A simple investment case

Nostrum has developed a world-class portfolio of assets in the reserve rich area of north-west Kazakhstan. The front-loaded investment programme has been the foundation upon which strong production growth has been built.

With low operating costs, we currently have an average daily production of over 31,000 boe (Q3), sustaining positive cash flow and progressing towards our operational target of doubling production capacity

Stable financial platform with strong cash flows and flexibility

Nostrum announced in January 2018 that it had entered into a hedging contract equating to production of 9,000 barrels of oil per day. The hedging contract is a zero-cost capped collar with a floor price of US$60.0. The Group has covered the cost of the floor price by selling a number of call options with different strike prices for each quarter. Q1:US$67.5, Q2:US$64.1, Q3:US$64.1, Q4:US$64.1. The amount of upside given away has been capped through the purchase of a number of call options with different strike prices. Q1:US$71.5, Q2:US$69.1, Q3:US$69.6, Q4:US$69.6. The hedge and cash position give Nostrum the financial flexibility to actively manage the pursuit of our operational goals accordingly as the oil price environment fluctuates. We believe that the prudent management of our liquidity has given us a competitive advantage and leaves us in a strong position despite the challenging oil price environment seen over the last year, reflecting our core values of simplicity and sustainability.

488 million of 2P reserves

With 488 mboe of 2P reserves and production of more than 14 million barrels of oil equivalent per year in 2017, we provide a unique combination of significant production and reserve upside along with consistent operational cash flow.

World-class assets

We have four licence areas, all located in the Pre-Caspian Basin towards the north of Uralsk. Nostrum’s current producing asset is the Chinarevskoye field and the three additional licences are all located within 60-120km of the field.

In August 2018 Nostrum announced through its subsidiary Zhaikmunai LLP it entered into bindig agreements to purchase and process third party hydrocarbons delivered by Ural Oil & Gas LLP.

Strong governance and responsibility

We are committed to achieving an excellent standard of corporate governance and social responsibility and are aiming for a positive and lasting contribution to the areas in which we operate, with a focus on delivering long-term shareholder value for a sustainable future.

Experienced management team

We are confident in the ability of our experienced and dedicated management team, who have expertise in operating in Kazakhstan, to deliver on our clear strategy.