RCS - Valeura Energy Inc. - Block B5/27 Drilling Results

Canaccord GenuityAnnouncement

27/05/2025 08:00

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RNS Number : 2020K  Valeura Energy Inc.  27 May 2025

Block B5/27 Drilling Results

 

Singapore, May 27, 2025: Valeura Energy Inc. (TSX:VLE, OTCQX:VLERF) ("Valeura"
or the "Company") announces completion of an eight-well drilling campaign at
Licence B5/27 (100% operated working interest), offshore Gulf of Thailand.

 

 

Sean Guest, President and CEO commented:

"Block B5/27 is a prime example of how with ongoing drilling activity we can
continue to commercialise new accumulations to maintain a stable and
predictable stream of cash flow from each of our Gulf of Thailand assets.  At
the same time, we have appraised several additional reservoir intervals which
will form the basis of a future drilling campaign on the block.  We expect to
demonstrate further reserves adds at our next year-end reserves evaluation,
giving rise to yet another extension in the economic life of the field."

 

 

Jasmine C

Valeura drilled two development wells from the Jasmine C platform.  Both
wells were successful and exceeded management's expectation for total oil pay
and are currently online as producers.

 

Well C-30ST1H was drilled as a horizontal lateral within the 400 sand
reservoir and was completed as an oil producer.  The well's completion design
includes an autonomous inflow control device, which has made it possible to
complete the well as an oil producer despite being drilled into a mixed
gas/oil transition zone.

 

Well C-39 was directionally drilled to develop three separate reservoir
intervals (the 330, 160, and 50 sands), and was successful with all targets.
It was completed as a multi-zone producer, with the 330 interval now online.

 

Ban Yen A

The Company drilled three wells from the Ban Yen A platform.  Two were
primarily development wells with additional appraisal targets, and one was a
dedicated appraisal well.  The two development wells were successful, having
exceeded expectations for total pay, and are online contributing to
production.

 

Well BYA-35ST1 was drilled as a deviated multi-objective well.  The well
successfully developed remaining oil volumes from multiple already-producing
reservoirs, and was completed for production from a total of six sand
reservoirs, which will be produced sequentially.  In addition, the well
appraised several targets which will now be matured for inclusion in a future
development drilling programme.  Total oil pay encountered was approximately
double management's pre-drill estimates.

 

Well BYA-42 was drilled as a deviated well targeting remaining oil in a single
reservoir interval (the 50 sands), and has been completed as a producer.  In
addition, the well also successfully appraised two shallower reservoir
targets, being the 480 and 260 sands, which are being evaluated as potential
future infill drilling locations.

 

Well BYA-41 was an appraisal well drilled to evaluate the potential of the 50
series reservoir sands.  The well encountered oil and identified a deeper
oil-water contact than predicted, but the reservoir target was found to be
poorly developed at this location, resulting in small volumes.  As a result,
the Company has chosen not to complete the well as a producer, but will
integrate the data gathered into its models, with the objective of identifying
alternative locations in the vicinity to develop this reservoir.

 

Jasmine D

Valeura drilled two deviated development wells from the Jasmine D platform.
Both were successful and are now contributing to production.

 

Well D-44 was drilled as a deviated development well with multiple targets.
The well encountered its primary targets (the 500 and 600 series sands) as
intended, successfully accessing remaining oil at the structure's crest.  In
addition, the well verified upside in all of its secondary targets, covering
five additional reservoir sands, which indicates the potential for further
development of this fault block in the future.

 

Well D-45 was also drilled as a deviated development well into the block's
main fault block.  The well encountered oil in all three of its primary
targets (the 250, 245, and 160 sands) and was completed as a multi-zone
producer.  In addition, the well encountered oil in its secondary 680 sand
target, which will be developed by an additional well as part of a future
development campaign.

 

Ratree

The Ratree exploration well intersected its target sand reservoirs as
prognosed but encountered only trace amounts of hydrocarbons.  Results
suggest that oil did not migrate to this particular reservoir trend, resulting
in insufficient hydrocarbon charge.  Further prospective trends within the
B5/27 block are being evaluated for future exploration potential.

