The Chinarevskoye field is the only producing field Nostrum owns. It has a grandfathered PSA from 1997 and the licence is valid until 2032.
Initial hydrocarbon discoveries at the Chinarevskoye field were made during the Soviet era. There have been 103 wells and side-tracks drilled under the PSA between 2004-2019. The licence is owned 100% by Zhaikmunai, the Kazakh operating company of Nostrum Oil & Gas PLC. The Chinarevskoye field is a multi-layer structure with 17 reservoirs and 53 compartments spread over three areas. Commercial hydrocarbons have been found in the Lower Permian, Bashkirian, Bobrikovski, Tournaisian, Frasnian, Mullinski, Ardatovski, and Biyski-Afoninski reservoirs.
In 1 January 2020 Ryder Scott Reserve Report, for the Chinarevskoye Field, a total of 45 interventions, including new wells are planned between 2020-2026, which together with 46 existing producers, recover the estimated 2P reserves in the 31st December 2019 assessment. This compares to 72 interventions under the previous year’s report, approximately one-third less.
The Chinarevskoye field interventions comprise 30 new wells, 2 sidetracks, 7 workovers and 6 non-rig re-completions for a total Drilling CAPEX estimate of $324mm, which compares with the previous 2019 estimate of $640mm.
Current reserves estimates are shown in Table 1. The Total 1P (Proven) case for Chinarevskoye is 54.3 mmboe comprising 43.4 mmboe for Proved Developed Producing (PDP) – from 46 current wells, 8.1 mmboe for the Proved Undeveloped (PUD) category and 2.8 mmboe for Proved Developed Non-Producing (PDNP). Overall Proven volumes are down by c. 46 mmboe due to 10.8 mmboe of 2019 production plus a reduction in Condensate Yields in the Biyski-Afoninski reservoir, to reflect current observed and expected rates and a reduction in Tournasian wells and water-flood performance.
The Chinarevskoye 2P (Proven plus Probable) volume is 138 mmboe, with the majority of Probable Undeveloped Reserves associated with the development of the Biyski-Afoninski West, North-East and North-West reservoirs. The 2P volumes are reduced by 156 mmboe compared to last year’s report. Offsetting some of the above reductions are inclusion of volumes for Frasnian North, Filippovski gas-condensate and the Biyski North-East low-pressure production system (LPS II).
The three fields which together make up the Trident project are now entirely classified as contingent resources. A total of 116 mmboe Probable Reserves for Rostoshinskoye and Darinskoye in the 31/12/2018 reserves report has been moved into the Contingent Resource category pending further appraisal.
The Ryder Scott Reserves Report as of 1 January 2020 looks purely at the economics of a possible field development to extract the maximum number of reserves at US$65 long-term oil price.
All of the information provided does not take into account the repayment of the company’s liabilities as they come due in 2022 and 2025. It also does not take into account any short-term impact on the liquidity position of Nostrum as a result of fluctuations in the oil price.
Chinarevskoye & NOG 100% run
|Gas (after shrink)||mmcf||130,905||8,932||19,970||159,807|
|Gas (after shrink)||boe||24,575,963||1,676,884||3,749,146||30,001,994|
|Gas (after shrink)||mmcf||0||11,363||231,358||242,721|
|Gas (after shrink)||boe||0||2,133,277||43,434,901||45,568,179|
|Gas (after shrink)||mmcf||130,905||20,295||251,328||402,528|
|Gas (after shrink)||boe||24,575,963||3,810,161||47,184,048||75,570,172|