RCS - Valeura Energy Inc. - 2023 Guidance Outlook and Reserves and Resources

Valeura EnergyAnnouncement

18/04/2023 08:15

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RNS Number : 5634W  Valeura Energy Inc.  18 April 2023

Business Update, 2023 Guidance Outlook, and Reserves and Resources

Calgary, April 18, 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 a business
update, its guidance outlook for the full year 2023 and the results of its
third-party independent reserves and resources assessment for its Thailand
assets.

 

Sean Guest, President and CEO commented:

"Following our recently completed acquisition of Gulf of Thailand assets from
Mubadala Energy, I am pleased to present Valeura as a cash flow generating
business with substantial growth opportunities centered on our strategy of
ongoing value generation.

Our global portfolio includes assets which held 2P reserves of 29.1 million
barrels of oil, as independently evaluated at December 31, 2022, in addition
to an assessed unrisked best estimate 2C contingent resource total of 14.1
million barrels of oil in Thailand, plus our prospective resource in Turkey.
This underscores the substantial value potential of Valeura and highlights the
significant running room within our portfolio to continue pursuing the target
of reserves replacement.  Our focus will always revolve around delivering
safe and reliable operations, in a responsible and sustainable way, geared
toward cash generation and growth to create deeper value for shareholders."

 

Update on Closing the Mubadala Acquisition

On December 6, 2022, Valeura announced a transformational Gulf of Thailand
acquisition from Mubadala Energy, which was subsequently completed on March
22, 2023 (the "Mubadala Acquisition").  All net economic benefits accumulated
by the Mubadala Acquisition assets from an effective date of September 1,
2022, were included with the acquired entity.  Over that approximately
seven-month period, the acquired assets' oil production averaged 20,600
barrels per day ("bbls/d"), on a net working interest basis, generating
aggregate revenue of US$363 million, resulting in an average of approximately
US$30 million in pre-tax cash flow per month, in line with the Company's
previously published expectation.(1,3)

At completion of the Mubadala Acquisition on March 22, 2023, the acquired
entity held cash and cash equivalent resources of approximately US$243
million.  After accounting for, among other things, the impact of
inventories, accounts payable, and tax liabilities, the increase in Valeura's
adjusted net working capital position as a result of the Mubadala Acquisition
is estimated to be approximately US$105 million.(2,3)

The Company intends to release its interim consolidated financial and
operating results for the three month period ended March 31, 2023 on May 11,
2023.  Production from the acquired assets in Q1 2023 was 20,475 bbls/d and
capital spending was approximately US$34 million, on a net working interest
basis.  The Company's Q1 2023 results will report a portion of these amounts
relating to the period from completion of the Mubadala Acquisition through the
end of the reporting period (from March 22, 2023 through March 31, 2023).

Notes to reader:

1) Pre-tax cash flow is a non-IFRS measure that represents the cash generated
by the assets excluding taxes paid and allows management to assess the cash
generative capacity of the business as well as  operating and financial
performance.  It is calculated as revenue, less royalties, less operating
costs, including lease costs. The nearest IFRS measure is cash flow from
operations, which management estimates as US$135 million, adjusted to add back
current tax of US$91 million, and deducting lease payments of US$14 million,
resulting in US$212 million, or approximately US$30 million per month.

2) Adjusted net working capital is a non-IFRS measure calculated as current
assets (cash, receivables, prepaids and deposits and inventory) less current
liabilities excluding current lease liabilities (payables, accrued payables
and taxes payable.)  Current lease liabilities consists predominantly of
liabilities related to lease contracts associated with the Floating Production
Storage and Offloading ("FPSO") and Floating Storage and Offloading ("FSO")
vessels for the producing licences, which the Company views as operating
costs.  Current lease liabilities were approximately US$18 million at
completion. Fair Value adjustments were made to inventory, in accordance with
IFRS at the completion date.  For all other working capital balances,
carrying value approximates fair value.  The nearest IFRS measure is working
capital, being current assets of US$390 million less non-cash current
liabilities of US$303 million, adjusted for current lease liabilities of US$18
million, resulting in US$105 million.

3) Pre-tax cash flow and adjusted net working capital are preliminary
management estimates based on data available as of the date hereof and are
subject to customary financial statement procedures by the Company and its
auditors.

2023 Guidance Outlook

Valeura anticipates total capital spending in 2023 of US$180 - 200 million.
In keeping with the acquired assets' long history of reserves replacement
through ongoing activity, much of the capital spending is directed toward
infill drilling on producing fields, and is forecast to result in aggregate
full year oil production of 20,000 - 22,300 bbls/d.  This assumes the start
of production at the Wassana field in May 2023 in addition to continued
ongoing production operations at the Jasmine, Manora, and Nong Yao fields.
Operating cost guidance in 2023 is US$220 - 240 million, which, at the
mid-point of the production guidance range, equates to approximately
US$30/bbl.

