EnQuest shares surge on $833m Malaysian deal

(Sharecast News) - EnQuest surged on Wednesday after the energy company agreed to buy interests in four offshore production sharing contracts in Malaysia for $833m. Via its Malaysian subsidiary, EnQuest has agreed to buy three asset packages from Petronas Carigali and E&P Malaysia Venture.

It said the acquisitions will deliver "a step change" in the company's production, reserves and cash flow, as well as providing significant organic opportunities for future growth.

The deal will deliver enlarged group production of more than 100,000 barrels of oil equivalent per day, up 134% on 2025's production, with potential to deliver a 100 kboepd rate through the end of the decade. The new participating interests together add around 57.4 kboepd of production.

Broker Shore Capital, which reiterated its 'buy' rating on the shares, said: "We expect the transaction to be immediately free cash flow accretive on completion (scheduled for end-FY26F), with EnQuest becoming a more than 100kboe/d producer.

"Although, this tips the balance of the business away from the UK North Sea and towards SE Asia, we are confident EnQuest retains the financial capacity and appetite to continue pursuing transformational acquisitions in the UK."

At 1015 BST, the shares were up 20.4% at 23p.

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