EnQuest today announced that its wholly-owned subsidiary, EnQuest Petroleum Production Malaysia Limited, has agreed to acquire three separate packages that include interests in four offshore production sharing contracts in Malaysia.

The Proposed Acquisitions involve the Purchaser entering into three separate farmout agreements (“FOAs”) with PETRONAS CARIGALI SDN. BHD. (“CARIGALI”) and E&P Malaysia Venture Sdn. Bhd. ("EPMV”) (as applicable).

The maximum total consideration for the Proposed Acquisitions is $833 million, of which $554 million is payable upon Completion, expected on 31 December 2026, subject to customary completion conditions, including inter alia the waiver or expiry of applicable pre-emption rights associated with Package 2. This gives existing production sharing contract (“PSC”) partners the right to match the proposed terms agreed by EnQuest for the Proposed Acquisition of Package 2 (the “Pre-emption Right”).

The Proposed Acquisitions, should they complete, will together constitute a reverse takeover for the purposes of the UK Listing Rules of the Financial Conduct Authority (the "FCA") (the "UKLRs") and are therefore notifiable in accordance with UKLR 7.5.1R(1). In addition, the acquisition of Package 1 alone (regardless of whether Package 2 or Package 3 completes) constitutes a reverse takeover under the UKLRs. Pursuant to UKLR 7.5.1R(2), a combined prospectus and a shareholder circular for the Proposed Acquisitions will be published in due course (the "Prospectus").

Proposed Acquisitions Highlights

EnQuest is a well-established, well-respected and award-winning operator in Malaysia, and was named Operator of the Year by Petroliam Nasional Berhad (PETRONAS) in both 2024 and 2025.

The EnQuest Group’s strategic focus is to build on this strong foundation by expanding its production footprint in the region. The Board of Directors of EnQuest (the "Board") believes the Proposed Acquisitions represent a material transaction that is in line with the Company’s disciplined M&A strategy and which will deliver significant value creation for EnQuest Shareholders.

The Proposed Acquisitions will deliver a step change in the EnQuest Group’s production, reserves and cash flow, as well as providing significant organic opportunities for future growth.

The consideration for the Proposed Acquisitions is expected to be funded by the Company’s existing debt facilities and cash resources. In line with EnQuest’s long-standing commitment to balance sheet discipline, and assuming Completion had occurred on 31 December 2025, the Enlarged Group’s net debt to EBITDA ratio would have been 1.1x, which is comparable to EnQuest’s standalone reported ratio of 0.9x.

An operational step change – all figures quoted on a 2025 net participating interest basis

• Production - Enlarged Group production of over 100 kboepd (a 134% increase versus 2025 EnQuest production), with potential to deliver 100 kboepd rate through the end of the decade
  • The new Participating Interests together add c.57.4 kboepd of production
  • South East Asia contribution increased to 69% (with the UK North Sea contributing 31%)
  • Enlarged Group 2025 production is weighted 63% liquids and 37% gas (the new Participating Interests 47% liquids and 53% gas)
• 2P reserves – Enlarged Group 2P reserves of c.300 MMboe, which is a c.85% increase versus EnQuest reported 2P volumes, as at 31 December 2025
  • The new Participating Interests add 138.0 MMboe (net, as at 31 March 2026)
  • c.96% of the new Participating Interests reserves to be operated by EnQuest
  • The new Participating Interests 2P reserves comprise c.53% liquids and c.47% gas
• Growth – Enlarged Group 2C resources of c.660 MMboe, which is a c.46% increase versus EnQuest reported 2C volumes, as at 31 December 2025
  • The new Participating Interests add 2C upside totalling 208.3 MMboe (net, as at 31 March 2026)
  • Significant capital-efficient growth potential, utilising existing infrastructure
  • Opportunities to unlock a further c.65-100 MMboe (net) through recovery factor enhancement

Material reduction in operating costs, with a minimal capex cost profile

• Enlarged Group unit opex of $16 per boe; a c.35% reduction. Average opex of c.$10 per boe for the new Participating Interests
• The new Participating Interests 2P life of field capex totals c.$170 million, post-Completion

Increased exposure to a high-growth jurisdiction where EnQuest is an established operator

• Enhances core portfolio within a stable, high-quality operating jurisdiction, with attractive fiscal terms
• The new Participating Interests located offshore Malaysia, where the Company has a long-standing presence, strong regulatory relationships and a proven track record of exceptional operational delivery
• High-performing asset teams in place to transition operations to EnQuest ownership and ensure continuity of efficient asset performance. Integration is expected to require minimal changes to EnQuest operating model, presenting significant synergy potential

Capital discipline maintained, with enhanced financial strength supporting future Shareholder returns

• Enlarged Group revenue of c.$1,820 million, delivering in excess of $900 million of EBITDA based on the 12 months to 31 December 2025
• Balance sheet discipline maintained – assuming Completion on 31 December 2025, the Enlarged Group’s net debt to EBITDA leverage would have been 1.1x
• Enlarged Group unit cash flow breakeven materially lowered, with enhanced cash generation providing capacity to support organic growth, balance sheet management and continued Shareholder returns
• A credit-enhancing, highly tangible production-based expansion to the EnQuest Group’s asset base

Amjad Bseisu, Chief Executive Officer, EnQuest, commented:
“With these Proposed Acquisitions, we are taking a decisive step in the evolution of our business. It reflects our clear focus on building a larger, more diversified portfolio, while maintaining our discipline in pursuing opportunities that enhance value, strengthen cash generation and support long-term Shareholder returns."

“This is an exciting moment for EnQuest that expands our South East Asia position, strengthens our global portfolio, provides a material milestone in the delivery of our growth strategy, and, we believe, will deliver significant value for Shareholders. I thank CARIGALI for its continued trust in EnQuest as a strategic partner and high-performing operator, and very much look forward to working with our partners to realise the full potential of these new additions to our portfolio.”

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