REG - Nostrum Oil & Gas - Operational Update for Q4 and FY2025

Nostrum Oil & GasAnnouncement

30/01/2026 07:00

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RNS Number : 0035R  Nostrum Oil & Gas PLC  30 January 2026

 

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, 30 January 2026

 

 

Operational Update for the fourth quarter and year ended 31 December 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 year ended 31
December 2025 ("FY 2025") and provides production guidance for 2026. This
update is being issued in advance of the release of Nostrum's audited
consolidated accounts for the same period. The financial information disclosed
in this announcement is unaudited and remains subject to the completion of
Nostrum's year-end external audit.

 

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

 

"Nostrum remains dedicated to driving strategic growth through strong
leadership while upholding the highest standards of health and safety.

 

2025 was a year of continued operational and strategic progress, achieved
despite lower oil prices and natural decline at the mature Chinarevskoye
Field. The business demonstrated resilience through reliable operations,
disciplined capital management, and a 23.2% increase in average processed
volumes, driven by the ramp‑up of third-party feedstock and stable plant
performance. Together with the successful drilling and workover programme at
Chinarevskoye, this resulted in higher titled production and sales volumes
year-on-year. New well 116_1 was brought onstream at the end of November 2025
following the successful completion activities and is delivering production
levels consistent with management's expectations.

 

During the year, we advanced planning for the Stepnoy Leopard development
options while ensuring alignment with project objectives and regulatory
requirements.

 

Looking ahead, Nostrum remains focused on maximising asset value, deepening
strategic partnerships, restructuring debt maturing in June 2026, maintaining
financial discipline, and delivering enduring benefits for shareholders,
stakeholders and the people of Kazakhstan."

 

FY 2025 Highlights:

 

Operational

 

·      Production and sales

 

§      A 23.2% increase in average processed volumes (including third
party condensate tolling volumes) to 24,431 boepd in FY 2025 (FY 2024: 19,831
boepd). A 12.9% increase in average daily titled production volumes (i.e.
final products processed and owned by Nostrum) to 16,867 boepd in FY 2025 (FY
2024: 14,935 boepd). These increases were achieved through continuing to
process the ramping up feedstock from Ural Oil & Gas LLP ("Ural
O&G"), and managing expected decline in Chinarevskoye production through
well workovers.

 

§     The titled production volume split was as follows:

 Products                    FY 2025   FY 2024     Y-on-Y       FY 2025       FY 2024

                             volumes   volumes     Change       product mix   product mix

                             (boepd)    (boepd)    (%)          (%)            (%)
 Crude Oil                   2,343     2,536       (7.6)%       13.9%         17.0%
 Stabilised Condensate*      1,664     1,897       (12.3)%      9.9%          12.7%
 LPG (Liquid Petroleum Gas)  3,162     2,537       24.6%        18.7%         17.0%
 Dry Gas                     9,698     7,965       21.8%        57.5%         53.3%
 Total                       16,867    14,935      12.9%        100.0%        100.0%

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

 

§      A 16.2% increase in average daily sales volumes to 15,146 boepd in
FY 2025 (FY 2024: 13,038 boepd), reflecting higher titled production. 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 may lead to inventory increases or decreases at period end.

 

·       Chinarevskoye drilling  and workover programme

 

The Company's Chinarevskoye limited-scale drilling programme for 2025 targeted
most economic subsurface opportunities while also ensuring compliance with
license obligations.

On 13 October 2025, the Company successfully completed drilling operations on
the well 116_1. After completing perforation, stimulation and flowline tie-in,
the well was put on production on 21 November 2025, achieving production rates
in line with management's expectations. In parallel, during the year the
Company continued to carry out optimised well workovers to minimise production
decline and enhance operational efficiency.

A comprehensive review and assessment of potential well workovers and new
drilling prospects is underway.

 

·       Stepnoy Leopard Fields

A comprehensive review of the overall development strategy for the Stepnoy
Leopard Fields is underway, taking into account key factors such as project
economics, infrastructure access, sales delivery points, compliance with
regulatory requirements and licence commitments.

 

·       Processing of Ural O&G products

 

Throughout FY 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 Company signed a new
agreement with Ural O&G, extending third-party hydrocarbon processing
terms through May 2031, strengthening cash flows, supporting efficient plant
operations, and facilitating cost-effective development of the Rozhkovskoye
field.

 

Financial

 

·       FY 2025 revenue is estimated to be approximately US$118
million (FY 2024: US$137.1 million). The increase in titled production and
processed volumes from Ural O&G feedstock and continued well workover had
a positive impact on revenues. However, this was offset by a natural
production decline at the Chinarevskoye field (approximately 21% decrease in
production) and a 13.2% decrease in the average Brent crude oil price
(US$70.0/bbl in FY 2025 vs US$80.6/bbl in FY 2024).

 

·       The unrestricted cash and cash equivalents balance as at 31
December 2025 was in excess of US$143 million (31 December 2024: US$150.4
million). The restricted cash balance (debt service retention account ("DSRA")
and asset liquidation fund) was in excess of US$26 million as at 31
December 2025 (31 December 2024: US$25.9 million).

 

·       In FY 2025, the Group generated a healthy net operating
cashflow, before non-recurring items. After the limited capital expenditures
on the Chinarevskoye and Stepnoy Leopard fields and one-off payments under the
management incentive plan the Group's unrestricted cash and cash equivalents
balance reduced by approximately US$7 million during FY 2025.

 

·       The Group remains focused on maximising facility uptime with
the annual plant maintenance completed earlier than planned, 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 2025 (2024: zero).

 

·       Total Recordable Incidents Rate (incidents per million
man-hours) of 0.92 in 2025 (2024:0.63).

 

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

 

·       4,048 tonnes of air emissions emitted in 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.

 

2026 production guidance

2026 average daily production for the Chinarevskoye field is forecast at 5,000
- 6,000 boepd.

 

Release of Nostrum's 2025 Financial Results

Nostrum plans to release its annual report and audited financial statements in
respect of the financial year ended 31 December 2025 on or around 29 April
2026.

 

 

LEI: 2138007VWEP4MM3J8B29

Further information

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

 

Further enquiries

Nostrum Oil & Gas PLC
 

Elena Zhuravleva

Chief Financial Officer

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

 

TEAM
LEWIS
 
 

Galyna Kulachek

+ 44 (0) 20 7802 2664

nostrum@teamlewis.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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