REG - Nostrum Oil & Gas - Stepnoy Leopard Reserves and Resources Evaluation

Nostrum Oil & GasAnnouncement

17/07/2024 10:45

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RNS Number : 7767W  Nostrum Oil & Gas PLC  17 July 2024

 

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THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION

 

London, 17 July 2024

 

Stepnoy Leopard Independent Reserves and Resources Evaluation

 

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, is pleased to provide a Competent Person's Report (the "SL CPR")
on the Stepnoy Leopard fields ("SL Fields") in which it has an 80% working
interest. The SL CPR, an independent third-party evaluation of the reserves
and resources of the SL Fields as at 1 January 2024, was prepared by Xodus
Group Limited ("Xodus").

 

Arfan Khan, Chief Executive Officer, commented:

"The SL CPR demonstrates the commercial viability and potential of the SL
Fields full-field development.  In particular, as a satellite development to
the Chinarevskoye host-processing facilities and export infrastructure, we
achieve maximum capital efficiency that serves to strengthen the SL Fields
economic robustness whilst adding scale to our operating foot-print. With the
Ural Oil & Gas Rozhkovskoye field production already being processed,
production from the SL Fields will further improve materially the utilization
of our world class 4.2 bcma gas processing facilities and the resulting
cashflows (net Nostrum NPV10 of approximately $220 million)."

 

Highlights

 

·      The full-field development SL CPR follows Nostrum's final
investment decision for the initial field development phase of the SL Fields,
supporting the commercial viability of the scalable full-field development
targeting the key reservoirs starting with the Eastern fields with subsequent
expansion to the Western fields.

·      138 mmboe (including approximately 25% liquids) proved plus
probable (2P) gross reserves, increasing Nostrum's reserves base over fivefold
(from 23 mmboe to 133 mmboe working interest reserves) and representing
material value creation of approximately $220 million of after-tax net (80%
working interest) Nostrum NPV10 at 34% IRR,  and a substantial driver for
increasing shareholder and investor returns.

·      Achievement of this key milestone is another significant step in
unlocking the potential and value of Nostrum's existing world-class 4.2 bcma
gas processing infrastructure, as part of the Company's implementation of its
mixed-asset energy strategy that aims to strengthen the country's energy
security and affordability.

·      In addition, the remaining large discovered, proven un-developed
contingent resource base (2C) of 67 mmboe gross across the SL Fields
represents a significant potentially commercial opportunity. Future subsurface
work is also planned to identify deeper exploration and prospective
resources.

 

The following table shows reserves based on the SL CPR at 1 January 2024:

( )

                                   Gross                                 Working Interest (80%)
                       Unit        Proved (1P)  Proved &      Proved,    Proved (1P)  Proved &      Proved,

                                                Probable      Probable                Probable      Probable

                                                (2P)          &                       (2P)          &

                                                              Possible                              Possible

                                                              (3P)                                  (3P)
 Condensate & Oil      mm barrels  16.96        26.62         34.27      13.58        21.30         27.42
 LPG                   ktonnes     414.47       629.93        790.66     331.58       503.94        632.53
 Sales Gas             bcf         408.54       620.93        779.36     326.83       496.74        623.49
 TOTAL GROSS(1)        mmboe       90           138           174        72           110           139

(1) Total Gross includes Condensate & Oil (barrels), LPG (boe) and Sales
Gas (boe)

 

The Executive Summary of the CPR is available to download on Nostrum's website
(www.nog.co.uk (http://www.nog.co.uk) ) under Investors / Documents &
Circulars / Documents. The full CPR report is in the process of finalization
and will be available shortly.

 

Notes:

·      Proved and probable oil and gas reserves are estimated quantities
of commercially producible hydrocarbons which the exiting geological,
geophysical and engineering data show to be recoverable in future years from
known reservoirs.

·      The SL CPR by Xodus, independent petroleum consultants, conforms
to the definition approved by the Society of Petroleum Engineers and the World
Petroleum Council.

 

LEI: 2138007VWEP4MM3J8B29

 

Further information

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

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 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 Positive
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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