Nostrum Oil & Gas Plc (LSE:NOG) has agreed to sell its Kazakhstan operations to Altaris Holding Ltd for US$304.6 million, with proceeds expected to repay its senior secured notes in full and partially repay senior unsecured debt.
The transaction covers Nostrum’s interests in Zhaikmunai LLP and POSITIV Invest LLP, together with rights under certain related loan agreements. The purchase price remains subject to adjustments for working capital, net debt and cash positions at completion.
Sale targets debt repayment
Nostrum said completion would allow all outstanding senior secured notes to be repaid, while holders of senior unsecured notes (SUNs) are currently targeted to receive an initial repayment of around US$150 million.
Further, materially smaller repayments could follow depending on transaction adjustments, potential claims, wind-down costs and other assets and liabilities.
The company’s notes matured on 30 June 2026 and the group was unable to repay the amounts due at that time. Nostrum said its board considers the transaction the best available outcome for the group and its stakeholders.
Kazakhstan operations
Zhaikmunai operates Nostrum’s principal producing asset, the Chinarevskoye field in north-west Kazakhstan, while Nostrum holds an 80% interest in POSITIV, which owns subsoil rights covering the Kamenskoe and Kamensko-Teplovsko-Tokarevskoe areas, known as the Stepnoy Leopard fields.
The buyer, Altaris Holding, is owned by Fincraft Energy Holding Limited and Alturion Holding Limited.
Next steps
Completion remains subject to conditions including Kazakhstan merger clearance, government and Qazaq Gaz consents, SUN holder approval and confirmed buyer financing. The current long-stop date is 15 September 2026, with provision for a 2-month extension.
Following completion, Nostrum expects to begin an orderly wind-down of the group. It does not currently expect any material residual proceeds to be available for ordinary shareholders, although a final distribution has not been ruled out.
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