Nostrum Oil & Gas on track to meet full-year production targets

Nostrum Oil & Gas said it was on track to meet its annual production target after strong performances in the first quarter.

The oil and gas explorer said revenue for the three months ended 31 March was set to exceed $100m (£64.8m), with average daily production currently standing at 45,479 barrels of oil equivalent per day.

In a statement released on Thursday, the FTSE 250 group said its guidance of 45,000 barrels per day for the current year was unchanged.

The Kazakhstan-focused company added that its capital expenditure programme for the year was fully funded and was aimed at maintaining production in 2015 and 2016, as well as building a new gas plant in 2016.

The company said 32% of its liquids production had been hedged until February 2016 at a price of $85 a barrel.

"Our hedge continues to provide valuable protection against the current oil price environment and further illustrates the prudent approach we take to managing our business," said group chief executive Kai-Uwe Kessel.

"I am pleased to see production remaining stable and look forward to bringing our new wells on line shortly.”

Kessel said that the company remained focus on minimising costs, adding it was looking to complete a further six wells on the producing Chinarevskoye field in Kazakhstan by the end of 2015.

Nostrum shares were up 0.50% to 605.00p at 15:49 on Thursday.