Nostrum Oil & Gas - 1st Quarter Results

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FOR IMMEDIATE RELEASE

London, 20 May 2025

Financial Results for the first quarter ended 31 March 2025

Nostrum Oil & Gas PLC (LSE: NOG) ("Nostrum", or the "Company" and together with its subsidiaries, the "Group"), an independent mixed-asset energy company with world class gas processing facilities and export hub in north-west Kazakhstan, is pleased to announce its results for the first quarter ended 31 March 2025 ("Q1 2025").

Arfan Khan, Chief Executive Officer of Nostrum Oil & Gas PLC, commented:

"I am pleased to report a positive start to 2025. In Q1 2025, we delivered a 41% increase in average daily titled production year-over-year and total processed volumes increased by 68% to 24,009 boepd. These increases were driven by the ramp-up of Ural Oil & Gas LLP ("Ural O&G") production through 2024 and new production from Chinarevskoye well No.301 from May 2024.

We achieved a key milestone with the approval of the phased full-field development plan for the Stepnoy Leopard fields, targeting production start-up between late 2026 and early 2027. The extension of our processing agreement with Ural O&G through to May 2031 further secures the long-term value."

Q1 2025 Highlights:

Financial

·      Revenue of US$30.0 million (Q1 2024: US$31.8 million). The increase in titled production and processed volumes from Ural O&G feedstock as well as production from well No. 301 had a positive impact on revenues, off-setting the impact of the declining base production. However, revenue in Q1 2025 was reduced by a temporary crude oil inventory build-up at the end of the quarter, which was subsequently sold in May 2025. The average Brent crude oil price decreased to US$75.9/bbl in Q1 2025 (Q1 2024: US$82.9/bbl).

·      A 2.8% increase in EBITDA¹: US$10.9 million for Q1 2025 (Q1 2024: US$10.6 million) and an improved EBITDA margin of 36.3% (Q1 2024: 33.3%).

·      A 39.5% reduction in operating expenses per barrel of processed volumes: US$4.6 in Q1 2025 (Q1 2024: US$7.6).

·      Net operating cashflow in Q1 2025 was affected by the deferment of crude oil sales, as described above. This, together with capital expenditures, resulted in a US$1.8 million reduction in the Group's unrestricted cash balance by the end of Q1 2025.

·      Unrestricted cash balance of US$148.6 million as at 31 March 2025 (31 December 2024: US$150.4 million). The Group's restricted cash balance (debt service retention account ("DSRA") and asset liquidation fund) was US$26.2 million as at 31 March 2025 (31 December 2024: US$25.9 million).

·      Net debt² of US$440.2 million as at 31 March 2025 (31 December 2024: US$404.2 million). The Group's net debt increased due to US$18.4 million accrued bond interest, a US$16.0 million fair value adjustment amortisation expense and a net US$1.6 million reduction in unrestricted cash and DSRA balances.

Operational

·      Production and sales

·      A 41% increase in average daily titled production volumes (i.e. final products processed and owned by Nostrum) to 16,830 boepd in Q1 2025 (11,943 boepd in Q1 2024). A 68% increase in total processed volumes (including third party condensate tolling volumes) to 24,009 boepd in Q1 2025 (14,319 boepd in Q1 2024). These increases in titled production and processed volumes were mainly due to:

·      Ramp up of the production by Ural O&G, which contributed to increase in Nostrum's titled production and processed volumes.

·      Production from well No.301 which was completed and put into production in May 2024.

·      The titled production volume split was as follows:

*Stabilized condensate volumes exclude Ural O&G processed volumes for which Nostrum receives a tolling fee

·     A 47% increase in average daily sales volumes to 14,128 boepd for Q1 2025 (Q1 2024: 10,022 boepd). The difference between titled production and sales volumes is primarily due to the internal consumption of dry gas produced and timing of product deliveries, which leads to inventory increases or decreases at period end.

·      Chinarevskoye drilling programme

The Company is planning a limited-scale drilling campaign in the second half of 2025, focused on high-value subsurface opportunities, which will also ensure full compliance with its license commitments.

