Business
Strategic Review and 2020 Forecast Production
Strategic Review and 2020 Forecast Production.
About this update from Nostrum Oil & Gas Plc
[{"type":"text","content":"\n \nRNS Number : 5196A Nostrum Oil & Gas PLC 22 January 2020 \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 \n \nLondon, 22 January 2020\n \n \nUpdate on Strategic Review and Forecast Production for 2020\n \nNostrum Oil & Gas PLC (LSE: NOG) (\"Nostrum\", or \"the Company\"), an independent oil and gas company engaging in the production, development and processing of oil and gas in the pre-Caspian Basin, today provides an update on its strategic review process and outlook for 2020.\n \nNostrum continues to work on the Strategic Review announced on 24 June 2019. The Company continues to work with Goldman Sachs on the Formal Sales Process; however, to-date the Company has not received any binding offer for the Company or its assets.\n \nAs part of the Strategic Review, the Company undertook a comprehensive analysis of its operational and financial performance. The result of the analysis is that the Company will now change its focus to (i) commercialising the spare capacity in its world-class gas processing infrastructure; (ii) lower-risk reservoir management and (iii) re-organising to a lower cost base. Additional details are provided below:\n \nCommercialisation of Gas Processing Infrastructure\nAs previously reported, the Company has completed the construction and commissioning of the third train (\"GTU3\") of its gas processing plant. The Company is now able to process up to 4.2 bcm per annum of raw gas and efficiently extract condensate and LPG from sour gas. Combined with the world class processing plant, the Company has established export routes for all the products it produces. The Company is now focused on monetising the spare capacity by processing third party volumes. The Company has already announced its first processing contract with Ural Oil and Gas who will deliver 500 million cubic metres of raw gas per annum. In addition, the Company is in discussions with other parties potentially interested in supplying raw gas to completely fill the spare capacity. Whilst the outcome of these discussions is uncertain and details of such negotiations are commercially sensitive and confidential, a successful outcome would lead...