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FOR IMMEDIATE RELEASE
London, 31 July 2025
Operational Update for the second quarter and six months ended 30 June 2025
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 second quarter and six months ended 30 June 2025 ("H1 2025").
Viktor Gladun, Chief Executive Officer of Nostrum Oil & Gas, commented:
"I am pleased to step in to CEO position and look forward to lead Nostrum, and would like to emphasise that health and safety remains our top priority.
During H1 2025, Nostrum delivered strong revenue performance, despite weaker product prices and the continuing decline of production from the mature Chinarevskoye field. This was achieved through continuing the ramp-up in third-party volumes processed at our facilities with maximum uptime, as well as active well workover and intervention works to maintain production levels.
We will continue to carefully assess our options of developing and monetising our Stepnoy Leopard assets, and endeavor that the most optimal well workover and drilling campaign is executed at the Chinarvskoye field, while ensuring compliance with license requirements. These efforts together with tight cost displine and prudent capital allocation are all aimed at generating long-term value for our shareholders, stakeholders and the benefit of Kazakhstan."
H1 2025 Highlights:
Operational
· Production and sales
o A 39% increase in average daily titled production volumes (i.e. final products processed and owned by Nostrum) to 16,974 boepd in H1 2025 (H1 2024: 12,220 boepd). A 65% increase in total processed volumes (including third party condensate tolling volumes) to 24,619 boepd in H1 2025 (H1 2024: 14,919 boepd). Whilst production from the maturing Chinarveskoye field continues to decline, Nostrum's titled production and processed volumes increased due to:
o Continuing ramp up of production by Ural Oil & Gas LLP ("Ural O&G").
o Production from well No.301 which was completed and put into production in May 2024.
· The titled production volume split was as follows:
| Products |
H1 2025 volumes (boepd) |
H1 2024 volumes (boepd) |
Y-on-Y Change (%) |
|
H1 2025 product mix (%) |
H1 2024 product mix (%) |
| Crude Oil |
2,476 |
2,393 |
3.5% |
|
14.6% |
19.6% |
| Stabilised Condensate* |
1,598 |
1,850 |
(13.6)% |
|
9.4% |
15.1% |
| LPG (Liquid Petroleum Gas) |
3,165 |
1,983 |
59.6% |
|
18.6% |
16.2% |
| Dry Gas |
9,735 |
5,994 |
62.4% |
|
57.4% |
49.1% |
| Total |
16,974 |
12,220 |
38.9% |
|
100.0% |
100.0% |
*Stabilised condensate volumes exclude Ural O&G processed volumes for which Nostrum receives a fixed tolling fee
· A 49% increase in average daily sales volumes to 15,555 boepd in H1 2025 (H1 2024: 10,475 boepd), reflecting the increase in titled production and inventory movements. The difference between titled 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
The Company is planning a limited-scale drilling campaign beginning in mid-August. The campaign will target the most economic subsurface opportunities while also ensuring compliance with license obligations. In parallel, the Company continues to carry out optimised well workovers to minimise production decline.
· Stepnoy Leopard Fields
In April 2025, the Company secured approval from Kazakhstan's Ministry of Energy for a phased full-field development plan (FDP) for the Stepnoy Leopard fields, which marks a key milestone in advancing the commercial potential of the upstream asset, enabling optimized capital deployment. As part of the ongoing progress, the Company continues to advance design and engineering works, and limited procurement to ensure compliance with license commitments.
· Processing of Ural O&G products
Throughout H 1 2025, the Company continued processing raw gas and condensate volumes from Ural O&G, resulting in the increases in titled production and processed volumes. As announced on 21 March 2025, the Group signed reduced tolling fee agreement with Ural O&G to extend third-party hydrocarbon processing terms until May 2031, strengthening cash flows, supporting efficient plant operations, and facilitating cost-effective development of the Rozhkovskoye field.
Financial
· H1 2025 revenue is estimated to be approximately US$64 million (H1 2024: US$65.3 million). The increase in titled production and processed volumes from Ural O&G feedstock and a continued well workover had a positive impact on revenues. However, this was offset by a natural decline in production at the Chinarevskoye field and a 16% decrease in the average Brent crude oil price (US$71.92/bbl in H1 2025 vs US$83.70/bbl in H1 2024).
· The unrestricted cash and cash equivalents balance as at 30 June 2025 was in excess of US$135.8 million (31 December 2024: US$150.4 million, 31 March 2025: US$148.6 million). The restricted cash balance (debt service retention account and asset liquidation fund) was in excess of US$26 million as at 30 June 2025 (31 December 2024: US$25.9 million, 31 March 2025: US$26.2 million).
· In H1 2025, the Group generated a positive net operating cashflow of approximately US$7 million before one-off items, which is lower than expected due to a build-up in sales receivables due to the timing of shipments of crude oil and condensate. After one-off payments under the management incentive plan, and limited capital expenditures on the Chinarevskoye and Stepnoy Leopard fields the Group's unrestricted cash and cash equivalents balance reduced by approximately US$14 million during H1 2025.
· With respect to the delays in the payment of interest on the Group's bonds, please refer to the Company's press releases dated July 10, July 22 and July 30.
· The Group remains focused on maximising facility uptime, controlling costs wherever possible, and improving efficiencies across all facets of business. At the same time, we are committed to allocating and utilising resources efficiently to support our growth projects.
HSE and ESG
· Zero fatalities among employees and contractors during operations in H1 2025 (H1 2024: zero).
· Total Recordable Incidents Rate (incidents per million man-hours) of 1.3 in H1 2025 (H1 2024:0.64).
· Zero Lost Time Injury Rate (incidents per million man-hours) in H1 2025 (H1 2024: zero).
· 2,236 tonnes of air emissions emitted in H1 2025 against 5,188 tonnes permitted for 2025 under the Kazakhstan Environmental Code.
· Safety of all staff and contractors, along with a commitment to sustainable operations, remains the Group's priority.
Release of Nostrum's H1 2025 Financial Results
Nostrum plans to release its H1 2025 financial report including unaudited interim condensed consolidated accounts on or around 29 August 2025.
LEI: 2138007VWEP4MM3J8B29
Further information
For further information please visit www.nostrumoilandgas.com
Further enquiries
Nostrum Oil & Gas PLC
Petro Mychalkiw
Chief Financial Officer
Instinctif Partners - UK
Galyna Kulachek
+ 44 (0) 207 457 2020
Notifying person
Thomas Hartnett
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 Positiv 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.
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