TIDMNOG
RNS Number : 4739X
Nostrum Oil & Gas PLC
30 April 2019
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN
PART, IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD
CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF THAT
JURISDICTION
London, 30 April 2019
Operational Update for the First Quarter and the Three Months
ending 31 March 2019
Nostrum Oil & Gas PLC (LSE: NOG) ("Nostrum", or "the
Company"), an independent oil and gas company engaging in the
production, development and exploration of oil and gas in the
pre-Caspian Basin, today announces its operational update in
respect of the three-month period ending 31 March 2019. This update
is being issued in advance of the release of Nostrum's consolidated
accounts for the same period. The information contained in this
update remains subject to review by the Company's independent
auditors.
Highlights:
Operational
-- Q1 2019 average production after treatment of 32,646 boepd
and average sales volumes of 31,621 boepd
Financial
-- Q1 2019 revenues expected to be in excess of US$95 million (Q1 2018: US$94 million)
-- Q1 2019 cash position in excess of US$75 million (FY 2018: US$122 million)
-- Total debt(1) expected not to exceed US$1,110 million and net
debt expected not to exceed approximately US$1,035 million as at 31
March 2019
Kai-Uwe Kessel, Chief Executive Officer of Nostrum Oil &
Gas, commented:
First quarter production has been stable and we remain on track
to meet our 2019 guidance production of 30,000 boepd average
corresponding to sales volumes of 28,000 boepd. In our Northern
area where two wells are being drilled; the first well (Well 42) is
nearing completion with test results expected towards the end of
May, whilst the second well (Well 41) is still being drilled. No
production from either well is assumed in our production
forecasts.
Schlumberger continues to work on the evaluation of the Biski
North East and the Biski West reservoirs with results of the study
due in Q3 2019.
From a financial perspective, Q1 improved as the oil price
increased. Given that we had the coupon payments on both bonds
coming in Q1 and a receivable balance of over US$50m we had closing
cash of US$75m. This will reverse during Q2 where we have no coupon
payments on our bonds and a portion of the receivable balance will
unwind.
Our focus remains on growing production over the short to medium
term, controlling costs and generating as much cash flow as
possible.
(1) (Total debt does not include finance lease liabilities under
IFRS16 Leases)
Sales volumes
The sales volumes split for Q1 2019 was as follows:
Products Q1 2019 sales volumes Q1 2019 product
(boepd) mix (%)
Crude Oil & Stabilised Condensate 11 853 37.49%
--------------------- ---------------
LPG (Liquid Petroleum Gas) 4 109 13.00%
--------------------- ---------------
Dry Gas 15 658 49.52%
--------------------- ---------------
Total 31 621 100.00%
--------------------- ---------------
The difference between production and sales volumes is primarily
due to internal consumption of gas
Q1 2019 Drilling
-- As at 31 March 2019, the Company had 45 wells in production
(18 oil wells and 27 gas-condensate wells).
-- Well 42 is nearing completion with test results expected towards the end of May.
-- Well 41 is currently just above the target horizons.
2019 Drilling and sales volume guidance
-- With two drilling rigs we remain able to drill up to six wells during 2019.
-- The first two wells are in the Northern area of the field around well 40 (wells 41 and 42).
-- The location of additional wells will be determined once we
have completed the evaluation of wells drilled during 2018 and
those currently being drilled.
-- 2019 production guidance remains unchanged at 30,000 boepd,
corresponding to sales volumes of 28,000 boepd. Guidance does not
include any additional production from new wells planned this
year.
Progress on the development of GTU3
Mechanical completion of GTU3 was achieved in December 2018 and
cold commissioning is in progress with first gas into plant
targeted for May 2019 and full commissioning completed in Q3
2019.
The below figures reflect all future cash payments expected to
be made (excluding VAT) on GTU3.
Remaining cash spend on US$23.4 million
GTU3 (excl VAT) as at 31
March 2019
Trident
The current term of the Rostoshinkoye licence expired in
February 2019 and a further extension to August 2022 is under
application. Both the Yuzhno-Gremyachenskoye and the Darinskoye
licences expire at the end of 2021.
Release of Nostrum's Q1 2019 Financial Results
Nostrum plans to release its audited consolidated accounts for
Q1 2019 ending 31 March 2019 on 21 May 2019.
LEI: 2138007VWEP4MM3J8B29
Further information
For further information please visit www.nog.co.uk
Further enquiries
Nostrum Oil & Gas PLC - Investor Relations
Kirsty Hamilton-Smith
Amy Barlow
+44 203 740 7433
ir@nog.co.uk
Instinctif Partners - UK
David Simonson
Dinara Shikhametova
Sarah Hourahane
+ 44 (0) 207 457 2020
nostrum@instinctif.com
Promo Group Communications - Kazakhstan
Asel Karaulova
Irina Noskova
+ 7 (727) 264 67 37
About Nostrum Oil & Gas
Nostrum Oil & Gas PLC is an independent oil and gas company
currently engaging in the production, development and exploration
of oil and gas in the pre-Caspian Basin. Its shares are listed on
the London Stock Exchange (ticker symbol: NOG). The principal
producing asset of Nostrum Oil & Gas PLC is the Chinarevskoye
field, in which it holds a 100% interest and is the operator
through its wholly-owned subsidiary Zhaikmunai LLP. In addition,
Nostrum Oil & Gas holds a 100% interest in and is the operator
of the Rostoshinskoye, Darinskoye and Yuzhno-Gremyachenskoye oil
and gas fields through the same subsidiary. Located in the
pre-Caspian basin to the north-west of Uralsk, these exploration
and development fields are situated approximately 60 and 120
kilometres respectively from the Chinarevskoye field.
Forward-Looking Statements
Some of the statements in this document are forward-looking.
Forward-looking statements include statements regarding the intent,
belief and current expectations of the Partnership or its officers
with respect to various matters. When used in this document, the
words "expects," "believes," "anticipates," "plans," "may," "will,"
"should" and similar expressions, and the negatives thereof, are
intended to identify forward-looking statements. Such statements
are not promises or guarantees, and are subject to risks and
uncertainties that could cause actual outcomes to differ materially
from those suggested by any such statements.
No part of this announcement constitutes, or shall be taken to
constitute, an invitation or inducement to invest in the Company or
any other entity, and shareholders of the Company are cautioned not
to place undue reliance on the forward-looking statements. Save as
required by the Listing Rules and applicable law, the Company does
not undertake to update or change any forward-looking statements to
reflect events occurring after the date of this announcement.
This information is provided by RNS, the news service of the
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of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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