Business
Q4 Review and operational upd
Q4 Review and operational upd.
About this update from Nostrum Oil & Gas Plc
[{"type":"text","content":"\n RNS Number : 6799I Zhaikmunai LP 17 March 2010 \n \n\nPRESS - RELEASE\nZhaikmunai LP \nQ4 Review and operational update\nStrong end to a challenging year\n \nLondon- March 17, 2010 - Zhaikmunai LP (LSE:ZKM), the oil and gas exploration, development and production company with assets in north-western Kazakhstan, today provides an update on its operations for the period from 30 September to 31 December 2009. Preliminary results for the year ended 31 December 2009 will be published on 31 March 2010. \n \nOperational and Financial Highlights\n \n· Average Q4 daily production at an all-time high of 7,559 boepd, up 53% year-on-year \n· Revenues increased almost threefold to US$36.17 million compared with Q4 2008\n· Average realised oil price for the quarter of US$75.59/bbl versus the US56.12/bbl in Q4 2008. \n· Gas Treatment Unit (GTU) 88% complete (vs. 81% at September 30, 2009).\n· Four new production wells in operation\n \nCommenting on the results for the period, Kai Uwe Kessel, Chief Executive of Zhaikmunai, said: \n \n\"We ended 2009 with production, revenue and daily production volumes at all-time highs. The increase in oil prices from September 2009 was sustained during the quarter as signs grew of global economic recovery. These higher prices encouraged us to increase production to record levels. At the same time we made further progress on the construction of the Gas Treatment Unit. The final three months of 2009 were an extremely busy quarter for Zhaikmunai. It was a good way to end a challenging year during which we successfully completed the capital raising and agreed an Amended Facility Agreement with our Lenders.\"\n \nRevenue\nRevenues from oil sales for the fourth quarter of 2009 were US$36.17 million (Q4 2008: US$12.80 million) due to higher sales volumes and higher oil prices. In November and December 2008, as oil prices dropped below US$50/bbl, the company significantly reduced its production. \n \nNetback\nThe weighted average Brent crude oil price, on which Zhaikmunai based its sales, for the period was US$75.59/bbl versus US$56.12/bbl for the fourth quarter of 2008. \n \nThe discount, accounting for the trader's costs and fees at FCA Urals...