Didon oilfield and the Zarat permit after failing to receive approval within the time frame
The backstop date for the transaction has now passed and the parties have elected not to extend it

In May 2013, EnQuest announced an agreement to acquire interests in the Didon producing oil field and the Zarat permit, from PA Resources AB and certain of its subsidiaries (PAR), PAR was to retain a partial interest in the assets following EnQuest’s acquisition.

In August 2014, EnQuest announced that the acquisition of Didon had completed in mid-July and the consideration of USD 23m was to be kept in escrow pending an appropriate response from the Tunisian authorities.

The backstop date for the transaction has now passed and the parties have elected not to extend it.

Accordingly the interest previously acquired by EnQuest has been returned to PAR, the USD 23m has been returned to EnQuest and EnQuest has no future obligation to complete any acquisition pursuant to the May 2013 agreement with PAR.

In its recent Group Trading and Operations update, EnQuest noted provisional oil production of an average of 28,267 boepd for 2014; the finalised EnQuest production figure for 2014 will now exclude the 372 boepd which was in relation to production from Didon.

In that update, EnQuest also provided outlook figures for 2015, including production and capital expenditure where there was no material contribution from Tunisia.

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