REG - Nostrum Oil & Gas - Approval of Investment in Stepnoy Leopard Field

Nostrum Oil & GasAnnouncement

02/04/2024 11:15

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RNS Number : 9626I  Nostrum Oil & Gas PLC  02 April 2024

 

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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 (http://www.nog.co.uk)

 

Further enquiries

Nostrum Oil & Gas PLC
 

Petro Mychalkiw

Chief Financial Officer

ir@nog.co.uk (mailto:ir@nog.co.uk)
 
 

 

Instinctif Partners -
UK
 

Guy Scarborough

Vivian Lai

+ 44 (0) 207 457 2020

nostrum@instinctif.com (mailto: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.

 

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