Nostrum Oil & Gas approves appraisal program for Stepnoy Leopard fields in Kazakhstan, rig operations to start in Sept
ASTANA. Aug 1 (Interfax) - Nostrum Oil & Gas plc, the parent company of Kazakhstan-based oil producer Zhaikmunai LLP, has approved an appraisal program for the Stepnoy Leopard fields in northwest Kazakhstan, the rights to which it acquired in July, the company said in a London Stock Exchange filing.
The board of directors approved the program on July 31.
"The appraisal program would allow re-classification of certain of the contingent resources to proven reserves and help determine the commercially viable development schemes. The scope of work consists of re-entering two wells in the Teplovskoye reservoir, taking representative samples, and conducting extended production well testing in both wells. Rig operations are expected to start mid-September 2023. The estimated cost of the appraisal program is expected to be around $6 million," Nostrum said.
Nostrum on July 17 completed the acquisition of an 80% stake in Positive Invest LLP, which holds the subsoil use rights to the Stepnoy Leopard fields, for $20 million. The Positive Invest Contract to assess, develop and extract hydrocarbons at the Stepnoy Leopard Fields is currently due to expire in December 2044.
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 licenses 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.
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 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.
Nostrum's shares are listed on the London Stock Exchange (LSE). The primary shareholders are ICU Holdings Limited (British Virgin Islands) with a stake of 19.1%, British EMOV Caspian Holdings Limited with 18.88% and French asset management company Amundi with 9.74%.