Update on the Demergers and the Offer

**NOT FOR PUBLICATION, DISTRIBUTION OR RELEASE IN OR INTO THE UNITED STATES OF AMERICA, CANADA, JAPAN, SOUTH AFRICA OR AUSTRALIA**

EnQuest PLC

Update on the Demergers and the Offer

EnQuest PLC ("EnQuest" or the "Company") is pleased to confirm that Petrofac Limited ("Petrofac") shareholders at the Extraordinary General Meeting held on 29 March 2010 approved the proposed Petrofac Demerger announced on 4 March 2010. This follows the approval received at the Lundin Petroleum AB ("Lundin") Extraordinary General Meeting held on 22 March 2010.

As previously announced, London Admission is expected to take place and commencement of unconditional dealings in the Ordinary Shares on the London Stock Exchange are expected to begin on 6 April 2010, subject to, amongst other matters, completion of the Acquisitions and the Demergers becoming effective. Conditional dealings in the Ordinary Shares are expected to commence on NASDAQ OMX Stockholm on 6 April 2010, with unconditional dealings in the Ordinary Shares expected to commence on NASDAQ OMX Stockholm on 9 April 2010, the date of Stockholm Admission, subject, in each case, to London Admission occurring.

Certain entities associated with the Lundin family, Ayman Asfari and family and Maroun Semaan have determined they will not be selling into the Offer at Admission. As such, the Offer will not proceed and there will be no conditional dealings in the Ordinary Shares on the London Stock Exchange prior to London Admission.

Amjad Bseisu, Chief Executive of EnQuest, commented:

"We are delighted that the Petrofac and Lundin shareholders have approved the Demergers and look forward to our future as an independent public company. EnQuest has the requisite skills, scale and financial strength to be a differentiated development and production Company. I am excited about our growth prospects for the future."

Ayman Asfari, Group Chief Executive of Petrofac, commented:

"I believe this transaction evidences the "build and harvest" strategy in Petrofac's Energy Developments business unit. I look forward to seeing EnQuest grow in the future and intend to remain a supportive, long term shareholder."

Ian Lundin, on behalf of the Lundin family and associated entities, commented:

"I believe there are numerous opportunities in the UK North Sea and look forward to watching EnQuest take advantage of these. I wish the EnQuest Board and management every success. The Lundin family are committed long term shareholders."

Capitalised terms within this announcement are as defined in the Prospectus published by EnQuest on 18 March 2010.

- Ends-

For further information please contact:

J. P. Morgan Cazenove Tel: +44 (0)20 7588 2828

Bob McGuire

Steve Baldwin

Finsbury Tel: +44 (0)20 7251 3801

Andrew Mitchell

Conor McClafferty

Dorothy Burwell

Disclaimer

The information contained in this announcement is for background purposes only and does not purport to be full or complete. No reliance may be placed for any purpose on the information contained in this announcement or its accuracy or completeness.

This announcement is not for publication or distribution, directly or indirectly, in or into the United States. The distribution of this announcement in certain jurisdictions may be restricted by law. Persons into whose possession this document comes should inform themselves about and observe any restrictions on the distribution of this announcement. Any failure to comply with these restrictions may constitute a violation of the securities laws of any such jurisdictions. Persons receiving this announcement should not distribute or send it into any jurisdiction where to do so would or might contravene local securities laws or regulations.

This announcement does not constitute or form part of an offer to sell or issue or the solicitation of an offer to subscribe for or buy, any Ordinary Shares to any person in any jurisdiction to whom or in which such offer or solicitation is unlawful and, in particular, is not for distribution or publication in or into the United States, Canada, Australia, the Republic of South Africa or Japan.

The Ordinary Shares have not been and will not be registered under the US Securities Act of 1933, as amended (the "Securities Act") with any securities regulatory authority or under any securities laws of any state or other jurisdiction of the United States and may not be taken up, offered, sold, resold, transferred, delivered or distributed, directly or indirectly, within, into or from the United States except pursuant to an applicable exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and in compliance with any applicable securities laws of any state or other jurisdiction of the United States. There will be no public offer of securities in the United States.

The Ordinary Shares have not been and will not be registered under the applicable securities laws of Canada, Australia, the Republic of South Africa or Japan and subject to certain exceptions, the Ordinary Shares may not be offered or sold in Canada, Australia, the Republic of South Africa or Japan or to, or for the account or benefit of, any resident of Canada, Australia, the Republic of South Africa or Japan. There will be no public offer of securities in Canada, Australia, the Republic of South Africa or Japan.

None of J.P. Morgan Cazenove, Nordea Markets, Royal Bank of Canada Europe Limited and Oriel Securities Limited or any of their respective directors, officers, employees, advisers or agents accepts any responsibility or liability whatsoever for/or makes any representation or warranty, express or implied, as to the truth, accuracy or completeness of the information in this announcement (or whether any information has been omitted from the announcement) or any other information relating to the Company, its subsidiaries or associated companies, whether written, oral or in a visual or electronic form, and howsoever transmitted or made available or for any loss howsoever arising from any use of announcement or its contents or otherwise arising in connection therewith.