 

 

The block B5/27 drilling programme was completed safely, on time, and under
budget.  As a result of the campaign, the Company has maintained oil
production rates approximately consistent with its Q1 performance, thereby
offsetting the impact of natural declines.

 

The Company's contracted drilling rig is now being mobilised to the Nong Yao
field, where the Company plans to drill a programme of approximately 10
development wells.

 

 

 

For further information, please contact:

 

Valeura Energy Inc. (General Corporate
Enquiries)                       +65 6373 6940

Sean Guest, President and CEO

Yacine Ben-Meriem, CFO
Contact@valeuraenergy.com (mailto:Contact@valeuraenergy.com)

 

Valeura Energy Inc. (Investor and Media
Enquiries)                       +1 403 975 6752 / +44
7392 940495

Robin James Martin, Vice President, Communications and Investor Relations
IR@valeuraenergy.com (mailto:IR@valeuraenergy.com)

 

 

Contact details for the Company's advisors, covering research analysts and
joint brokers, including Auctus Advisors LLP, Canaccord Genuity Ltd (UK),
Cormark Securities Inc., Research Capital Corporation, and Stifel Nicolaus
Europe Limited, are listed on the Company's website at
www.valeuraenergy.com/investor-information/analysts/
(http://www.valeuraenergy.com/investor-information/analysts/) .

 

 

About the Company

 

Valeura Energy Inc. is a Canadian public company engaged in the exploration,
development and production of petroleum and natural gas in Thailand and in
Türkiye. The Company is pursuing a growth-oriented strategy and intends to
re-invest into its producing asset portfolio and to deploy resources toward
further organic and inorganic growth in Southeast Asia. Valeura aspires toward
value accretive growth for stakeholders while adhering to high standards of
environmental, social and governance responsibility.

Additional information relating to Valeura is also available on SEDAR+ at
www.sedarplus.ca (http://www.sedarplus.ca) .

 

 

Advisory and Caution Regarding Forward-Looking Information

Certain information included in this news release constitutes forward-looking
information under applicable securities legislation. Such forward-looking
information is for the purpose of explaining management's current expectations
and plans relating to the future. Readers are cautioned that reliance on such
information may not be appropriate for other purposes, such as making
investment decisions. Forward-looking information typically contains
statements with words such as "anticipate", "believe", "expect", "plan",
"intend", "estimate", "propose", "project", "target" or similar words
suggesting future outcomes or statements regarding an outlook.

 

Forward-looking information in this news release includes, but is not limited
to, the Company's ability continue to commercialise new accumulations to
maintain a stable and predictable stream of cash flow; appraised reservoir
intervals forming the basis of a future drilling campaign on the block; and
the potential for further reserves adds and a further extension in the
economic life of the field.

 

Although the Company believes the expectations and assumptions reflected in
such forward-looking information are reasonable, they may prove to be
incorrect.

 

