Our strategy

Strategic objective

To become one of the leading independent oil and gas companies in the FSU.

A sustainable strategy for growth

Strategic priority: Stabilising production

Goals

  • Focus drilling capex on production wells and growing proven reserves
  • Successfully implement low pressure system and commission GTU3 to increase liquid production

Risks associated with our strategy

  • Drilling can be subject to cost overruns and technical issues preventing successful outcome of wells
  • GTU3 development and low pressure system subject to risks related to delay, non-completion and cost overruns


Strategic priority: Continue to recognise cost savings

Goals

  • Target reductions in G&A and opex against 2017 figures
  • Focus on bringing drilling costs and related capex as low as possible

Risks associated with our strategy

  • Higher oil prices can drive cost inflation
  • Cutting costs too aggressively can lead to poor production results


Strategic priority: 2P reserve growth through M&A

Goals

  • Continuously monitor M&A opportunities in and around the Chinarevskoye field where stranded gas reserves could be produced through Nostrum infrastructure

Risks associated with our strategy

  • Any acquisitions come with geological risk such that expected reserve figures can prove to be lower following further appraisal


Strategic priority: Linking corporate responsibility to the growth of the Company

Goals

  • Increased presence in local communities and reported on wellbeing of employees and working environment

Risks associated with our strategy

  • Legal framework for environmental protection and operational safety still being developed in Kazakhstan


Strategic priority: Focus on delivering shareholder value

Goals

  • Post GTU3 completion start to generate positive post-tax free cash flow

Risks associated with our strategy

  • Free cash flow will be impacted if production falls or costs rise


Our business model

A simple, sustainable and successful business model

Our track record of successfully building and financing large infrastructure while developing reserves into commercial production puts us in a unique position. With our management team’s outstanding technical and regional expertise in both oil and gas we can use this platform to deliver future growth to our shareholders.

How we run our business is equally important in enabling us to successfully deliver our business plan and map our growth strategy. Protecting our business, sustaining our good reputation, maintaining our entrepreneurial culture and contributing to social and economic development are the cornerstones on which we are building our business.