London, 16 November 2021

Financial Results for the Third Quarter and Nine Months ending 30 September 2021

Nostrum Oil & Gas PLC (LSE: NOG) (“Nostrum”, or “the Company”), an independent oil and gas company engaging in the production, development and exploration of oil and gas in the pre-Caspian Basin, today announces its financial results in respect of the nine-month period ending 30 September 2021.

Highlights:

Financial

• Revenues up 5.0% year-on-year to US$142.7 million (9M 2020: US$135.8 million). 
• Net operating cashflows1 up 25.6% year-on-year to US$85.4 million (9M 2020: US$68.0 million). 
• EBITDA2 up 39.6% year-on-year to US$84.1 million (9M 2020: US$60.3 million) with EBITDA margin expanding to 58.9% (9M 2020: 44.4%). 
• Closing cash3 for the period increased by US$63.5 million to US$142.1 million (December 31, 2020: US$78.6 million). Cash excludes US$22.6 million held in a secure account under the terms of the Forbearance Agreements. 
• We continue to accrue interest on the 2022 and 2025 loan notes, but no interest has been paid on the loan notes since February 2020 (see Bond Restructuring below). 
• Continued focus on cost optimisation to help manage the Company’s liquidity. 

1. IFRS term based on indirect cash flow method.
2. Defined as profit before tax net of finance costs, foreign exchange loss/gain, ESOP, depreciation, interest income, other income and expenses.
3. Defined as cash and cash equivalents including current and non-current investments and excluding restricted cash. 

Operational

• Average daily production after treatment for 9M 2021 totalled 17,532 boepd with average daily sales volumes for 9M of 15,838 boepd. Condensate inventory is not included in the reported sales volumes and as at 30 September 2021 amounted to approximately 254,000 boe, which is planned to be sold in Q4 2021.
• We continue to execute our well and reservoir management activities that are supported with well workovers and interventions. These are generally not capital intensive and offer reasonable risk/reward. 
• On 23 July 2021, the Company announced that its wholly-owned subsidiary Zhaikmunai LLP (“Zhaikmunai”) had agreed with Ural Oil & Gas LLP (“Ural OG”) to extend the deadline under the Agreements for Ural OG’s first delivery of gas and liquid gas-condensate to Zhaikmunai by approximately six months, from 9 April 2023 to 31 October 2023. The extension was requested by Ural OG as a result of circumstances relating to the COVID-19 pandemic. 
• We continue to focus on ways to monetise spare capacity in the gas treatment facility through processing third party volumes. The Company has approved minor investment to upgrade its facilities and build a short pipeline to receive Ural OG feedstock by Q4 2023. 
• The 2021 planned shutdown that included the internal inspection of all process vessels was successfully completed on time and under budget in the third quarter. 

Bond Restructuring 

• Discussions continue with the advisers to the AHG to agree a restructuring of the debt. 
• On 18 May 2021, the Company and certain of its subsidiaries entered into a second forbearance agreement (the “Second Forbearance Agreement“) with the AHG. The Second Forbearance Agreement is substantially similar to the original forbearance agreement. 
• The forbearance period initially expired at 4 p.m. (BST) on 21 June 2021 but was extended with the agreement of all the members of the AHG to 4 p.m. (BST) on 21 July 2021. On 21 July 2021, the forbearance period was again extended to 4 p.m. (BST) on 25 August 2021. In connection with the extension of the forbearance period to 25 August 2021, the Company agreed to pay into the Restricted Cash an amount of US$1,116,990, equating to 9.9288 bps of the outstanding notes. The total amount paid into Restricted Cash at 30 September 2021 is US$22,661,980.
• The forbearance period was extended several times since 25 August 2021 with the agreement of all the members of the AHG. The forbearance agreement is set to expire at 11.59 p.m. (GMT) on 26 November 2021 following the last agreed extension. 

Arfan Khan, Chief Executive Officer of Nostrum Oil & Gas, commented: 

“We continue to show strong financial and operational resilience despite the ongoing restructuring process and COVID-19 pandemic. Our operating and free cash flow growth has continued through the year reflecting our proactive cost management, as well as favourable hydrocarbon pricing environment. 

We continue to execute our well and reservoir management activities that are supported with well workovers and interventions. These are generally not capital intensive and offer reasonable risk/reward. 

The restructuring process is still ongoing, and we are hopeful of reaching an agreement in the near future. The closing of the restructuring will enable us to move the Group forward and continue our efforts to source third party gas to utilize the spare capacity in our gas processing facilities. 

Safety of our workforce continues to be our priority, and we are pleased that the Company has successfully managed to maintain operations during this difficult period, with no lost production.” 

Sales volumes 

Average daily 9M 2021 sales volumes of 15,838 boepd comprised:

The difference between production and sales volumes is primarily due to the internal consumption of gas

2021 Well Stock

• As at 30 September 2021, the Company had 43 wells in production (23 oil wells and 20 gas-condensate wells). 

2021 Drilling and sales volume guidance

• The Company has not planned a drilling programme in 2021 but continues to screen and assess any potential value-creation opportunities. 
• The average daily production forecast for 2021 remains 17,000 boepd, corresponding to an average daily sales volume of c.16,000 boepd dependent on condensate inventories as at 31 December 2021. 

Appointment of Chief Financial Officer

On 17 August 2021, the Board of the Company announced the appointment of Shane Drader as Chief Financial Officer (CFO) effective 30 August 2021. Mr Drader is a chartered accountant with over 20 years’ experience in strategic financial management, most recently serving as Managing Director, Head of IPO Office at JSC NC “KazMunayGas”. Mr Drader was also a member of the management board at KazMunayGas Exploration and Production JSC where he also had the role of Managing Director, Financial Controller and Acting CFO. 

Martin Cocker, who previously served as interim CFO, stepped down from the role on the effective date but continues to sit on the Board and is a designated non-executive director and member of the Audit Committee, Nomination and Governance Committee, Remuneration Committee and Health, Safety, Environment and Communities Committee. 

Summary of the financial Results for 9M 2021

Conference Call 

Nostrum’s management team will present the 9M 2021 Financial Results and will be available for a Q&A session with analysts and investors today, 16 November 2021, at 14.00 GMT. If you would like to participate in this call, please register by clicking the following link and following instructions: 

Results Call
Download: 9M 2021 Financial Statements
Download: 9M 2021 Results Presentation 

LEI: 2138007VWEP4MM3J8B29 

Further information

For further information please visit www.nog.co.uk 

Further enquiries

Shane Drader – Chief Financial Officer
ir@nog.co.uk 

Instinctif Partners – UK
Tim McCall
Galyna Kulachek
+ 44 (0) 207 457 2020
nostrum@instinctif.com 

Promo Group Communications – Kazakhstan
Asel Karaulova
Irina Noskova
+ 7 (727) 264 67 37 

About Nostrum Oil & Gas 

Nostrum Oil & Gas PLC is an independent oil and gas company currently engaging in the production, development and exploration of oil and gas in the pre-Caspian Basin. 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, in which it holds a 100% interest and is the operator through its wholly-owned subsidiary Zhaikmunai LLP. 

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. 

The post Financial Results for the Third Quarter and Nine Months ending 30 September 2021 appeared first on Nostrum Oil & Gas Plc.

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION

London, 17 August 2021

CFO Appointment

Nostrum Oil & Gas PLC (LSE: NOG) (“Nostrum”, or “the Company”), an independent oil and gas company engaging in the production, development and exploration of oil and gas in the pre-Caspian Basin, today announces the appointment of Shane Drader as Chief Financial Officer (CFO) effective 30 August 2021.