 Category            2023 Guidance (Full Year)
 Production          20,000 - 22,300 bbls/d
 Price realisations  Approximately equivalent to the Brent crude oil benchmark
 Operating costs*    US$220 - 240 million
 Capital spending    US$180 - 200 million

* Includes FPSO and FSO lease costs

The Company intends to fund its operating costs and capital spending through
cash generated from ongoing operations.  For clarity, all production,
operating costs, and capital spending estimates provided above relate to the
full calendar year 2023, and accordingly, include amounts relating to the
period prior to completion of the Mubadala Acquisition.

Re-investing

Valeura intends to re-invest into its producing fields, with the bulk of its
spending directed toward drilling new wells and working over existing
wellbores to access additional reservoir sands.  The Company is planning a
total of 21 new or recompleted wellbores in 2023, seven of which, were drilled
or completed in Q1 2023.

Valeura's re-investment efforts are directed toward a mix of growing aggregate
production rates where possible (including through infill drilling at the
Wassana field), while mitigating the impact of natural production declines
elsewhere (such as the Jasmine and Manora fields).  Throughout its operations
the Company seeks to extend the economic life of its producing fields, as
evidenced by recent drilling successes at the Manora field, which is the most
mature asset in the Company's portfolio, and has seen its life expectancy
further prolonged into at least 2025.

Oil production in 2023 is forecast to average 20,000 - 22,300 bbls/d.  The
production range is largely defined by the sequencing of drilling activity
across the portfolio, which the Company continually seeks to optimise, and
timing for the Wassana infill drilling programme, which is currently scheduled
to start with the arrival of a drilling rig in early Q3 2023.

Development

Valeura intends to invest approximately US$75 million toward the development
of the Nong Yao C accumulation, with spending spread over the 2023 and 2024
period.  The 2023 component of this development programme entails
installation of a Mobile Offshore Production Unit ("MOPU") facility, which is
currently under construction and anticipated to mobilise to the field in Q4
2023, with development drilling starting thereafter.  The Company anticipates
drilling the first four of a total of nine development wells in 2023.  First
oil from the Nong Yao C development is planned for Q1 2024 and ultimately is
expected to contribute to a net increase in Nong Yao oil production up to a
target rate of approximately 11,000 bbls/d in 2024.

Valeura's guidance estimates and Contingent Resources summary below do not
currently include any spending or production relating to the Rossukon oil
field development on Licence G6/48.  The Company will provide additional
clarity on the Rossukon oil field in due course.

Exploration

The Company is seeking a farm-in partner to participate in the next phase of
exploration and appraisal on its tight gas play in the Thrace basin of
Turkey.  Until such time as a suitable partner arrangement has been agreed,
Valeura intends to focus its efforts on maintaining the Thrace basin assets in
good standing and has not dedicated material capital spending to the play in
2023.

Further Growth

While Valeura's immediate focus is on safe, reliable delivery from its
existing portfolio, the Company remains focused on growth.  This includes the
potential to grow further through the mergers and acquisitions market within
the Southeast Asia region.

 

Reserves and Resources

Valeura is pleased to report the results of an independent third-party
reserves and resources assessment pertaining to its assets acquired through
the Mubadala Acquisition.  The reports, dated April 17, 2023, were prepared
for Valeura by Netherland, Sewell & Associates, Inc. ("NSAI") to assess
reserves and resources in Licences B5/27 containing the Jasmine and Ban Yen
oil fields, G1/48 containing the Manora oil field, and G11/48 containing the
Nong Yao oil field, as of December 31, 2022 (the "NSAI Reports").  As these
assets have been continually producing during the interim period from January
1, 2023 to the completion of the Mubadala Acquisition on March 22, 2023, an
aggregate of 1,650 thousand barrels ("Mbbls") of reserves presented herein
were produced by the previous operator.  Additionally, the results of the
successful drilling on the Jasmine field in the interim period are not
evaluated, nor included in the reserves.

Reserves and resources in the NSAI Reports are in addition to the Company's
previously disclosed reserves and resources on Licence G10/48 containing the
Wassana oil field, as disclosed by the Company on March 31, 2023.

Unless otherwise noted, reserves and resources estimates are presented on a
before royalties, working interest basis.

