RCS - Valeura Energy Inc. - Q4 2025 Update and 2026 Guidance

Canaccord GenuityAnnouncement

13/01/2026 08:15

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RNS Number : 6689O  Valeura Energy Inc.  13 January 2026

Q4 2025 Update and 2026 Guidance

Singapore, 13 January 2026: Valeura Energy Inc. (TSX:VLE, OTCQX:VLERF)
("Valeura" or the "Company") announces: (i) the Company's Q4 2025 performance
was in line with its guidance outlook for 2025 and resulted in a new record
cash position; (ii) completion of a successful drilling campaign at Block
B5/27 drove strong ongoing oil production and is expected to contribute to
reserves replacement; and (iii) a guidance outlook for 2026 supporting its
objective to continue generating long-term value for shareholders.

 

Q4 and Full Year 2025 Highlights

·    Record cash position of US$305.7 million as at 31 December 2025 with
no debt;

·    Oil production averaged 24,721 bbls/d in Q4 2025, resulting in full
year average oil production of 23,242 bbls/d((1)) for 2025;

·    2.523 million bbls of oil were sold in Q4 2025, with 8.466 million
bbls sold for the full year 2025;

·    Price realisations in Q4 2025 averaged US$64.0/bbl, resulting in
revenue of US$161.4 million, and US$594.4 million of revenue for the full year
2025;

·    Greenhouse gas ("GHG") intensity reduced by 13% for full year 2025,
yielding a 30% reduction since Valeura originally acquired its Thailand
portfolio in 2023; and

·    Nine production-oriented development wells were completed at the
Jasmine and Ban Yen fields in Q4 2025 with 100% success rate, including a new
record length for a horizontal well in the Gulf of Thailand.

 

2026 Guidance Highlights

·    Full year oil production mid-point of 21,000 bbls/d((1));

·    Capex and exploration spending mid-point of US$185 million, including
approximately US$70 million associated with the Wassana field redevelopment;
and

·    Adjusted Opex mid-point of US$205 million((2)).

 

((1)) Working interest share production, before royalties.

((2)) Adjusted Opex is a non-IFRS financial measure, more fully described in
Valeura's Management's Discussion and Analysis dated 14 November  2025.
Includes lease spending of US$25 million.

 

 

Dr. Sean Guest, President and CEO commented:

 

"We closed out 2025 with strong production performance and an even stronger
financial position.  Our Q4 drilling programme at Jasmine and Ban Yen was
ambitious and innovative, and delivered a 100% success rate, with all wells
being completed as producers.  All across the business, our team remains
committed to this type of world class performance and I believe this is
reflected in the continual strengthening of our balance sheet, which now
includes over US$300 million in cash, and no debt.

 

That commitment to excellence is also apparent in our strong safety
performance and positive direction of travel on key environmental, social, and
governance metrics.  We saw no deviations from our high standards during the
year and continue to show progress in our GHG intensity, which has now been
reduced by approximately 30% under Valeura's operatorship.

 

As we raise our sights to the year ahead, our long-term objective of
delivering 20 - 25 mbbls/d((1)) from our four producing assets remains intact,
with this year's performance expected around 21 mbbls/d((1)), a number we see
as a lull in advance of the start-up of our Wassana field redevelopment, which
remains on track for first oil production in Q2 2027.

 

We continue to aggressively pursue other growth ambitions as well. The spirit
of collaboration is strong between our team and our operating partners both in
the large farm-in blocks in the Gulf of Thailand, and in our deep gas play in
Türkiye where testing operations are now underway.

 

Our aspirations to grow inorganically are continuing as a priority.  We
believed that our appetite for larger, more transformative deals is
well-supported, both by the financial wherewithal we bring to bear, and by the
rich opportunity set we see emerging within our core Asia-Pacific region."

 

((1)) Working interest share oil production, before royalties.

 

 

Q4 and Full Year 2025 Overview

Working interest share oil production before royalties averaged 24.7 mbbls/d
in Q4 2025.  This was an increase of 7.6% over the prior quarter, reflecting
the impact of new oil production wells coming on stream at Block B5/27, in
addition to ongoing steady operations at the Company's other producing
fields.  On a full year basis, working interest share oil production before
royalties was higher as well, averaging 23.2 mbbls/d in 2025, an increase of
1.8% over 2024.

