LONDON (ShareCast) - (ShareCast News) - Independent pre-Caspian Basin producer, developer and explorer Nostrum Oil & Gas saw revenues rise handsomely in its first half, the company reported on Monday, with takings rising to more than $210m from $163.5m last year.
The FTSE 250 firm said it was in a weaker cash position, however, at $97m compared to $122.8m as at 30 June, while its total debt stood at $962m and its net debt was $864m.

Since the period ended, Nostrum made a successful bond issue of $725m in 8%senior notes due in 2022, with the proceeds used in part to refinance $607m of existing notes due in 2019.

"I am pleased to report that Nostrum successfully re-entered the bond market in July with a new $725m five-year bond issue," said chief executive Kai-Uwe Kessel.

"The use of proceeds will go towards repaying US$607 million of existing bonds maturing in 2019."

Kessel said that moved almost two-thirds of Nostrum's debt maturity profile out by three years from 2019 to 2022, achieving one of the key strategic initiatives the company set at the beginning of the year.

"The refinancing allows Nostrum to remain focused on achieving its key growth objectives, being the commissioning of GTU3 in the second half of 2017 and ramping up the drilling programme in 2018."

On the operational front, second quarter average production for Nostrum was 44,628 barrels of oil equivalent per day, with first half average production coming in at 46,685 boepd.

Sales in the second quarter averaged 39,890 boepd, while over the first half, sales volumes were 41,107 boepd on average.

Construction of the third gas treatment unit, dubbed GTU3, were continuing in line with guidance with completion expected before the end of the year, Nostrum's board reported.

The KazTransOil pipeline connection was also finalised during June at a cost of less than $7m, which the board said substantially reduces crude oil transportation costs.

"In June, the tie-in to the KTO pipeline was completed enabling crude oil export sales via the Atyrau-Samara international export pipeline," Kai-Uwe Kessel explained.

"This will substantially reduce crude oil transportation costs by almost 50% at current oil prices.

"Nostrum is in line to drill seven wells in 2017, with five production wells to be completed in the second half, leading to a production increase towards the end of the third quarter and into the fourth quarter."

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