Summary of Valeura's Aggregate Thailand Reserves and Contingent Resources

·    Proved (1P) reserves of 20,671 Mbbl of oil;

·    Proved and probable (2P) reserves of 29,106 Mbbl of oil, with an
estimated future net revenue after income taxes of US$261 million, using a
discount rate of 10%;

·    Best estimate (2C) unrisked development unclarified contingent
resources of 14,124 Mbbl or 2,500 Mbbl on a risked basis.

Gulf of Thailand Oil and Gas Reserves by Field Based on Forecast Prices and
Costs

 Gross (Before Royalties)                          Mubadala Acquisition Assets

Reserves (Mbbls)
                                          Wassana  Manora          Jasmine         Nong Yao        Total
                                          (Heavy)  (Light/Medium)  (Light/Medium)  (Light/Medium)
 Proved
    Producing Developed                   0        1,277           4,845           2,792           8,914
    Non-Producing Developed               1,820    0               459             36              2,315
    Undeveloped                           1,976    0               1,558           5,908           9,441
 Total Proved (1P)                        3,796    1,277           6,862           8,736           20,671
 Total Probable (P2)                      2,323    518             3,163           2,432           8,435
 Total Proved + Probable (2P)             6,119    1,794           10,025          11,168          29,106
 Total Possible (P3)                      859      390             3,032           2,576           6,857
 Total Proved + Probable + Possible (3P)  6,978    2,184           13,057          13,744          35,963

Net Present Values of Future Net Revenue Based on Forecast Prices and Costs

Net present values of future net revenue from oil reserves are based on cost
estimates as of the date of the NSAI Report, and forecast Brent crude oil
reference prices of US$84.67, US$82.34, US$80.68 and US$81.04 per bbl for the
years ending December 31, 2023, 2024, 2025 and 2026, respectively, with 2%
escalation thereafter.  Values are presented on an after tax basis and assume
tax loss carry-forwards associated with ownership of the Wassana field are
applied only to taxes relating to that asset, resulting in no taxes payable
for the Wassana field.  The remaining assets are assumed by NSAI to carry
their full statutory tax burden.

 After Tax NPV10 by Field                          Mubadala Acquisition Assets

(US$ million)
                                          Wassana  Manora          Jasmine         Nong Yao        Total
                                          (Heavy)  (Light/Medium)  (Light/Medium)  (Light/Medium)
 Proved
    Producing Developed                   0        -2              -59             -87             -149
    Non-Producing Developed               -59      0               10              1               -48
    Undeveloped                           69       0               23              174             265
 Total Proved (1P)                        10       -2              -27             88              68
 Total Probable (P2)                      57       14              64              57              193
 Total Proved + Probable (2P)             66       12              37              145             261
 Total Possible (P3)                      43       7               58              56              165
 Total Proved + Probable + Possible (3P)  110      19              95              201             426

Contingent Oil and Gas Resources, Development Unclarified

Contingent resources for additional reservoir accumulations are heavy crude
oil and light/medium crude oil gas classified as "Development Unclarified" and
carry an assessed chance of development ranging from 15% to 20%.  These
accumulations provide a future opportunity to access additional hydrocarbon
volumes.

 Unrisked Oil Resources (Mbbls)           Mubadala Acquisition Assets
                                 Wassana  Manora      Jasmine     Nong Yao    Total
 Low Estimate (1C)               5,778    1,077       1,398       2,169       10,423
 Best Estimate (2C)              8,004    2,026       2,033       2,061       14,124
 High Estimate (3C)              13,030   3,672       3,478       1,917       22,097

 

 Risked Oil Resources (Mbbls)           Mubadala Acquisition Assets
                               Wassana  Manora      Jasmine     Nong Yao    Total
 Low Estimate (1C)             1,040    159         280         335         1,813
 C1 Chance of Development      18%      15%         20%         15%
 Best Estimate (2C)            1,434    317         407         343         2,500
 C2 Chance of Development      18%      16%         20%         17%
 High Estimate (3C)            2,218    609         696         357         3,879
 C3 Chance of Development      17%      17%         20%         19%

 

Webcast

Valeura's management team will host an investor and analyst webcast at 09:00
Calgary / 16:00 London / 22:00 Bangkok today, April 18, 2023, to discuss its
guidance outlook for 2023.  The live audio and video feed can be accessed via
the link below.  Written questions may be submitted through the webcast
system or by email to IR@valeuraenergy.com (mailto:IR@valeuraenergy.com) .

