NOG4 Jun 2018 12:06
Kai-Uwe Kessel, Chief Executive Officer of Nostrum Oil & Gas, commented:
I think i will take a gamble for tomorrow and i will buy some more today. , i hope AGM brings good news .
"Q1 2018 was disappointing operationally as we encountered water in the first production well of the year near the flanks of the Biski North East reservoir. Our subsequent analysis has shown the issue is likely restricted to just water in the natural fractures in the flanks of the Biski North East reservoir and will not have any material impact on our reserves in this reservoir. We are working on potential solutions to be able to bring this well in to production.
Q1 2018 was more positive financially, as we have seen a sustained recovery in the oil price during Q1 and also a reduction in costs, leading to higher EBITDA margin compared with Q4 2017. We will continue to carefully monitor costs while we work on adding production during Q2 2018.
We are pleased to have successfully tied-in GTU3 which, once fully completed, will provide us with the capacity to significantly increase production in the longer-term. We look forward to bringing additional production online and seeing a recovery in 2018 sales volumes."