Independent evaluation confirms commercial viability of Stepnoy Leopard fields in Kazakhstan - operator
ASTANA. July 18 (Interfax) - An independent third-party evaluation of the reserves and resources of the Stepnoy Leopard fields in Kazakhstan has confirmed their commercial viability and development potential, the press service of Nostrum Oil & Gas plc subsidiary Zhaikmunai LLP said.
The evaluation of 138 mmboe (including approximately 25% liquids) proved plus probable (2P) gross reserves, increasing Nostrum's reserves base over fivefold (from 23 mmboe to 133 mmboe working interest reserves) and representing material value creation of approximately $220 million after-tax, is a "substantial driver for increasing shareholder and investor returns," according to the statement.
Furthermore, the Stepnoy Leopard fields have significant commercial potential with the prospective development of a large discovered and proven undeveloped contingent resource base (2C) of 67 mmboe. Further exploration of deeper subsurface areas is planned to identify additional prospective resources.
"The SL CPR demonstrates the commercial viability and potential of the Stepnoy Leopard fields full-field development. In particular, as a satellite development to the Chinarevskoye host-processing facilities and export infrastructure, we achieve maximum capital efficiency that serves to strengthen the Stepnoy Leopard fields economic robustness whilst adding scale to our operating foot-print. With the Ural Oil & Gas Rozhkovskoye field production already being processed, production from the SL Fields will further improve materially the utilization of our world-class 4.2 bcma gas processing facilities and the resulting cashflows (net Nostrum NPV10 of approximately $220 million)," said Arfan Khan, Chief Executive Officer.
Nostrum plans to commence production at the Stepnoy Leopard fields by late 2026. In mid-July 2023, Nostrum acquired 80% of Positive Invest LLP for $20 million, which holds the rights to the Stepnoy Leopard group in northwestern Kazakhstan until December 2044.
On July 31, 2023, Nostrum's board of directors approved an assessment program for the Stepnoy Leopard deposits, aimed at reclassifying contingent resources into proven reserves and identifying commercially viable development schemes, costing approximately $6 million. Activities began in late September 2023.
Nostrum Oil & Gas is an independent company engaged in oil and gas production, exploration, and development in the Caspian basin, with shares listed on the London Stock Exchange.
