Earnings release
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RNS Number : 6886G Nostrum Oil & Gas PLC 30 April 2025 NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF THAT JURISDICTION FOR IMMEDIATE RELEASE London , 30 April 2025 Operational Update for the quarter ended 31 March 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 quarter ended 31 March 2025 ("Q1 2025"). Arfan Khan , Chief Executive Officer of Nostrum Oil & Gas PLC , commented: "The Group continued to demonstrate strong operational performance during Q1 2025, with stable operations and significant year-over-year increases in both processed volumes and titled production volumes. This, together with diligent cost management, resulted in a small reduction in our unrestricted cash balance at the end of the quarter, mainly due to capital expenditure payments and despite a temporary crude oil inventory build-up." Q1 2025 Highlights: Operational · Production and sales · A 41% increase in average daily titled production volumes (i.e. final products processed and owned by Nostrum) to 16,830 boepd for Q1 2025 (11,943 boepd in Q1 2024). A 68% increase in total processed volumes (including third party condensate tolling volumes) to 24,009 boepd in Q1 2025 (14,319 boepd in Q1 2024). These increases in titled production and processed volumes were mainly due to : · Ramp up of the production by Ural Oil & Gas LLP ("Ural O&G"), which contributed to increase in Nostrum's titled production and processed volumes. · Production from well No.301 which was completed and put into production in May 2024. · The titled production volume split was as follows: Products Q1 2025 volumes (boepd) Q1 2024 volumes (boepd) Y-on-Y change (%) Q1 2025 product mix (%) Q1 2024 product mix (%) Crude Oil 2,650 2,382 11.3% 15.7% 19.9% Stabilised Condensate* 1,678 1,934 (13.2)% 10.0% 16.2% LPG ( Liquid Petroleum Gas ) 3,077 1,858 65.6% 18.3% 15.6% Dry Gas 9,425 5,769 63.4% 56.0% 48.3% Total 16,830 11,943 40.9% 100.0% 100.0% *Stabilised condensate volumes exclude Ural O&G processed volumes for which Nostrum receives a tolling fee · A 47% increase in average daily sales volumes to 14,128 boepd for Q1 2025 (Q1 2024: 10,022 boepd). 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. Page 1 of 3
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· Chinarevskoye drilling programme The Company is planning a limited-scale drilling campaign in the second half of 2025, focused on high-value subsurface opportunities, which will also ensure full compliance with its license commitments. · Stepnoy Leopard Fields The Company achieved another significant milestone in unlocking the commercial viability and potential of this upstream acquisition. As announced on 4 April 2025 , the Company obtained approval from the Ministry of Energy of the Republic of Kazakhstan for a phased, full-field development plan extending until 2044 (the "FDP") for the Stepnoy Leopard fields. The FDP will allow Nostrum to deploy optimum capital allocation, whilst meeting its target production start-up date between late 2026 and early 2027. The Company continues to progress design and engineering works. · Processing of Ural O&G products Throughout Q1 2025, the Company continued processing raw gas and condensate volumes from Ural O&G, significantly contributing to the increases in titled production and processed volumes. As announced on 21 March 2025 , the Group entered into a binding agreement with Ural O&G on new terms for processing third-party hydrocarbons until May 2031 . The agreement extension is value-accretive and mutually beneficial for both parties. It provides a fixed processing fee structure across all products that gives rise to sustainable cash-flows and plant operations and supports the further cost-effective development of the Rozhkovskoye field. Financial · Q1 2025 revenue is estimated to be approximately US$30 million (Q1 2024: US$31.7 million ). The increase in titled production and processed volumes from Ural O&G feedstock as well as production from well No. 301 had a positive impact to revenues. However, sales and revenues in Q1 2025 were reduced by a temporary crude oil inventory build-up at the end of the quarter; this product volume will be sold in Q2 2025. The average Brent crude oil price decreased to US$75.9 /bbl in Q1 2025 (Q1 2024: US$82.9 /bbl). · The unrestricted cash and cash equivalents balance as at 31 March 2025 was in excess of US$148 million ( 31 December 2024 : US$150.4 million ). The restricted cash balance ( debt service retention account and asset liquidation fund) was in excess of US$26 million as at 31 March 2025 ( 31 December 2024 : US$25.9 million ). · The Group's net operating cashflow in Q1 2025 was affected by the deferment of crude oil inventory sales to Q2 2025, as described above. Capital expenditures on the Chinarevskoye and Stepnoy Leopard fields resulted to an approximate US$2 million reduction in the Group's unrestricted cash and cash equivalents balance by the end of Q1 2025. · The Group remains focused on maximising facility uptime, controlling costs wherever possible, and improving efficiencies across all facets of our business. At the same time, we are committed to allocating and utilising resources efficiently to support our growth project. HSE and ESG · Zero fatalities among employees and contractors during operations for Q1 2025 (Q1 2024: zero). · One Total Recordable Incidents (incidents per million man-hours) for Q1 2025 (Q1 2024: zero). · Zero Lost Time Injury (incidents per million man-hours) for Q1 2025 (Q1 2024: zero) · 1,109 tonnes of air emissions emitted in Q1 2025 against 5,188 tonnes permitted for FY 2025 under the Kazakhstan Environmental Code. Page 2 of 3
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· Safety of all staff and contractors, along with a commitment to sustainable operations, remains the Group's priority. Release of Nostrum's Q1 2025 Financial Results Nostrum plans to release its unaudited interim condensed consolidated accounts for the period ending 31 March 2025 on or around 20 May 2025 . LEI: 2138007VWEP4MM3J8B29 Further information For further information please visit www.nostrumoilandgas.com Further enquiries Nostrum Oil & Gas PLC Petro Mychalkiw Chief Financial Officer ir@nog.co.uk Instinctif Partners - UK Galyna Kulachek Amelia Thorn + 44 (0) 207 457 2020 nostrum@instinctif.com 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. This information is provided by RNS, the news service of the London Stock Exchange . RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com . RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy . END QRFDZGZDKLLGKZM Page 3 of 3