Nostrum Oil&gas Regulatory News (NOG)

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London, 23 April 2025

Full Year Results for the Year Ended 31 December 2024

Nostrum Oil & Gas PLC (LSE: NOG) ("Nostrum", or the "Company" and together with its subsidiaries, the "Group"), an independent mixed-asset energy company with world class gas processing facilities and export hub in north-west Kazakhstan, is pleased to announce its results for the twelve months ended 31 December 2024 ("FY 2024"), together with the publication of its 2024 Annual Report.

Nostrum's senior executives will present the FY 2024 results and will be available for a Q&A session with analysts and investors at 2pm UK, 23 April 2025. Anyone wishing to participate in this call should register using the following link: Results Call.

Arfan Khan, Chief Executive Officer of Nostrum Oil & Gas PLC, commented:

"In 2024 and early 2025, we continued driving value realisation by executing our mixed-asset energy strategy, achieving key milestones in upstream production growth, infrastructure utilisation, and financial stability. Key achievements included the successful ramp-up of raw gas feedstock from Ural Oil & Gas LLP ("Ural O&G"), additional production from our limited-scale Chinarevskoye drilling programme, as well as continuing production benefits from our 2023 gas lift expansion project at our Chinarevskoye field. Our operations delivered a 48% year-over-year increase in titled production volumes and nearly doubled our processed volumes, with processing facility availability averaging approximately 98% for the year.

Our financial performance was equally robust, with significant revenue and EBITDA growth and reduced operating expenses per barrel, reflecting enhanced processing efficiencies and disciplined cost management. We also maintained a strong liquidity position with net positive operating cashflows of US$33.1 million and unrestricted cash at year end of US$150.4 million (unrestricted cash at year end of US$178.1 million before one-off cashflow items).

The Stepnoy Leopard fields represent a transformative growth opportunity for Nostrum. In 2024, we reached a final investment decision for the first phase of the field's development, followed by an independent Competent Person's Report validating the commercial viability of a scalable full-field development plan, and in April 2025 the Ministry of Energy of the Republic of Kazakhstan approved a phased, full-field development plan which enables us to allocate capital efficiently while staying on track to achieve our target production start-up date between late 2026 and early 2027.

In March 2025, the Group extended its agreement with Ural O&G on new terms for processing third-party hydrocarbons until May 2031. The agreement extension is value-accretive and mutually beneficial for both parties. It provides for a fixed process fee structure across all the products that gives rise to sustainable cash-flows and plant operations. We appreciate the trust and confidence our partner Ural O&G and its shareholders place in us and take great responsibility in supporting the further cost-effective development of their strategic resource base at the Rozhkovskoye field.

Operational safety always remains our key focus, and we achieved a zero-fatality record during the year. We also met our ESG commitments by reducing emission intensity by 28%.

As we look ahead, Nostrum remains well-positioned to implement its mixed-asset strategy by taking the catalyst growth projects to the next level and building value for our investors and stakeholders."

FY 2024 Highlights:

Financial

· A 14.6% increase in revenue: US$137.1 million FY 2024 (FY 2023: US$119.6 million), resulting from increased processed volumes, titled production and sales volumes. Brent crude oil price decreased to an average of US$80.6/bbl for FY 2024 (FY 2023: average of US$82.2/bbl).

· A 16.2% increase in EBITDA1: US$48.9 million FY 2024 (FY 2023: US$42.1 million) and an EBITDA margin of 35.7% (FY 2023 35.2%). EBITDA improvement achieved from both increase in revenues and effective cost control despite inflationary pressures and operational demands.

· A 41% reduction in operating expenses per barrel of processed volumes: US$5.8 FY 2024 (FY 2023: US$9.8).

· A US$86.7 million non-current assets impairment reversal, primarily driven by the accretive value of growth catalysts such as Ural O&G processing and the Stepnoy Leopard fields development opportunity.

· US$33.1 million net positive operating cashflows for FY 2024, which funded most of the Chinarevskoye drilling and Stepnoy Leopard appraisal expenditures, as well as the semi-annual bond coupon payments in June and December 2024, with just US$11.3 million drawn from the Group's unrestricted cash reserves.

· Unrestricted cash balance of US$150.4 million as of 31 December 2024 (31 December 2023: US$161.7 million). The Group's restricted cash balance (debt service retention account and asset liquidation fund) was US$25.9 million as of 31 December 2024 (31 December 2023: US$25.2 million).

· Net debt2 of US$404.2 million as of 31 December 2024 (31 December 2023: US$293.5 million). The Group's net debt increased due to US$51.8 million capitalised SUN interest (FY 2023: US$41.1 million), a US$47.8 million fair value adjustment amortisation expense (FY 2023: US$28.9 million) and a net US$11.0 million reduction in cash and cash equivalents and DSRA.

Operational

· Production and Sales

· A 48% increase in average daily titled production volumes (i.e. final products processed and owned by Nostrum) to 14,935 boepd for FY 2024 (FY 2023: 10,091 boepd). A 94% increase in total processed volumes (including third party condensate tolling volumes) to 19,831 in FY 2024 (FY 2023: 10,216 boepd). These increases in production and processed volumes were mainly due to:

o  Production from well No.301, commencing from May 2024;

o  Full year contribution from:

o  Processing of raw gas and condensate volumes from Ural O&G, commencing from December 2023;

o  Gas-lift system expansion, which was successfully launched in July 2023 doubling its capacity and performing above management expectations; and

o  Successful operation of GTU-3 from September 2023, resulting in additional 26% LPG yield.

