Shares in North Sea oil explorer EnQuest sank today after the firm cut its full-year production forecast due to delays at its Kraken field.
EnQuest said prolonged commissioning at Kraken's production storage unit led to lower than expected efficiency at the field, and overall average daily production for the full year is anticipated to be the same as the first half plus or minus 10 per cent.
That's around 33,313.5 barrels of oil equivalent per day (boepd) to 40,716 boepd, which is below previous guidance of 45,000 boepd to 51,000 boepd.
In the first half of 2017, output was 37,015 boepd.
EnQuest's stock fell 12.21 per cent to 28.75p in morning trading.
Amjad Bseisu, chief executive of EnQuest, said he was "very" pleased with the reservoir performance at the site and flow rates achieved on individual wells after Kraken delivered first oil in June.
The field is expected to increase production in the fourth quarter and hit plateau production of around 50,000 boepd in the first half of 2018.
"While we have seen natural declines in EnQuest's existing production base in H1 2017, Kraken is on course to drive a material increase in EnQuest's production in 2018 and beyond," Bseisu said.
Shares in Cairn Energy, which holds a stake in the Kraken field, were down 1.24 per cent to 180.4p.