20th May 2025 17:48
(Alliance News) - Nostrum Oil & Gas PLC on Tuesday reported decreased revenue but higher production and earnings in the first three months of this year.
In response, shares in Nostrum closed 8.6% higher at 3.68 pence in London on Tuesday.
The Kazakhstan-focused oil and gas company said average daily titled production volumes totalled 16,830 barrels of oil equivalent per day for the first quarter, up 41% from 11,943 boepd the previous year. Total processed volumes rose 68% to 24,009 boepd from 14,319 boepd.
Average daily sales volumes, meanwhile, rose 47% to 14,128 boepd from 10,022 boepd.
Revenue decreased to USD30.0 million in the first quarter from USD31.8 million, due to "a temporary crude oil inventory build-up at the end of the quarter, which was subsequently sold in May 2025". Nostrum also noted that the average price of Brent crude oil fell to USD75.9 per barrel from USD82.9.
Earnings before interest, tax, depreciation and amortisation, however, rose to USD10.9 million from USD10.6 million.
Operating expenses per barrel of processed volumes fell 40% to USD4.6 from USD7.6.
"I am pleased to report a positive start to 2025," commented Chief Executive Officer Arfan Khan. "In Q1 2025, we delivered a 41% increase in average daily titled production year-over-year and total processed volumes increased by 68% to 24,009 boepd. These increases were driven by the ramp-up of Ural Oil & Gas LLP ("Ural O&G") production through 2024 and new production from Chinarevskoye well No.301 from May 2024.
"We achieved a key milestone with the approval of the phased full-field development plan for the Stepnoy Leopard fields, targeting production start-up between late 2026 and early 2027. The extension of our processing agreement with Ural O&G through to May 2031 further secures the long-term value."
Nostrum also said it is planning a limited-scale drilling campaign at Chinarevskoye in the second half of this year, "focused on high-value subsurface opportunities".
By Emma Curzon, Alliance News reporter
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