Webcast link:
https://teams.microsoft.com/l/meetup-join/19%3ameeting_MjEyOThjZDctOWIzNi00MDAyLWE1ZmEtMmU4Mzg3YjIwMDBm%40thread.v2/0?context=%7B%22Tid%22%3A%22a196a1a0-4579-4a0c-b3a3-855f4db8f64b%22%2C%22Oid%22%3A%22241f769c-12ae-4efc-8c14-d2e523040a83%22%2C%22IsBroadcastMeeting%22%3Atrue%2C%22role%22%3A%22a%22%7D&btype=a&role=a
(https://teams.microsoft.com/l/meetup-join/19%3ameeting_MjEyOThjZDctOWIzNi00MDAyLWE1ZmEtMmU4Mzg3YjIwMDBm%40thread.v2/0?context=%7B%22Tid%22%3A%22a196a1a0-4579-4a0c-b3a3-855f4db8f64b%22%2C%22Oid%22%3A%22241f769c-12ae-4efc-8c14-d2e523040a83%22%2C%22IsBroadcastMeeting%22%3Atrue%2C%22role%22%3A%22a%22%7D&btype=a&role=a)

An audio only feed of the event is available by phone using the Conference ID
and dial-in numbers below.

Conference ID: 908 105 644#

Dial-in numbers:

Canada: 833-845-9589

Singapore: +65 6450 6302

Thailand: +66 2 026 9035

Turkey: 00800142034779

UK: 0800 640 3933

USA: 833-846-5630

 

 

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. (Investor Enquiries)     +1 403 975 6752 / +44 7392
940 495
Robin James Martin, Vice President, Communications and Investor Relations
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.

 

Oil and Gas Advisories

Reserves and contingent resources disclosed in this news release are based on
an independent evaluation conducted by the incumbent independent petroleum
engineering firm, NSAI with an effective date of December 31, 2022. The NSAI
estimates of reserves and resources were prepared using guidelines outlined in
the Canadian Oil and Gas Evaluation Handbook and in accordance with National
Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities.  The
reserves and contingent resources estimates disclosed in this news release are
estimates only and there is no guarantee that the estimated reserves and
contingent resources will be recovered.

Reserves

Reserves are estimated remaining quantities of commercially recoverable oil,
natural gas, and related substances anticipated to be recoverable from known
accumulations, as of a given date, based on the analysis of drilling,
geological, geophysical, and engineering data, the use of established
technology, and specified economic conditions, which are generally accepted as
being reasonable. Reserves are further categorised according to the level of
certainty associated with the estimates and may be sub-classified based on
development and production status.

Proved reserves are those reserves that can be estimated with a high degree of
certainty to be recoverable.  It is likely that the actual remaining
quantities recovered will exceed the estimated proved reserves.

Developed reserves are those reserves that are expected to be recovered from
existing wells and installed facilities or, if facilities have not been
installed, that would involve a low expenditure (e.g. when compared to the
cost of drilling a well) to put the reserves on production.

Developed producing reserves are those reserves that are expected to be
recovered from completion intervals open at the time of the estimate.  These
reserves may be currently producing or, if shut in, they must have previously
been on production, and the date of resumption of production must be known
with reasonable certainty.

Developed non-producing reserves are those reserves that either have not been
on production, or have previously been on production, but are shut in, and the
date of resumption of production is unknown.

Undeveloped reserves are those reserves expected to be recovered from known
accumulations where a significant expenditure (e.g., when compared to the cost
of drilling a well) is required to render them capable of production.  They
must fully meet the requirements of the reserves classification (proved,
probable, possible) to which they are assigned.

Probable reserves are those additional reserves that are less certain to be
recovered than proved reserves.  It is equally likely that the actual
remaining quantities recovered will be greater or less than the sum of the
estimated proved plus probable reserves.

Possible reserves are those additional reserves that are less certain to be
recovered than probable reserves. It is unlikely that the actual remaining
quantities recovered will exceed the sum of the estimated proved plus probable
plus possible reserves. There is a 10% probability that the quantities
actually recovered will equal or exceed the sum of the estimated proved plus
probable plus possible reserves.

The estimated future net revenues disclosed in this news release do not
necessarily represent the fair market value of the reserves associated
therewith.

The estimates of reserves and future net revenue for individual properties may
not reflect the same confidence level as estimates of reserves and future net
revenue for all properties, due to the effects of aggregation.

Contingent Resources

Contingent resources are those quantities of petroleum estimated, as of a
given date, to be potentially recoverable from known accumulations using
established technology or technology under development, but which are not
currently considered to be commercially recoverable due to one or more
contingencies. Contingencies are conditions that must be satisfied for a
portion of contingent resources to be classified as reserves that are: (a)
specific to the project being evaluated; and (b) expected to be resolved
within a reasonable timeframe.