Martin Cocker, who has been acting as Interim CFO, will step down from such role on the same date but will continue on the Board and be designated as an independent non-executive director and member of the Audit Committee, Nomination and Governance Committee, Remuneration Committee and Health, Safety, Environment and Communities Committee.

Mr Drader is a chartered accountant with over 20 years of experience in strategic financial management, most recently serving as Managing Director, Head of IPO Office at JSC NC “KazMunayGas”. Mr Drader was also a member of the management board at KazMunaiGas Exploration and Production JSC where he also had the roles of Managing Director, Financial Controller and Acting CFO.

Previous roles include as Financial Controller at Petromanas Energy in Canada, Audit Partner at Deloitte in Kazakhstan and head of internal audit and risk, Financial Controller and Finance Director with British American Tobacco in Uzbekistan, Serbia and Croatia.

Atul Gupta, Chairman of the Board, commented:

“On behalf of the Board and management of Nostrum, I am delighted to welcome Shane to the Group. He joins at an important stage in the development of Nostrum and we are confident he will make a significant contribution to the future success of our business. I would also like to thank Martin for stepping into the Interim CFO role over the past months and for his continued contributions to the Company.”

Arfan Khan, CEO of Nostrum, added:

“Shane brings a unique combination of financial leadership and international experience in the energy sector, which will be valuable as we continue to focus on delivering the bond restructuring, as well as exploring opportunities to commercialise our world class infrastructure.”

LEI: 2138007VWEP4MM3J8B29

Further information

For further information please visit www.nog.co.uk

Further enquiries

Nostrum Oil & Gas PLC
Martin Cocker – Chief Financial Officer
ir@nog.co.uk

Instinctif Partners – UK
Tim McCall
Sarah Hourahane
Galyna Kulachek
+ 44 (0) 207 457 2020
nostrum@instinctif.com

About Nostrum Oil & Gas

Nostrum Oil & Gas PLC is an independent oil and gas company currently engaging in the production, development and exploration of oil and gas in the pre-Caspian Basin. 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, in which it holds a 100% interest and is the operator through its wholly-owned subsidiary Zhaikmunai LLP. In addition, Nostrum Oil & Gas holds a 100% interest in and is the operator of the Rostoshinskoye oil and gas field through the same subsidiary. Located in the pre-Caspian basin to the north-west of Uralsk, this exploration and development field is situated approximately 100 kilometres from the Chinarevskoye field.

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 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.

The post CFO Appointment appeared first on Nostrum Oil & Gas Plc.

London, 17 August 2021

Financial Results for the Second Quarter and Six Months ending 30 June 2021

Nostrum Oil & Gas PLC (LSE: NOG) (“Nostrum”, or “the Company”), an independent oil and gas company engaging in the production, development and exploration of oil and gas in the pre-Caspian Basin, today announces its financial results in respect of the six-month period ending 30 June 2021.

Highlights:

Financial

• Revenues of US$92.3 million (H1 2020: US$92.6 million). Average Brent price in H1 2021 of US$65.2 (H1 2020: US$40.0).
• Net operating cashflows1 of US$46.3 million (H1 2020: US$47.0 million).
• EBITDA2 of US$52.8 million (H1 2020: US$38.7 million).
• EBITDA margin of 57.2% (H1 2020: 41.8%).
• Closing cash3 for the period of US$108.1 million (December 31, 2020: US$93.9 million). Cash excludes US$21.5 million held in a secure account under the terms of the Forbearance Agreements.
• We continue to accrue interest on the 2022 and 2025 loan notes, but no interest has been paid on the loan notes since February 2020 (see Bond Restructuring, below).
• Continued focus on cost optimization to help manage the Company’s liquidity.

1. ^{IFRS term based on indirect cash flow method}
2. ^{Defined as profit before tax net of finance costs, foreign exchange loss/gain, ESOP, depreciation, interest income, other income and expenses}
3. ^{Defined as cash and cash equivalents including current and non-current investments and excluding restricted cash.}

Operational

• Average daily production after treatment for H1 2021 totalled 18,107 boepd with average daily sales volumes for H1 of 16,249 boepd. The natural production decline means that we do not make condensate sales each month because we have insufficient volumes to form a cargo. Condensate inventory as at 30 June 2021 amounted to approximately 220,000 barrels.
• We remain extremely vigilant in respect of COVID-19. We continue to implement stringent precautionary measures and we believe we have the systems in place to monitor and manage the risks presented by the pandemic in west Kazakhstan. To date, no production has been lost because of COVID-19.
• A well workover and well intervention programme started in April 2021. The programme is currently for 6 workovers and up to 20 interventions with an expected cost of US$7.3 million.
• We continue to focus on ways to monetise spare capacity in the gas treatment facility through processing third party volumes.
• On 23 July 2021, the Company announced that its wholly-owned subsidiary Zhaikmunai LLP (“Zhaikmunai”) had agreed with Ural Oil & Gas LLP (“Ural OG”) to extend the deadline under the Agreements for Ural OG’s first delivery of gas and liquid gas-condensate to Zhaikmunai by approximately six months, from 9 April 2023 to 31 October 2023. The extension was requested by Ural OG as a result of circumstances relating to the COVID-19 pandemic.
• Zhaikmunai LLP has entered into an agreement for the transfer all of its rights and obligations in relation to the Rostoshinskoye field to a third party, subject to the satisfaction of various conditions precedent including the receipt of all relevant regulatory approvals.

Bond Restructuring

• Discussions continue with the advisers to the AHG to agree a restructuring of the debt.
• The final consent fee for 9.9288 bps equating to US$1,116,990 was paid on 22 February 2021. The total consent fees paid under the Forbearance Agreement are US$6,701,973.
• On 22 March 2021, the Company announced that the approval has been received from all the members of the AHG to extend the expiry of the Forbearance Agreement from 4 p.m. on 20 March 2021 to 4 p.m. on 20 April 2021. In return for the AHG agreeing to extend the forbearance period to 20 April 2021, the Company agreed to pay into Restricted Cash an amount of US$1,116,990, equating to 9.9288 bps of the outstanding Notes. This amount was paid into Restricted Cash on 30 March 2021. The total amount paid into Restricted Cash at 30 June 2021 is US$21,541,990.
• On 20 April 2021, the Company announced that the approval has been received from all the members of the AHG to extend the expiry of the Forbearance Agreement from 4 p.m. on 20 April 2021 to 4 p.m. on 20 May 2021.
• On 18 May 2021, the Company and certain of its subsidiaries entered into a second forbearance agreement (the “Second Forbearance Agreement”) with the AHG. The Second Forbearance Agreement is substantially similar to the original forbearance agreement.
• The forbearance period initially expired at 4 p.m. GMT on 21 June 2021 but was extended with the agreement of all the members of the AHG to 4 p.m. on 21 July 2021. On 21 July 2021, the forbearance period was again extended to 25 August 2021.
• In connection with the extension of the forbearance period to 25 August 2021, the Company agreed to pay into the Restricted Cash an amount of US$1,116,990, equating to 9.9288 bps of the outstanding notes.

Arfan Khan, Chief Executive Officer of Nostrum Oil & Gas, commented:

“I am pleased that despite all the uncertainties and disruptions that COVID-19 and our restructuring process continues to cause, we are showing strong financial and operational resilience.

We continue to proactively manage our liquidity position. Our costs remain under control and whilst the costs per barrel have been negatively affected by the planned shut down earlier in the year, that shut down was executed safely and completed ahead of schedule and within budget.

We continue to make good progress with our efforts to source third party gas to utilize the spare capacity in our world-class gas processing facilities. Of course, it was disappointing to announce the likely delay to receiving first gas from Ural Oil and Gas LLP, but we are working with them to identify ways to make up the lost ground.

