28th Jul 2015 06:55
LONDON (Alliance News) - Nostrum Oil and Gas PLC Tuesday said it expects a substantial fall in revenue in the first half of 2015 due to a fall in production and lower oil prices, but said it is fully funded to maintain current production until at least the end of 2016.
The oil and gas company operating in Kazakhstan said revenue in the first half of 2015 is expected to be in the region of USD270 million, which would be considerably down from the USD445 million reported in the first half of 2014.
Average daily production came in at 44,337 barrels of oil equivalent per day, also down from 46,569 barrels per day. Nostrum reiterated its full-year production guidance of 45,000 barrels of oil equivalent per day.
The company said it has 32% of its liquids production, around 7,500 barrels of oil per day, hedged at USD85 per barrel until February 2016.
"We continued to demonstrate that we have a cash generative business even at low oil prices, that we are able to maintain our production levels and meet our drilling targets even in the context of the current more difficult oil price environment," said Chief Executive Kai-Uwe Kessel.
At the end of June, Nostrum had a cash position of USD240 million and net debt of USD720 million, and the company said it is fully funded to maintain current production in 2015 and 2016 and to deliver the GTU 3 project in 2016 "on time and on budget".
In 2017, Nostrum is aiming for production to rise to 70,000 barrels of oil equivalent per day before increasing to 100,000 barrels in 2018.
Nostrum will also drill eight wells before the end of 2015, six of which will be production wells with the remaining two being appraisal wells.
By Joshua Warner; [email protected]; @JoshAlliance
Copyright 2015 Alliance News Limited. All Rights Reserved.
Related Shares:
Nostrum Oil&gas