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
THIS ANNOUNCEMENT CONTAINS INSIDE
INFORMATION
London, 2 April 2024
Approval of Investment in
Stepnoy Leopard Initial Field Development Phase
Nostrum Oil & Gas PLC (LSE: NOG)
("Nostrum", or the "Company" and together with its subsidiaries,
the "Group"), an independent oil and gas company engaging in the
production, development and exploration of oil and gas in the
pre-Caspian Basin, is pleased to announce that it has made a final
investment decision ("FID") for the initial field development phase
of the Kamensko-Teplovsko-Tokarevskoe area in the West Kazakhstan
Region (the "Stepnoy Leopard Fields") owned by its 80% subsidiary
Positiv Invest LLP ("PI"), with first production targeted for the
end of 2026.
During the initial development phase
the Company will drill 4 development wells across the key
reservoirs, targeting recoverable resource potential between 30
mmboe and 50 mmboe. The wells will produce the raw sour gas and
liquids full-well-stream to the Company's Chinarevskoye processing
facilities via a 120-km multiphase trunkline.
The forecast total capital budget
for this initial field development phase is US$100 million gross.
The full amount (including 20% minority partner carry) is planned
to be financed from the Company's own cash reserves and
forecast project cashflows. The project related capital
expenditures and contractual commitments will commence later in
2024 and ramp-up gradually over the 3 year execution period prior
to startup at the end of 2026. Early cash generation will also
strengthen the self-financing capacity and help spur further
development of the remaining resource base.
Arfan Khan, Chief Executive Officer,
commented:
"We are delighted to announce the
FID for the initial field development phase of the Stepnoy Leopard
Fields. The decision was taken on the heels of successfully
completing the previously announced well appraisal operations which
commenced in Q4 2023. The field is located approximately 100 km
west of our world-class full-process infrastructure and represents
an attractive upstream tie-back project that could deliver material
reserves addition to the Group's depleting resource base at
Chinarevskoye. The project will also increase meanginfully the
utilization of our 4.2 bcma processing facilities, in conjunction
with the additional production from Ural Oil & Gas which
commenced in Q4 2023. Reaching this important milestone is a result
of our staff's commitment and exceptional teamwork. It also
delivers on our promises to transform the Company from a
single-asset to a multi mixed-asset upstream-midstream energy
company"
LEI: 2138007VWEP4MM3J8B29
Further information
For further information please
visit www.nog.co.uk
Further enquiries
Nostrum Oil & Gas PLC
Petro Mychalkiw
Chief Financial Officer
ir@nog.co.uk
Instinctif Partners -
UK
Guy Scarborough
Vivian Lai
+ 44 (0) 207 457 2020
nostrum@instinctif.com
Notifying person
Thomas Hartnett
Company Secretary
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 that is being
operated by a wholly-owned subsidiary of Nostrum Oil & Gas PLC
- Zhaikmunai LLP, who is the sole holder of the subsoil
use rights with respect to the development of the 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 Company 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 nor
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
relevant 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.