RCS - Valeura Energy Inc. - Q2 2023 Operational Update
11/07/2023 08:15
For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20230711:nRSK6260Fa&default-theme=true
RNS Number : 6260F Valeura Energy Inc. 11 July 2023
Q2 2023 Operational Update
Calgary, July 11, 2023: Valeura Energy Inc. (TSX:VLE) ("Valeura" or the
"Company"), the upstream oil and gas company with assets in the Gulf of
Thailand and the Thrace Basin of Turkey, is pleased to provide a trading
update for Q2 2023.
During Q2 2023 the Company's net working interest production from its four
producing assets averaged 22,097 bbls/d of crude oil. Production increased
8% relative to Q1 2023.
Valeura drilled eight wells, on its Jasmine, Nong Yao, and Manora oil fields
in Q2 - all were successful. Drilling operations at the Manora oil field are
currently in the final stages of a three-well programme. Upon completion the
Company intends to bring the three new Manora wells on stream as producers and
thereafter to mobilise the drilling rig to the Wassana oil field. Further to
the Company's July 6, 2023 announcement of a temporary suspension in Wassana
production operations, for clarity, Valeura intends to proceed with the
Wassana infill drilling programme as planned. Drilling operations were
executed safely throughout the quarter, with no recorded deviations from
Valeura's safe operating practices.
During Q2 2023, in addition to routine operating costs and capital
expenditures, the Company paid taxes((1)) of US$178.1 million in respect of
the previous owner's 2022 operations, as planned, paid down US$18.5 million of
its debt facility, and completed the acquisition of the Wassana oil field's
mobile offshore production unit, Ingenium, by way of a final consideration
payment of US$5.0 million. As of June 30, 2023 Valeura had US$121.6 million
in cash((2)) and debt of US$30.7 million.
(1) Petroleum income tax and special remuneratory benefit
(2) Cash and cash equivalent plus restricted cash
Valeura intends to announce its Q2 2023 financial and operating results during
the second week of August 2023. Specific timing and webcast details will be
confirmed in due course.
Sean Guest, President and CEO commented:
"I am very pleased with our performance during the first full quarter under
Valeura's operatorship. Integration of the businesses we have acquired is
progressing well, and our expanded team is continuing to demonstrate a
world-class performance, delivering oil production averaging over 22 thousand
bbls/d and remaining committed to our principles of safe operations.
The impact of our operations during the quarter underscores the magnitude of
how much we have changed the character of Valeura as an investment. We are
generating cash, self-funding growth via re-investment into our portfolio, and
strengthening our balance sheet at the same time."
For further information, please contact:
Valeura Energy Inc. (General Corporate
Enquiries) +1 403 237 7102
Sean Guest, President and CEO
Yacine Ben-Meriem, CFO
Contact@valeuraenergy.com (mailto:Contact@valeuraenergy.com)
Valeura Energy Inc. (Investor
Enquiries) +1 403 975
6752 / +44 7392 940495
Robin James Martin, Vice President, Communications and Investor
Relations
IR@valeuraenergy.com (mailto:IR@valeuraenergy.com)
Auctus Advisors LLP (Corporate Broker to
Valeura) +44 (0) 7711 627 449
Jonathan Wright
Valeura@auctusadvisors.co.uk (mailto:Valeura@auctusadvisors.co.uk)
CAMARCO (Public Relations, Media Adviser to Valeura) +44 (0) 20 3757 4980
Owen Roberts, Billy Clegg
Valeura@camarco.co.uk (mailto:Valeura@camarco.co.uk)
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
Turkey. 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
environmental, social, and governance standards.
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 intention to bring the three new Manora wells on stream as producers
and thereafter to mobilise the drilling rig to the Wassana oil field; the
Company's intention to proceed with the Wassana infill drilling programme as
planned; and the anticipated timing for release of Q2 2023 operating and
financial results.
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 AIF and MD&A 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 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.
Additional information relating to Valeura is also available on SEDAR at
www.sedar.com
(https://www.sedar.com/DisplayCompanyDocuments.do?lang=EN&issuerNo=00014898)
.
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.
This information is provided by Reach, the non-regulatory press release distribution service of RNS, part of the London Stock Exchange. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
or visit
www.rns.com (http://www.rns.com/)
.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
. END NRAEFLBFXDLEBBB