 

Oil sales totalled 2.523 million bbls in Q4 2025, which was higher than the
2.274 million bbls produced in the quarter, as a result of sales from crude
oil held in inventory at the beginning of the quarter.  The resultant revenue
was US$161.4 million, based on an average sales price of US$64.0/bbl.  The
Company continues to realise a premium to the benchmark Brent crude oil
price.  For the full year 2025, the effect of quarterly over-lift /
under-lift positions is negligible, with oil sales totalling 8.466 million
bbls, a figure which is very close to the full year's production of 8.483
million bbls.  Valeura's average 2025 sales price was US$70.2/bbl.

 

Valeura's cash position strengthened to a new high of US$305.7 million at 31
December 2025, with no debt.

 

 

Operations Update

Operations progressed safely throughout 2025, and with no deviations from the
Company's high standards for environmental, social, and governance
stewardship.  Of note, Valeura is continuing to pursue efficiency gains
across its portfolio that have a positive impact on the Company's GHG
emissions.  Valeura estimates that its GHG intensity has reduced by 13%
compared to the Company's 2024 performance, and overall has achieved a 30%
reduction since originally acquiring its Thailand portfolio.

 

Construction activities of a new-build central processing platform ("CPP") for
the Wassana field redevelopment are progressing ahead of schedule. The project
is now approximately 45% complete, underpinning management's confidence in
achieving first oil production from the redeveloped Wassana field (100%
operated interest) on time, as planned, in Q2 2027.  Moreover, with the
majority of project costs either locked in or subject to fixed-price
contracts, the Wassana field redevelopment project also remains on budget.

 

At the Company's deep gas play in the Thrace basin of Türkiye, Transatlantic
Petroleum LLC ("Transatlantic"), who are conducting operations on Valeura's
behalf, have re-entered and hydraulically stimulated the Devepinar-1 well.
Gas has been continually produced to surface through the well's casing for
over three weeks.  With this success, Transatlantic has opted to continue
work on the well, and is now installing production tubing to facilitate a
longer-term production test. Transatlantic has satisfied its earning
requirements and is now entitled to a 50% undivided working interest in the
western portion of the Company's lands, as further described in Valeura's 15
October 2025 announcement.  Once approved by the regulator, Transatlantic
will hold a 50.0% working interest in the western portion of the Company's
lands, Valeura will hold 31.5%, and Pinnacle Turkey, Inc. will hold the
remaining 18.5%.  Valeura's working interest in the eastern portion of the
lands (Banarli licences) remains at 100%, subject to Transatlantic completing
the drilling and testing of a new well.  The Company intends to release more
details on the Devepinar-1 well test and the future plans for the deep gas
play later in Q1 2026.

 

 

Block B5/27 Drilling

Valeura has just completed the drilling of one deviated and eight horizontal
wells on the Jasmine and Ban Yen fields at Block B5/27 in the Gulf of Thailand
(100% operated interest).  The drilling programme primarily focused on
accessing unswept oil accumulations within producing reservoirs.  All wells
were successful and have been completed as producers.  As a result, oil
production rates before royalties from Block B5/27 have increased from
approximately 7,300 bbls/d over the seven-day period prior to start of the
drilling programme, to recent rates of approximately 8,600 bbls/d over the
seven-day period immediately following the drilling programme.

 

Several of the wells were engineered to intersect additional appraisal targets
while drilling toward their primary development targets.  As a result,
Valeura has identified various additional oil accumulations which will form
the basis of future infill drilling campaigns on Block B5/27.  This success
is expected to add to the ultimate production potential of the block, which
has already exceeded its production expectations many times over, and has seen
its economic field life extended every year under Valeura's operatorship.

 

Since taking over operatorship of its Thai portfolio in 2023, Valeura has been
introducing new technologies and drilling approaches which are expected to
increase the ultimate recovery of the fields and lower costs.  One well in
the recent drilling programme, JSB-28ST2H, achieved a new record as the
longest horizontal well interval ever drilled in the Gulf of Thailand, at
3,875'.  In addition, two of the wells drilled from the Jasmine B platform
used a novel new approach whereby the shallower sections of the pre-existing
wells were re-used, with the new well bores being drilled as sidetracks
through the existing 7" casing.  This approach reduces drilling time and
mitigates certain downhole drilling risks.  Further, all horizontal wells
drilled in this campaign were completed using autonomous inflow control
devices which reduces the inflow of non-oil fluids into the wellbore.  This
technology has now been adopted extensively by Valeura as a value-enhancing
innovation, across all its Gulf of Thailand assets.

 

 

2026 Work Programme and Guidance Synopsis

Valeura currently has one drill rig on contract, with a charter term spanning
January through August 2026.  The Company's planned work programme for 2026
entails drilling an aggregate of 16 development and appraisal wells on the
Jasmine, Nong Yao, and Manora fields.  The overall objective of the
development and appraisal programme is to mitigate natural production declines
while also continuing the Company's multi-year performance of adding reserves.
 The base plan also includes the planned drilling of two exploration wells
across its operated Gulf of Thailand portfolio.

