RCS - Valeura Energy Inc. - Amendment- Q1 2024 Operations and Financial Update

Stifel FinancialAnnouncement

10/04/2024 08:15

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RNS Number : 0122K  Valeura Energy Inc.  10 April 2024

The following amendments have been made to the ' Q1 2024 Operations and
Financial Update'

announcement released on 10 April 2024 at 7.00am under RNS No 0025K.

 

In the second and third paragraphs under 'Q1 2024 Update', Q1 2023 has been
changed to Q1 2024.

All other details remain unchanged.

 

The full amended text is shown below.

Q1 2024 Operations and Financial Update

Singapore, April 10, 2024: Valeura Energy Inc. (TSX:VLE, OTCQX:VLERF)
("Valeura" or the "Company"), the upstream oil and gas company with assets in
the Gulf of Thailand and the Thrace Basin of Türkiye, is pleased to provide
an update on Q1 2024 operations.

 

Highlights for Q1 2024

·    Oil production averaged 21.9 mbbls/d, quarter exit rate of
approximately 23.0 mbbls/d((1));

·    Scheduled maintenance conducted safely and under planned time and
budget on Manora and Jasmine production facilities;

·    Price realisations of US$84.6/bbl, a US$1.5/bbl premium over Brent;

·    Revenue of US$149.4 million while oil inventory increased 31% to 0.9
million bbls; and

·    Cash at bank of US$193.6 million, no debt;

 

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

 

Sean Guest, President and CEO commented:

"I am pleased to share highlights of our Q1 2024 operational performance with
production performance up 14% from Q4 2023 and very much in line with our
plan.  The increased production reflects strong performance of the new wells
at the Wassana field, but was slightly offset by shutdowns for scheduled
maintenance at two of our fields to ensure ongoing world class standards for
integrity. We exited the quarter with aggregate production rates of
approximately 23.0 mbbls/d.

Our financial performance has been strong too.  With price realisations at or
slightly above our guidance outlook, we generated Q1 2024 revenue of US$149.4
million.  After accounting for cash outflows, including spending which is
tracking our guidance assumptions, the result was a further build in our cash
position to US$193.6 million.  Our balance sheet is going from strength to
strength, and we feel it is appropriate to stay the course and to build even
more resilience as we seek out value-accretive opportunities both within our
portfolio and through potential mergers and acquisitions.

We are in a strong position at the close of Q1 and look forward to translating
that strength into value through our exploration drilling campaign, followed
by our development of the Nong Yao C accumulation thereafter, and further
organic projects later in the year."

 

Q1 2024 Update

Production averaged 21.9 mbbls/d during Q1 2024 (Valeura's working interest
share, before royalties), an increase of 14% over Q4 2023.  Q1 2024 average
production rates were affected by planned downtime at the Jasmine and Manora
fields for scheduled maintenance, which was conducted safely and under the
planned time and budget.  By the end of the quarter, maintenance work had
been completed and all fields were in operation, with aggregate rates of
approximately 23.0 mbbls/d.  Overall production performance has been in line
with management's plan, and accordingly, Valeura is pleased to re-iterate its
full year 2024 production guidance outlook of 21.5 - 24.5 mbbls/d.

Oil sales totalled 1.8 million bbls, during Q1 2024, slightly below the 2.0
million bbls sold during Q4 2023, due to the timing of liftings.  At the end
of the quarter, the Company held crude oil inventory of 0.9 million bbls, a
31% increase over the end Q4 2023 inventory.  It is expected that this
increased inventory will be sold in Q2 2024.

Price realisations averaged US$84.6/bbl during Q1 2024, reflecting a
US$1.5/bbl premium over the Brent crude oil benchmark, which averaged
US$83.1/bbl.  Consistent with 2023, price realisations have continued to meet
or slightly exceed management's guidance outlook of approximate parity with
the Brent benchmark.

Oil revenue during Q1 2024 was US$149.4 million.  After accounting for
outflows of cash during the quarter, including operating costs and capital
spending in line with the Company's guidance expectations, the Company's cash
at bank balance had increased to US$193.6 million at March 31, 2024, which
includes US$17.3 million held as restricted cash.  Valeura has no debt.

All of the Company's guidance outlook expectations for 2024 are again
confirmed.

 Category             2024 Guidance
 Production           21.5 - 24.5 mbbls/d
 Price realisations   Approximately equivalent to the Brent crude oil benchmark
 Opex((1))            US$205 - 235 million
 Capex((2))           US$135 - 155 million
 Exploration Expense  Approximately US$8 million

(1)   Represents Adjusted Opex, a Non-IFRS financial measure.  For details
refer to the "Non-IFRS Financial Measures and Ratios" section with the
Company's Management's Discussion and Analysis for the year ended December 31,
2023, dated March 26, 2024.

(2)   Represents Adjusted Capex, a Non-IFRS financial measure.  For details
refer to the "Non-IFRS Financial Measures and Ratios" section with the
Company's Management's Discussion and Analysis for the year ended December 31,
2023, dated March 26, 2024.

Operations Update

Valeura provided an operations update on March 26, 2024, along with its
announcement of results for Q4 and the full year 2023.  Since that time, the
Company has been conducting an exploration drilling campaign, and will provide
an update shortly.  Thereafter, later in April 2024, Valeura intends to
mobilise its sole contracted drilling rig to the Nong Yao field to commence a
development drilling campaign on the Nong Yao C accumulation targeting
production rates from the greater Nong Yao area to 11.0 mbbls/d (working
interest share, before royalties).

 

Results Timing and AGM

Valeura intends to release its full unaudited financial and operating results
for Q1 2024 on May 9, 2024, and will discuss the results in more detail
through a management webcast hosted in conjunction with its Annual and Special
Meeting of Shareholders (the "meeting") later that day.  The notice of
meeting and related Management's Information Circular have been mailed to
shareholders and are available on the Company's website and on
www.sedarplus.ca (http://www.sedarplus.ca) .

 

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
Enquiries)                             +1 403 975
6752 / +44 7392 940495
Robin James Martin, Vice President, Communications and Investor Relations
IR@valeuraenergy.com (mailto:IR@valeuraenergy.com)

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)

Contact details for the Company's advisors, covering research analysts, and
joint brokers, including Auctus Advisors LLP, Cormark Securities Inc.,
Research Capital Corporation, Schachter Energy Report, 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 reiteration of its guidance outlook for 2024 (including anticipated
2024 oil production rates, Price realisations, Opex, Capex, and Exploration
Expense); the Company being in a strong position at the close of Q1 2024, and
its ability to translate that strength into value growth; the Company's
expectation that its increased inventory will be sold in Q2 2024; the
Company's intent to provide an update shortly in regards to its exploration
drilling campaign;  Valeura's intent to, later in April 2024, mobilise its
sole contracted drilling rig to the Nong Yao field to commence a development
drilling campaign on the Nong Yao C accumulation; the Company's target
production rates from the greater Nong Yao area; and Valeura's intended timing
to release financial and operating results for Q1 2024.  In addition,
statements related to "reserves" are deemed to be forward-looking information
as they involve the implied assessment, based on certain estimates and
assumptions, that the resources can be discovered and profitably produced in
the future.

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; ability to
attract a partner to participate in its tight gas exploration/appraisal play
in Türkiye; 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.

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.

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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