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(Alliance News) - Nostrum Oil & Gas PLC said Tuesday that due to no firm proposals being received, the company has ended its formal sales process, and is no longer under offer for a potential sale.
The oil & gas firm first conducted a strategic review in June, where it first said that it was considering the sale of the company itself. However, due to the lack of interest, Nostrum will now engage with its bondholders and seek a restructuring of the company's outstanding bonds.
Operationally, as at December 31, Nostrum had 46 wells in production, comprising 20 oil wells and 26 gas condensate wells. For 2019 as a whole, average daily production was 28,587 barrels of oil equivalent per day, down from 31,254 barrels for 2018.
Daily sales volumes for 2019 were also lower at 36,671 barrels per day from 29,516 barrels the year before.
As at March 25, average daily production is above 23,000 barrels.
As at December 31, however, proved and probable reserves from the Chinarevskoye Field has declined by 66% to 138.1 million barrels of oil equivalent, from 410.0 million barrels in 2018.
Financially, Nostrum has a cash balance of USD65 million as at March 25, while its third quarter coupon payment has been covered at current oil prices.
"The reduction in reserves follows a significant amount of work carried out both internally and by third parties during 2019 to better understand the productivity of our reservoirs. We will continue to try to recover as many hydrocarbons as possible from Chinarevskoye field but the focus for filling our infrastructure has moved to obtaining more third-party volumes. This reserve downgrade will lead to a significant impairment being taken when we release our full year results," Chief Executive Officer Kaat Van Hecke.
Shares in Nostrum Oil & Gas were down 3.5% at 4.95 pence on Tuesday in London.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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