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LONDON (Alliance News) - Nostrum Oil & Gas PLC on Tuesday reported a rise in revenue but a decline in production in the first nine months of 2018, and said it plans cut back its number of drilling rigs in 2019.
Nostrum shares were trading down 12% on Tuesday at 152.20 pence a share.
The exploration and production company said revenue in the nine months to the end of September grew to USD311.4 million from USD303.7 million. Production declined to 31,757 barrels of oil equivalent per day from 44,879 a year before, sending average sales volumes down to 30,523 barrels of oil equivalent daily from 39,600 barrels a year ago.
Nostrum said it has 42 wells currently producing at the Chinarevskoye field, located in the pre-Caspian Basin, Kazakhstan, comprising of 23 oil wells and 19 gas-condensate wells.
In the third quarter, there were three rigs operating on the Chinarevskoye field with wells 228 and 231 nearing completion and expected to come on stream in the next six weeks.
In addition, one new appraisal well has been spudded.
Looking forward, Nostrum said it intends to reduce the number of active drilling rigs to two from three, in order to drill up to six wells in 2019.
The company guided average production of 30,000 barrels of oil equivalent a day in 2019 corresponding to sales volumes of 28,000 barrels.
The difference of 2,000 barrels of oil daily between the field production and sales volumes is largely the produced gas that is used as fuel within the production facility, Nostrum noted.
"With drilling in the first half of 2019 just focusing on the Northern area we will be conducting the 2019 drilling programme with only two rigs," said Chief Executive Kai-Uwe Kessel.
"With two rigs on site for 2019 we will not be able to drill as many wells as we had previously forecast," added Kessel.