Operational Update for the fourth quarter and year ended 31 December 2024
Nostrum Oil & Gas PLC (LSE: NOG) (“Nostrum”, or the “Company” and together with its subsidiaries, the “Group”), an independent mixed-asset energy company with world-class gas processing facilities and export hub in north-west Kazakhstan, today announces its operational update for the year ended 31 December 2024, and provides production guidance for 2025. This update is being issued in advance of the release of Nostrum’s audited consolidated accounts for the same period. All financial information disclosed remains draft subject to the finalization of Nostrum’s year-end external audit.
Arfan Khan, Chief Executive Officer of Nostrum Oil & Gas, commented:
“I am pleased to share the Group’s key operational results for the full-year 2024, reflecting the continued progress in delivering of our mixed-asset energy strategy, whilst maintaining strong operational and financial discipline.
We have been able to increase topline revenues by over 14% year-on-year despite the production decline from our mature Chinarevskoye field. We generated healthier operating cash inflows and further underpinned our cash reserves notwithstanding capital expenditures on growth activities such as Chinarevskoye drilling and Stepnoy Leopard field development. Nostrum almost doubled its total processed volumes year-on-year, thanks to the operational excellence in handling and processing of raw gas from Ural O&G, new production from well No.301, enhancements to our facilities including the doubling of the Gaslift capacity and the restart of our state-of-the-art 2.5 bcma GTU-3.
We remain committed to driving sustainable growth and delivering on our strategic objectives that maximize value for our investors, and we look forward to delivering our final audited full year results in April 2025.”
FY 2024 Highlights:
Operational
- Production and sales
- A 48% increase in average daily title production volumes (i.e. final products owned by Nostrum) to14,935 boepd in 2024 (10,091 boepd in 2023). A 97% increase in total processed volumes (including third party condensate tolling volumes) in 2024, compared to 2023. These increases in production and processed volumes were mainly due to:
- Processing of raw gas received from Ural Oil & Gas LLP (“Ural O&G”), commencing from December 2023;
- Production from well No.301 which was completed and put into production in May 2024;
- Full year contribution from:
- Gas-lift system expansion, which was successfully launched in July 2023 doubling its capacity and continued to perform above management expectations;
- Additional 26% LPG yield from GTU-3, which has been in operation since September 2023.
- The title production volume split was as follows:
| Products | 2024 volumes (boepd) | 2023 volumes (boepd) | Y-on-Y change (%) | 2024 product mix (%) | 2023 product mix (%) | |
| Crude Oil | 2,536 | 2,649 | (4.3)% | 17.0% | 26.3% | |
| Stabilised Condensate* | 1,897 | 1,979 | (4.1)% | 12.7% | 19.6% | |
| LPG (Liquid Petroleum Gas) | 2,537 | 1,291 | 96.5% | 17.0% | 12.8% | |
| Dry Gas | 7,965 | 4,172 | 90.9% | 53.3% | 41.3% | |
| Total | 14,935 | 10,091 | 48.0% | 100.0% | 100.0% |
*Stabilised condensate volumes exclude Ural O&G processed volumes for which Nostrum receives a tolling fee
- A 47% increase in average daily sales volumes to 13,038 boepd in 2024 (8,874 boepd in 2023). The difference between production and sales volumes is primarily due to the internal consumption of dry gas produced and timing of product deliveries, which leads to inventory increases or decreases at period end.
- Chinarevskoye drilling programme
Most of the scope planned under the drilling programme was executed on time and within budget in 2024. As previously reported the well No.301 has been producing since end of May 2024 in line with the management’s expectations. The well was perforated in the lowest of the reservoirs with the plan underway to perforate the Tournasian reservoir in early 2025. Well No.41 appraisal sidetrack work carried a significant level of uncertainty and risk due to the multiple exploration, appraisal, and development objectives. The well was completed in September 2024 and a first test provided non-commercial inflow rates in the Devonian target horizon. Evaluation of other perforation targets is underway.
- Stepnoy Leopard Fields
Several key milestones were achieved in relation to the Stepnoy Leopard Fields in 2024. In early 2024, successful completion of the two-well appraisal programme supported the final investment decision for the initial development phase. This was followed by the Competent Person’s Report in July 2024, confirming 138 mmboe (including approximately 25% liquids) proved plus probable (2P) gross reserves. The Company continues to refine the field development project schedule and progress the design and engineering works.
