Nostrum Oil & Gas has made a final investment decision (“FID”) for the initial field development phase of the Kamensko-Teplovsko-Tokarevskoe area in the West Kazakhstan Region (the “Stepnoy Leopard Fields”) owned by its 80% subsidiary Positiv Invest LLP (“PI”), with first production targeted for the end of 2026.

During the initial development phase the Company will drill 4 development wells across the key reservoirs, targeting recoverable resource potential between 30 mmboe and 50 mmboe. The wells will produce the raw sour gas and liquids full-well-stream to the Company’s Chinarevskoye processing facilities via a 120-km multiphase trunkline.

The forecast total capital budget for this initial field development phase is US$100 million gross. The full amount (including 20% minority partner carry) is planned  to be financed from the Company’s own cash reserves and forecast project cashflows. The project related capital expenditures and contractual commitments will commence later in 2024 and ramp-up gradually over the 3 year execution period prior to startup at the end of 2026. Early cash generation will also strengthen the self-financing capacity and help spur further development of the remaining resource base.

Arfan Khan, Chief Executive Officer, commented:
“We are delighted to announce the FID for the initial field development phase of the Stepnoy Leopard Fields. The decision was taken on the heels of successfully completing the previously announced well appraisal operations which commenced in Q4 2023. The field is located approximately 100 km west of our world-class full-process infrastructure and represents an attractive upstream tie-back project that could deliver material reserves addition to the Group’s depleting resource base at Chinarevskoye. The project will also increase meanginfully the utilization of our 4.2 bcma processing facilities, in conjunction with the additional production from Ural Oil & Gas which commenced in Q4 2023. Reaching this important milestone is a result of our staff’s commitment and exceptional teamwork. It also delivers on our promises to transform the Company from a single-asset to a multi mixed-asset upstream-midstream energy company.”

KeyFacts Energy: Nostrum Oil & Gas Kazakhstan country profile