Nostrum Oil & Gas: Operational Update for the Fourth Quarter and the Twelve Months ending 31 December 2016
Nostrum Oil & Gas PLC (LSE: NOG) (“Nostrum”, or “the Company”), an independent oil and gas company engaging in the production, development and exploration of oil and gas in the pre-Caspian Basin, today announces its operational update for the twelve month period ending 31 December 2016. This update is being issued in advance of the release of Nostrum’s consolidated accounts for the same period. The information contained in this update remains subject to review by the independent auditors.
- • FY 2016 average daily production of 40,351 boepd (FY guidance: 40,000 boepd)
- • Q4 2016 average daily production of 44,708 boepd
- • Successful completion of 2016 drilling programme including the commissioning of three new production wells at Chinarevskoye during H2 2016
- • Construction of our third Gas Treatment Unit (GTU3) progressing on budget and on schedule for completion in 2017
- • KazTransOil (KTO) pipeline connection remains on track for commissioning by Q2 2017 bringing significant reductions to crude oil transportation costs
- • FY 2016 revenue is expected to be in excess of US$340m
- • Cash position above US$100m as at 31 December 2016
- • Total debt remains at US$960m and net debt of approximately US$860m as at 31 December 2016
- • Payments in excess of US$27m received over the year from the hedge entered into in December 2015
- • 15,000 boepd hedged at US$49.16 through to December 2017
Kai-Uwe Kessel, Chief Executive Officer of Nostrum Oil & Gas, commented:
“The fourth quarter of 2016 was the best quarter of the year for us, with the highest average daily production against a backdrop of improving oil prices. We have successfully reached our production target for the full year, averaging over 40,000 boepd, and continue to produce in line with guidance. We also completed our drilling programme as expected, with better results than anticipated from two out of the three production wells. GTU3 is on track for delivery during 2017 and will more than double our production capacity to above 100,000 boepd. Meanwhile, we are close to completing the KTO connection pipeline, which will allow us to realise significant savings to exported crude oil transportation costs and continue to seek to reduce costs across the business.
“We look forward to communicating our financial results for the year in March and updating the market on the forthcoming completion of the KTO pipeline and of GTU3.”