Nostrum Oil & Gas Reports Increase In First-half Revenue

Nostrum Oil says GTU3 delays will hurt annual production in 2017, 2018

LONDON (Alliance News) – Nostrum Oil & Gas PLC on Monday reported growth in revenue in the first half of 2017 as it revealed production figures for the second quarter and the half on the whole.

The oil and gas company operating in Kazakhstan said revenue in the first half rose to USD210.0 million, up from USD163.5 million in the first half of 2016.

Production in the second quarter averaged 44,628 barrels of oil equivalent per day, with production in the first half averaging 46,685 barrels.

Average sales volume in the quarter was 38,890 barrels and average sales volume in the half was 41,107 barrels.

Nostrum said construction of the third gas treatment unit (GTU3) continues in line with guidance, with completion expected before the end of the year.

In addition, the KazTransOil pipeline connection was finalised in June at a cost of less than USD7.0 million, which Nostrum said “substiantially” reduces crude oil transportation costs.

“Nostrum is in line to drill seven wells in 2017, with five production wells to be completed in the second half of 2017, leading to a production increase towards the end of the third quarter and into the fourth quarter,” Kessel added.

Shares in Nostrum were trading up 0.3% at 411.40 pence on Monday morning.