Nostrum Oil & Fuel PLC, an impartial oil and fuel firm centered on the pre-Caspian Basin, has accepted a limited-scale drilling program for its Chinarevskoye area, a 170.3-square mile (274-square kilometer) license situated north of Uralsk, Kazakhstan.
Nostrum halted drilling actions within the Chinarevskoye area in early 2020 because it entered a monetary restructuring course of. The corporate continued evaluating additional exploration and manufacturing alternatives by way of subsurface research, updating its geologic and reservoir fashions, it mentioned in a information launch Monday.
Nostrum’s additional work on the sphere and reprocessing of its 3D seismic allowed it to formulate a limited-scale two-well drilling program to be executed over 2023 to 2024, in step with the commitments of subsidiary Zhaikmunai LLP underneath the evaluation of the sphere improvement plan and obligations underneath its manufacturing sharing settlement for the sphere, the information launch mentioned.
The brand new program, estimated at round $26 million, will leverage current wellbores to scale back prices, Nostrum mentioned. This system additionally “carries a degree of uncertainties and dangers because the deliberate subsurface targets include a number of exploration, appraisal, and improvement targets”, Nostrum famous.
The Chinarevskoye area has produced greater than 100 million barrels of oil equal (MMboe) since 2004. The sphere is situated within the pre-Caspian basin, which is the placement of quite a few fuel discoveries, together with the Rozhkovskoye area and Nostrum’s neighboring three licenses. Each nationwide and regional pipelines run close to Nostrum’s hub, permitting the corporate to move all processed merchandise safely and effectively, in accordance with the corporate’s web site.
In the meantime, Nostrum reported that its every day manufacturing after therapy averaged 10,048 barrels of oil equal per day (boepd) within the first half, down yr over yr from 14,167 boepd. The corporate’s every day gross sales volumes averaged 9,020 boepd within the interval, in comparison with 13,102 boepd within the comparable interval in 2022, in accordance with an operational replace.
Nostrum expects first-half revenues to be over $52 million, in comparison with 2022 first-half revenues of $107 million, which is in step with its targets and expectations. The corporate attributed the lower in revenues to declining manufacturing and comparatively decrease common product costs.
Within the interval, Nostrum accomplished the acquisition of an 80-percent curiosity in Positiv Make investments LLP, which holds the subsoil use proper for the Stepnoy Leopard Fields, situated roughly 37.3 to 74.6 miles (60 to 120 kilometers) west of Nostrum’s Chinarevskoye area and close to its oil and condensate loading terminal at Beles. The corporate estimates that the Stepnoy Leopard fields maintain between 50 MMboe and 150 MMboe of recoverable volumes which might be thought of contingent assets, with over 20 % estimated to be liquids. Nostrum mentioned it plans to launch an appraisal program concentrating on a technical skilled’s report that might permit the reclassification of sure hydrocarbon assets into reserves.
Nostrum additionally mentioned it had efficiently launched the growth of its fuel raise system within the Chinarevkoye area, with the brand new compressor doubling its capability and serving to to decelerate its manufacturing decline. The preliminary manufacturing positive aspects exceed the corporate’s expectations and additional updates on manufacturing steering within the subsequent quarter, the corporate mentioned.
“Following the profitable completion of the Stepnoy Leopard Fields acquisition this month, we’ve already commenced an appraisal program to reclassify sure contingent assets into confirmed reserves which can assist us to find out the commercially viable improvement schemes”, Nostrum CEO Arfan Khan mentioned. “That is a beautiful upstream tie-back undertaking for us that might ship materials reserves addition to the Group’s useful resource base.”
“We’re additionally excited with the preliminary manufacturing positive aspects following the current launch of our Fuel raise system growth and can present additional updates on our manufacturing steering as a part of our Q3 2023 operational replace. We’ll proceed with the execution of our mixed-asset vitality technique launched this yr to capitalize on the advantaged place of our current infrastructure and appeal to third celebration volumes”, Khan added.
To contact the writer, e-mail email@example.com