REG - Nostrum Oil & Gas - Stakeholder discussions and Board changes

Nostrum Oil & GasAnnouncement

30/06/2025 14:00

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RNS Number : 0236P  Nostrum Oil & Gas PLC  30 June 2025

 

 

 

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London, 30 June 2025

 

 

Stakeholder discussions and Board changes

Nostrum Oil & Gas PLC (LSE: NOG) ("Nostrum" or the "Company"), an
independent mixed-asset energy company with world-class gas processing
facilities and export hub in north-west Kazakhstan, announces that Nostrum's
principal stakeholders are currently in discussions regarding the future
direction and leadership of the Company, taking into account in particular the
scheduled maturity of the Group's Senior Secured Notes and Senior Unsecured
Notes due in June 2026 issued by Nostrum's subsidiary Nostrum Oil & Gas
Finance B.V.

Such discussions follow on from Nostrum's operational and commercial
achievements over the past 12 months, during which period the Company secured
approximately 138 million barrels of undeveloped proven reserves in its
Stepnoy Leopard fields, extended Nostrum's gas processing agreement with Ural
Oil & Gas to May 2031 and implemented a cost-effective field rejuvenation
campaign for the Chinarevskoye field.

Following this transformational period of achievement of value-creation
catalysts Nostrum is now set to embark on a new period during which it plans
to execute and monetise its value-creating projects.  In doing so, and in
parallel with the ongoing discussions between its stakeholders mentioned above
and the results of the Annual General Meeting of the Company held today, the
Company announces the following changes to its governance arrangements:

·      Arfan Khan has stepped down from the board with effect from the
close of the AGM and will cease his role as chief executive officer with
effect on 30 June

·      Chris Hopkinson, an independent non-executive director, has
stepped down from the board with effect from the close of the AGM

·      It is proposed that Viktor Gladun (in addition to remaining as a
director of the Company) be appointed as chief executive officer with effect
as soon as reasonably practicable

Stephen Whyte remains the Company's chair and Martin Gudgeon and Fiona Paulus
also continue as directors of the Company.

These governance changes will allow for additional appointments to the board
to occur on an accelerated basis and any announcements in that regard will be
made by the Company as and when appropriate.

The changes to the Board have received relevant consent in accordance with the
requirements of the warrant instrument constituting the share warrants dated 9
February 2023 such that no right to exercise the warrants shall arise
following these changes to the Board. The Company proposes to re-constitute
the composition of the relevant committees of the Board following additional
appointments of directors (so as to comply with the relevant provisions of the
warrant instrument).

Stephen Whyte said:

"I would like to thank Arfan and Chris for their tremendous contributions to
the Company. In particular, Arfan has played a key role in the transformation
of Nostrum into a multi-asset (multiple oil-fields) and mixed-asset
(upstream-midstream) business.

Even after the completion of the major financial restructuring in early 2023,
the Company's business faced significant challenges due to its negative
topline revenue growth; with significant debt on the books with a rapidly
approaching maturity and no prospects of any extensions of the Chinarevskoye
license to operate.  Since then Arfan and his team have secured almost 150
million barrels of undeveloped proven reserves (Stepnoy Leopard) located circa
100 km away, extended the UOG gas processing agreement to 2031 (that was
incrementally value accretive and under a fixed fee-structure provides an
effective hedge against commodity price risks) and implemented a
cost-effective field rejuvenation campaign for Chinarevskoye which has been
effective in starting the turnaround of the business.

The Company is now in the midst of implementing a transformative phase of its
life cycle, as it plans to develop a midstream business that will construct
and operate the infrastructure to enable the commercial development of the
Stepnoy Leopard field along with opening up the transportation business /
corridor to the larger number of stranded gas fields in the vicinity.  We
look forward to the continuing positive development of Nostrum under the new
leadership of Viktor Gladun."

 

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, CFO

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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