RCS - Valeura Energy Inc. - Jasmine Development Drilling Update

Stifel FinancialAnnouncement

27/11/2024 08:15

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RNS Number : 8334N  Valeura Energy Inc.  27 November 2024

Jasmine Development Drilling Update

Singapore, November 27, 2024: Valeura Energy Inc. (TSX:VLE, OTCQX:VLERF)
("Valeura" or the "Company") is pleased to announce the successful completion
of an infill drilling campaign at the Jasmine field in Licence B5/27 (100%
operated working interest), offshore Gulf of Thailand.

 

Dr. Sean Guest, President and CEO commented:

"I am very pleased with our drilling performance at Jasmine, which has
resulted in aggregate oil production rates of nearly 10,000 bbls/d (before
royalties) over the last seven days.  Maintaining oil production at this
asset is key to generating ongoing cashflow from our portfolio.  In addition,
the fact that we continue to see appraisal successes at this relatively mature
field bodes well for our objective to further extend the economic life of the
asset.  We expect the results of these wells, and the recent production rates
to be considered as part of our year-end reserves assessment, and to support
our target of achieving more than a 100% reserves replacement ratio."

 

Valeura drilled a five well programme, comprised of two infill development
wells on the Jasmine A platform, completed in September 2024 and previously
announced, and more recently, three infill development wells on the Jasmine D
platform, which were all successful and have been brought online as producers
while also successfully appraising several additional reservoir intervals.

 

The JSD-42 well drilled a production-oriented primary objective in the 250
sand reservoir, and is believed to be optimally positioned at the crest of the
structure.  The well was completed as a producer within this zone and has
begun producing oil in line with management's expectations.  In addition, the
JSD-42 well evaluated several secondary appraisal targets, which resulted in
five further zones being completed as future producing reservoirs, and also
encountered several additional oil-bearing intervals which may be the subject
of further infill development drilling in due course.

 

The JSD-41H and JSD-43H wells were both drilled as horizontal development
infills within the 680-1 sand reservoir, with the objective of more
efficiently sweeping oil from this already-producing interval.  Both wells
were geosteered across horizontal intervals measuring over 2,000ft (measured
depth), and encountered 100% net sand.

 

With all five wells completed as producers and online, aggregate oil
production from the field has averaged 9,801 bbls/d (before royalties) over
the period November 19-25, 2024, an increase of 26% from rates just prior to
the new wells coming online (7,764 bbls/d over the period September 6-12,
2024).

 

Following the Jasmine D infill drilling programme, the Company's contracted
drilling rig has been moved to the Manora field on Licence G1/48 (70% working
interest), where it has started operations on a five well infill drilling
programme, comprised of three production-oriented wells and two appraisals.

 

 

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, success with
Jasmine infill drilling contributing to a further extension of the economic
life of the asset and to achieving more than a 100% reserves replacement
ratio; additional completed zones within the JSD-42 well becoming future
producing reservoirs; and additional oil-bearing intervals within the JSD-42
well becoming the subject further infill development drilling. 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;
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;
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 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; 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, 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.

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