Nostrum Oil & Gas PLC reported first-half revenues of $65.3 million, up 23.7 percent from $52.8 million in the first half of 2023.

The increase was due to additional sales volumes of dry gas and liquefied petroleum gas (LPG) from Ural Oil & Gas LLP as well as revenue from condensate refining of $3.9 million, Nostrum said in an earnings release.

Nostrum also reported a 44 percent increase in EBITDA to $22.3 million compared to $15.5 million in the same period last year. The increase was mainly due to increased production and sales as well as prudent cost management, the company said.

Nostrum’s daily production averaged 12,220 barrels of oil equivalent per day (boepd) in the second half of the year, up 22 percent from 10,048 boepd in the same period last year. This was due to additional volumes of dry gas and LPG produced by processing raw gas from Ural O&G at Nostrum’s gas processing facilities. The increase was also due to the successful start of the gas lift system expansion in July 2023, doubling its capacity and slowing the production decline at the mature Chinarevskoye field, as well as additional LPG production from GTU-3 due to an approximately 20 percent improvement in yield.

“I am pleased to announce the Group’s results for (the first half of) 2024. We have delivered solid operational and financial performance during this period, while achieving key milestones that are strategically important in transforming the Company into a mixed-asset energy company,” said Arfan Khan, CEO of Nostrum.

“A 44 percent increase in EBITDA in the first half of 2024 compared to the same period last year, as well as positive net cash flow from operating activities during this period, underline the successful initial results of the company’s new strategy, which includes third-party hydrocarbon processing of the neighboring company Ural Oil & Gas LLP,” Khan continued.

“In April, we announced our final investment decision for the first phase of development of the Stepnoy Leopard Fields, followed by the publication of the Stepnoy Leopard Competent Person report in July, which added a net $110 (million barrels of oil equivalent) to Nostrum’s 2P reserve base, at an estimated NPV10 of approximately $220 million,” he said.

“As always, health and safety are our top priority as we focus on operational excellence and continue to manage our liquidity to maximize value for all our investors and shareholders,” he concluded.

Earlier this month, Nostrum appointed Viktor Gladun as non-executive director.

Gladun is an operations executive with extensive experience in the energy sector. From 2019 to 2022, he served as CEO and Managing Director on the Board of JKX Oil and Gas plc, a UK-based hydrocarbon exploration company.

London-based Nostrum Oil & Gas describes itself as an independent energy company with mixed assets, world-class gas processing facilities and an export hub in northwest Kazakhstan.

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