REG - Nostrum Oil & Gas - Operational Update for Q1 2025

Nostrum Oil & GasAnnouncement

Wed 07:00

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RNS Number : 6886G  Nostrum Oil & Gas PLC  30 April 2025

 

 

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RELEVANT LAWS OF THAT JURISDICTION

 

FOR IMMEDIATE RELEASE

 

London, 30 April 2025

 

 

 

Operational Update for the quarter ended 31 March 2025

 

Nostrum Oil & Gas PLC (LSE: NOG) ("Nostrum", or the "Company" and together
with its subsidiaries, the "Group"), an independent mixed-asset energy company
with world class gas processing facilities and export hub in north-west
Kazakhstan, today announces its operational update for the quarter ended 31
March 2025 ("Q1 2025").

 

 

Arfan Khan, Chief Executive Officer of Nostrum Oil & Gas PLC, commented:

 

"The Group continued to demonstrate strong operational performance during Q1
2025, with stable operations and significant year-over-year increases in both
processed volumes and titled production volumes. This, together with diligent
cost management, resulted in a small reduction in our unrestricted cash
balance at the end of the quarter, mainly due to capital expenditure payments
and despite a temporary crude oil inventory build-up."

 

 

Q1 2025 Highlights:

 

Operational

 

·      Production and sales

 

·      A 41% increase in average daily titled production volumes (i.e.
final products processed and owned by Nostrum) to 16,830 boepd for Q1 2025
(11,943 boepd in Q1 2024). A 68% increase in total processed volumes
(including third party condensate tolling volumes) to 24,009 boepd in Q1 2025
(14,319 boepd in Q1 2024). These increases in titled production and processed
volumes were mainly due to:

 

·      Ramp up of the production by Ural Oil & Gas LLP ("Ural
O&G"), which contributed to increase in Nostrum's titled production and
processed volumes.

 

·      Production from well No.301 which was completed and put into
production in May 2024.

 

·      The titled production volume split was as follows:

 

 Products                    Q1 2025 volumes (boepd)  Q1 2024 volumes (boepd)  Y-on-Y change (%)      Q1 2025       Q1 2024

                                                                                                      product mix   product mix

                                                                                                       (%)           (%)
 Crude Oil                   2,650                    2,382                    11.3%                  15.7%         19.9%
 Stabilised Condensate*      1,678                    1,934                    (13.2)%                10.0%         16.2%
 LPG (Liquid Petroleum Gas)  3,077                    1,858                    65.6%                  18.3%         15.6%
 Dry Gas                     9,425                    5,769                    63.4%                  56.0%         48.3%
 Total                       16,830                   11,943                   40.9%                  100.0%        100.0%

*Stabilised condensate volumes exclude Ural O&G processed volumes for
which Nostrum receives a tolling fee

 

·      A 47% increase in average daily sales volumes to 14,128 boepd for
Q1 2025 (Q1 2024: 10,022 boepd). The difference between titled production and
sales volumes is primarily due to the internal consumption of dry gas produced
and timing of product deliveries, which leads to inventory increases or
decreases at period end.

 

·      Chinarevskoye drilling programme

 

The Company is planning a limited-scale drilling campaign in the second half
of 2025, focused on high-value subsurface opportunities, which will also
ensure full compliance with its license commitments.

 

·      Stepnoy Leopard Fields

 

The Company achieved another significant milestone in unlocking the commercial
viability and potential of this upstream acquisition. As announced on 4 April
2025, the Company obtained approval from the Ministry of Energy of the
Republic of Kazakhstan for a phased, full-field development plan extending
until 2044 (the "FDP") for the Stepnoy Leopard fields. The FDP will allow
Nostrum to deploy optimum capital allocation, whilst meeting its target
production start-up date between late 2026 and early 2027. The Company
continues to progress design and engineering works.

 

·      Processing of Ural O&G products

 

Throughout Q1 2025, the Company continued processing raw gas and condensate
volumes from Ural O&G, significantly contributing to the increases in
titled production and processed volumes.

 

As announced on 21 March 2025, the Group entered into a binding agreement with
Ural O&G on new terms for processing third-party hydrocarbons until May
2031. The agreement extension is value-accretive and mutually beneficial for
both parties. It provides a fixed processing fee structure across all products
that gives rise to sustainable cash-flows and plant operations and supports
the further cost-effective development of the Rozhkovskoye field.

 

 

Financial

 

·      Q1 2025 revenue is estimated to be approximately US$30 million
(Q1 2024: US$31.7 million). The increase in titled production and processed
volumes from Ural O&G feedstock as well as production from well No. 301
had a positive impact to revenues. However, sales and revenues in Q1 2025 were
reduced by a temporary crude oil inventory build-up at the end of the quarter;
this product volume will be sold in Q2 2025. The average Brent crude oil price
decreased to US$75.9/bbl in Q1 2025 (Q1 2024: US$82.9/bbl).

 

·      The unrestricted cash and cash equivalents balance as at 31 March
2025 was in excess of US$148 million (31 December 2024: US$150.4 million). The
restricted cash balance (debt service retention account and asset liquidation
fund) was in excess of US$26 million as at 31 March 2025 (31 December 2024:
US$25.9 million).

 

·      The Group's net operating cashflow in Q1 2025 was affected by the
deferment of crude oil inventory sales to Q2 2025, as described above. Capital
expenditures on the Chinarevskoye and Stepnoy Leopard fields resulted to an
approximate US$2 million reduction in the Group's unrestricted cash and cash
equivalents balance by the end of Q1 2025.

 

·      The Group remains focused on maximising facility uptime,
controlling costs wherever possible, and improving efficiencies across all
facets of our business. At the same time, we are committed to allocating and
utilising resources efficiently to support our growth project.

 

 

HSE and ESG

 

·      Zero fatalities among employees and contractors during operations
for Q1 2025 (Q1 2024: zero).

 

·      One Total Recordable Incidents (incidents per million man-hours)
for Q1 2025 (Q1 2024: zero).

 

·      Zero Lost Time Injury (incidents per million man-hours) for Q1
2025 (Q1 2024: zero)

 

·      1,109 tonnes of air emissions emitted in Q1 2025 against 5,188
tonnes permitted for FY 2025 under the Kazakhstan Environmental Code.

 

·      Safety of all staff and contractors, along with a commitment to
sustainable operations, remains the Group's priority.

 

Release of Nostrum's Q1 2025 Financial Results

 

Nostrum plans to release its unaudited interim condensed consolidated accounts
for the period ending 31 March 2025 on or around 20 May 2025.

 

 

LEI: 2138007VWEP4MM3J8B29

 

Further information

For further information please visit www.nostrumoilandgas.com
(http://www.nostrumoilandgas.com)

 

Further enquiries

Nostrum Oil & Gas PLC

Petro Mychalkiw

Chief Financial Officer

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

 

Instinctif Partners -
UK
 

Galyna Kulachek

Amelia Thorn

+ 44 (0) 207 457 2020

nostrum@instinctif.com (mailto:nostrum@instinctif.com)

 

 

About Nostrum Oil & Gas

 

Nostrum Oil & Gas PLC is an independent mixed-asset energy company with
world-class gas processing facilities and export hub in north-west Kazakhstan.
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 which is operated by its wholly-owned subsidiary Zhaikmunai LLP, which
is the sole holder of the subsoil use rights with respect to the development
of the Chinarevskoye field. The Company also owns an 80% interest in Positiv
Invest LLP, which holds the subsoil use rights for the "Kamenskoe" and
"Kamensko-Teplovsko-Tokarevskoe" areas in the West Kazakhstan region (the
Stepnoy Leopard fields).

 

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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