In terms of the restructuring, whilst the process has taken longer than anyone would have liked, I am confident that we are very close to a sustainable solution and so very hopeful that we will be able to make a positive announcement in the near future.

Finally, I would like to thank our staff and contractors for their continued professionalism, support and efforts.”

Sales volumes

Average daily H1 2021 sales volumes of 16,249 boepd comprised:

^{The difference between production and sales volumes is primarily due to the internal consumption of gasThe difference between production and sales volumes is primarily due to the internal consumption of gas}

2021 Well Stock

• As at 30 June 2021, the Company had 44 wells in production (24 oil wells and 20 gas-condensate wells).

2021 Drilling and sales volume guidance

• The Company has not planned a drilling programme in 2021 but will conduct a targeted well work-over and intervention programme, similar to that conducted in 2020.
• The average daily production forecast for 2021 remains 17,000 boepd, corresponding to an average daily sales volume of 16,000 boepd.

Chief Financial Officer

• On 29 April 2021, the Board of the Company extended the contract of the interim Chief Financial Officer, Martin Cocker, from 30 April 2021 (the expiry date) to 31 August 2021.
• On 17 August 2021, the Company announced the appointment of Shane Drader as Chief Financial Officer, effective 30 August 2021. Martin Cocker will step down from the interim CFO role on the same date but will continue on the Board and be designated as an independent non-executive director and a member of the Audit Committee, Health, Safety, Environment and Communities Committee, Remuneration Committee and Nomination and Governance Committee.

Summary of the financial Results for H1 2021

Conference Call

Nostrum’s management team will present the H1 2021 Financial Results and will be available for a Q&A session with analysts and investors today, 17 August 2021, at 1400 British Summer Time. If you would like to participate in this call then please register by clicking the following link and following instructions: Results Call

Download: H1 2021 Financial Statements

Download: H1 2021 Results Presentation

LEI: 2138007VWEP4MM3J8B29

Further information

For further information please visit www.nog.co.uk

Further enquiries

Martin Cocker – Chief Financial Officer
ir@nog.co.uk

Instinctif Partners – UK
Tim McCall
Sarah Hourahane
Galyna Kulachek
+ 44 (0) 207 457 2020
nostrum@instinctif.com

Promo Group Communications – Kazakhstan
Asel Karaulova
Irina Noskova
+ 7 (727) 264 67 37

About Nostrum Oil & Gas

Nostrum Oil & Gas PLC is an independent oil and gas company currently engaging in the production, development and exploration of oil and gas in the pre-Caspian Basin. 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, in which it holds a 100% interest and is the operator through its wholly-owned subsidiary Zhaikmunai LLP. In addition, Nostrum Oil & Gas holds a 100% interest in and is the operator of the Rostoshinskoye oil and gas field through the same subsidiary. Located in the pre-Caspian basin to the north-west of Uralsk, this exploration and development field is situated approximately 100 kilometres from the Chinarevskoye field.

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 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.

The post Financial Results for the Second Quarter and Six Months ending 30 June 2021 appeared first on Nostrum Oil & Gas Plc.

London, 18 May 2021

Financial Results for the Three Months ending 31 March 2021

Nostrum Oil & Gas PLC (LSE: NOG) (“Nostrum”, or “the Company”), an independent oil and gas company engaging in the production, development and exploration of oil and gas in the pre-Caspian Basin, today announces its financial results for the three months ending 31 March 2021.

Highlights:

Financial

• Q1 2021 revenues of US$46.2 million (Q1 2020: US$60.4 million).
• EBITDA¹ of US$26.8 million (Q1 2020: US$31.7 million).
• EBITDA margin of 58.0% (Q1 2020: 52.5%).
• Closing cash as at 31 March 2021 was US$85.3 million (31 December 2020: US$78.6 million).  Closing cash as at 31 March 2021 and 31 December 2020 excludes cash held in a restricted account under the terms of a forbearance agreement dated 23 October 2020 between the Company, together with certain of its subsidiaries (the “Note Parties”) and members of an ad hoc committee of noteholders (the “AHG”) (the “First Forbearance Agreement”). Cash held on the restricted account as at 31 March 2021 was US$21.5 million (31 December 2020: $12.9 million).
• Total debt² of US$1,209.8 million including accrued interest of US$100.1 million, net debt US$1,124.5 million as at 31 March 2021. Net debt position as at 31 March 2021 does not take into account Restricted Cash.
• Continued focus on cost and production optimisation to help manage our liquidity.
• Interest on Nostrum’s 8.0% Senior Notes due 2022 and its 7.0% Senior Notes due 2025 (together the “Notes“) issued by Nostrum Oil & Gas Finance B.V. and due in February and March 2021 was not paid.

1. ^{Defined as profit before tax net of finance costs, foreign exchange loss/gain, ESOP, depreciation, interest income, other income and expenses}
2. ^{Total debt does not include finance lease liabilities under IFRS16 Leases}

Operational

• Average daily production after treatment for Q1 2021 totalled 19,341 boepd with average daily sales volumes for the quarter of 17,419 boepd. Production and sales guidance for the year is 17,000 boepd and 16,000 boepd, respectively.
• We remain extremely vigilant in respect of COVID-19. We continue to implement stringent precautionary measures and we believe we have the systems in place to monitor and manage the risks presented by the pandemic in west Kazakhstan. To date, no production has been lost because of COVID-19.
•  A well workover and well intervention programme started in April 2021. The programme is currently for 6 workovers and up to 20 interventions with an expected cost of US$7.3 million.
• Planned facilities maintenance shut down programme successfully executed in April / May 2021.
•  We continue to focus on ways to monetise spare capacity in the gas treatment facility through processing third party volumes.

Bond Restructuring

• On 23 October 2020, the Company announced that the Note Parties had entered into the First Forbearance Agreement with the AHG.
• The Company agreed to pay, or procure the payment by the issuer of, certain consent fees in cash (a “Consent Fee”) to each forbearing holder. The Consent Fees are payable by reference to the total aggregate principal amount of the Notes outstanding. The first and second consent fees totaling US$5,584,983 were paid in November and December 2020. The final consent fee for US$1,116,990 was paid on 22 February 2021. The total consent fees paid under the Forbearance Agreement are US$6,701,973.
• Under the terms of the First Forbearance Agreement, certain holders agreed to forbear from the exercise of certain rights and remedies under the indentures governing the Notes. The agreed forbearances included agreeing not to accelerate the Notes’ obligations as a result of certain missed interest payments. Following invitation, a substantial number of additional holders acceded to the original forbearance agreement.
• On 22 March 2021, the Company announced that the approval has been received from all the members of the AHG to extend the expiry of the First Forbearance Agreement from 4 p.m. on 20 March 2021 to 4 p.m. on 20 April 2021. In return for the AHG agreeing to extend the forbearance period to 20 April 2021, the Company agreed to pay into the secured account an amount of US$1,116,990, equating to 9.9288 bps of the outstanding Notes.  This amount was paid into the secured account on 30 March 2021. The total amount paid into the secured account at 31 March 2021 is US$21,541,990.
• On 20 April 2021, the Company announced that the approval has been received from all the members of the AHG to extend the expiry of the First Forbearance Agreement from 4 p.m. on 20 April 2021 to 4 p.m. on 20 May 2021.
• The First Forbearance Agreement will automatically terminate on 20 May 2021.
• The Company expects to enter into a Second Forbearance Agreement substantially similar to the First Forbearance Agreement with an initial termination date of 21 June 2021, unless extended in accordance with its terms.
• The restructuring work is progressing and discussions are ongoing between the Company and the informal ad hoc committee of holders of the Notes.

