Kazakhstan focused oil and gas producer Nostrum Oil and Gas PLC (LON: NOG) posted steady results for the first half of 2019, and notified investors of proposed acquisitions of sites in Kazakhstan.
The Company stated that production was in line with expectations and that the first half was financially positive. Despite this, revenues are expected to finish at US $174 million for H1 2019, down from $191 million for H1 2018.
Nostrum Oil & Gas also announced that their cash position was $120 million, extending from $75.7 million on-year. Total debt is expected not to exceed $1,133 million.
Average H1 2019 production after treatment was 31,096 bopd and average sales volume was 29,210 bopd. The Company discussed the acquisition of assets in North West Kazakhstan.
Nostrum Oil & Gas comments
“H1 production was in line with expectations. We haven’t yet finalised the testing of the Northern wells due to some technical issues. We are continuing work on both wells and will be testing the Frasnian section of well 41 next, as this is the horizon from which well 40 produces. The results from the testing of the Vorobyovski horizon in well 41 & 42, which confirmed gas saturation, have led to us now drilling well 361 in the Northern area to target this horizon. Our focus remains on trying to find ways to grow production in the near term and we are working to complete our own analysis alongside the studies with PM Lucas and Schlumberger in the North East and West of the field.”
“GTU 3 continues to progress with hot commissioning now underway and final commissioning targeted for the end of Q3 2019. Financially the first half was positive as production was in line with expectations and product prices were higher than our budget leading to higher than forecast revenue and operating cash flow. On the strategic front we are working towards bringing the acquisition of Positive Invest to shareholders whilst at the same time working on the strategic review of our business.”
The Company’s shares have dipped 0.55% or 0.25p to 45.40p a share 30/07/19 13:55 BST. Peel Hunt reiterated their ‘Add’ rating on Nostrum Oil & Gas stock, while Numis has their stance ‘Under Review’. Neither their p/e ratio nor their dividend yield is currently available, their market cap is £84.10 million.
Elsewhere in the oil and gas sector, there have been updates from; Reabold Resources PLC (LON: RBD), Trinity Exploration and Production PLC (LON: TRIN), Union Jack Oil PLC (LON: UJO) and Nu-Oil and Gas PLC (LON: NUOG).