Business
Operational and Strategic Update
Operational and Strategic Update.
About this update from Nostrum Oil & Gas Plc
[{"type":"text","content":"\n \n \n RNS Number : 1217I\n Nostrum Oil & Gas PLC\n 31 March 2020\n \n \n \n \n \n \n \n NOT 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 \n \n \n \n \n London, 31st March 2020\n \n \n \n \n \n Operational and Strategic Update\n \n \n \n \n \n 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, \n today announces an operational and Reserve Report update.\n \n \n \n \n \n Kaat Van Hecke, Chief Executive Officer of Nostrum Oil & Gas, commented: \n \n \n \n \n \n \"In these challenging times, we remain focused on the safety of our people and have adapted our operations to ensure their continued welfare and to ensure we comply with all government guidelines in relation to COVID-19 in the countries we operate in. We are taking a prudent approach to running our business with a sharp focus on financial discipline and maintaining liquidity. \n \n \n \n \n \n \"At current oil prices we are able to cover our next coupon payment in Q3 2020 but recognise the precarious liquidity position of the Company and will therefore look to engage with our bondholders. Given the postponement of the Full Year results we are publishing the 2019 reserve report. Total reserves have reduced by 272mmboe. The reduction in reserves follows a significant amount of work carried out both internally and by third parties during 2019 to better understand the productivity of our reservoirs. We will continue to try to recover as many hydrocarbons as possible from Chinarevskoye field but the focus for filling our infrastructure has moved to obtaining more third-party volumes. This reserve downgrade will lead to a significant impairment being taken when we release our full year results.\n \" \n \n \n \n \n \n Operational\n \n \n · \n 2020 average daily production as at 25 March 2020 above 23,000 boepd\n \n \n · \n 2019 average daily production of 28,587 boepd (2018: 31,254 boepd) corresponding to average daily sales volumes of 26,671 boepd (2018: 29,516 boepd)\n \n \n · \n GTU3, the Company's third gas ...