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Energy

Nostrum Oil & Gas expects revenue for 2017 to exceed US$400mln

The Kazakh oiler told investors that production averaged 39,199 boepd in 2017 and highlighted the benefit of better crude prices

Nostrum Oil & Gas PLC (LON:NOG) told investors that production for 2017 averaged 39,199 barrels of oil equivalent per day and said full year revenue is expected to exceed US$400mln.

At the same time, the Kazakhstan-focused oiler confirmed production of 34,285 boepd in the final three month period.

The company added that it had US$127mln of cash, and total net debt would not exceed US$1.08bn (with net debt below US$0.95bn) at the end of December 2017.

Stabilising production

"Nostrum benefited from higher oil prices in Q4, which compensated for reduced production from two producing wells, 217 and 225, in 2017,” said Kai-Uwe Kessel, Nostrum chief executive.

“The company is focused on stabilising production during 2018 and completing GTU3 to ensure we have the opportunity to grow our production in the second half of 2018.

“In addition, we hope to further stabilise our balance sheet by refinancing our remaining debt due in 2019. This will allow us to focus over the next 3 years on ramping up production and deleveraging the balance sheet. We will continue to implement cost saving initiatives wherever possible.”

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