Business
Acquisition of the Stepnoy Leopard Fields
Acquisition of the Stepnoy Leopard Fields.
About this update from Nostrum Oil & Gas Plc
[{"type":"text","content":"\n\n \nNOT 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\n \nTHIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION\n \nFOR IMMEDIATE RELEASE\n \n \nLondon, 17 July 2023\n \nCompletion of Acquisition of the Stepnoy Leopard Fields\n \nNostrum 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 that it has completed the acquisition of an 80% interest in Positive Invest LLP (\"Positive Invest\"), which holds the subsoil use right to the contract No. 25 for estimation, development and production of hydrocarbons for the area \"Kamenskoe\" and the development area \"Kamensko-Teplovsko-Tokarevskoe\" (the \"Stepnoy Leopard Fields\") in the West Kazakhstan region of the Republic of Kazakhstan dated 3 March 1995 (as amended from time to time, the \"Positive Invest Contract\"). The purchase price for the acquisition was US$20 million (less a modest amount of debt owed to Nostrum Oil & Gas Coöperatief U.A.).\nManagement 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. There are eight fields within the licences with over 100 wells drilled in the Soviet era which have confirmed hydrocarbons to be present. The resources are considered by management to be contingent due to the appraisal and development risks, noting the fields have not previously been developed in part due to the lack of related infrastructure.\nNostrum will now launch an appraisal programme with the intention of preparing a technical expert's report which could allow re-classification of certain of the hydrocarbon resources into reserves.\nThe acquisition of the Positive Invest assets enables Nostrum to tie-in further resources in the region that can be processed at the Company's gas treatment facilities. An affiliate of the Company will be the operator of the Positive Invest Contract.\nArfan Khan, Chief Executive Officer commented:\n\"We are delighted to announce the c...