CEO appointment

As previously announced, Arfan Khan was appointed as Chief Executive Officer of the Group effective 26 January 2021.

Interim Chief Financial Officer

On 29 April 2021, the Board of the Company extended the contract of the interim Chief Financial Officer, Martin Cocker, from 30 April 2021 (the expiry date) to 31 August 2021.

Sales volumes

Average daily Q1 2021 sales volumes of 17,419 boepd comprised:

The difference between production and sales volumes is primarily due to the internal consumption of gas

Arfan Khan, Chief Executive Officer of Nostrum Oil & Gas, commented:

 “We continue to be vigilant in respect of COVID-19 and exercise extreme caution to ensure the continued safety of our employees and contractors, at the same time minimising the disruption to production and operations.

 A successful bond restructuring when combined with our on-going liquidity management will lead to the vitally needed financial capacity for exploiting, and adding to PDP, the low cost per barrel, high confidence infill opportunities with best-in-class well & reservoir management. We will also continue discussions with third parties to secure additional volumes to commercialise our world-class infrastructure.

 Nostrum has taken all necessary steps to safeguard its core business through streamlining operations and prioritising reducing costs. Together with a robust bond restructuring, the Company has laid down a solid foundation to build from. Reshaping Nostrum’s future trajectory so that it is fully aligned with the growth agenda now requires strengthening the skills and capabilities of the organisation in areas that will be mission critical, whilst simultaneously leveraging our seasoned expertise in project execution and production operations.”

Conference call

Nostrum’s management team will present the Q1 2021 Results and will be available for a Q&A session with analysts and investors today at 2pm UK time, 18 May 2021. If you would like to participate in this call, please register by clicking on the following link and following instructions: Results Call

Download: Q1 2021 Results Presentation

Download: Q1 2021 Financial Statements

LEI: 2138007VWEP4MM3J8B29

Further information

For further information please visit www.nog.co.uk

Further enquiries

Nostrum Oil & Gas PLC
Martin Cocker – Chief Financial Officer
ir@nog.co.uk

Instinctif Partners – UK
Mark Garraway
Sarah Hourahane
Galyna Kulachek
+ 44 (0) 207 457 2020
nostrum@instinctif.com

Notifying person
Thomas Hartnett
Company Secretary

About Nostrum Oil & Gas

Nostrum Oil & Gas PLC is an independent oil and gas company currently engaging in the production, development and exploration of oil and gas in the pre-Caspian Basin. 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, in which it holds a 100% interest and is the operator through its wholly-owned subsidiary Zhaikmunai LLP. In addition, Nostrum Oil & Gas holds a 100% interest in and is the operator of the Rostoshinskoye oil and gas field through the same subsidiary. Located in the pre-Caspian basin to the north-west of Uralsk, this exploration and development field is situated approximately 100 kilometres from the Chinarevskoye field.

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 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.

The post Financial Results for the Three Months ending 31 March 2021 appeared first on Nostrum Oil & Gas Plc.

London, 27 April 2021

Nostrum Oil & Gas PLC (LSE: NOG) (“Nostrum”, or “the Company”), an independent oil and gas company engaging in the production, development and exploration of oil and gas in the pre-Caspian Basin, today announces its full year financial results for the twelve months ending 31 December 2020, together with the publication of the 2020 Annual Report for Nostrum and its subsidiaries taken as a whole (“the Group”).

2020 highlights:

Operational

• Average daily production after treatment for 2020 totalled 22,337 boepd (2019: 28,540 boepd) with average daily sales volumes for the year of 21,514 boepd (2019: 26,626 boepd). This compares to our production and sales guidance for 2020 of 21,000 boepd and 20,000 boepd, respectively.
• COVID 19 remains of the utmost concern. Actions continue to be taken to protect the safety of all staff and contractors and mitigate any impact on operations. To date, no production has been lost because of COVID 19.
• As previously reported, drilling was halted for 2020. The successful workover and well intervention activity, completed in August 2020, reduced the rate of decline previously expected in the field. A similar targeted campaign for 2021 has already started.
• We continue our focus on ways to monetise spare capacity in the gas treatment facility through processing third party volumes.
• Ryder Scott audited 2P reserves reduced to 39 mmboe as announced on 11 March 2021.
• On 8 October 2020, the Company announced the disposal of the Darinskoye and Yuzhno-Gremyachenskoye licences.

Financial

• 2020 revenue of US$175.9m (2019: US$322.1m).
• 2020 EBITDA¹ US$80.4m (2019: US$199.6m).
• Cash at 31 December 2020 of US$78.6m² with net debt of US$1,107.7m.
• Cash position as of 31^st March 2021 in excess of US$85m. We continue to take active steps to manage liquidity.
• Operating costs^[1] of US$31.8 million for 2020 (2019: US$41.4 million) general & administrative costs^[2] of US$14.1 million (2019: US$19.4 million) and selling and transportation costs² of US$28.2 million (2019: US$41.4 million) reflect the focus during 2020 on controlling costs and so managing liquidity.
• US$244.9 million impairment following from reduction in Group 2P reserves (2019: US$1,354.7 million).
• Discussions continue with the advises to an informal ad-hoc committee of noteholders (the “AHG”) of the 0% Senior Notes due 2022 and 7.0% Senior Notes due 2025 issued by Nostrum Oil & Gas Finance B.V. (together, the “Notes”).

Reserves

The Group carried out an internal review of its reserves as at 31 December 2020. As a result, Management estimated that the Chinarevskoye total Proven plus Probable (“2P”) reserves as at 31 December 2020 were 39 million barrels of oil equivalent (mmboe). This represents a reduction of 91 mmboe versus the reserves reported previously, after adjusting for production in 2020. The revisions in reserves are mainly due to the downgrade of reserves attributed to the development of the Biyski-Afoninski West & North-West reservoirs to the Contingent Resources category. In addition, there has been a reduction in the development drilling programme across the Chinarevskoye reservoirs due to reservoir performance concerns and a less favourable product pricing outlook.

The 2P reserves of 39 mmboe assume 16 well interventions, including one appraisal well, with a total estimated drilling cost of US$75 million (2019: 138.1 mmboe requiring 45 interventions for a total estimated drilling cost of $324 million).

The table below shows the 2P reserves by fluid: 

³ The gas boe totals are management estimates using a conversion factor of 5.327 mcf per boe
Nostrum estimates the Chinarevskoye 1P (Proven) case at 28.9 mmboe, comprising 27.7 mmboe for Proved Developed Producing (PDP) from 45 current wells and 1.2 mmboe in the Proved Undeveloped (PUD) category.
The Reserves Report as of 31 December 2020 looks purely at the economics of a possible field development to extract the maximum number of reserves at a US$60 oil price from 2022.
All of the information provided does not take into account any short-term impact on the liquidity position of Nostrum as a result of fluctuations in the oil price.

CEO appointment

The Company announced the appointment of Arfan Khan as Chief Executive Officer of the Group effective 26 January 2021. Mr Khan assumed the role of chief executive of the Group from Executive Chairman Atul Gupta, who had previously performed such duties on an interim basis. Mr Gupta reverted to his previous role as Executive Chairman, effective the same date. Mr Khan also joined the Board of Directors of the Company at the same time

Mr Khan has over 30 years’ experience in the oil and gas industry. A qualified petroleum engineer, he has held various operational and senior management positions in the industry throughout his career, including positions with ExxonMobil in the US and roles at Shell, Enterprise Oil and Maersk Oil. Mr Khan also has strong emerging markets experience, having held operational roles in Nigeria, Angola and Kazakhstan, where he acted as Kashagan Well, Reservoir and Facilities Manager whilst with Shell. As Chief Operating Officer, Executive Director and Special Advisor to the Chairman and CEO at Amni International Petroleum from 2014 to 2019, Arfan oversaw strategic growth plans and fundraising programmes. Most recently he has served as President and Managing Director of Stratum Energy Group.

