RCS - Valeura Energy Inc. - Three Oil Discoveries in the Gulf of Thailand

Stifel FinancialAnnouncement

15/04/2024 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:20240415:nRSO5914Ka&default-theme=true

RNS Number : 5914K  Valeura Energy Inc.  15 April 2024

Three Oil Discoveries in the Gulf of Thailand

Singapore, April 15, 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 announce
three oil discoveries on its assets in the offshore Gulf of Thailand.

Sean Guest, President and CEO commented:

"I am pleased to announce that our exploration drilling campaign has resulted
in three new oil discoveries, one in the Nong Yao D area, and two in the
north-east portion of the Wassana concession.

As we continue to pursue adding value through growth, near-field exploration
forms an important part of sizing up the organic potential of our assets.
With successful results like these, the opportunity set before us is
continuing to expand.

Following this exploration drilling campaign we are returning to both infill
drilling and development work, which is intended to increase production rates
over the coming months to support cash flow generation, particularly as we see
benchmark oil prices rise to new highs for this year.  We are also planning
for further exploration drilling elsewhere in our portfolio later in the
year."

Nong Yao D

The Nong Yao-13 well (G11/48 concession, 90% working interest) was drilled to
5,399 feet measured depth ("MD") (3,342 feet true vertical depth ("TVD")) and
discovered just over 30 feet of new oil pay across several intervals.
Importantly, this result confirms that oil has successfully migrated into this
area of the block, a factor that was seen to be a risk in the Nong Yao D
area.  The particular intervals comprising the discovery are relatively
shallow new zones which have not been produced elsewhere on the concession.
 These reservoirs are believed to be recurring across the Nong Yao D area and
further analysis on the seismic data is warranted.  This work will seek out
potential locations for follow-up exploration and appraisal drilling in the
vicinity, with the ultimate objective of amassing sufficient volumes to
justify a future development.

Niramai and Wassana North

Two wells were drilled north of the Wassana oil field (G10/48 concession, 100%
interest) with the objective of identifying sufficient oil volumes in this
northern area of the block to justify a future development project. The
Niramai-4 well was an exploration/appraisal well approximately one kilometre
north-east of the successful Niramai-1 oil discovery, which was originally
drilled in 2009.  The Niramai-4 well was drilled to 7,312 feet MD (5,581 feet
TVD) and discovered over 90 feet of new oil pay across two key reservoirs.

Following evaluation, the well was then sidetracked with a high-angle well
known as Niramai-4 ST1 to test the Wassana North prospect, a separate fault
block immediately north of the Wassana field.  The well was drilled to 12,388
feet MD (5,782 feet TVD) and discovered approximately 40 feet of new oil
pay.  The deepest oil-bearing zone is of particular interest in that the
wellbore intersected the reservoir significantly downdip of the crest and oil
is interpreted to be present to the base of the reservoir, with no oil-water
contact identified in the well.  This indicates further potential, both
deeper than penetrated, and more laterally expansive in the updip portion of
the structure.

While reservoir properties and volumetric estimates are still being calculated
for both wells, when combined with the pre-existing Niramai volumes, the total
recoverable volumes are believed to exceed management's requirements to
support an additional future development on the G10/48 block.  Such a
development expansion is beyond the scope of the Wassana field re-development
project currently being evaluated, but has the potential to extend production
and the life of the concession beyond its current economic limit in 2032.
 Management anticipates that that these new volumes will contribute to the
Company's next year end reserves and resources.

Drilling Plan

The Company's contracted drilling rig has been mobilised to the Nong Yao
field, where it will soon begin drilling two infill development wells on the
Nong Yao A platform, intended to add to production rates in the near term.
Thereafter, and once commissioning work is complete on the Nong Yao C Mobile
Offshore Production Unit, the rig will begin development drilling on the Nong
Yao C accumulation.  The Company is targeting first oil from Nong Yao C in
early Q3 2024.

 

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 ability to increase production rates over the coming months and to
shore up cash flow generation; the recurrence of the Nong Yao-13 shallow
reservoirs across the Nong Yao D area and the analysis of the foregoing
through further seismic reprocessing; the potential for follow-up exploration
and appraisal drilling locations in the Nong Yao D vicinity; the Company's
anticipation that the Nirami-4 discovery will add to recoverable volumes in
its next independent third-party reserves evaluation and to be considered as
part of a further development on the G10/48 block; the potential for a
commercialisation of the Niramai-4 volumes to extend the life of the
concession, beyond its current economic limit; the potential for further
potential in the Wassana North discovery, both deeper than penetrated and in
the updip portion of the structure; the potential for the Wassana North well
to add volumes to potentially recoverable oil in the area; the belief that
volumes encountered in the Niramai/Wassana North area exceed requirements for
minimum economic field size; the detailed analysis of the Wassana North well
data and further appraisal drilling; the timing to begin infill development
wells on Nong Yao A and to add production rates in the near term; and the
timing to begin Nong Yao C drilling and timing for first oil.

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.

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  NRAFIFFESTIELIS