(Alliance News) - Nostrum Oil & Gas PLC on Monday said that its board has approved a limited-scale drilling programme for the Chinarevskoye field in Kazakhstan.
The London-based, Caspian Basin-focused independent oil and gas company said the total cost of the programme is estimated at around USD26 million.
Nostrum Oil & Gas had stopped drilling activities in the field in early 2020 as it began the process resulting in its financial restructuring. However, it said it continued evaluating further exploration and production opportunities through subsurface studies, updating its geologic and reservoir models.
Nostrum Oil & Gas said completion of this work and reprocessing of the 3D seismic has allowed it to formulate the limited-scale two-well drilling programme to be executed from 2023 to 2024.
This is in line with the commitments of the company's subsidiary Zhaikmunai LLP, Nostrum Oil & Gas said, under the analysis of the field development plan and obligations under its production sharing agreement for the field.
Nostrum Oil & Gas said the programme will leverage existing well bores to reduce costs. It noted it carries "a level of uncertainties and risks" as the planned subsurface targets contain multiple exploration, appraisal, and development objectives.
Shares in Nostrum Oil & Gas were down 3.0% to 12.07 pence each in London on Monday morning.
By Greg Rosenvinge, Alliance News reporter
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