Nostrum Oil & Gas today said it had made a “steady” start to the year.
Its first quarter earnings stood at $73.9million, compared to last year’s 100.3million. It also managed to reduce its operating costs from $4.5boe to $3.5boe.
Kai-Uwe Kessel, chief executive of Nostrum, said: “We have made a steady start to the year both financially and operationally.
“Operating costs have been reduced to $3.5boe, from $4.5boe last year and we look forward to completing negotiations to open up the possibility of transporting our crude oil through the KTO pipeline, thereby further reducing our crude oil transport costs. Whilst the oil price continues to be volatile, our hedge provides us with security against any falling oil price and allows us to focus on the completion of GTU3 in 2017, and subsequent ramp-up of production to 100kboepd.
“With our significant reserve base, low cash operating costs and prudent approach to balance sheet management I remain confident Nostrum is well placed to deliver on its growth strategy in the current environment.”
Norstrum has a fully funded capex programme both to maintain current production in 2016 and 2017 and complete construction of the GTU III during 2017.