30th Apr 2015 07:01
LONDON (Alliance News) - Nostrum Oil and Gas PLC Thursday reiterated its full-year production target after a solid quarter and said its drilling programme in 2015 also remains on track.
The FTSE 250 oil and gas company based in Kazakhstan said revenue in the quarter ended March 31 is set to be in excess of USD100 million as average daily production stands at 45,479 barrels of oil equivalent per day. Nostrum said its guidance of 45,000 barrels per day for 2015 remains unchanged.
Of total production, crude oil and concentrate production contributed 18,547 barrels of oil per day, making up 41% of the company's product mix, whilst liquid gas petroleum produced 4,790 barrels of oil equivalent per day and dry gas standing at 22,141 barrels of oil equivalent per day, representing just under half of total production.
"The performance was underpinned by continued steady production at the Chinarevskoye field and the consistent performance of the existing gas treatment facility," said Nostrum.
At the end of March, Nostrum reported a cash position "in excess" of USD300 million, including short term deposits, and net debt of USD632 million. The company said its capital expenditure programme is fully funded and will focus on maintaining production in 2015 and 2016 and on the construction of the company's new gas plant in 2016 at a breakeven oil price of USD31 a barrel.
Nostrum added that 32% of its liquids production, around 7,500 barrels of oil equivalent per day, has been hedged until February 2016 at a price of USD85 a barrel.
"Our hedge continues to provide valuable protection against the current oil price environment and further illustrates the prudent approach we take to managing our business," said Kai-Uwe Kessel, chief executive of Nostrum.
"I am pleased to see production remaining stable and look forward to bringing our new wells on line shortly. In addition, minimising operating costs to further reduce our breakeven levels remains a key focus, and I hope to be able to show some progress here during the first quarter financials," he added.
Looking to the rest of 2015, Nostrum plans to complete a further six wells on the producing Chinarevskoye field in Kazakhstan, which will consist of two gas condensate wells an one oil well that are currently being drilled, plus 1 new production well and two more appraisal wells which will be drilled later in 2015.
By Joshua Warner; [email protected]; @JoshAlliance
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