Contingent resources are further categorised according to the level of
certainty associated with the estimates and may be sub‐classified based on a
project maturity and/or characterised by their economic status. There are
three classifications of contingent resources: low estimate, best estimate and
high estimate. Best estimate is a classification of estimated resources
described in the Canadian Oil and Gas Evaluation Handbook as the best estimate
of the quantity that will be actually recovered; it is equally likely that the
actual remaining quantities recovered will be greater or less than the best
estimate. If probabilistic methods are used, there should be at least a 50
percent probability that the quantities actually recovered will equal or
exceed the best estimate.

The project maturity subclasses include development pending, development on
hold, development unclarified and development not viable. All of the
contingent resources disclosed in this news release are classified as
development unclarified. Development unclarified is defined as a contingent
resource that requires further appraisal to clarify the potential for
development and has been assigned a lower chance of development until
commercial considerations can be clearly defined. Chance of development is the
likelihood that an accumulation will be commercially developed.

Conversion of the development unclarified resources referred to in this
announcement is dependent upon (1) the expected timetable for development; (2)
the economics of the project; (3) the marketability of the oil and gas
production; (4) the availability of infrastructure and technology; (5) the
political, regulatory, and environmental conditions; (6) the project maturity
and definition; (7) the availability of capital; and, ultimately, (8) the
decision of joint venture partners to undertake development.

 

The major positive factor relevant to the estimate of the contingent
development unclarified resources referred to in this news release is the
successful discovery of resources encountered in appraisal and development
wells within the existing fields. The major negative factors relevant to the
estimate of the development unclarified contingent resources referred to in
this news release are: (1) the outstanding requirement for a definitive
development plan (2) current economic conditions do not support the resource
development, (3) limited field economic life to develop the resources and (4)
the outstanding requirement for a final investment decision and commitment of
all joint venture partners.

If these contingencies are successfully addressed, some portion of these
contingent resources may be reclassified as reserves.

The NSAI estimates have been risked, using the chance of development, to
account for the possibility that the contingencies are not successfully
addressed. Due to the early stage of development for the development
unclarified resources, NSAI did not perform an economic analysis of these
resources; as such, the economic status of these resources is undetermined and
there is uncertainty that any portion of the contingent resources disclosed in
this news release will be commercially viable to produce.

Barrels of Oil Equivalent

A boe is determined by converting a volume of natural gas to barrels using the
ratio of 6 Mcf to one barrel. Boe values may be misleading, particularly if
used in isolation. A boe conversion ratio of 6 Mcf:1 boe is based on an energy
equivalency conversion method primarily applicable at the burner tip and does
not represent a value equivalency at the wellhead. Further, a conversion ratio
of 6 Mcf:1 boe assumes that the gas is very dry without significant natural
gas liquids. Given that the value ratio based on the current price of oil as
compared to natural gas is significantly different from the energy equivalency
of 6:1, utilising a conversion on a 6:1 basis may be misleading as an
indication of value.

 

Glossary

bbl       barrel

boe      barrel of oil equivalent

M US$ thousands of US dollars

Mbbl    thousand barrels

Mboe   thousand barrels of oil equivalent

Mcf      thousand curbic feet

MMcf  million cubic feet

 

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 increase in Valeura's net working capital position as a result of the
Mubadala Acquisition; the timing to release its interim consolidated financial
and operating results for the three month period ended March 31, 2023;
anticipated total capital spending in 2023; anticipated 2023 oil production
rates; timing for the start of production at the Wassana field; price
realisations approximately equivalent to the Brent crude oil benchmark;
anticipated 2023 operating costs; the expectation that no taxes will be
payable in respect of the Wassana oil field due to the utilisation of tax loss
carry-forwards; the Company's intent to re-invest into its producing fields
with the bulk of spending directed toward drilling new wells and working over
existing wellbores and the amount of wells to be drilled  and worked over;
the Company's intent to extend the economic life of its producing fields; the
life expectancy of its fields; the expected timing for the Wassana infill
drilling programme; the anticipated investment toward to the development of
the Nong Yao C accumulation; timing for the installation of a MOPU facility on
Nong Yao C and the start of drilling operations, including the amount of wells
to be drilled in 2023; timing for first oil from the Nong Yao C development;
the ability to maintain the Thrace Basin licences in Turkey in good standing;
and the potential to grow further through the mergers and acquisitions
marketing within the Southeast Asia region.

In addition, statements related to "reserves" and "resources" 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: the ability to successfully
re-start production from the Wassana field and the timing; the ability to
continue ongoing production operations at the Jasmine, Manora, and Nong Yao
fields; the future of the Rossukon oil field development; 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; 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,
including the Mubadala Acquisition; 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
the Mubadala 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.

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.

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 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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