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Gas Treatment Facility Update and Q4 Review
Gas Treatment Facility Update and Q4 Review.
About this update from Nostrum Oil & Gas Plc
[{"type":"text","content":"\n \n\n\n\n\n\nRNS Number : 2708D Zhaikmunai LP 21 March 2011 \n\nZhaikmunai L.P.\n(the \"Partnership\")\n \n \nGAS TREATMENT FACILITY UPDATE AND Q4 REVIEW\n \n \nZhaikmunai LP (LSE: ZKM), the oil and gas exploration and production business with assets in north-western Kazakhstan, today provides an operational update on its Gas Treatment Facility (GTF) as well as a specific review for the period from 30 September to 31 December 2010.\n \n \nGas Treatment Facility (GTF) Update\n \n· Test production of condensate from the Gas Treatment Facility (GTF) has started and Zhaikmunai expects that commercial production from the first train of the GTF will commence within the next two weeks. This represents a delay of approximately 2 months compared to management's initial expectations, as expressed in the Company's press release of 16 December 2010;\n· Concurrently, Zhaikmunai's contractors, KasStroyService and Exterran, are pursuing commissioning and final operational testing of the GTF;\n· This test production follows mechanical completion of the Gas Treatment Facility (GTF) and the delivery of the \"Act of Acceptance of a Completed Facility\" for the GTF by the State Acceptance Commission;\n· Zhaikmunai has agreed on terms for the offtake of all of its 2011 gas production from the GTF. While the details of such terms are confidential, Zhaikmunai can confirm that they reflect terms and conditions generally applicable in the market and are in line with management's expectations. The gas sales contract incorporating these terms will be exchanged on the date commercial production commences. \n \n \nQ4 Review and Financial Highlights \n \n· Revenues were US$50.38 million, an increase of 39% compared with Q4 2009;\n· The Partnership's 100% subsidiary Zhaikmunai Finance B.V. has completed a successful $450 million bond offering, which allowed the Partnership's 100% operating subsidiary Zhaikmunai LLP (\"Zhaikmunai\" or \"the Company\") to repay its bank debt in full.\n \nCommenting on the results for the period, Kai Uwe Kessel, Chief Executive of Zhaikmunai, said: \n \n\"The last quarter of 2010 has seen Zhaikmunai fulfil some key strategic ...