 

The Company is planning total capex and exploration spending of US$175 - 195
million in 2026.  This amount includes approximately US$70 million for the
completion of construction and installation of the new CPP at the Wassana
field, in preparation for development drilling in Q1 2027.  The Company is
planning exploration expenditure of approximately US$7 million.

 

Valeura continues to model that its portfolio of four producing Gulf of
Thailand fields will deliver working interest share oil production before
royalties within the range of 20,000 - 25,000 bbls/d into the 2030's.  The
Company's 2026 work programme is in line with this expectation, with full year
average production guidance of 19,500 - 22,500 bbls/d, or a mid-point of
21,000 bbls/d (working interest share, before royalties).

 

Adjusted opex in 2026 is forecast as US$190 - 220 million and at the midpoint
would be the lowest opex that the Company has achieved since assuming
operatorship in Thailand. Of note, adjusted opex guidance includes anticipated
spending of approximately US$25 million on leases related to floating
production, storage, and offloading vessels employed across the Company's
operations.

 

The Company's production and capex forecast is predicated on the Company
having one drilling rig on contract for approximately eight months of the
year.  Should prevailing economic conditions warrant revising the drilling
programme to include more drilling, Valeura would update its guidance
expectations accordingly.

 

Valeura is also actively working with PTT Exploration and Production Plc
("PTTEP") to pursue both exploration and development planning on Blocks G1/65
and G3/65 in the Gulf of Thailand, where Valeura is farming in to earn a 40%
non-operated working interest (the "Farm-in Transaction").  High priority
work streams are focussed on the Bussabong gas development area, which could
result in an investment decision in 2026, and the Nong Yao northeast oil
exploration area, to define a suitable timeframe for exploration drilling.
Upon completion of the Farm-in Transaction, Valeura intends to more fully
articulate a work programme for both blocks and will update the guidance at
that time. Completion of the Farm-in Transaction requires government approval,
which is expected following Thailand's general election in Q1 2026.

 

 

Upcoming Announcements

Valeura intends to announce the results of a third-party reserves and
resources evaluation as of 31 December 2025 in approximately the second half
of February 2026.  Thereafter, the Company plans to release its full audited
financial and operating results for the year ended 31 December 2025 on
approximately 18 March 2026.

 

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

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

Contact details for the Company's advisors, covering research analysts and
joint brokers, including Auctus Advisors LLP, Beacon Securities Limited,
Canaccord Genuity Ltd (UK), Cormark Securities Inc., Research Capital
Corporation, Roth Canada Inc., and Stifel Nicolaus Europe Limited, are listed
on the Company's website at
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.

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, anticipated 2026 full year oil production rates; anticipated capex and
exploration spending in 2026, including the proportion included for the
Wassana redevelopment project and for exploration expenditure; anticipated
2026 adjusted opex, and the proportion thereof relating to leases; the
Company's reduced GHG intensity representing an ongoing "direction of travel";
the Company's ability to realise its long-term objective of delivering 20 - 25
mbbls/d from its four producing assets; timing for development drilling and
for first oil production from the Wassana field redevelopment; the Company's
continued aggressive pursuit of its growth ambitions; the ability for the
Company's financial wherewithal and opportunity set to support inorganic
growth; the Company continuing to realise a premium to the benchmark Brent
crude oil price; the Company continuing to pursue and achieve efficiency gains
across its portfolio; the transfer of working interest in the deep gas play to
Transatlantic and resultant working interests of the parties, and the Company
obtaining regulatory approval thereof; the Company's intention to release more
details on the Devepinar-1 well test and the future plans for the deep gas
play and the timing thereof; additional oil accumulations at the Jasmine and
Ban Yen fields forming the basis of future infill drilling campaigns on the
block; drilling success adding to the ultimate production potential of the
B5/27 Block; new technologies and drilling approaching resulting in an
increase in the ultimate recovery of its fields; the duration and composition
of Valeura's 2026 drilling programme; the Company's anticipated exploration
expenditure for 2026; the ability for drilling to mitigate natural production
declines while also continuing the Company's multi-year performance of adding
reserves; and government approval and timing for completion of the Farm-in
Transaction.

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;
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; royalty rates and taxes; 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 ability to
efficiently integrate assets and employees acquired through acquisitions;
global energy policies going forward; 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;
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, 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.

The forward-looking information contained in this new 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 new 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.

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