Nostrum Oil & Gas sees results from Chinarevskoye Well 42 at the end of May

Significantly, company boss Kai-Uwe Kessel told shareholders to expect the test results from the first of the two wells (Well 42) that it was drilling in the northern area of the Chinarevskoye field in Kazakhstan towards the end of May.

"Our focus remains on growing production over the short to medium term, controlling costs and generating as much cash flow as possible," the company said in a statement.

The second of those two wells at Chinarevskoye was still being drilled, Kessel said.

In total, average production after treatment for the three months ending on 31 March hit 32,646 barrels of oil equivalent per day with average sales volumes at 31,621 boepd.

On the back of the above, the outfit projected that its quarterly revenues would rise from $94m one year ago to $95m and that its net debt would not exceed $1.11bn.

Even without assuming any production from the two wells in Kazhakstan, the company continued to guide towards average full-year production of 30,000 boepd, which it said was equivalent to sales volumes of 28,000 boepd.

According to analysts at Berenberg, the results from Wells 42 and 42, both of which it expected in the second quarter, will be key as the company likely kicks off talks with creditors on refinancing two bonds in 2020.

"We believe that success in the northern area would help to transform Nostrum’s story, once again reigniting hopes of growth," the German broker said.

Berenberg put the proven and probable reserves in place in the northern area's at as much as 50-100mmboe, saying that they might be enough to offset the Biski West area, where reserves might be negatively affected by water issues.

"The main catalyst will come after September, when we expect the results from the ongoing geological study. Failure to progress with the northern area swiftly and further deterioration in the 2P reserves are the main risks for the stock."

As of 1618 BST, shares of Nostrum Oil & Gas were climbing 3.43% to 90.50p.