Q1 2023 Highlights:
Financial
Revenues of
EBITDA1 of
The Group continues to focus on cost optimisation to help manage liquidity.
Operational
Daily production after treatment for Q1 2023 averaged 10,479 boepd (Q1 2022: 14,683 boepd).
Daily sales volumes for Q1 2023 averaged 7,278 boepd (Q1 2022: 14,059 boepd). Oil inventory as at quarter-end totalled approximately 254,000 boe which were sold in Q2 2023.
The Group continues its well and reservoir management strategy through well workovers and rigless well intervention in 2023.
The Group is continuing to progress with a tie-back project, budgeted for c.
The Group, whilst not itself a target of sanctions imposed in connection with the conflict in
The Group continues to prioritise the safety of all staff and contractors as well as focussing on conducting sustainable operations.
Restructuring
On
exchange of a portion of the Group's legacy Notes Debt for the issuance to each Noteholder of a pro rata allocation of the New Notes, comprising
conversion of the remainder of the Notes Debt into fully paid ordinary shares (the 'New Shares'), resulting in the Noteholders holding 88.89% of the Enlarged Share Capital of the Company;
issuance of the New Warrants, to be held by the Warrant Trustee on behalf of the holders of the SUNs from time to time, exercisable in full by a majority of such holders upon the occurrence of certain events to increase their holding of the Company's Enlarged Share Capital to 90.00%; and certain new governance and cashflow arrangements.
Pursuant to the terms of the Restructuring the interest accrued on the SSNs and the SUNs from
Sustainability
Zero fatalities among employees and contractors during operations in Q1 2023 (Q1 2022: zero).
Zero Lost Time Injury ('LTI') in Q1 2023 (Q1 2022: zero)
Zero Total Recordable Incidents ('TRI') in Q1 2023 (Q1 2022: one). 1,113 tonnes of air emissions emitted in Q1 2023 against 6,309 tonnes permitted for 2023 under the Kazakhstan Environmental Code.
Positive Invest
In
Management estimates that the Stepnoy Leopard Fields hold between 50 mmboe and 150 mmboe of recoverable volumes which are considered contingent resources, with over 20% estimated to be liquids. Hence, the Proposed Acquisition will enable Nostrum to tie-in further resources in the region that can be processed at the Company's gas treatment facilities. Upon completion of the Proposed Acquisition an affiliate of the Company will be appointed as the operator of the Stepnoy Leopard Fields under the Positive Invest Contract.
The Sale and Purchase Agreement for the Proposed Acquisition has a long stop date of
As at
We are working on completion of the acquisition of the Stepnoy Leopard Fields and will update the market as soon as it occurs.
We will continue to build on the momentum achieved so far to capitalise on opportunities to add value to our assets.'
Sales volumes
The sales volume split for Q1 2023 was as follows: The difference between production and sales volumes is primarily due to the internal consumption of gas.
Notes to press release
EBITDA is defined as profit before tax + non-recurring expenses + finance costs + foreign exchange loss/(gain) + employee share-option adjustments + depreciation - interest income + other expenses/(income).
LEI: 2138007VWEP4MM3J8B29
Contact:
Tel: 44 (0) 207 457 2020
About
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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