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LONDON (Alliance News) - Nostrum Oil & Gas PLC on Tuesday said its first quarter of 2018 was "disappointing" operationally, as production shrank sharply.
The production comes from 43 wells at Chinarevskoye field in Kazakhstan, which comprises of 22 oil wells and 21 gas condensate wells.
The oil & gas company said production in the first three months to the end of March fell to an average of 32,946 barrels of oil equivalent each day from 48,743 barrels per day the year before, with sales volumes dropping to 30,874 barrels daily versus 43,279 barrels daily.
This resulted in the USD94.8 million revenue, which was 15% lower compared to USD111.9 million for the same period a year earlier. Nostrum's transport costs increased to USD4.7 per barrel of oil equivalent, up from USD4.0 per barrel the prior year.
It said it remains hedged on 9,000 barrels of oil per day at a floor price of USD60.0 per barrel. Brent oil was trading at USD79.66 midday Tuesday.
Earnings before interest, tax, depreciation and amortisation were USD57.2 million, 17% lower than USD68.5 million the year before, as the Ebitda margin tightened to 60.3% from 61.2%.
Cash at the end of March had risen to USD132.3 million from USD120.0 million at the end of 2017 while net debt grew to USD1.1 billion from USD971.9 million.
"First quarter of 2018 was more positive financially, as we have seen a sustained recovery in the oil price during the first quarter and also a reduction in costs," said Chief Executive Kai-Uwe Kessel.
"We will continue to carefully monitor costs while we work on adding production during the second quarter of 2018," Kessel added.
Shares in Nostrum were down 1.1% at 280.80 pence each on Tuesday.