Capital Reorganisation

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION AS STIPULATED UNDER THE MARKET
ABUSE REGULATION (EU NO. 596/2014).

THIS ANNOUNCEMENT IS AN ADVERTISEMENT AND DOES NOT CONSTITUTE A PROSPECTUS OR
PROSPECTUS EQUIVALENT DOCUMENT. NOTHING HEREIN SHALL CONSTITUTE AN OFFERING OF
HIGH YIELD NOTES, RETAIL NOTES OR NEW ORDINARY SHARES. ANY DECISION TO PURCHASE,
SUBSCRIBE FOR, OTHERWISE ACQUIRE, SELL OR OTHERWISE DISPOSE OF ANY NEW HIGH
YIELD NOTES, EXISTING RETAIL NOTES, AMENDED RETAIL NOTES OR NEW ORDINARY SHARES
MUST BE MADE ONLY ON THE BASIS OF THE INFORMATION CONTAINED IN AND INCORPORATED
BY REFERENCE INTO THE PROSPECTUS OR THE EXPLANATORY STATEMENT (AS APPLICABLE)
ONCE PUBLISHED

.. COPIES OF THE EXPLANATORY STATEMENT WILL, FOLLOWING DISTRIBUTION
ELECTRONICALLY, BE AVAILABLE UPON REQUEST AT THE OFFICES OF ASHURST LLP,
BROADWALK HOUSE, 5 APPOLD STREET, LONDON EC2A 2AG AND ON THE COMPANY'S
INFORMATION AGENT WEBSITE AT

 WWW.LUCID.COM/ENQUEST  AND THE PROSPECTUS WILL, FOLLOWING PUBLICATION, BE
AVAILABLE FROM THE REGISTERED OFFICE OF ENQUEST PLC AND (SUBJECT TO CERTAIN
RESTRICTIONS) ON ITS WEBSITE AT  WWW.ENQUEST.COM .

THE NEW ORDINARY SHARES HAVE NOT BEEN AND WILL NOT BE REGISTERED UNDER THE US
SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), AND MAY NOT BE
OFFERED OR SOLD IN THE UNITED STATES ABSENT REGISTRATION OR AN APPLICABLE
EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT. THE NEW
ORDINARY SHARES WILL NOT BE REGISTERED UNDER THE SECURITIES ACT AND WILL NOT BE
OFFERED OR SOLD TO THE PUBLIC IN THE UNITED STATES.

THE NEW HIGH YIELD NOTES TO BE ISSUED PURSUANT TO THE SCHEME WILL NOT BE
REGISTERED UNDER THE SECURITIES ACT AND WILL BE ISSUED IN RELIANCE UPON THE
EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT PROVIDED BY
SECTION 3(a)(10) THEREOF.

EnQuest PLC, 13 October 2016

Launch of the proposed financing restructuring of EnQuest PLC

Overview

The Board of EnQuest PLC today announces the launch of a proposed financial
restructuring of the Group (the "Restructuring") which the Company has agreed
with its key stakeholders following an extensive period of engagement and
negotiation.

The Restructuring is comprised of a number of key elements, including the
implementation of the Proposed RCF Amendments and the Proposed Note Amendments,
the renewal of the Surety Bond Facilities and the Placing and Open Offer (which
terms are explained further below).  All of these elements are inter
-conditional, meaning that none of the elements will become effective if any one
of them is not delivered. So the Restructuring would not proceed if for example,
the Scheme to effect the Proposed Note Amendments is not approved by the
requisite majorities of Scheme Creditors or if the shareholder Resolutions in
connection with the Placing and Open Offer are not approved by Shareholders.

The Company believes that, if successful, the Restructuring will provide the
Group with a stable and sustainable capital structure, reduced cash debt service
obligations and greater liquidity. These will all contribute to the continued
delivery by the Group of its strategic objectives.

Jock Lennox, Chairman of EnQuest, said:

"We are very pleased to announce today a comprehensive package of measures to
place EnQuest on a strong footing to deliver our Kraken development in H1 2017
and ensure that we are well placed to deliver value to our shareholders in the
medium term.

Over the last two years, EnQuest has taken action to implement extensive cost
saving programmes to refocus the business for the low oil price environment,
including reducing and re-phasing both capital and operating expenditures.
Simultaneously, EnQuest has been working on a range of other funding and
liquidity options, which culminate in the Restructuring announced today. We have
agreed a range of improvements on the terms of our debt facilities and we remain
grateful to our RCF lenders for their continuing support. We have also reached
agreement with approximately 61 per cent of our High Yield Noteholders on the
Proposed Note Amendments.

The proposed Restructuring, which encompasses amendments to EnQuest’s existing
RCF facility, amendments to the High Yield Notes and the Retail Notes, the
renewal of the Company’s Surety Bond Facilities and the Placing and Open Offer
which is expected to raise £82 million in gross proceeds, will significantly
improve the liquidity position of the Company so that EnQuest can deliver first
oil from the Kraken development in H1 2017 in accordance with management’s
projections. The Kraken development continues to be on track with the FPSO set
for sail away in H2 2016.

To view the full announcement, please click on the associated PDF document.