Nostrum Oil & Gas, an independent oil and gas company engaging in the production, development and exploration of oil and gas in the pre-Caspian Basin, today announces its financial results in respect of the six-month period ending 30 June 2020.

Financial

• Revenues of US$92.6 million (H1 2019: US$174.2 million). Average Brent price
• achieved in H1 2020 US$40.0 (H1 2019: US$66.2).
• Net operating cashflows of US$47.0 million (H1 2019: US$116.9 million).
• EBITDA of US$38.7 million (H1 2019: US$110.2 million).
• EBITDA margin on 41.8% (H1 2019: 63.3%).
• Closing cash for the period of US$75.7 million (December 31, 2020: US$93.9 million).
• Total debt at 30 June 2020 of US$1,139.7 million, including accrued interest of
• US$35.6 million. Net debt of US$1,063.9 million at 30 June 2020.
• Continued focus on cost optimization to help manage the Company's liquidity.

Operational

• H1 2020 average production after treatment 23,528 boepd with average sales volumes for the period of 22,624 boepd.
• As previously reported, drilling halted for 2020. However, successful workover and well intervention activity has reduced the expected rate of decline of production.
• Continuing focus on monetizing spare capacity by processing third party volumes.

Kaat Van Hecke, Chief Executive Officer of Nostrum Oil & Gas, commented:
"Our focused cost-management initiatives are significantly reducing our cost base and we have executed a successful well intervention and work-over programme which has reduced the expected rate of decline of production above expectation. Both these measures have, and will continue to, assist us in managing our liquidity effectively and our cash burn is currently very low. However, we remain exposed to low prices for our products and whilst the price of oil and related products has improved in the last few months, the price received for dry gas may remain at a relatively low level for the remainder of the year and possibly beyond. Whilst the potential impact of COVID 19 continues to be of concern, we have put in place stringent procedures to ensure the safety and wellbeing of our staff and minimize disruption to production and operations. As planned, I intend to step down from my role as Interim CEO at the end of August and hand over to my successor to take the Group forward."

2020 Drilling and sales guidance

• The company has halted all drilling in 2020.
• 2020 production forecast of 20,000 boepd, corresponding to sales volumes of 19,000 boepd.
• Since May, the price that the Group receives for dry gas under its existing sales contract has reduced and may remain at a relatively low level for the remainder of the year and possibly beyond.

Chief Executive Officer

As announced on 16 December 2019, Kaat Van Hecke assumed the role as Nostrum's CEO for the duration of the Company's strategic review process. Since this process has been completed, Ms Van Hecke will step down on 31 August 2020 as planned and resume her role on the board as a non-executive director. Nostrum Oil & Gas are in the final stages of recruiting our new CEO but if this is not completed by the end of August, Ms van Hecke will hand over her executive responsibilities to the Company's Executive Chairman, Atul Gupta, on an interim basis.

KeyFacts Energy: Nostrum Oil & Gas Kazakhstan country profile