RCS - Valeura Energy Inc. - Operations Update

TMXAnnouncement

24/01/2023 08:15

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RNS Number : 6109N  Valeura Energy Inc.  24 January 2023

Operations Update

Calgary, January 24, 2023: Valeura Energy Inc. (TSX:VLE) ("Valeura" or the
"Company"), the upstream oil and gas company with assets in the offshore Gulf
of Thailand and the Thrace Basin of Turkey, is pleased to provide an
operations update.

SPV Interest

Valeura is pleased to announce that it has increased its ownership stake of
the special purpose vehicle subsidiary company, Valeura Energy Asia Pte. Ltd.
(the "SPV") from 85% to 87.5% as the result of Valeura's cumulative cash
contributions to the SPV.  For clarity, the SPV is the corporate entity
through which Valeura conducts all of its Thailand business.  Accordingly,
this increased ownership stake applies to the entire portfolio of Thailand
assets, whether owned or proposed to be acquired by Valeura.

Wassana Oil Field

Valeura has received formal notification of the recertification of its Mobile
Production Unit Ingenium, thereby enabling its ongoing use as the production
and processing facility for crude oil from the Wassana oil field on Licence
G10/48, offshore Gulf of Thailand.  Separately, further to the announcement
of November 20, 2022, the MT Jaka Tarub crude oil storage vessel is currently
undergoing planned modifications in dry dock, which are expected to be
completed in early February, after which the vessel will mobilise to the
Wassana field.  Once on location, Valeura intends to resume production
operations, targeting initial oil production rates of up to 3,000 bbls/d with
plans to increase production to 4,500 bbls/d thereafter as a result of the
five well infill drilling campaign planned to commence in Q2 2023.  All
production figures are net to the 89% working interest in Licence G10/48 held
by the SPV.

Corporate Developments

As announced on December 6, 2022, the SPV has agreed to acquire the Thailand
upstream oil producing portfolio of Mubadala Energy, which includes several
oil fields collectively producing approximately 21,200 bbls/d of oil, net to
the interest being acquired (the "Acquisition").  All key workstreams are
progressing in relation to satisfying the closing conditions and the Company
anticipates that the Acquisition will close in Q1 2023 as previously
announced.

Separately, planning work is underway in relation to the greenfield Rossukon
oil field development on Licence G6/48, and the Company intends to provide
further detail on the project once a final investment decision has been
taken.

 

For further information, please contact:

Valeura Energy Inc. (General Corporate
Enquiries)
+1 403 237 7102

Sean Guest, President and CEO

Heather Campbell, CFO
Contact@valeuraenergy.com (mailto:Contact@valeuraenergy.com)

Valeura Energy Inc. (Capital Markets / Investor
Enquiries)                       +1 403 975 6752

Robin James Martin, Investor Relations
Manager                                +44 7392
940495

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 Canada-based public company engaged in the
exploration, development and production of petroleum and natural gas in
Thailand and in Turkey, and is pursuing further inorganic growth in Southeast
Asia.

 

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 expected timing to complete modifications and to mobilise the MT Jaka
Tarub vessel to the Wassana field; expected near-term and forecasted
production from the Wassana field; the timing to commence the Wassana infill
drilling programme; the Company's intention to make a final investment
decision on the Rossukon oil field development and to provide further detail
on the project; the expected addition of 21,200 bbls/d of oil production from
the Acquisition;  the satisfaction of the conditions precedent to closing the
Acquisition; and the closing of the Acquisition in Q1 2023.

Forward-looking information is based on management's current expectations and
assumptions regarding, among other things: the ability to successfully
re-start production from the Wassana field; the ability to close the
Acquisition; the continuation of operations following the COVID-19 pandemic;
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; the
ability to meet drilling deadlines and fulfil commitments under licences and
leases 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
the Acquisition; the risk of further disruptions from the COVID-19 pandemic;
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.  The forward-looking
information included in this new release is expressly qualified in its
entirety by this cautionary statement. See the most recent AIF and MD&A
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.

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 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.

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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