- Processing of Ural O&G products
Throughout 2024 the Company continued processing Ural O&G raw gas. As announced by KazMunayGas on 26 December 2024, Ural O&G production from the beginning of 2024 reached 215 thousand tonnes of condensate and 290 million cubic meters of gas, and the launch of all wells will facilitate daily production of 1.5 million cubic meters of gas, which annualizes to more than 500 million cubic meters per year.
Financial (unaudited)
Successful execution of the Group’s new mixed-asset energy strategy resulting in:
- Over 14% expected increase in revenue, exceeding US$137 million for 2024 (2023: US$119.6 million). This is due to increased processing, production and sales volumes. Brent crude oil price slightly decreased from an average of US$82.5/bbl in 2023 to an average of US$80.6/bbl in 2024.
- Unrestricted cash balance at 31 December 2024 in excess of US$150 million (31 December 2023: US$161.7 million). The restricted cash balance (DSRA and asset liquidation fund) was in excess of US$25 million at 31 December 2024 (31 December 2023: US$25.2 million).
- A healthy net positive operating cashflow generated in 2024, before non-recurring items. However, capital expenditures on the Chinarevskoye drilling programme and Stepnoy Leopard appraisal works, as well as the semi-annual bond coupon payments in June and December 2024, led to an approximate US$11 million reduction in the Group’s unrestricted cash balance during 2024.
- Continued focus on maximising facility uptime, controlling costs where possible and improving efficiencies across all facets of our business, while allocating and efficiently utilising resources on growth projects.
Sustainability and HSE
- Zero fatalities among employees and contractors during operations in 2024 (2023: one contractor fatality during operations).
- Total Recordable Incidents Rate (incidents per million man-hours) of 0.63 for 2024 (2023: 0.80).
- Zero Lost Time Injury Rate (incidents per million man-hours) for 2024 (2023: 0.37).
- 4,141 tonnes of air emissions emitted in 2024 against 5,983 tonnes permitted for 2024 under the Kazakhstan Environmental Code.
2025 production guidance
- Chinarevskoye field average daily production 2025 forecast is in the range of 5,500 – 6,500 boepd.
Release of Nostrum’s 2024 Financial Results
Nostrum plans to release its annual report and audited financial statements in respect of the financial year ended 31 December 2024 on or around 22 April 2025.
LEI: 2138007VWEP4MM3J8B29
Further information
For further information please visit www.nostrumoilandgas.com
Further enquiries
Nostrum Oil & Gas PLC
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Galyna Kulachek
Amelia Thorn
+ 44 (0) 207 457 2020
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Company Secretary
About Nostrum Oil & Gas
Nostrum Oil & Gas PLC is an independent mixed-asset energy company with world-class gas processing facilities and export hub in north-west Kazakhstan. Its shares are listed on the London Stock Exchange (ticker symbol: NOG). The principal producing asset of Nostrum Oil & Gas PLC is the Chinarevskoye field which is operated by its wholly-owned subsidiary Zhaikmunai LLP, which is the sole holder of the subsoil use rights with respect to the development of the Chinarevskoye field. The Company also owns an 80% interest in Positive Invest LLP, which holds the subsoil use rights for the “Kamenskoe” and “Kamensko-Teplovsko-Tokarevskoe” areas in the West Kazakhstan region (the Stepnoy Leopard fields).
Forward-Looking Statements
Some of the statements in this document are forward-looking. Forward-looking statements include statements regarding the intent, belief and current expectations of the Company or its officers with respect to various matters. When used in this document, the words “expects”, “believes”, “anticipates”, “plans”, “may”, “will”, “should” and similar expressions, and the negatives thereof, are intended to identify forward-looking statements. Such statements are not promises nor guarantees and are subject to risks and uncertainties that could cause actual outcomes to differ materially from those suggested by any such statements.
No part of this announcement constitutes, or shall be taken to constitute, an invitation or inducement to invest in the Company or any other entity, and shareholders of the Company are cautioned not to place undue reliance on the forward-looking statements. Save as required by the relevant listing rules and applicable law, the Company does not undertake to update or change any forward-looking statements to reflect events occurring after the date of this announcement.
