24th Nov 2015 08:57
LONDON (Alliance News) - Nostrum Oil & Gas PLC, an oil and gas exploration and production company, on Tuesday said it had a stable third quarter, during which average daily production was above 44,000 barrels of oil equivalent per day and margins exceeded 54%.
"We remain focused on ensuring that the liquidity position of the company remains strong as we go through this period of low oil prices," Chief Executive Kai-Uwe Kessel said in a statement. "With over USD200.0 million of cash on our balance sheet and a hedge with a market value in excess of USD85.0 million I believe we are in a good position going in to year-end."
Kessel said the company's GTU3 project in Kazakhstan - the third unit of its gas treatment facility - is moving forward on budget. The project is on target for completion by the end of 2016, he said.
"We plan to start 2016 with three drilling rigs on site but have the ability to scale down drilling should the oil prices remain low and we decide to preserve liquidity. I look forward to doubling our production capacity in the next 13 months and recognising the value creation GTU3 will bring," Kessel said.
The chief executive's comments came as the company said that earnings before interest, tax, depreciation and amortisation fell to USD202.9 million in the nine months to September 30 from USD413.2 million in the corresponding period the prior year, as revenue fell to USD374.8 million from USD620.3 million. Average daily production fell to 44,042 boepd from 45,204.
Nostrum's production guidance for 2015 is 40,000 to 42,000 boepd, rising to 45,000 in 2016, 70,000 in 2017 and 100,000 in 2018.
Shares in Nostrum were up 0.8% at 357.90 pence on Tuesday morning.
By Samuel Agini; [email protected]; @samuelagini
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