Image source: © 2025 Krish Capital Pty. Ltd.

Highlights

  • EnQuest completes strategic Vietnam acquisition for $25.7 million net, adding 12.4 million boe in reserves and resources.

  • Broker Shore Capital initiates BUY rating with a 50%+ upside expected on current share price.

  • FY25 production guidance reaffirmed at 40,000–45,000 Boepd with strong free cash flow support.

London-listed oil and gas player EnQuest PLC (LSE:ENQ) has received a Buy rating from Shore Capital, which forecasts more than 50% upside in the company’s stock price based on its recent strategic expansion and robust 2025 production outlook. The rating reflects growing investor confidence in EnQuest’s disciplined capital management, operational excellence, and diversification into high-margin Southeast Asian assets.

Vietnam Acquisition Adds High-Value Production and Resource Base

On 10 July, EnQuest announced the completion of its acquisition of Harbour Energy’s Vietnam business, which includes a 53.125% operating interest in the Chim Sáo and Dua production fields (Block 12W). The effective purchase price was approximately $25.7 million, adjusted for interim cash flows since 1 January 2024, making it a low-cost entry for a high-impact asset.

The fields contribute net 2P reserves of 7.5 million boe and 2C resources of 4.9 million boe, adding 12.4 million barrels of oil equivalent to EnQuest’s portfolio. The company aims to leverage its late-life field and FPSO asset expertise to maximise recovery and assess further prospectivity, with an eye on extending the current Production Sharing Contract (PSC) beyond 2030.

Operational momentum is already building — EnQuest completed a maintenance shutdown on time and within budget, and three of six planned well interventions have been executed, boosting production by approximately 1,200 boepd gross. In H1 2025, net asset production from Vietnam averaged 5.7 kboepd.

FY25 Performance and Guidance 

Across the broader portfolio, EnQuest reported average Q1 2025 production of 42,028 Boepd, supported by the reinstatement of Magnus output after infrastructure work, including successful infill drilling and optimisation. With key maintenance scopes completed during the outage, the next planned shutdown at Magnus is now pushed to 2026, offering further production stability.

The Group has reaffirmed its FY25 guidance of 40,000 to 45,000 Boepd, including contributions from Vietnam. Capital spending is expected to total $190 million, with operating and decommissioning costs estimated at $450 million and $60 million, respectively.

EnQuest is also pursuing a programme of cost reductions focused on maintaining production, maximising free cash flow, and reducing emissions.

Southeast Asia Growth Complements North Sea Ambitions

The Vietnam transaction follows EnQuest’s recent PSC awards in Indonesia, further increasing its footprint in Southeast Asia. The company has operated in Malaysia for over a decade and was named Operator of the Year by Petronas for the second consecutive year — a testament to its operational capabilities.

Meanwhile, EnQuest continues to explore transformative opportunities in the UK North Sea, with multiple negotiations underway.