(Reuters) - EnQuest Plc (L:ENQ) said it renegotiated its credit facility covenants and cut its capital expenditure programme for 2015 as the oil and gas producer responds to the slump in crude oil prices.
Shares in the company jumped 54 percent to 46.25 pence in early trading on the London Stock Exchange on Friday.
The company cut its 2015 total group cash expenditure programme to about $600 million (400 million pounds) and said it was working with its contractors and supply chain to achieve further cost savings.
EnQuest had earlier set capital expenditure in the UK of $700 million to $800 million for this year.
However, EnQuest expects 2015 production to increase to about 33,000 to 36,000 barrels of oil equivalent per day (boepd) from the provisional production of 28,267 boepd in 2014.
The company said its lenders had agreed to relax covenants on its credit facilities until mid-2017. EnQuest currently has access to a $1.2 billion committed credit facility with a $500 million accordion.
EnQuest expects earnings before interest, taxes, depreciation and amortisation (EBITDA) of about $530 million to $580 million for 2014 and revenue of more than $950 million.