Malaysian oil well plugged, Enquest falls to record low

Barclays Plc says Enquest among most exposed to oil drop. — file pic
Barclays Plc says Enquest among most exposed to oil drop. — file pic

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LONDON, Nov 19 — Enquest Plc fell to a record low after Barclays Plc said it and two other UK explorers were more exposed to an oil drop and after a well in Malaysia was plugged and abandoned.

The shares fell 2.7 per cent to 64.15 pence (RM3.36) at the close in London trading, the lowest close since April 7, 2010.

Enquest, Afren Plc and Ophir Energy Plc are the most exposed if the oil outlook moves toward US$70 (RM235) a barrel, Barclays’s investment-banking unit said in the note today. Brent, used to price more than half the world’s crude, has plunged 30 per cent since June and is trading below US$80 a barrel.

“Debt leverage combined with a limited tax cushion increase the impact of lower oil prices relative to other producer/developers,” Barclays said of Enquest and Afren.

Enquest’s well off Sabah in Malaysia in which it has a 42.5 per cent stake encountered no hydrocarbons, according to the operator Lundin Petroleum AB, which also holds 42.5 per cent.

Enquest, based in London, was downgraded to “neutral” from “outperform” by Macquarie Ltd. In October, Enquest and Afren slumped after UBS AG said they’re more exposed than some peers to declining oil prices. — Bloomberg

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