Nostrum Oil & Gas (NOG) Q1 2024 TU earnings summary

Operational performance

• Q1 2024 daily production averaged 11,943 boepd, up from 10,479 boepd in Q1 2023, driven by third-party processing and internal initiatives.

• Daily sales volumes reached 10,022 boepd, a significant increase from 7,276 boepd in Q1 2023.

• Additional dry gas and LPG volumes resulted from processing Ural Oil & Gas raw gas and improved LPG yields at GTU-3.

• Gas lift system expansion in July 2023 doubled capacity, slowing production decline at Chinarevskoye.

• Chinarevskoye drilling program on track, with CHN 301 well drilled and hydrocarbons encountered across key intervals.

Project development

• Stepnoy Leopard fields appraisal completed, confirming commercial potential and leading to a final investment decision for initial development.

• Initial Stepnoy Leopard phase targets 30–50 mmboe recoverable resources, with a $100 million capital budget over three years.

• Ural Oil & Gas plans to connect four additional wells in H2 2024, adding an estimated 1.5mn m3/day of raw gas.

• Early cash generation from Stepnoy Leopard expected to support further development.

Financial highlights

• Q1 2024 revenues exceeded $31 million, up from $17.4 million in Q1 2023, with $1.7 million from third-party processing.

• Unrestricted cash balance was over $157 million as of 31 March 2024, with a slight quarterly reduction due to investment in drilling and appraisal.

• Restricted cash balance remained above $25 million, supporting debt service and liquidation funds.

• Cost optimisation remains a focus to preserve cash and enable growth projects.