Potential farm out of 20% of Kraken to Delek

EnQuest PLC, 18 July 2016
Potential farm out of 20% of Kraken to Delek

EnQuest PLC ("EnQuest") is pleased to announce that it is holding discussions
with Delek Group Ltd ("Delek") for the sale by EnQuest to one of Delek's
subsidiaries of an interest in the Kraken development ("Kraken"). EnQuest
confirms that EnQuest and Delek have signed a non-binding memorandum of
understanding and are working towards executing binding transaction documents.
Delek is today releasing information concerning this negotiation as part of its
disclosure obligations with regard to a separate transaction.

The key terms of the proposal are currently as follows:

-   EnQuest   to farm out to Delek a 20% working interest in Kraken.

-   Delek   would bear its share in the project capex from January 1, 2016.

-   At completion, Delek will advance   USD20 million to the Seller for a
    period of up to 5 years at an annual   interest of 3% which shall be
    returned to Delek in the event that its costs   are not covered by revenues
    within 5 years from the completion date.
-   The parties are discussing mechanisms   for additional contingent
    consideration, to be set out in binding transaction   documents.
-   The parties may, prior to completion,   by agreement and subject to
    requisite third party consents (including that of   EnQuest's lenders),
    convert the transaction such that Delek may acquire a   subsidiary of
    EnQuest which holds a 20% working interest in Kraken.

There is no guarantee that a final agreement will be reached.  EnQuest announced
previously that in addition to its ongoing cost reduction initiatives, it was
also pursuing a range of further opportunities for debt reduction, including
potential asset sales and farm outs.  The transaction is subject to EnQuest's
lending banks' consent. EnQuest continues to closely monitor and manage its
funding and liquidity position in light of the current market environment and is
engaging as appropriate with its credit facility providers (including banks and
bondholders) in this regard.

Note that if Delek and EnQuest agree and sign binding transaction documents,
completion of the  transaction would be subject to the normal third party
consents.  EnQuest will provide further details in the event either of
transaction documents being signed or of it becoming apparent that a binding
agreement cannot be reached.

Background note

Earlier this year EnQuest increased its stake in Kraken to 70.5% with the
acquisition, for nominal consideration, of an additional 10.5% share from First
Oil PLC, thereby increasing EnQuest's net 2P reserves by 13 MMboe.

For further information please contact:



EnQuest
PLC
                                    Tel: +44 (0)20 7925 4900
Amjad Bseisu (Chief Executive)
Jonathan Swinney (Chief Financial Officer)
Michael Waring (Head of Communications & Investor
Relations)

Tulchan
Communications
                          Tel: +44 (0)20 7353 4200
Martin Robinson
Martin Pengelley

Notes to editors

EnQuest is the largest UK independent producer in the UK North Sea.  EnQuest PLC
trades on both the London Stock Exchange and the NASDAQ OMX Stockholm. Its
operated assets include the Thistle/Deveron, Heather/ Broom, Dons area, the
Greater Kittiwake Area and Alma/Galia, also the Kraken and the Scolty/Crathes
developments; EnQuest also has an interest in the non-operated Alba producing
oil field.  At the start of 2016, EnQuest had interests in 30 UK production
licences, covering 42 blocks or part blocks and was the operator of 25 of these
licences.

EnQuest believes that the UKCS represents a significant hydrocarbon basin, which
continues to benefit from an extensive installed infrastructure base and skilled
labour.  EnQuest believes that its assets offer material organic growth
opportunities, driven by exploitation of current infrastructure on the UKCS and
the development of low risk near field opportunities.

EnQuest is replicating its model in the UKCS by targeting previously
underdeveloped assets in a small number of other maturing regions; complementing
its operations and utilising its deep skills in the UK North Sea.  In which
context, EnQuest has interests in Malaysia where its operated assets include the
PM8/Seligi Production Sharing Contract and the Tanjong Baram Risk Services
Contract.

Forward looking statements: This announcement may contain certain forward
-looking statements with respect to EnQuest's expectation and plans, strategy,
management's objectives, future performance, production, reserves, costs,
revenues and other trend information.  These statements and forecasts involve
risk and uncertainty because they relate to events and depend upon circumstances
that may occur in the future.  There are a number of factors which could cause
actual results or developments to differ materially from those expressed or
implied by these forward looking statements and forecasts.   The statements have
been made with reference to forecast price changes, economic conditions and the
current regulatory environment.  Nothing in this presentation should be
construed as a profit forecast.  Past share performance cannot be relied on as a
guide to future performance.

About The Delek Group (as per Delek's website)

The Delek Group, Israel's dominant integrated energy company, is the pioneering
leader of the natural gas exploration and production activities that are
transforming the Eastern Mediterranean's Levant Basin into one of the energy
industry's most promising emerging regions. Having discovered Tamar and
Leviathan, two of the world's largest natural gas finds since 2000, Delek and
its partners are now developing a balanced, world-class portfolio of
exploration, development and production assets with total gross natural gas
resources discovered since 2009 of approximately 40 TCF.

In addition, Delek Group has a number of assets in downstream energy, water
desalination, and in the finance sector.

For more information on Delek Group please visit www.delek-group.com