Business
Fourth Quarter Full Year 2015 Operational Update
Fourth Quarter Full Year 2015 Operational Update.
About this update from Nostrum Oil & Gas Plc
[{"type":"text","content":"\n \nRNS Number : 5442M Nostrum Oil & Gas PLC 21 January 2016 \n\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\nAmsterdam, 21 January 2016\n \nFourth Quarter and Full Year 2015 Operational Update\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 its operational update for the twelve month period ended 31 December 2015. This update is being issued in advance of the release of Nostrum's audited and consolidated accounts for the same period. The information contained in this update remains subject to review by the independent auditors.\n \nStrategic focus for 2016:\n· Minimise exposure to low oil prices:\no A new hedge of 15,000 bopd with a strike price of US$49.16 per barrel has been purchased\no The cost of the hedge was paid entirely from the sale of the Company's previous hedge for US$92m\no The new hedge has 24 month tenor, maturing in December 2017, and cash settles on a quarterly basis\no The current value of the new hedge is in excess of US$150m\n· Preserve liquidity position:\no We plan to phase payments on GTU3 over a period until mid- 2017 in order to preserve our cash position during 2016\no We will reduce the 2016 drilling programme to three new production wells in order to maintain flat production and the completion of an appraisal well on the Rostoshinskoye field\no We are finalising definitive documentation for a new US$200m facility with VTB and expect to be able to enter into the facility prior to the end of Q1\n· Further reduction of operating costs:\no While our current cash operating break-even is at US$20 per barrel, we aim to reduce this to below US$20 per barrel by mid-2016\no We will also look to reduce drilling capex per well by more than 20% during 2016\n \nHighlights:\nOperational\n· Average daily production for the year of 40,402 boepd. This was somewhat below targeted production due to unexpected rep...