Bond Restructuring

• As previously announced, Rothschild & Cie were appointed as financial advisers and White & Case as legal advisers to assist the Company in the restructuring of the Notes.
• PJT Partners (UK) Limited were appointed as financial advisers and Akin Gump Strauss Hauer & Feld as legal advisers to the AHG.
• On 24 July 2020, Nostrum announced that it planned to utilise the applicable grace periods for the interest payments due on 25 July 2020 and 16 August 2020 with respect to the Notes. The 30-day grace period allowed the Company to continue active discussions with the financial and legal advisers to an informal ad hoc committee of holders of the Notes with a view to entering into a forbearance agreement with the holders of the Notes in relation to those interest payments.
• On 23 October 2020, the Company announced that, together with certain of its subsidiaries (the “Note Parties”), the Company had entered into a forbearance agreement (the “Forbearance Agreement”) with the AHG. The forbearance period initially expired at 4 p.m. GMT on 20 December 2020 (the “Initial Expiration Date”), at which time the Initial Expiration Date automatically extended to 4 p.m. GMT on 18 February 2021, on which date it automatically extended again to 4 p.m. GMT on 20 March 2021.On 19 March 2021, by unanimous consent of the AHG, the forbearance period was extended to 20 April 2021 and on that date it was extended, again by unanimous consent of the AHG, to 20 May 2021.Pursuant to the Forbearance Agreement, members of the AHG have agreed to forbear from the exercise of certain rights and remedies that they have under the indentures governing the Notes. The agreed forbearances include agreeing not to accelerate the Notes’ obligations as a result of the missed interest payments (or the next missed interest periods if they occur prior to the expiry of the Forbearance Agreement).
• The Forbearance Agreement is subject to certain conditions, including:
• Any representation or warranty made by any of the Note Parties under the Forbearance Agreement continuing to be true and complete in all material respects as of the date of the Forbearance Agreement;
• A portion of the missed interest payments will be paid into a secured account opened for the benefit of the holders of the Notes. At 27 April 2021, the total held in the secured account in accordance with the Forbearance Agreement was US$20,425,000;
• The appointment by the AHG of an observer who shall be entitled to attend and speak, but not vote, at any meetings of the Board or Committees of the Company where certain defined matters are to be discussed;
• The engagement of certain professional and technical advisors on behalf of the AHG;
• The observance by the Company and its subsidiaries of certain operating and other restrictions and limitations; and
• The provision of certain financial and operating information to the advisors of the AHG.

The Company agreed to pay, or procure the payment by the issuer of, certain consent fees in cash (a “Consent Fee”) to each forbearing holder. The Consent Fees are payable by reference to the total aggregate principal amount of the Notes outstanding. The first Consent Fee was 29.7866 basis points, equating to US$3,350,992, paid on 19 November 2020. The second consent fee for 19.8577 bps, totalling US$2,233,991 was paid on 22 December 2020. The final consent fee for 9.9288 bps equating to US$1,116,990 was paid on February 20, 2021. 

Sales volumes

The sales volumes split for 2020 was as follows:

The difference between production and sales volumes is primarily due to the internal consumption of gas

Arfan Khan, Chief Executive Officer of Nostrum Oil & Gas, commented:

“The Group has faced a number of challenges in 2020, but with prompt and decisive action we have been able to manage our liquidity and reduce reservoir decline. Signing the Forbearance Agreement has provided the time to engage with our bondholders and shareholders to restructure the debt and we are very hopeful of a successful conclusion to this process in the coming months. A robust bond restructuring will give the company a solid foundation to build from.  We will continue discussions with third parties to secure additional volumes to commercialise our world-class infrastructure whilst proactively managing our cost base and liquidity.

COVID 19 continues to be of concern. Whilst we have not lost any production or people because of COVID 19, we continue to exercise extreme caution to ensure their continued safety, at the same time minimising the disruption to production and operations.

Looking forward, we are now pivoting towards growth and transitioning into a multi-asset energy company.  This will require tremendous focus and resources. Our success in the near-term will depend upon safeguarding the base business and liquidity, sweating the producing asset and adding to PDP by exploiting low cost per barrel, high-confidence infill opportunities with best-in-class well & reservoir management, continuing to deliver on our HSE performance and delivering on our promises and restoring investor confidence.”  

Strategic focus for 2021:

• Delivering on our strategies for growth:
  • Concluding commercial contracts for the processing of third-party hydrocarbons through our facilities and firming up potential upstream development opportunities;
  • Establishing a comprehensive ESG road-map.

• Optimising future operational ability and capital efficiencies:
  • Successful restructuring of the debt;
  • Continue to manage costs and liquidity.
  • Proactively managing technical and commercial risks.

• Maximising output from the Chinarevskoye field:
  • Targeted workover and intervention programme;
  • Maximise uptime of existing wells and production facilities.
  • Achieve average production volumes of 17,000 boepd corresponding to average sales volumes of 16,000 boepd; and
  • Continue studies to identify economic ways to bring contingent resources back into 2P.

Conference call

Nostrum’s management team will present the FY 2020 Results and will be available for a Q&A session with analysts and investors today at 2pm UK time, 27 April 2021. If you would like to participate in this call, please register by clicking on the following link and following instructions: Results Call

Download: Results Presentation

Download: Consolidated Group Financials

Download: 2020 Annual Report

LEI: 2138007VWEP4MM3J8B29

Further information

For further information please visit www.nog.co.uk

Further enquiries

Nostrum Oil & Gas PLC
Martin Cocker – Chief Financial Officer
ir@nog.co.uk

Instinctif Partners – UK
Mark Garraway
Sarah Hourahane
Galyna Kulachek
+ 44 (0) 207 457 2020
nostrum@instinctif.com

Notifying person
Thomas Hartnett
Company Secretary

About Nostrum Oil & Gas

Nostrum Oil & Gas PLC is an independent oil and gas company currently engaging in the production, development and exploration of oil and gas in the pre-Caspian Basin. 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, in which it holds a 100% interest and is the operator through its wholly-owned subsidiary Zhaikmunai LLP. In addition, Nostrum Oil & Gas holds a 100% interest in and is the operator of the Rostoshinskoye oil and gas field through the same subsidiary. Located in the pre-Caspian basin to the north-west of Uralsk, this exploration and development field is situated approximately 100 kilometres from the Chinarevskoye field.

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 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.

[1] Cost of sales net of depreciation and inventory adjustment

[2] General & administrative and selling and marketing expenses net of depreciation

The post Full Year Results for the Year Ending 31 December 2020 appeared first on Nostrum Oil & Gas Plc.

London, 26 January 2021 

Group CEO and Director Appointment 

Nostrum Oil & Gas PLC (LSE: NOG) (“Nostrum”, or “the Company” and together with its subsidiaries, the “Group”), an independent oil and gas company engaging in the production, development and exploration of oil and gas in the pre-Caspian Basin, today announces the appointment of Arfan Khan as Chief Executive Officer of the Group effective 26 January 2021. Mr Khan is assuming the role of chief executive of the Group from Executive Chairman Atul Gupta, who had previously performed such duties on an interim basis. Mr Gupta will now revert to his previous role as Executive Chairman. Mr Khan will also join the Board of Directors of the Company at the same time. 

