Nostrum finalizes acquisition of 80% stake in co with licenses to fields in Kazakhstan for $20 mln
ASTANA. July 18 (Interfax) - Nostrum Oil & Gas Plc has completed the acquisition of an 80% stake in Positive Invest LLP, which holds the subsoil use rights to the Stepnoy Leopard Fields in northwest Kazakhstan, for $20 million, the company said in a press release.
"We [...] look forward to launching an appraisal program which would allow re-classification of certain of the contingent resources to proven reserves and help determine the commercially viable development schemes. The Stepnoy Leopard field, located about 100 km west of our world-class full-process infrastructure, is an attractive upstream tie-back project that could deliver material reserves addition to the Group's rapidly depleting resource base at Chinarevskoye," Nostrum CEO Arfan Khan was quoted as saying in the release.
The company said management estimates that the Stepnoy Leopard Fields hold 50 million to 150 million barrels of oil equivalent of recoverable volumes which are considered contingent resources, with over 20% estimated to be liquids.
"There are eight fields within the licences with over 100 wells drilled in the Soviet era which have confirmed 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 related infrastructure," Nostrum said.
Nostrum now plans to launch an appraisal program with the intention of preparing a technical expert's report which could allow re-classification of certain of the hydrocarbon resources into reserves.
"The acquisition of the Positive Invest assets enables Nostrum to tie-in further resources in the region that can be processed at the Company's gas treatment facilities. An affiliate of the Company will be the operator of the Positive Invest Contract," the company said.
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 and Positive Invest will work to determine the field development plans for each of the eight fields under the Positive Invest Contract and submit them to Kazakhstan's Energy Ministry for approval for tie-back to Nostrum's existing infrastructure, thereby improving the fields' economic viability, the company said.
The Positive Invest Contract to assess, develop and extract hydrocarbons at the Stepnoy Leopard Fields is currently due to expire in December 2044.
Nostrum Oil & Gas Plc is an independent oil and gas company currently engaging in the production, development and exploration of oil and gas in the pre-Caspian Basin. It is the parent company of Zhaikmunai LLP, the operator of the Chinarevskoye field, which is located in West Kazakhstan near the border with Russia and next to several major pipelines.