Nostrum reports solid production as it looks to stabilise balance sheet

Independent oil and gas company Nostrum Oil & Gas updated the market on its operations for the 12 months to 31 December on Tuesday, in advance of its consolidated accounts for the same period.

The FTSE 250 firm said full-year average production after treatment for 2017 was of 39,199 barrels of oil equivalent per day (boepd), with fourth quarter average production after treatment of 34,285 boepd.

On the financial front, Nostrum reported that full-year revenues were expected to be in excess of $400m, rising from $348m in the prior year.

Its cash position was said to be in excess of $127m, down from $144m at the end of the third quarter, while total debt was expected not to exceed $1.08bn with net debt expected not to exceed approximately $950m as at 31 December.

“Nostrum benefited from higher oil prices in the fourth quarter, which compensated for reduced production from two producing wells, 217 and 225, in 2017,” said chief executive Kai-Uwe Kessel.

“The company is focused on stabilising production during 2018 and completing GTU3 to ensure we have the opportunity to grow our production in the second half of 2018.”

In addition, Kessel said the company hoped to further stabilise its balance sheet by refinancing its remaining debt due in 2019.

“This will allow us to focus over the next three years on ramping up production and deleveraging the balance sheet.

“We will continue to implement cost saving initiatives wherever possible,” Kessel added.