Nostrum Oil and Gas to acquire 50% of Positive Invest assets in KazakhstanChristian Fernsby ▼ | June 24, 2019
Nostrum Oil and Gas announced that is has agreed, subject to certain conditions, to acquire 50% of Positive Invest, which holds the subsoil use rights to the Stepnoy Leopard licences in North Western Kazakhstan, for US$500,000.
Acquisition Nostrum has the right to buy the remaining 50%, subject to the satisfaction
The acquisition of 100% of Positive Invest is referred to in this announcement as the “Proposed Acquisition”.
Management estimates that the Stepnoy Leopard licences could hold up to 452 mmboe of in place volumes of which up to 200 mmboe could be reported as Contingent Resources and over 20% estimated to be liquids.
There are eight fields within the licences with over 100 wells drilled in the Soviet era which have confirmed hydrocarbons to be present.
The resources are considered by management to be contingent as the licences expire in 2020.
One of the conditions precedent required by Nostrum for its acquisition of the remaining 50% in Positive Invest is the extension of the licences by 25 years.
In addition, Nostrum requires, as a condition precedent, the approval of a development programme which allows the raw gas from the fields to be treated in Nostrum’s gas processing facilities.
The Proposed Acquisition ensures Nostrum ties in further resources in the region surrounding its gas processing facility that can be processed at the Company’s gas treatment facilities.
The Proposed Acquisition is structured in a two-step process.
In the event that the conditions for the second step are not met then Nostrum has the right to transfer back to the sellers the 50% interest in Positive Invest and the initial consideration of US$500,000 will be repaid to Nostrum. ■