25th May 2016 07:32
LONDON (Alliance News) - Nostrum Oil & Gas PLC Wednesday said it had made a "steady start" to 2016 and said it was confident in delivering its growth strategy as it saw a small rise in earnings for the first quarter of the year.
Earnings before interest, tax, depreciation and amortisation was USD51.7 million in the quarter to end-March, up from USD49.6 million the year before, on revenue of USD73.9 million, down from USD100.3 million.
The company reduced its operating expenses per barrel of oil to USD3.5 per barrel from USD4.5 per barrel in the previous year.
Average daily production was 38,754 barrels of oil per day in the quarter, and the company said its production guidance for the full year remains at around 40,000 barrels of oil per day.
Additionally, it said it is on track to fulfil its 2016 drilling programme of three production wells and one appraisal well.
Nostrum continues to make steady progress on its GTU3, or gas treatment unit, project although due to the continued fall in oil price, it has opted to phase out payments for the project over 2016 and 2017. It now expects completion in 2017.
"Whilst the oil price continues to be volatile, our hedge provides us with security against any falling oil price and allows us to focus on the completion of GTU3 in 2017, and subsequent ramp-up of production to 100kboepd. With our significant reserve base, low cash operating costs and prudent approach to balance sheet management I remain confident Nostrum is well placed to deliver on its growth strategy in the current environment."
Shares in Nostrum Oil & Gas were up 0.5% at 328.50 pence.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
Copyright 2016 Alliance News Limited. All Rights Reserved.
Related Shares:
Nostrum Oil&gas