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(Alliance News) - Nostrum Oil & Gas PLC on Tuesday said it will continue to look to increase near-term production, as it reported a decline in interim revenue.
Nostrum produced 31,096 barrels of oil equivalent per day during the first six months of 2019, 4.4% lower than the first half of 2018. Sales volumes were 29,210 barrels, down 2.3% on a year before.
Nostrum's revenue declined 9.0% to USD174.2 million, with earnings before interest, tax, depreciation and amortisation falling 2.7% to USD110.2 million. The Ebitda margin improved to 63.3% from 59.1%, however.
"Financially, first half 2019 was strong with oil prices averaging USD66.20 per barrel and this meant we continued to generate operating cashflow in excess of our target and remain on course to end the year with over USD100 million of cash," said Chief Executive Kai-Uwe Kessel.
"Operationally, we are moving ahead with testing the Frasnian section of well 41, which is the same horizon from which well 40 produces. The well needs further cleaning and a long-term test before we can confirm commerciality. On well 42, two reservoirs have been tested that confirmed gas-condensate saturation but without commercial flow."
"Gas treatment unit 3 continues to progress with hot commissioning now underway and final commissioning targeted for the end of third quarter 2019," Kessel continued.
"On the strategic front we are working towards bringing the acquisition of Positive Invest to shareholders whilst at the same time working on the strategic review of our business. Our primary focus remains on trying to find ways to grow production in the near term."
Nostrum bought a 50% stake in Positive Invest for USD500,000 in June. At the same time, Nostrum launched a business review, with the sale of the company possible.
Shares were 4.0% lower on Tuesday morning in London at 36.00 pence each.