· The titled production volume split was as follows:

*Stabilised condensate volumes exclude Ural O&G processed volumes for which Nostrum receives a tolling fee

· A 47% increase in average daily sales volumes to 13,038 boepd for FY 2024 (FY 2023: 8,874 boepd). The difference between production and sales volumes is primarily due to the internal consumption of dry gas produced and timing of product deliveries, which leads to inventory increases or decreases at period end.

· Chinarevskoye Drilling Programme

The 2024 drilling programme was substantially completed adhering to planned schedule and budget. As previously reported, the well No.301 has been producing since end of May 2024 in line with the management's expectations. The well was perforated in the lowest of the reservoirs with the plan underway to perforate the Tournasian reservoir in Q2 2025. Well No.41 appraisal sidetrack work carried a significant level of uncertainty and risk due to the multiple exploration, appraisal, and development objectives. The well was completed in September 2024, but the initial test missed the primary Devonian target horizon. While secondary intervals with hydrocarbons were encountered, they were deemed marginal. As a result, the well has been temporarily suspended. However, the key (sonic) data gathered during drilling has greatly enhanced understanding of the reservoir's spatial architecture, enabling more confident planning for a future well.

· Stepnoy Leopard Fields

Several key milestones were achieved in FY 2024. The successful completion of a two-well appraisal programme supported the final investment decision for the initial development phase, followed by a Competent Person's Report in July 2024, confirming 138 mmboe (including approximately 25% liquids) proved plus probable (2P) gross reserves.

In April 2025, obtained approval from the Ministry of Energy of the Republic of Kazakhstan for a phased, full-field development plan extending until 2044 (the "FDP") for the Stepnoy Leopard fields. The FDP will allow Nostrum to deploy optimum capital allocation, whilst meeting its target production start-up date between late 2026 and early 2027. The Company continues to progress design and engineering works.

· Processing of Ural O&G Products

Throughout 2024, the Company continued processing raw gas and condensate volumes from Ural O&G, significantly contributing to the year-over-year increases in titled production and processed volumes and the reduction in operating expenses and G&A per barrel.

HSE & ESG 

· Zero fatalities among employees and contractors during operations in FY 2024 (FY 2023: one contractor fatality during operations).

· Total Recordable Incidents Rate (incidents per million man-hours) of 0.63 for FY 2024 (FY 2023: 0.75).

· Zero Lost Time Injury Rate (incidents per million man-hours) for FY 2024 (FY 2023: 0.37).

· 4,136 tonnes of air emissions emitted in 2024 against 5,995 tonnes permitted for FY 2024 under the Kazakhstan Environmental Code.

· 28% reduction in emission intensity: 35,282 tCO₂/mmboe of processed volumes in FY 2024 (FY 2023: 48,913 tCO₂/mmboe).

· In January 2025, Nostrum received an updated ESG Risk Rating of 31.0 based on the 2024 annual review from the international rating agency Sustainalytics. The rating places the Company in the 11th percentile among global Oil & Gas Producers in the Sustainalytics universe, reflecting our focus on responsible operations.

2025 Production Guidance

2025 average daily production for the Chinarevskoye field is forecast at 5,500 - 6,500 boepd.

Results materials for FY 2024

The Company's results materials will be available to download on Nostrum's website.

Download: FY 2024 Results Presentation

Download: FY 2024 Annual Report

Notes to press release

1 EBITDA is a non-IFRS measure and is defined as profit before tax and before depreciation, depletion and amortisation, share-based compensation, foreign exchange gains / losses, finance costs, interest income, other income, other expenses, and one-off items.

2 Net debt is defined as total debt (notes payable and accumulated interest) minus cash and cash equivalents and DSRA.

LEI: 2138007VWEP4MM3J8B29

Further information

For further information please visit www.nostrumoilandgas.com

Further enquiries

Nostrum Oil & Gas PLC

Petro Mychalkiw

Chief Financial Officer

ir@nog.co.uk

Instinctif Partners - UK

Galyna Kulachek

Amelia Thorn

+ 44 (0) 207 457 2020

nostrum@instinctif.com

About Nostrum Oil & Gas

Nostrum Oil & Gas PLC is an independent mixed-asset energy company with world-class gas processing facilities and export hub in north-west Kazakhstan. Its shares are listed on the London Stock Exchange (ticker symbol: NOG). The principal producing asset of Nostrum Oil & Gas PLC is the Chinarevskoye field which is operated by its wholly-owned subsidiary Zhaikmunai LLP, which is the sole holder of the subsoil use rights with respect to the development of the Chinarevskoye field. The Company also owns an 80% interest in Positiv Invest LLP, which holds the subsoil use rights for the "Kamenskoe" and "Kamensko-Teplovsko-Tokarevskoe" areas in the West Kazakhstan region (the Stepnoy Leopard fields).

Forward-Looking Statements

Some of the statements in this document are forward-looking. Forward-looking statements include statements regarding the intent, belief and current expectations of the Company or its officers with respect to various matters. When used in this document, the words "expects", "believes", "anticipates", "plans", "may", "will", "should" and similar expressions, and the negatives thereof, are intended to identify forward-looking statements. Such statements are not promises nor guarantees and are subject to risks and uncertainties that could cause actual outcomes to differ materially from those suggested by any such statements.

No part of this announcement constitutes, or shall be taken to constitute, an invitation or inducement to invest in the Company or any other entity, and shareholders of the Company are cautioned not to place undue reliance on the forward-looking statements. Save as required by the relevant listing rules and applicable law, the Company does not undertake to update or change any forward-looking statements to reflect events occurring after the date of this announcement.