Mr Khan has over 30 years’ experience in the oil and gas industry. A qualified petroleum engineer, he has held various operational and senior management positions in the industry throughout his career, including positions with ExxonMobil in the US and roles at Shell, Enterprise Oil and Maersk Oil. Mr Khan also has strong emerging markets experience, having held operational roles in Nigeria, Angola and Kazakhstan, where he acted as Kashagan Well, Reservoir and Facilities Manager whilst with Shell. As Chief Operating Officer, Executive Director and Special Advisor to the Chairman and CEO at Amni International Petroleum from 2014 to 2019, Arfan oversaw strategic growth plans and fundraising programmes. Most recently he has served as President and Managing Director of Stratum Energy Group. 

Atul Gupta, Chairman of the Board, commented: 

“I would like to welcome Arfan to the Group on behalf of the Board and management of Nostrum. Arfan has the breadth and depth of experience and operational expertise to lead us through this next stage as we focus on delivering the bond restructuring for all our stakeholders, whilst also continuing to pursue opportunities to commercialise our world class infrastructure.” 

There are no matters which require additional disclosure under LR 9.6.13R. 

Disclosure of inside information in accordance with Article 17 of Regulation (EU) 596/2014 (16 April 2014) relating to Nostrum Oil & Gas PLC. 

LEI: 2138007VWEP4MM3J8B29 

The post Group CEO and Director Appointment appeared first on Nostrum Oil & Gas Plc.

London, 5 January 2021

Board Changes

Nostrum Oil & Gas PLC (LSE: NOG) (“Nostrum”, or “the Company”), an independent oil and gas company engaging in the production, development and exploration of oil and gas in the pre-Caspian Basin, today announces the resignation of Mr Simon Byrne from the Board of Directors of the Company effective 4 January 2021.

Mr Byrne was nominated as a Nostrum director by Mayfair Investments BV, a shareholder in the Company.  Mr Byrne has confirmed that Mayfair Investments BV will not be nominating a director to replace him on the Board of the Company.

In accordance with the Company’s Articles of Association, the appointment by Mr Byrne of Mr Pankaj Jain as an alternate director for him also ceased at the same time as Mr Byrne’s resignation took effect.

Atul Gupta, Chairman of the Board, commented:

“Simon has brought great insight and knowledge to the Nostrum Board during his years as a director of the Company.  He has discharged his responsibilities at all times in the interests of all stakeholders and the Nostrum Board has deeply valued his many contributions. We are very sad to see him depart.”

LEI: 2138007VWEP4MM3J8B29

Further information

For further information please visit www.nog.co.uk

Further enquiries

Martin Cocker – Chief Financial Officer
ir@nog.co.uk

Instinctif Partners – UK
Mark Garraway
Sarah Hourahane
Galyna Kulachek
+ 44 (0) 207 457 2020
nostrum@instinctif.com

Promo Group Communications – Kazakhstan
Asel Karaulova
Irina Noskova
+ 7 (727) 264 67 37

About Nostrum Oil & Gas

Nostrum Oil & Gas PLC is an independent oil and gas company currently engaging in the production, development and exploration of oil and gas in the pre-Caspian Basin. 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, in which it holds a 100% interest and is the operator through its wholly-owned subsidiary Zhaikmunai LLP. In addition, Nostrum Oil & Gas holds a 100% interest in and is the operator of the Rostoshinskoye oil and gas field through the same subsidiary. Located in the pre-Caspian basin to the north-west of Uralsk, this exploration and development field is situated approximately 100 kilometres from the Chinarevskoye field.

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 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.

The post Board Changes appeared first on Nostrum Oil & Gas Plc.

 London, 17 November 2020

 Financial Results for the Third Quarter and Nine Months ending 30 September 2020

Nostrum Oil & Gas PLC (LSE: NOG) (“Nostrum”, or “the Company”), an independent oil and gas company engaging in the production, development and exploration of oil and gas in the pre-Caspian Basin, today announces its financial results in respect of the nine-month period ending 30 September 2020.

Highlights:

Financial

• Revenues of US$135.8 million (9M 2019: US$250.3 million).
• Net operating cashflows¹ of US$68.0 million (9M 2019: US$160.2 million).
• EBITDA² of US$60.3 million (9M 2019: US$162.1 million).
• EBITDA margin on 44.4% (9M 2019: 64.8%).
• Closing cash³ for the period of US$88.7 million (December 31, 2019: US$93.9million).
• Total debt⁴ at 30 September 2020 of US$1,163.0 million, including accrued interest of US$57.1 million.  Net debt of US$1,074.3 million at 30 September 2020.
• Continued focus on cost optimization to help manage the Company’s liquidity.

Operational

• COVID 19 is of utmost concern.  Actions taken to protect the safety of all staff and contractors and mitigate any impact on operations. In particular, stringent testing and follow-up procedures are in place for all field personnel. To date, no production has been lost because of COVID 19.
• 9M 2020 average production after treatment of 23,129 boepd with average sales volumes for the period of 22,269 boepd.  We revise our guidance for the average daily sales volumes for 2020 from 19,000 boe to 20,000 boe.
• As previously reported, drilling has been halted for 2020. The successful workover and well intervention activity, completed in August 2020, has reduced the rate of decline previously expected in the field.
• Continuing our focus on monetizing spare capacity in the gas treatment facility through processing third party volumes.
• On 8 October 2020, the Company announced the disposal of the Darinskoye and Yuzhno-Gremyachenskoye licences.

1. ^{IFRS term based on indirect cash flow method}
2. ^{Defined as profit before tax net of finance costs, foreign exchange loss/gain, ESOP, depreciation, interest income, other income and expenses}
3. ^{Defined as cash and cash equivalents including current and non-current investments and excluding restricted cash}
4. ^{Total debt does not include finance lease liabilities under IFRS16 Leases}

Bond Restructuring

• As previously announced, Rothschild & Cie were appointed as financial advisers and White & Case as legal advisers to assist the Company in the restructuring of the 0% Senior Notes due 2022 and 7.0% Senior Notes due 2025 (together, the “Notes”) issued by Nostrum Oil & Gas Finance B.V.
• PJT Partners (UK) Limited were appointed as financial advisers and Akin Gump Strauss Hauer & Feld as legal advisers to an informal ad hoc committee of holders of the Notes.
• On 24 July 2020, Nostrum announced that it planned to utilise the applicable grace periods for the interest payments due on 25 July 2020 and 16 August 2020 with respect to the Notes. The 30-day grace period allowed the Company to continue active discussions with the financial and legal advisers to an informal ad hoc committee of holders of the Notes with a view to entering into a forbearance agreement with the holders of the Notes in relation to those interest payments.
• On 23 October 2020, the Company announced that, together with certain of its subsidiaries (the “Note Parties”), the Company had entered into a forbearance agreement (the “Forbearance Agreement”) with members of an informal ad hoc committee of holders of the Notes (the “AHG”). The forbearance period initially expires at 4 p.m. GMT on 20 December 2020 (the “Initial Expiration Date”), but the Initial Expiration Date is automatically extended to 4 p.m. GMT on 18 February 2021 and then again to 4 p.m. GMT on 20 March 2021 unless the Forbearance Agreement has been terminated by a majority decision of the forbearing members of the AHG. A final extension period from 20 March to 19 May 2021 requires the approval of all of the forbearing members of the AHG. Pursuant to the Forbearance Agreement, members of the AHG have agreed to forbear from the exercise of certain rights and remedies that they have under the indentures governing the Notes. The agreed forbearances include agreeing not to accelerate the Notes’ obligations as a result of the missed interest payments (or the next missed interest periods if they occur prior to the expiry of the Forbearance Agreement).
• The Forbearance Agreement is subject to certain conditions, including:
  • Any representation or warranty made by any of the Note Parties under the Forbearance Agreement continuing to be true and complete in all material respects as of the date of the Forbearance Agreement;
  • A portion of the missed interest payments will be paid into a secured account opened for the benefit of the holders of the Notes;
  • The appointment by the AHG of an observer who shall be entitled to attend and speak, but not vote, at any meetings of the Board or Committees of the Company where certain defined matters are to be discussed;
  • The engagement of certain professional and technical advisors on behalf of the AHG;
  • The observance by the Company and its subsidiaries of certain operating and other restrictions and limitations; and
  • The provision of certain financial and operating information to the advisors of the AHG.
• The Company has also agreed to pay, or procure the payment by the issuer of, certain consent fees in cash (the “Consent Fees”) to each forbearing holder. The Consent Fees are payable by reference to the total aggregate principal amount of the Notes outstanding. The first Consent Fee for the first 90 days is 29.7866 basis points, then 19.8577 bps for the following 60 days and 9.9288 bps for the subsequent 30 days. The Consent Fees will be paid on a rolling basis.  In this regard, the Company has communicated, through the clearing systems, an announcement inviting all other holders of the Notes to join the Forbearance Agreement within a limited period of time.

