Operational Update for Q1 ended 31 March 2026
Nostrum Oil & Gas PLC reported a positive start to 2026, with average daily processed volumes increasing by 11.2% to 26,708 boepd in Q1 2026 compared to Q1 2025, driven by higher third-party feedstock and effective well workovers. This operational improvement resulted in over US$10 million in net operating cash flow and an estimated revenue of approximately US$32.8 million for the quarter, up from US$30.0 million in the prior year. The company's unrestricted cash balance grew to over US$151 million as of March 31, 2026. Safety performance remained strong with zero fatalities and zero Total Recordable Incidents.
Select text to share a quote on X · sign in to keep highlights & notes in your NOG notes
Nostrum Oil & Gas PLC (LSE: NOG) ("Nostrum", or the "Company" and together with its subsidiaries, the "Group"), an independent energy company with gas processing infrastructure and an export hub in north-west Kazakhstan, today announces its operational update for the quarter ended 31 March 2026 ("Q1 2026").
Viktor Gladun, Chief Executive Officer of Nostrum Oil & Gas PLC, commented:
"I am pleased to report a positive start to 2026, with over 11% increase in average daily processed volumes compared to Q1 2025. This was driven by higher third-party feedstock and effective management of the expected decline at Chinarevskoye through well workovers. As a result, the Group generated over US$10 million net operating cash flow.
Moving forward, we will continue to focus on safe and reliable operations, financial resilience and disciplined execution of our strategic objectives to support long-term value creation."
Q1 2026 Highlights:
Operational
Production and sales
- A 11.2% increase in average daily processed volumes (i.e. Chinarevskoye and Ural O&G feedstock, including condensate tolling) to 26,708 boepd in Q1 2026 (Q1 2025: 24,009 boepd). This includes an 8.4% increase in average daily titled production volumes (i.e. Chinarevskoye production and dry gas and LPG produced from Ural O&G feedstock) to 18,243 boepd in Q1 2026 (Q1 2025: 16,830 boepd). These increases were achieved through continuing to process the ramping up feedstock from Ural O&G and managing the expected decline in Chinarevskoye production through well workovers.
- The split of the titled production volumes (i.e. Chinarevskoye production and dry gas and LPG produced from Ural O&G feedstock) was as follows:
| Products | Q1 2026 volumes (boepd) | Q1 2025 volumes (boepd) | Y-on-Y change (%) | Q1 2026 product mix (%) | Q1 2025 product mix (%) |
|---|---|---|---|---|---|
| Crude Oil | 1,885 | 2,650 | (28.9)% | 10.3% | 15.7% |
| Stabilised Condensate | 1,756 | 1,678 | 4.6% | 9.6% | 10.0% |
| LPG (Liquid Petroleum Gas) | 3,513 | 3,077 | 14.2% | 19.3% | 18.3% |
| Dry Gas | 11,089 | 9,425 | 17.7% | 60.8% | 56.0% |
| Total | 18,243 | 16,830 | 8.4% | 100.0% | 100.0% |
- A 13.4% increase in average daily sales volumes to 16,021 boepd for Q1 2026 (Q1 2025: 14,128 boepd). The difference between titled production and sales volumes was primarily due to the internal consumption of dry gas produced and the timing of product deliveries, which leads to inventory increases or decreases at period end.
Chinarevskoye drilling programme
A comprehensive review and assessment of potential well workovers and new drilling prospects is underway.
Processing of Ural O&G products
Throughout Q1 2026, the Company continued processing raw gas and condensate volumes from Ural O&G, resulting in increases in titled production and processed volumes.
Stepnoy Leopard Fields
Financial
- Q1 2026 revenue is estimated to be approximately US$32.8 million (Q1 2025: US$30.0 million). The positive movement in revenues was driven by the increase in titled production and processed volumes from Ural O&G feedstock and continued well workover, all of which has more than offset the impact of continuing decline in Chinarevskoye production. In addition, the average Brent crude oil price increased to US$80.2/bbl in Q1 2026 (Q1 2025: US$75.9/bbl).
- The unrestricted cash and cash equivalents balance as at 31 March 2026 was in excess of US$151 million (31 December 2025: US$143.3 million). The restricted cash balance (debt service retention account and asset liquidation fund) was in excess of US$26.6 million as at 31 March 2026 (31 December 2025: US$26.6 million).
- In Q1 2026, the Group generated a healthy net operating cash flow, resulting in an approximate US$8 million increase in the Group's unrestricted cash and cash equivalents balance by the end of Q1 2026.
- The Group remains focused on maximising facility uptime, controlling costs where possible, and improving efficiency across the business. At the same time, capital allocation remains disciplined and focused on preserving liquidity while assessing development opportunities across the asset base.
HSE and ESG
- Zero fatalities among employees and contractors during operations for Q1 2026 (Q1 2025: zero).
- Zero Total Recordable Incidents (incidents per million man-hours) in Q1 2026 (Q1 2025: one).
- Zero Lost Time Injury (incidents per million man-hours) in Q1 2026 (Q1 2025: zero)
- 948 tonnes of air emissions emitted in Q1 2026 against 4,954 tonnes permitted for FY 2026 under the Kazakhstan Environmental Code.
Nostrum plans to release its unaudited interim condensed consolidated accounts for the period ending
31 March 2026 on or around 26 May 2026.
Cleaned text: letterheads, contacts and legal notices removed. View the original announcement ↗ · Company filings. Not investment advice.