LONDON, UK: Nostrum Oil & Gas PLC, an independent oil and gas company operating in the pre-Caspian Basin, has announced that it has completed the acquisition of an 80% interest in Positive Invest LLP, which holds the rights to develop and produce hydrocarbons from the Stepnoy Leopard Fields in the West Kazakhstan region.
The acquisition cost US$20 million (less a modest amount of debt owed to Nostrum Oil & Gas Coöperatief U.A.) and gives Nostrum access to estimated contingent resources of between 50 mmboe and 150 mmboe, with over 20% estimated to be liquids.
The Stepnoy Leopard Fields comprise eight fields with over 100 wells drilled in the Soviet era which have confirmed hydrocarbons to be present. The fields have not been developed due to the lack of infrastructure.
Nostrum will now launch an appraisal programme to prepare a technical expert’s report which could allow re-classification of certain of the hydrocarbon resources into reserves.
The acquisition of the Positive Invest assets enables Nostrum to tie-in further resources in the region that can be processed at its gas treatment facilities. An affiliate of the Company will be the operator of the Positive Invest Contract.
Arfan Khan, Chief Executive Officer of Nostrum, said: “We are delighted to announce the completion of the acquisition of a majority interest in Positive Invest and look forward to launching an appraisal programme which would allow re-classification of certain of the contingent resources to proven reserves and help determine the commercially viable development schemes. The Stepnoy Leopard field, located about 100 km west of our world-class full-process infrastructure, is an attractive upstream tie-back project that could deliver material reserves addition to the Group’s rapidly depleting resource base at Chinarevskoye.”
The Positive Invest Contract is currently due to expire in December 2044.