London - Nostrum Oil & Gas PLC (LSE: NOG) ('Nostrum', or 'the Company'), an independent oil and gas company engaging in the production, development and exploration of oil and gas in the pre-Caspian Basin, today announces its full year financial results for the twelve months ending 31 December 2020, together with the publication of the 2020 Annual Report for Nostrum and its subsidiaries taken as a whole ('the Group').

2020 highlights

Operational

Average daily production after treatment for 2020 totalled 22,337 boepd (2019: 28,540 boepd) with average daily sales volumes for the year of 21,514 boepd (2019: 26,626 boepd). This compares to our production and sales guidance for 2020 of 21,000 boepd and 20,000 boepd, respectively.

COVID 19 remains of the utmost concern. Actions continue to be taken to protect the safety of all staff and contractors and mitigate any impact on operations. To date, no production has been lost because of COVID 19.

As previously reported, drilling was halted for 2020. The successful workover and well intervention activity, completed in August 2020, reduced the rate of decline previously expected in the field. A similar targeted campaign for 2021 has already started.

We continue our focus on ways to monetise spare capacity in the gas treatment facility through processing third party volumes.

Ryder Scott audited 2P reserves reduced to 39 mmboe as announced on 11 March 2021.

On 8 October 2020, the Company announced the disposal of the Darinskoye and Yuzhno-Gremyachenskoye licences.

Arfan Khan, Chief Executive Officer of Nostrum Oil & Gas, commented: 'The Group has faced a number of challenges in 2020, but with prompt and decisive action we have been able to manage our liquidity and reduce reservoir decline. Signing the Forbearance Agreement has provided the time to engage with our bondholders and shareholders to restructure the debt and we are very hopeful of a successful conclusion to this process in the coming months. A robust bond restructuring will give the company a solid foundation to build from. We will continue discussions with third parties to secure additional volumes to commercialise our world-class infrastructure whilst proactively managing our cost base and liquidity.

COVID 19 continues to be of concern. Whilst we have not lost any production or people because of COVID 19, we continue to exercise extreme caution to ensure their continued safety, at the same time minimising the disruption to production and operations.

Looking forward, we are now pivoting towards growth and transitioning into a multi-asset energy company. This will require tremendous focus and resources. Our success in the near-term will depend upon safeguarding the base business and liquidity, sweating the producing asset and adding to PDP by exploiting low cost per barrel, high-confidence infill opportunities with best-in-class well & reservoir management, continuing to deliver on our HSE performance and delivering on our promises and restoring investor confidence.'

Contact:

Tel: 44 (0) 207 457 2020

Email: nostrum@instinctif.com

About Nostrum Oil & Gas

Nostrum Oil & Gas PLC is an independent oil and gas company currently engaging in the production, development and exploration of oil and gas in the pre-Caspian Basin. Its shares are listed on the London Stock Exchange (ticker symbol: NOG). The principal producing asset of Nostrum Oil & Gas PLC is the Chinarevskoye field, in which it holds a 100% interest and is the operator through its wholly-owned subsidiary Zhaikmunai LLP. In addition, Nostrum Oil & Gas holds a 100% interest in and is the operator of the Rostoshinskoye oil and gas field through the same subsidiary. Located in the pre-Caspian basin to the north-west of Uralsk, this exploration and development field is situated approximately 100 kilometres from the Chinarevskoye field.

Forward-Looking Statements

Some of the statements in this document are forward-looking. Forward-looking statements include statements regarding the intent, belief and current expectations of the Company or its officers with respect to various matters. When used in this document, the words 'expects', 'believes', 'anticipates', 'plans', 'may', 'will', 'should' and similar expressions, and the negatives thereof, are intended to identify forward-looking statements. Such statements are not promises nor guarantees and are subject to risks and uncertainties that could cause actual outcomes to differ materially from those suggested by any such statements.

No part of this announcement constitutes, or shall be taken to constitute, an invitation or inducement to invest in the Company or any other entity, and shareholders of the Company are cautioned not to place undue reliance on the forward-looking statements. Save as required by the Listing Rules and applicable law, the Company does not undertake to update or change any forward-looking statements to reflect events occurring after the date of this announcement.

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