Nostrum Suffers Further Decline in Kazakhstan
Embattled Kazakhstan-focused operator Nostrum Oil & Gas has seen a further decline in output at its sole production asset, it said in a London stock filing on July 30.
The company's Chinarevskoye field produced 22,528 barrels of oil equivalent/day of oil and gas in January through June, down from 31,096 boe/d in the first half of 2019. It expects to generate only $92mn in revenues this year, compared with $174mn a year earlier. Its cash position is only $75mn, while its net debt exceeds $1bn.
"Our cost reduction programme has enabled us to effectively manage our liquidity during H1 in the face of severe price volatility and I am grateful to our staff and contractors for their support," CEO Kaat Van Hecke said in a statement.
The company has managed to slow the rate of production decline at Chinarevskoye with interventions, Van Hecke said, despite halting actual drilling work in January following difficulties with well productivity.
Nostrum sought and failed to find a buyer for its business last year, and its main focus now is on finding third parties to use its under-utilised gas treatment capacity.