North Sea exploration firm EnQuest has denied it is in any “company-specific discussions” with the UK Oil and Gas Authority (OGA) over contingency plans to tackle the risk of insolvencies among mid-sized operators.

EnQuest shares rose more than 12% after its announcement.

A report in The Telegraph had claimed the OGA was considering action to tackle the risk of insolvencies among struggling mid-cap players like Enquest, which is a major stakeholder in the huge Kraken field, one of the North Sea’s largest new projects.

In a statement on Monday morning, EnQuest said: “EnQuest notes The Telegraph article at the weekend about the UK Oil and Gas Authority’s possible North Sea contingency plans.

“EnQuest routinely engages with the OGA and with the UK and Scottish Governments on industry matters, but is not involved in any company-specific discussions such as were implied by the article.”