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 January 2025
Operational Update for the
fourth quarter and year ended 31 December 2024
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 2024, and
provides production guidance for 2025. This update is being issued
in advance of the release of Nostrum's audited consolidated
accounts for the same period. All financial information disclosed
remains draft subject to the finalization of Nostrum's year-end
external audit.
Arfan Khan, Chief Executive Officer of Nostrum Oil & Gas,
commented:
"I
am pleased to share the Group's key operational results for the
full-year 2024, reflecting the continued progress in
delivering of our mixed-asset energy strategy, whilst maintaining
strong operational and financial discipline.
We
have been able to increase topline revenues by over 14%
year-on-year despite the production decline from our mature
Chinarevskoye field. We generated healthier operating cash inflows
and further underpinned our cash reserves notwithstanding capital
expenditures on growth activities such as Chinarevskoye drilling
and Stepnoy Leopard field development. Nostrum almost doubled its
total processed volumes year-on-year, thanks to the operational
excellence in handling and processing of raw gas from Ural O&G,
new production from well No.301, enhancements to our facilities
including the doubling of the Gaslift capacity and the restart of
our state-of-the-art 2.5 bcma GTU-3.
We
remain committed to driving
sustainable growth and delivering on our strategic
objectives that maximize value for our investors, and we look
forward to delivering our final audited full year results in April
2025."
FY
2024 Highlights:
Operational
· Production and
sales
· A 48%
increase in average daily title production
volumes (i.e. final products owned by Nostrum) to 14,935 boepd in 2024 (10,091 boepd
in 2023). A 97% increase in total processed
volumes (including third party condensate tolling volumes) in 2024,
compared to 2023. These increases in production and processed
volumes were mainly due to:
o Processing of raw gas received from Ural Oil & Gas
LLP ("Ural
O&G"),
commencing from December 2023;
o Production from well No.301 which was completed and put into
production in May 2024;
o Full
year contribution from:
o Gas-lift system expansion, which was successfully launched in
July 2023 doubling its capacity and continued to perform above
management expectations;
o Additional 26% LPG yield from GTU-3, which has been in
operation since September 2023.
· The
title production volume split was as follows:
|
Products
|
2024
volumes
(boepd)
|
2023
volumes
(boepd)
|
Y-on-Y
change
(%)
|
|
2024
product
mix
(%)
|
2023
product
mix
(%)
|
|
Crude Oil
|
2,536
|
2,649
|
(4.3)%
|
|
17.0%
|
26.3%
|
|
Stabilised Condensate*
|
1,897
|
1,979
|
(4.1)%
|
|
12.7%
|
19.6%
|
|
LPG (Liquid Petroleum
Gas)
|
2,537
|
1,291
|
96.5%
|
|
17.0%
|
12.8%
|
|
Dry Gas
|
7,965
|
4,172
|
90.9%
|
|
53.3%
|
41.3%
|
|
Total
|
14,935
|
10,091
|
48.0%
|
|
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 13,038 boepd in 2024
(8,874 boepd in
2023). The difference between 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
Most of the scope planned under the
drilling programme was executed on time and within budget in 2024.
As previously reported the well No.301 has been producing since end
of May 2024 in line with the management's expectations. The well
was perforated in the lowest of the reservoirs with the plan
underway to perforate the Tournasian reservoir in early 2025. Well
No.41 appraisal sidetrack work carried a significant level of
uncertainty and risk due to the multiple exploration, appraisal,
and development objectives. The well was completed in September
2024 and a first test provided non-commercial inflow rates in the
Devonian target horizon. Evaluation of other perforation targets is
underway.
· Stepnoy Leopard
Fields
Several key milestones were achieved
in relation to the Stepnoy Leopard Fields in 2024. In early 2024,
successful completion of the two-well appraisal programme supported
the final investment decision for the initial development phase.
This was followed by the Competent Person's Report in July 2024,
confirming 138 mmboe (including approximately 25% liquids) proved
plus probable (2P) gross reserves. The Company continues to refine
the field development project schedule and progress the design and
engineering works.
· Processing of Ural O&G
products
Throughout 2024 the Company
continued processing Ural O&G raw gas. As announced by
KazMunayGas on 26 December 2024, Ural O&G production from the
beginning of 2024 reached 215 thousand tonnes of condensate and 290
million cubic meters of gas, and the launch of all wells will
facilitate daily production of 1.5 million cubic meters of gas,
which annualizes to more than 500 million cubic meters per
year.
Financial (unaudited)
Successful execution of the Group's
new mixed-asset energy strategy resulting in:
· Over
14% expected increase in revenue, exceeding US$137 million for 2024
(2023: US$119.6 million). This is due to increased processing,
production and sales volumes. Brent crude oil price slightly
decreased from an average of US$82.5/bbl in 2023 to an average of
US$80.6/bbl in 2024.
· Unrestricted cash balance at 31 December 2024 in excess of
US$150 million (31 December 2023: US$161.7 million). The restricted
cash balance (DSRA and asset liquidation fund) was in excess of
US$25 million at 31 December 2024 (31 December 2023: US$25.2
million).
· A
healthy net positive operating cashflow generated in 2024, before
non-recurring items. However, capital expenditures on the
Chinarevskoye drilling programme and Stepnoy Leopard appraisal
works, as well as the semi-annual bond coupon payments in June and
December 2024, led to an approximate US$11 million reduction in the
Group's unrestricted cash balance during 2024.
· Continued focus on maximising facility uptime, controlling
costs where possible and improving efficiencies across all facets
of our business, while allocating and efficiently utilising
resources on growth projects.
Sustainability and HSE
· Zero
fatalities among employees and contractors during operations in
2024 (2023: one contractor fatality during operations).
· Total
Recordable Incidents Rate (incidents per million man-hours)
of 0.63 for 2024 (2023: 0.80).
· Zero Lost Time Injury Rate (incidents per million
man-hours) for 2024 (2023: 0.37).
· 4,141
tonnes of air emissions emitted in 2024 against 5,983 tonnes
permitted for 2024 under the Kazakhstan Environmental
Code.
2025 production guidance
· Chinarevskoye field average daily production 2025 forecast is
in the range of 5,500 - 6,500 boepd.
Release of Nostrum's 2024 Financial Results
Nostrum plans to release its annual
report and audited financial statements in respect of the financial
year ended 31 December 2024 on or around 22
April 2025.
LEI: 2138007VWEP4MM3J8B29
Further information
For further information please
visit www.nostrumoilandgas.com
Further enquiries
Nostrum Oil & Gas PLC
Petro Mychalkiw
Chief Financial Officer
ir@nog.co.uk
Instinctif Partners -
UK
Galyna Kulachek
Amelia Thorn
+ 44 (0) 207 457 2020
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.