Atul Gupta, Chief Executive Officer of Nostrum Oil & Gas, commented:

“The operating environment remains challenging. Low prices for our products, especially gas, are likely to continue into 2021 and, whilst we have not to date lost any production due to the pandemic, the threats posed by COVID 19 both to the health and safety of our people and contractors, and to our operations, are of utmost concern. We continue to exercise extreme caution to ensure the safety of our people and contractors. 

The signing of the Forbearance Agreement enables us to work with our bondholders and shareholders to restructure the debt and so secure the future of the Company. Our continued discussions with third parties to secure additional volumes to commercialise our world class infrastructure remain a priority.

I would like to thank our people and our contractors for their understanding, dedication and flexibility that have enabled us to keep operating throughout the pandemic.”  

Sales volumes

The sales volumes split for 9M 2020 was as follows:

The difference between production and sales volumes is primarily due to the internal consumption of gas

Reserves

The Company has carried out an internal review of its reservoir and production data which indicates that its undeveloped reserves are subject to significant productivity risk. Furthermore, the outlook for hydrocarbon product prices at which the Company sells its products, particularly gas, remains challenging. Against this background the Company believes that the 2020 independent reserves audit, which is currently underway and scheduled to complete in 1Q 2021, may lead to a material downgrade in the Company’s Proven and Probable reserves.

9M 2020 Well Stock

• As at 30 September 2020, the Company had 46 wells in production (24 oil wells and 22 gas-condensate wells).

 2020 Drilling and sales volume guidance

• The Company has halted all drilling in 2020.
• 2020 production forecast increased to 21,000 boepd, corresponding to sales volumes of 20,000 boepd.

Summary of the financial Results for 9M to 30 September 2020

Conference Call

 Nostrum’s management team will present the 9M 2020 Financial Results and will be available for a Q&A session with analysts and investors today, 17 November 2020, at 1400 GMT.  If you would like to participate in this call then please register by clicking the following link and following instructions: Results Call

Download: Q3 2020 Results Presentation

Download: Q3 2020 Financial Statements

LEI: 2138007VWEP4MM3J8B29

Further information

For further information please visit www.nog.co.uk

Further enquiries

Martin Cocker – Chief Financial Officer
ir@nog.co.uk

Instinctif Partners – UK
Mark Garraway
Sarah Hourahane
Galyna Kulachek
+ 44 (0) 207 457 2020
nostrum@instinctif.com

Promo Group Communications – Kazakhstan
Asel Karaulova
Irina Noskova
+ 7 (727) 264 67 37

About Nostrum Oil & Gas

Nostrum Oil & Gas PLC is an independent oil and gas company currently engaging in the production, development and exploration of oil and gas in the pre-Caspian Basin. 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, in which it holds a 100% interest and is the operator through its wholly-owned subsidiary Zhaikmunai LLP. In addition, Nostrum Oil & Gas holds a 100% interest in and is the operator of the Rostoshinskoye oil and gas field through the same subsidiary. Located in the pre-Caspian basin to the north-west of Uralsk, this exploration and development field is situated approximately 100 kilometres from the Chinarevskoye field.

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 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.

The post Financial Results for the Third Quarter and Nine Months ending 30 September 2020 appeared first on Nostrum Oil & Gas Plc.

London, 18 August 2020

Financial Results for the Second Quarter and Six Months ending 30 June 2020

Nostrum Oil & Gas PLC (LSE: NOG) (“Nostrum”, or “the Company”), an independent oil and gas company engaging in the production, development and exploration of oil and gas in the pre-Caspian Basin, today announces its financial results in respect of the six-month period ending 30 June 2020. 

Highlights: 

Financial

• Revenues of US$92.6 million (H1 2019: US$174.2 million).  Average Brent price achieved in H1 2020 US$40.0 (H1 2019: US$66.2).
• Net operating cashflows¹ of US$47.0 million (H1 2019: US$116.9 million).
• EBITDA² of US$38.7 million (H1 2019: US$110.2 million).
• EBITDA margin on 41.8% (H1 2019: 63.3%).
• Closing cash³ for the period of US$75.7 million (December 31, 2020: US$93.9 million).
• Total debt⁴ at 30 June 2020 of US$1,139.7 million, including accrued interest of US$35.6 million.  Net debt of US$1,063.9 million at 30 June 2020. 
• Continued focus on cost optimization to help manage the Company’s liquidity.

Operational

• H1 2020 average production after treatment 23,528 boepd with average sales volumes for the period of 22,624 boepd.
• As previously reported, drilling halted for 2020.  However, successful workover and well intervention activity has reduced the expected rate of decline of production.
• Continuing focus on monetizing spare capacity by processing third party volumes.
• Actions continue to be taken to protect the safety of all staff and mitigate any impact of COVID 19 on operations.  In particular, stringent testing and follow-up procedures are in place for all field personnel.

<sup>1. IFRS term based on indirect cash flow method
2. Defined as profit before tax net of finance costs, foreign exchange loss/gain, ESOP, depreciation, interest income, other income and expenses
3. Defined as cash and cash equivalents including current and non-current investments and excluding restricted cash
4. Total debt does not include finance lease liabilities under IFRS16 Leases</sup>

Bond Restructuring

• Rothschild & Cie appointed as financial advisers and White & Case as legal advisers to assist the Company in the restructuring of the 8.0% Senior Notes due 2022 and 7.0% Senior Notes due 2025 (together, the “Notes”) issued by Nostrum Oil & Gas Finance B.V. 
• PJT Partners (UK) Limited appointed as financial advisers and Akin Gump Strauss Hauer & Feld, as legal advisers to a steering committee of holders of the Notes, with a view to entering into a restructuring arrangement with the holders of the Notes.
• On 24 July 2020, Nostrum announced that it planned to utilise the applicable grace periods for the interest payments due on 25 July 2020 and 16 August 2020 with respect to the Notes.  The 30-day grace period will allow the Company to continue active discussions with the financial and legal advisers to the steering committee of holders of the Notes with a view to entering into a forbearance agreement with the holders of the Notes in relation to those interest payments. The Company and its advisers believe that such an agreement is in the best interest of all stakeholders.

Kaat Van Hecke, Chief Executive Officer of Nostrum Oil & Gas, commented:

“Our focused cost-management initiatives are significantly reducing our cost base and we have executed a successful well intervention and work-over programme which has reduced the expected rate of decline of production above expectation.  Both these measures have, and will continue to, assist us in managing our liquidity effectively and our cash burn is currently very low. However, we remain exposed to low prices for our products and whilst the price of oil and related products has improved in the last few months, the price received for dry gas may remain at a relatively low level for the remainder of the year and possibly beyond. Whilst the potential impact of COVID 19 continues to be of concern, we have put in place stringent procedures to ensure the safety and wellbeing of our staff and minimize disruption to production and operations. As planned, I intend to step down from my role as Interim CEO at the end of August and hand over to my successor to take the Group forward.”

