28th Jan 2022 13:07
(Alliance News) - Nostrum Oil & Gas PLC on Friday said revenue grew in 2021 despite challenges caused by the pandemic and civil protest in Kazakhstan.
The oil and gas company expects full-year revenue to be up at least 11% to GBP195 million or more, up from GBP175.9 million in 2020. Average production for 2021 was 17,032 barrels of oil equivalent per day, with average daily sales of 15,330 boepd.
It had 268,000 barrels of condensate in its inventory at the end of the year, which is normally sold when there are sufficient volumes to fill a cargo but builds if no sale is secured.
Nostrum confirms that no employees have been harmed in Kazakhstan in the recent civil unrest across the country, and its operations have continued undisrupted. It will continue to assess risks of the situation, and also of an outbreak of Covid, which to date has not caused any loss of production.
Nostrum had cash in excess of GBP165 million on December 31, up from GBP78.6 million at the end of 2020. The cash total excludes USD22.6 million placed in a secured cash account under the terms of the forbearance agreement for its senior debt notes.
Nostrum said it hopes it complete the restructuring of its 2022 and 2025 senior debt notes by mid-year 2022, with some debt converted into equity.
Chief Executive Officer Arfan Khan commented: "Despite continuing reservoir decline, we've maintained strong cost discipline and have optimised sales netbacks in a favourable hydrocarbon pricing environment. We will continue to sweat and monetise the Chinarevskoye asset in 2022 through a targeted workover programme to build on our cash reserves."
The Chinarevskoye field in Kazakhstan is Nostrum's main producing assets. It holds a 100% interest and is the operator of the field.
Full-year results for 2021 will be released on April 26.
By Elizabeth Winter; [email protected]
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