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 have been able to maintain an average daily production of over 40,000 boe throughout the challenging conditions of 2015, sustaining positive cash flow and progressing towards our operational target of doubling production capacity

Stable financial platform with strong cash flows and flexibility

Nostrum generated US$206.5m of operating cash flow in 2016. In addition, the Group ended the year with over US$101.1m of cash on its balance sheet. Nostrum announced in January that it had signed a new hedge of 15,000 bopd for US$49.16 per barrel, with a 24 month tenor. 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.

466 million of 2P reserves

With 466 mboe of 2P reserves and production of more than 14 million barrels of oil equivalent per year, we provide a unique combination of significant production and reserve upside along with consistent operational cash flow.

Targeting steady levels of production

2016's average daily production was 40,351 boe. We will target an average daily production of over 44,000 boe in 2017 as we finalise the construction of our new Gas Treatment Facility.

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.

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.