Sales volumes
The sales volumes split for H1 2020 was as follows:

The difference between production and sales volumes is primarily due to the internal consumption of gas

H1 2020 Well Stock 

• As at 30 June 2020, the Company had 46 wells in production (21 oil wells and 25 gas-condensate wells).

2020 Drilling and sales guidance

• The company has halted all drilling in 2020. 
• 2020 production forecast of 20,000 boepd, corresponding to sales volumes of 19,000 boepd. 
• Since May, the price that the Group receives for dry gas under its existing sales contract has reduced and may remain at a relatively low level for the remainder of the year and possibly beyond.

Chief Executive Officer

As announced on 16 December 2019, Kaat Van Hecke assumed the role as Nostrum’s CEO for the duration of the Company’s strategic review process.  Since this process has been completed, Ms Van Hecke will step down on 31 August 2020 as planned and resume her role on the board as a non-executive director. We are in the final stages of recruiting our new CEO but if this is not completed by the end of August, Ms van Hecke will hand over her executive responsibilities to the Company’s Executive Chairman, Atul Gupta, on an interim basis.  An announcement on the new CEO will be made in due course.  

Summary of the financial Results for H1 2020

Conference Call

Nostrum’s management team will present the H1 2020 Financial Results and will be available for a Q&A session with analysts and investors today, 18 August 2020, at 1400 British Summer Time.  If you would like to participate in this call then please register by clicking the following link and following instructions: Results Call

Download: H1 2020 Results Presentation

Download: H1 2020 Financial Statements

LEI: 2138007VWEP4MM3J8B29

Further information
For further information please visit www.nog.co.uk 

Further enquiries
Martin Cocker – Chief Financial Officer
ir@nog.co.uk  

Instinctif Partners – UK
Mark Garraway
Sarah Hourahane
Dinara Shikhametova
+ 44 (0) 207 457 2020
nostrum@instinctif.com 

Promo Group Communications – Kazakhstan
Asel Karaulova
Irina Noskova
+ 7 (727) 264 67 37   

About Nostrum Oil & Gas 

Nostrum Oil & Gas PLC is an independent oil and gas company currently engaging in the production, development and exploration of oil and gas in the pre-Caspian Basin. 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, in which it holds a 100% interest and is the operator through its wholly-owned subsidiary Zhaikmunai LLP. In addition, Nostrum Oil & Gas holds a 100% interest in and is the operator of the Rostoshinskoye, Darinskoye and Yuzhno-Gremyachenskoye oil and gas fields through the same subsidiary. Located in the pre-Caspian basin to the north-west of Uralsk, these exploration and development fields are situated between approximately 60 and 120 kilometres from the Chinarevskoye field.

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 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.

The post Financial Results for the Second Quarter and Six Months ending 30 June 2020 appeared first on Nostrum Oil & Gas Plc.

London, 19 May 2020

Financial Results for the First Quarter and Three Months ending 31 March 2020

Nostrum Oil & Gas PLC (LSE: NOG) (“Nostrum”, or “the Company”), an independent oil and gas company engaging in the production, development and exploration of oil and gas in the pre-Caspian Basin, today announces its financial results in respect of the three-month period ending 31 March 2020.

Highlights:

Financial:

• Revenue of US$60.4 million (Q1 2019: US$95.4 million)
• Net operating cash flows[1] of US$29.2 million (Q1 2019: US$42.2 million)
• EBITDA[2] of US$31.7 million (Q1 2019: US$58.7 million)
• EBITDA margin of 52.5% (Q1 2019: 61.5%)
• Closing cash[3] for the period of US$66.1 million (FY 2019: US$93.9 million)
• Total debt of US$1,114 million and net debt of US$1,050.3 million as at 31 March 2020

Operational:

• Q1 2020 average production of 24,006 boepd and average sales volumes of 22,903 boepd
• Drilling halted for 2020.  Workover activity to support production levels continuing.
• Continuing focus on monetizing spare capacity by processing third party volumes
• Actions taken to protect the health and safety of personnel and to mitigate any impact of COVID 19 on operations.
• 46 wells in production (21 oil wells and 25 gas-condensate wells) as at 31 March 2020.

Kaat Van Hecke, Chief Executive Officer of Nostrum Oil & Gas, commented:

“With the status of the Covid-19 pandemic evolving rapidly, it has provided a highly dynamic and challenging scenario for global markets over the first quarter of 2020. Nostrum has been monitoring the potential impact on its operations and has rolled out a business continuity plan to ensure the safety and wellbeing of our employees.

In line with our strategy to commercialise our world class infrastructure we are continuing our discussions with third parties to secure additional volumes to fill the spare capacity at our gas treatment facility.

Sales volumes
The sales volumes split for Q1 2020 was as follows:

The difference between production and sales volumes is primarily due to internal consumption of gas

As at 31 March 2020, the Company had 46 wells in production (21 oil wells and 25 gas-condensate wells).

2020 Drilling and sales volume guidance

• The company has halted all drilling in 2020 and will operate with 1 workover rig at field site.
• 2020 production forecast of 20,000 boepd, corresponding to sales volumes of 19,000 boepd. 

Appointment of financial and legal advisers in connection with a possible restructuring

Rothschild & Co and White & Case LLP have been appointed as financial and legal advisers in connection with a possible restructuring of the US$725 million 8.0% Senior Notes due July 2022 and/or the US$400 million 7.0% Senior Notes due February 2025.  

Conference call

Nostrum’s management team will present the Q1 2020 Financial Results and will be available for a Q&A session with analysts and investors today at 14.00 pm BST, 19 May 2020.  If you would like to participate in this call, please register by clicking on the following link and following instructions: Results Call

Download: Q1 2020 Results Presentation

Download: Q1 2020 Financial Statements

LEI: 2138007VWEP4MM3J8B29

Further information

For further information please visit www.nog.co.uk

Further enquiries

Nostrum Oil & Gas PLC – Investor Relations
Kirsty Hamilton-Smith
+44 203 740 7433
ir@nog.co.uk

Instinctif Partners – UK
Mark Garraway
Dinara Shikhametova
Sarah Hourahane
+ 44 (0) 207 457 2020

Notifying person

Thomas Hartnett
Company Secretary

About Nostrum Oil & Gas

Nostrum Oil & Gas PLC is an independent oil and gas company currently engaging in the production, development and exploration of oil and gas in the pre-Caspian Basin. 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, in which it holds a 100% interest and is the operator through its wholly-owned subsidiary Zhaikmunai LLP. In addition, Nostrum Oil & Gas holds a 100% interest in and is the operator of the Rostoshinskoye, Darinskoye and Yuzhno-Gremyachenskoye oil and gas fields through the same subsidiary. Located in the pre-Caspian basin to the north-west of Uralsk, these exploration and development fields are situated approximately 60 and 120 kilometres respectively from the Chinarevskoye field.

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 Partnership 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 or 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 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.

[1] IFRS term based on indirect cash flow method

[2] Defined as profit before tax net of finance costs, foreign exchange loss/gain, ESOP, depreciation, interest income, other income and expenses

[3] Defined as cash and cash equivalents including current and non-current investments and excluding restricted cash

The post Financial Results for the First Quarter and Three Months ending 31 March 2020 appeared first on Nostrum Oil & Gas Plc.