REG - Nostrum Oil & Gas - Operational Update for Q2 and H1 2025

Nostrum Oil & GasAnnouncement

Thu 07:01

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RNS Number : 2863T  Nostrum Oil & Gas PLC  31 July 2025

 

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

 

FOR IMMEDIATE RELEASE

 

 

London, 31 July 2025

 

 

Operational Update for the second quarter and six months ended 30 June 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 second quarter and
six months ended 30 June 2025 ("H1 2025").

 

 

Viktor Gladun, Chief Executive Officer of Nostrum Oil & Gas, commented:

 

"I am pleased to step in to CEO position and look forward to lead Nostrum, and
would like to emphasise that health and safety remains our top priority.

 

During H1 2025, Nostrum delivered strong revenue performance, despite weaker
product prices and the continuing decline of production from the mature
Chinarevskoye field. This was achieved through continuing the ramp-up in
third-party volumes processed at our facilities with maximum uptime, as well
as active well workover and intervention works to maintain production levels.

 

We will continue to carefully assess our options of developing and monetising
our Stepnoy Leopard assets, and endeavor that the most optimal well workover
and drilling campaign is executed at the Chinarvskoye field, while ensuring
compliance with license requirements. These efforts together with tight cost
displine and prudent capital allocation are all aimed at generating long-term
value for our shareholders, stakeholders and the benefit of Kazakhstan."

 

 

H1 2025 Highlights:

 

Operational

·      Production and sales

 

o  A 39% increase in average daily titled production volumes (i.e. final
products processed and owned by Nostrum) to 16,974 boepd in H1 2025 (H1 2024:
12,220 boepd). A 65% increase in total processed volumes (including third
party condensate tolling volumes) to 24,619 boepd in H1 2025 (H1 2024: 14,919
boepd). Whilst production from the maturing Chinarveskoye field continues to
decline, Nostrum's titled production and processed volumes increased due to:

 

o  Continuing ramp up of production by Ural Oil & Gas LLP ("Ural
O&G").

 

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

 

·      The titled production volume split was as follows:

 Products                    H1 2025   H1 2024     Y-on-Y       H1 2025       H1 2024

                             volumes   volumes     Change       product mix   product mix

                             (boepd)    (boepd)    (%)          (%)            (%)
 Crude Oil                   2,476     2,393       3.5%         14.6%         19.6%
 Stabilised Condensate*      1,598     1,850       (13.6)%      9.4%          15.1%
 LPG (Liquid Petroleum Gas)  3,165     1,983       59.6%        18.6%         16.2%
 Dry Gas                     9,735     5,994       62.4%        57.4%         49.1%
 Total                       16,974    12,220      38.9%        100.0%        100.0%

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

 

·      A 49% increase in average daily sales volumes to 15,555 boepd in
H1 2025 (H1 2024: 10,475 boepd), reflecting the increase in titled production
and inventory movements. 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 beginning
in mid-August. The campaign will target the most economic subsurface
opportunities while also ensuring compliance with license obligations. In
parallel, the Company continues to carry out optimised well workovers to
minimise production decline.

 

·      Stepnoy Leopard Fields

In April 2025, the Company secured approval from Kazakhstan's Ministry of
Energy for a phased full-field development plan (FDP) for the Stepnoy Leopard
fields, which marks a key milestone in advancing the commercial potential of
the upstream asset, enabling optimized capital deployment. As part of the
ongoing progress, the Company continues to advance design and engineering
works, and limited procurement to ensure compliance with license commitments.

 

·      Processing of Ural O&G products

 

Throughout H1 2025, the Company continued processing raw gas and condensate
volumes from Ural O&G, resulting in the increases in titled production and
processed volumes. As announced on 21 March 2025, the Group signed reduced
tolling fee agreement with Ural O&G to extend third-party hydrocarbon
processing terms until May 2031, strengthening cash flows, supporting
efficient plant operations, and facilitating cost-effective development of the
Rozhkovskoye field.

 

 

Financial

·     H1 2025 revenue is estimated to be approximately US$64 million (H1
2024: US$65.3 million). The increase in titled production and processed
volumes from Ural O&G feedstock and a continued well workover had a
positive impact on revenues. However, this was offset by a natural decline in
production at the Chinarevskoye field and a 16% decrease in the average Brent
crude oil price (US$71.92/bbl in H1 2025 vs US$83.70/bbl in H1 2024).

 

·     The unrestricted cash and cash equivalents balance as at 30 June
2025 was in excess of US$135.8 million (31 December 2024: US$150.4
million, 31 March 2025: US$148.6 million). The restricted cash balance (debt
service retention account and asset liquidation fund) was in excess of US$26
million as at 30 June 2025 (31 December 2024: US$25.9 million, 31 March
2025: US$26.2 million).

 

·     In H1 2025, the Group generated a positive net operating cashflow
of approximately US$7 million before one-off items, which is lower than
expected due to a build-up in sales receivables due to the timing of shipments
of crude oil and condensate. After one-off payments under the management
incentive plan, and limited capital expenditures on the Chinarevskoye and
Stepnoy Leopard fields the Group's unrestricted cash and cash equivalents
balance reduced by approximately US$14 million during H1 2025.

 

·    With respect to the delays in the payment of interest on the Group's
bonds, please refer to the Company's press releases dated July 10, July 22 and
July 30.

 

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

 

 

HSE and ESG

·      Zero fatalities among employees and contractors during operations
in H1 2025 (H1 2024: zero).

 

·      Total Recordable Incidents Rate (incidents per million man-hours)
of 1.3 in H1 2025 (H1 2024:0.64).

 

·      Zero Lost Time Injury Rate (incidents per million man-hours) in
H1 2025 (H1 2024: zero).

 

·      2,236 tonnes of air emissions emitted in H1 2025 against 5,188
tonnes permitted for 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 H1 2025 Financial Results

Nostrum plans to release its H1 2025 financial report including unaudited
interim condensed consolidated accounts on or around 29 August 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

+ 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 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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