11th Oct 2019 09:03
(Alliance News) - Shares in Nostrum Oil & Gas PLC plummeted on Friday after it said it does not expect production from Well 14 in Kazakhstan due to operational difficulties.
The stock was trading 43% lower at 6.01 pence each early on Friday morning in London.
Well 41 in the Frasnian reservoir, which is based in the pre-Caspian basin, was "unable to sustain a commercial flow of hydrocarbons", the oil and gas firm said after conducting extensive testing at the site.
Nostrum added: "The company will now consider whether there are alternative approaches it can take to perforate other reservoirs. The company does not forecast any production from this well in 2019."
The company is also undergoing a strategic review, where it will address is weak share and bond price, Nostrum said.
Nostrum Oil explained: "The company has engaged Goldman Sachs Group Inc to carry out a review of all strategic options available to it in order to maximise value for all stakeholders."
The strategic review, announced in June, could also result in the sale of the company.
In its principal producing asset, Chinarevskoye, Nostrum has secured an extension to the mining permit. The permit now includes the northern area of the field, which is near the Kazakhstan-Russia border.
By Eric Cunha; [email protected]
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