3 Apr 2024 16:21

Nostrum plans to start production in Stepnoy Leopard fields in late 2026

ASTANA. April 3 (Interfax) - Nostrum Oil & Gas plc, the parent company of Kazakhstan-based Zhaikmunai LLP, plans to commence commercial production in the Kamensko-Teplovsko-Tokarevskoye area in the West Kazakhstan region at the end of 2026.

Nostrum made a final investment decision for the initial field development phase of the Kamensko-Teplovsko-Tokarevskoye area in the West Kazakhstan region (the Stepnoy Leopard Fields) owned by its 80% subsidiary Positiv Invest LLP, the company said in a press release on Tuesday.

First production is targeted for the end of 2026, the company said.

"During the initial development phase the Company will drill four development wells across the key reservoirs, targeting recoverable resource potential between 30 mmboe and 50 mmboe. The wells will produce the raw sour gas and liquids full-well-stream to the Company's Chinarevskoye processing facilities via a 120-km multiphase trunkline," the press release says.

The forecast total capital budget for this initial field development phase is $100 million gross. The full amount (including 20% minority partner carry) is planned to be financed from the company's own cash reserves and forecast project cashflows, according to the press release.

In July 2023, Nostrum announced the completion of the acquisition of an 80% interest for $20 million in Positiv Invest LLP, which holds the subsoil use right for the Stepnoy Leopard fields in northwest Kazakhstan. Positiv Invest's license expires in December 2044.

In later September 2023, Nostrum launched an appraisal campaign at the Stepnoy Leopard fields to confirm the commercial potential and support the future decision related to the selection of a phased field development concept in 2024.

Nostrum estimates that the Stepnoy Leopard fields contain between 50 mmboe and 150 mmboe of recoverable volumes, which are considered contingent resources, with over 20% estimated to be liquids. There are eight fields within the licenses, with over 100 wells drilled during the Soviet era which had confirmed the hydrocarbons to be present. The resources are considered by management to be contingent due to the appraisal and development risks, noting the fields have not previously been developed in part due to the lack of necessary infrastructure.

The Stepnoy Leopard fields are located approximately 60-120 km west of Nostrum's Chinarevskoye field and within 10 km of its oil and condensate loading terminal at Beles.

Nostrum Oil & Gas PLC is an independent oil and gas company currently engaging in the production, development and exploration and development of oil and gas in the pre-Caspian Basin.

Zhaikmunai LLP is an oil and gas company engaged in the exploration, production and sale of oil and gas condensate. The license area being developed by the company covers the Chinarevskoye field in the northern part of the oil-rich pre-Caspian Basin. The Chinarevskoye field is located in the West Kazakhstan region near Kazakhstan's border with the Russian Federation and next to several large pipelines.

Nostrum shares are listed on the London Stock Exchange (LSE).