RCS - Valeura Energy Inc. - Completion of Internal Restructuring

Stifel FinancialAnnouncement

05/11/2024 08:15

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RNS Number : 9652K  Valeura Energy Inc.  05 November 2024

Completion of Internal Restructuring

Singapore, November 5, 2024: Valeura Energy Inc. (TSX:VLE, OTCQX:VLERF)
("Valeura" or the "Company") is pleased to announce the completion of an
internal restructuring of its Thailand subsidiary companies.

Valeura's working interests in all its Thai III fiscal contracts, covering the
Nong Yao, Manora and Wassana fields, are now held by Valeura Energy (Thailand)
Ltd, a wholly owned subsidiary of Valeura, which previously had only held an
interest in the Wassana asset.  The Company anticipates that the new
structure offers the potential to optimise various operational and financial
aspects of these assets.  In particular, the Company anticipates realising
efficiencies through ongoing contracting and procurement, as well as the
pooling of future costs and historical tax loss carry-forwards associated with
these assets.  As of September 30, 2024, the cumulative tax loss
carry-forwards are estimated at US$397 million((1)).

Dr. Sean Guest, President and CEO commented:

"Today marks a milestone in delivering value for our shareholders, and
completes the integration work we started after our Gulf of Thailand
acquisitions in 2022 and 2023.  Early on, we identified the potential for
greater efficiency by bringing our Thai III assets together through a
re-organisation; our team recognised that together, these assets are worth
more than the sum of their parts.

Pursuing this type of synergy strengthens our ability to re-invest in the
business for the benefit of all stakeholders.  We intend to continue
investing directly into the many organic growth opportunities inherent in our
Thailand portfolio, and also seeking new ways to provide further value,
including through acquisition-led growth."

Under Thailand's income tax provisions, from today forward, petroleum income
tax for the three subject assets will be assessed as a single entity. Tax
obligations relating to the previous subsidiary company arrangement are
required to be assessed immediately and settled within the next 30 days.
Taxation arrangements for the Jasmine field, which is governed by a different
vintage of fiscal terms (known as Thai I), and held in a separate subsidiary
entity, will continue unchanged.

(1) Unaudited internal management estimate based on Thai baht exchange rate as
of November 1, 2024, subject to review by tax advisors and auditors.

 

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, 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/.

 

About Valeura

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: the
potential to optimise various operational and financial aspects, relating to
such matters as ongoing contracting and procurement, as well as the pooling of
future costs and historical tax loss carry-forwards associated with these
assets and statements with respect to the growth opportunities inherent in the
Company's Thailand portfolio and the Company seeking new ways to provide
further value.

Forward-looking information is based on management's current expectations and
assumptions regarding, among other things: the ability of the Company to
obtain the anticipated benefits from the internal restructuring; 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.

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 announcement 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 announcement 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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that term is defined in the policies of the Toronto Stock Exchange) accepts
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