Forward-looking information is based on management's current expectations and
assumptions regarding, among other things: political stability of the areas in
which the Company is operating; continued safety of operations and ability to
proceed in a timely manner; continued operations of and approvals forthcoming
from governments and regulators in a manner consistent with past conduct;
ability to achieve extensions to licences in Thailand and Türkiye to support
attractive development and resource recovery; future drilling activity on the
required/expected timelines; the prospectivity of the Company's lands; the
continued favourable pricing and operating netbacks across its business;
future production rates and associated operating netbacks and cash flow;
decline rates; future sources of funding; future economic conditions; the
impact of inflation of future costs; future currency exchange rates; interest
rates; the ability to meet drilling deadlines and fulfil commitments under
licences and leases; future commodity prices; the impact of the Russian
invasion of Ukraine; the impact of conflicts in the Middle East; royalty rates
and taxes; management's estimate of cumulative tax losses being correct;
future capital and other expenditures; the success obtained in drilling new
wells and working over existing wellbores; the performance of wells and
facilities; the availability of the required capital to funds its exploration,
development and other operations, and the ability of the Company to meet its
commitments and financial obligations; the ability of the Company to secure
adequate processing, transportation, fractionation and storage capacity on
acceptable terms; the capacity and reliability of facilities; the application
of regulatory requirements respecting abandonment and reclamation; the
recoverability of the Company's reserves and contingent resources; future
growth; the sufficiency of budgeted capital expenditures in carrying out
planned activities; the impact of increasing competition; the availability and
identification of mergers and acquisition opportunities; the ability to
successfully negotiate and complete any mergers and acquisition opportunities;
the ability to efficiently integrate assets and employees acquired through
acquisitions; global energy policies going forward; international trade
policies; future debt levels; and the Company's continued ability to obtain
and retain qualified staff and equipment in a timely and cost efficient
manner. In addition, the Company's work programmes and budgets are in part
based upon expected agreement among joint venture partners and associated
exploration, development and marketing plans and anticipated costs and sales
prices, which are subject to change based on, among other things, the actual
results of drilling and related activity, availability of drilling, offshore
storage and offloading facilities and other specialised oilfield equipment and
service providers, changes in partners' plans and unexpected delays and
changes in market conditions. Although the Company believes the expectations
and assumptions reflected in such forward-looking information are reasonable,
they may prove to be incorrect.

 

Forward-looking information involves significant known and unknown risks and
uncertainties. Exploration, appraisal, and development of oil and natural gas
reserves and resources are speculative activities and involve a degree of
risk. A number of factors could cause actual results to differ materially from
those anticipated by the Company including, but not limited to: the ability of
management to execute its business plan or realise anticipated benefits from
acquisitions; the risk of disruptions from public health emergencies and/or
pandemics; competition for specialised equipment and human resources; the
Company's ability to manage growth; the Company's ability to manage the costs
related to inflation; disruption in supply chains; the risk of currency
fluctuations; changes in interest rates, oil and gas prices and netbacks; the
risk that the Company's tax advisors' and/or auditors' assessment of the
Company's cumulative tax losses varies significantly from management's
expectations of the same; potential changes in joint venture partner
strategies and participation in work programmes; uncertainty regarding the
contemplated timelines and costs for work programme execution; the risks of
disruption to operations and access to worksites; potential changes in laws
and regulations, including international treaties and trade policies; the
uncertainty regarding government and other approvals; counterparty risk; the
risk that financing may not be available; risks associated with weather delays
and natural disasters; and the risk associated with international activity.
See the most recent annual information form and management's discussion and
analysis of the Company for a detailed discussion of the risk factors.

 

Certain forward-looking information in this news release may also constitute
"financial outlook" within the meaning of applicable securities legislation.
Financial outlook involves statements about Valeura's prospective financial
performance or position and is based on and subject to the assumptions and
risk factors described above in respect of forward-looking information
generally as well as any other specific assumptions and risk factors in
relation to such financial outlook noted in this news release. Such
assumptions are based on management's assessment of the relevant information
currently available, and any financial outlook included in this news release
is made as of the date hereof and provided for the purpose of helping readers
understand Valeura's current expectations and plans for the future. Readers
are cautioned that reliance on any financial outlook may not be appropriate
for other purposes or in other circumstances and that the risk factors
described above or other factors may cause actual results to differ materially
from any financial outlook.

 

The forward-looking information contained in this news release is made as of
the date hereof and the Company undertakes no obligation to update publicly or
revise any forward-looking information, whether as a result of new
information, future events or otherwise, unless required by applicable
securities laws. The forward-looking information contained in this news
release is expressly qualified by this cautionary statement.

 

 

This news release does not constitute an offer to sell or the solicitation of
an offer to buy securities in any jurisdiction, including where such offer
would be unlawful. This news release is not for distribution or release,
directly or indirectly, in or into the United States, Ireland, the Republic of
South Africa or Japan or any other jurisdiction in which its publication or
distribution would be unlawful.

 

Neither the Toronto Stock Exchange nor its Regulation Services Provider (as
that term is defined in the policies of the Toronto Stock Exchange) accepts
responsibility for the adequacy or accuracy of this news release.

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