StockMarketWire.com - Oil company Nostrum Oil & Gas swung to a first-half loss after its output fell and oil prices slumped.

Pre-tax losses for the six months through June amounted to $51.1m, compared to a profit of $27.1m on-year.

Revenue dropped 47% to $92.6m amid a 40% dive in the average Brent crude oil price during the reporting period.

The fall in revenue was also pinned on a 'relative decrease in sales volumes as a result of declining production of hydrocarbons'.

Nostrum Oil & Gas reiterated that drilling for 2020 had been halted, though successful workover and well intervention activity had reduced the expected rate of decline of production.

'Our focused cost-management initiatives are significantly reducing our cost base and we have executed a successful well intervention and work-over programme which has reduced the expected rate of decline of production above expectation,' chief executive Kaat Van Hecke said.

'Both these measures have, and will continue to, assist us in managing our liquidity effectively and our cash burn is currently very low.'

'However, we remain exposed to low prices for our products and whilst the price of oil and related products has improved in the last few months, the price received for dry gas may remain at a relatively low level for the remainder of the year and possibly beyond.'


At 10:03am: [LON:NOG] Nostrum Oil Gas Plc share price was -0.83p at 10.89p



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