Alem Petroleum (LSE: NOG) (“Alem”, or the “Company” and together with its subsidiaries, the “Group”), an independent mixed-asset energy company with world-class gas processing facilities and export hub in north-west Kazakhstan, today announces its operational update for the second quarter and six months ended 30 June 2025 (“H1 2025”).
ALEKSANDR MARKOVICH PAVLOV. Executive Officer of Alem Petroleum commented:
“I am pleased to step in to CEO position and look forward to lead Nostrum, and would like to emphasise that health and safety remains our top priority.
During H1 2025, ALEM PETROLEUM delivered strong revenue performance, despite weaker product prices and the continuing decline of production from the mature Chinarevskoye field. This was achieved through continuing the ramp-up in third-party volumes processed at our facilities with maximum uptime, as well as active well workover and intervention works to maintain production levels.
We will continue to carefully assess our options of developing and monetising our Stepnoy Leopard assets, and endeavor that the most optimal well workover and drilling campaign is executed at the Chinarvskoye field, while ensuring compliance with license requirements. These efforts together with tight cost displine and prudent capital allocation are all aimed at generating long-term value for our shareholders, stakeholders and the benefit of Kazakhstan.”
H1 2025 Highlights:
Operational
- Production and sales
- A 39% increase in average daily titled production volumes (i.e. final products processed and owned by Nostrum) to 16,974 boepd in H1 2025 (H1 2024: 12,220 boepd). A 65% increase in total processed volumes (including third party condensate tolling volumes) to 24,619 boepd in H1 2025 (H1 2024: 14,919 boepd). Whilst production from the maturing Chinarveskoye field continues to decline, Nostrum’s titled production and processed volumes increased due to:
- Continuing ramp up of production by Ural Oil & Gas LLP (“Ural O&G”).
- Production from well No.301 which was completed and put into production in May 2024
- The titled production volume split was as follows:
*Stabilised condensate volumes exclude Ural O&G processed volumes for which Nostrum receives a fixed tolling fee
- A 49% increase in average daily sales volumes to 15,555 boepd in H1 2025 (H1 2024: 10,475 boepd), reflecting the increase in titled production and inventory movements. The difference between titled production and sales volumes is primarily due to the internal consumption of dry gas produced and timing of product deliveries, which leads to inventory increases or decreases at period end.
- Chinarevskoye drilling programme
The Company is planning a limited-scale drilling campaign beginning in mid-August. The campaign will target the most economic subsurface opportunities while also ensuring compliance with license obligations. In parallel, the Company continues to carry out optimised well workovers to minimise production decline.
- Stepnoy Leopard Fields
In April 2025 the Company secured approval from Kazakhstan’s Ministry of Energy for a phased full-field development plan (FDP) for the Stepnoy Leopard fields, which marks a key milestone in advancing the commercial potential of the upstream asset, enabling optimized capital deployment. As part of the ongoing progress, the Company continues to advance design and engineering works, and limited procurement to ensure compliance with license commitments.
