29th Jan 2021 12:12
Nostrum Oil & Gas PLC- production, development and exploration in pre-Caspian Basin - Expects 2020 revenue of more than USD175 million, a steep decline from 2019's figure of USD322.1 million. Says average daily production after treatment in 2020 was 22,337 barrels of oil equivalent per day, beating guidance for 21,000 boepd. Annual average daily sales volumes 21,514 boepd, ahead of 20,000 boepd guidance. December 31 cash position exceeds USD78 million, down from USD93.9 million the year before, excluding USD12.9 million in secured account under forbearance agreement terms. Total debt at December end not expected to exceed USD1.19 billion, with net debt not to exceed around USD1.11 billion.
Carries out internal review of reserves at at December end and estimates Chinarevskoye total proven plus probable reserves to be 39 million barrels of oil equivalent, a 91 million barrels reduction from previously reported levels after adjusting for 2020 production.
Nostrum explains: "The revisions in reserves are mainly due to the downgrade of reserves attributed to the development of the Biyski-Afoninski West & North-West reservoirs to the contingent resources category. In addition, there has been a reduction in the development drilling programme across the Chinarevskoye reservoirs due to reservoir performance concerns and a less favourable product pricing outlook."
Executive Chair Atil Gupta says: "Further reductions in our proven and probable reserves are, of course, disappointing. This reflects the productivity issues encountered in our undeveloped reservoirs and the adjustment to [proven plus probable] reserves is considered to be prudent at this time.
"Covid-19 continues to be of concern. We have not lost any production in 2020 because of Covid-19 and we continue to exercise extreme caution to ensure the safety of our people and contractors, while minimising the disruption to production and operations."
Current stock price: 8.79 pence
Year-to-date change: down 3.3%
By Anna Farley; [email protected]
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