·      Stepnoy Leopard Fields

The Company achieved another significant milestone in unlocking the commercial viability and potential of this upstream acquisition. As announced on 4 April 2025, the Company obtained approval from the Ministry of Energy of the Republic of Kazakhstan for a phased, full-field development plan extending until 2044 (the "FDP") for the Stepnoy Leopard fields. The FDP will allow Nostrum to deploy optimum capital allocation, whilst meeting its target production start-up date between late 2026 and early 2027. The Company continues to progress design and engineering works.

·      Processing of Ural O&G products

Throughout Q1 2025, the Company continued processing raw gas and condensate volumes from Ural O&G, significantly contributing to the increases in titled production and processed volumes.

As announced on 21 March 2025, the Group entered into a binding agreement with Ural O&G on new terms for processing third-party hydrocarbons until May 2031. The agreement extension is value-accretive and mutually beneficial for both parties. It provides a fixed processing fee structure across all products that gives rise to sustainable cash-flows and plant operations and supports the further cost-effective development of the Rozhkovskoye field.

HSE and ESG

·      Zero fatalities among employees and contractors during operations for Q1 2025 (Q1 2024: zero).

·      One Total Recordable Incidents (incidents per million man-hours) for Q1 2025 (Q1 2024: zero).

·      Zero Lost Time Injury (incidents per million man-hours) for Q1 2025 (Q1 2024: zero)

·     1,109 tonnes of air emissions emitted in Q1 2025 against 5,188 tonnes permitted for FY 2025 under the Kazakhstan Environmental Code.

·     Safety of all staff and contractors, along with a commitment to sustainable operations, remains the Group's priority.

The next investor and analyst call will take place in August 2025 as part of Nostrum's H1 2025 results publication.

The Company's Q1 2025 Interim condensed consolidated financial statements are available to download on Nostrum's website:

Download: Q1 2025 Interim condensed consolidated financial statements

Notes to press release

¹ EBITDA is a non-IFRS measure and is defined as profit / loss before tax and depreciation, depletion and amortisation, share-based compensation, foreign exchange gains / losses, finance costs, interest income, other income, other expenses, and one-off items.

² Net debt is defined as total debt (notes payable and accumulated interest) less cash and cash equivalents and DSRA.

LEI: 2138007VWEP4MM3J8B29

Further information

For further information please visit www.nostrumoilandgas.com

Further enquiries

Nostrum Oil & Gas PLC

Petro Mychalkiw

Chief Financial Officer

ir@nog.co.uk                                                                                                     

Instinctif Partners - UK                                                                                        

Galyna Kulachek

+ 44 (0) 207 457 2020

nostrum@instinctif.com

About Nostrum Oil & Gas

Nostrum Oil & Gas PLC is an independent mixed-asset energy company with world-class gas processing facilities and export hub in north-west Kazakhstan. Its shares are listed on the London Stock Exchange (ticker symbol: NOG). The principal producing asset of Nostrum Oil & Gas PLC is the Chinarevskoye field which is operated by its wholly-owned subsidiary Zhaikmunai LLP, which is the sole holder of the subsoil use rights with respect to the development of the Chinarevskoye field. The Company also owns an 80% interest in Positiv Invest LLP, which holds the subsoil use rights for the "Kamenskoe" and "Kamensko-Teplovsko-Tokarevskoe" areas in the West Kazakhstan region (the Stepnoy Leopard fields).

Forward-Looking Statements

Some of the statements in this document are forward-looking. Forward-looking statements include statements regarding the intent, belief and current expectations of the Company or its officers with respect to various matters. When used in this document, the words "expects", "believes", "anticipates", "plans", "may", "will", "should" and similar expressions, and the negatives thereof, are intended to identify forward-looking statements. Such statements are not promises nor guarantees and are subject to risks and uncertainties that could cause actual outcomes to differ materially from those suggested by any such statements.

No part of this announcement constitutes, or shall be taken to constitute, an invitation or inducement to invest in the Company or any other entity, and shareholders of the Company are cautioned not to place undue reliance on the forward-looking statements. Save as required by the relevant listing rules and applicable law, the Company does not undertake to update or change any forward-looking statements to reflect events occurring after the date of this announcement.