RCS - Valeura Energy Inc. - First Quarter 2026 Results
14/05/2026 08:16
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RNS Number : 3212E Valeura Energy Inc. 14 May 2026
First Quarter 2026 Results
Singapore, 14 May 2026: Valeura Energy Inc. (TSX:VLE, OTCQX:VLERF) ("Valeura"
or the "Company") reports its unaudited financial and operating results for
the three month period ended 31 March 2026.
The complete quarterly reporting package for the Company, including the
unaudited financial statements (the "Interim Financial Statement") and
associated management's discussion and analysis ("MD&A") are being filed
on SEDAR+ at www.sedarplus.ca (http://www.sedarplus.ca) and posted the
Company's website at www.valeuraenergy.com (http://www.valeuraenergy.com) .
Highlights
· Oil production of 2.0 million bbls, averaging 22,326 bbls/d((1));
· Oil sales of 1.4 million bbls, resulting in an increase in crude oil
inventory;
· Adjusted opex((2)) of US$25.4/bbl, in line with the Company's
guidance expectations and operating costs of US$15.6/bbl((3));
· Adjusted cashflow from operations((2)) of US$21.3 million;
· Purchased the Manora Princess floating storage and offloading ("FSO")
vessel for US$15.5 million; and
· Net cash of US$261.6 million((4)), with no debt.
Subsequent to Q1 2026
· Record monthly oil sales in April 2026 of 0.82 mmbbls at an average
realised price of US$110.4/bbl, resulting in US$90.3 million in revenue;
· Announced a US$7 million project to add four additional well slots to
the Nong Yao A platform; and
· Chartered the Shelf Drilling Enterprise jack-up drilling rig for a
term of three years.
(1) Working interest share production before royalties.
(2) Non-IFRS financial measure or non-IFRS ratio - see "Non-IFRS
Financial Measures and Ratios" section.
(3) Operating cost divided by production.
(4) Includes restricted cash.
Dr. Sean Guest, President and CEO commented:
"Our Q1 2026 performance demonstrates the resilience of our portfolio. We
generated positive cash flow from operations, even with oil sales only from
two months of the quarter, and at relatively low realised prices of
US$66.2/bbl. While we are pleased with this outcome, we are excited by the
potential of Q2, which we believe is poised for a very strong financial
performance. As a result of the potential March sales being deferred into
the higher oil price environment in April, we generated revenue of US$90.3
million in April, nearly as much as our total revenue for Q1.
While we have no control over global benchmark oil prices, we do have control
over our operations, and on that front, we have recorded another strong
performance, with both operating costs and production outcomes exactly in line
with our guidance expectations.
We are also remaining nimble with our work programme, and have moved swiftly
to set ourselves up for more drilling in the near term, both by way of a
long-term contract to charter the Enterprise drilling rig, and by expanding
our Nong Yao facility to expedite drilling on what is our most profitable
field.
We remain focused on growing our business too. That includes progressing
both exploration and development planning work in relation to our large
farm-in blocks G1/65 and G3/65 where we are earning a 40% working
interest((1)). At the same time we continue to pursue a suite of inorganic
opportunities, guided always by the principle of adding value for our
stakeholders through growth."
(1) Transfer of interest subject to Thailand government approval.
Financial and Operating Results Summary
Three months ended
31-Mar-26 31-Dec-25 Delta (%) 31-Mar-25 Delta (%)
Oil Production((1)) ('000 bbls) 2,009 2,274 -12% 2,147 -6%
Average Daily Oil Production((1)) (bbls/d) 22,326 24,721 -10% 23,853 -6%
Average Realised Price ($/bbl) 66.2 64 3% 78.7 -16%
Oil Volumes Sold ('000 bbls) 1,394 2,523 -45% 1,881 -26%
Oil Revenue ($'000) 92,253 161,376 -43% 148,081 -38%
Profit before income taxes ($'000) 4,217 -14,642 -129% 37,839 -89%
Net Income ($'000) 5,912 -12,563 -147% 14,073 -58%
Adjusted EBITDAX((2)) ($'000) 41,628 70,114 -41% 87,216 -52%
Adjusted Pre-Tax Cashflow from Operations((2)) ($'000) 22,190 66,096 -66% 74,384 -70%
Adjusted Cashflow from Operations((2)) ($'000) 21,289 49,427 -57% 73,954 -71%
Operating Costs ($'000) 31,438 59,967 -48% 38,852 -19%
Adjusted Opex((2)) ($'000) 51,073 63,900 -20% 51,684 -1%
Operating Costs per bbl ($/bbl) 15.6 26.4 -41% 18.1 -14%
Operating Costs per bbl sold ($/bbl) 22.6 23.8 -5% 20.7 9%
Adjusted Opex per bbl ( (2)) ($/bbl) 25.4 28.1 -10% 24.1 5%
Adjusted Capex((2)) ($'000) 56,261 54,503 3% 32,899 71%
Weighted average shares outstanding - basic ('000 shares) 105,652 105,731 0% 106,532 -1%
Year ended
31 March 2026 31 December 2025 Delta (%)
Cash and cash equivalents((3)) ($'000) 261,555 305,738 -14%
Adjusted net working capital((2)) ($'000) 241,821 261,498 -8%
Shareholder's equity ($'000) 550,893 542,796 1%
(1) Working interest share production before royalties.
(2) Non-IFRS financial measure or non-IFRS ratio - see "Non-IFRS
Financial Measures and Ratios" section in this news release.
(3) Includes restricted cash.
Financial Update
The Company's Q1 2026 financial performance reflects ongoing strong production
operations at all four of its fields in the offshore Gulf of Thailand, but was
negatively impacted by buyers deferring sales from March 2026 into April 2026.
Therefore revenue in Q1 2026 was based on oil sales volumes much lower than
production during the quarter, and do not include the impact of the
significant increase in benchmark oil prices that occurred in March due to the
conflict in the Middle East. These deferred barrels have now been sold in Q2
2026, under the current higher price environment.
Valeura's working interest share production before royalties averaged 22,326
bbls/d, for a total of 2.00 million bbls produced during Q1 2026, a decrease
of 6% from Q1 2025. Production was in line with the Company's expectations
for the quarter and support its guidance assumptions for the full year 2026.
Oil sales totalled 1.39 million bbls during Q1 2026, which was substantially
less than the volume produced and therefore contributed to an increase in oil
inventory to 1.23 million bbls as at 31 March 2026.
The barrels sold in Q1 2026 achieved an average realised price of
US$66.2/bbl. Lower price realisations were driven by the effect of oil sales
only occurring in January and February 2026, which was prior to the
substantial increase in benchmark prices driven by the conflict in the Middle
East. The Company had no oil sales in March 2026. Valeura's Q1 2026
revenue was US$92.3 million, which was 38% lower than in Q1 2025 when the
Company sold 26% more volume and benefited from higher prevailing prices at
that time.
Subsequent to the end of the quarter, much of the oil inventory was sold
within the first week of April 2026 and resulted in a new record for the
Company for monthly oil sales of 0.82 mmbbls. The average realised price for
April 2026 sales was US$110.4/bbl generating revenue for the month of more
than US$90.3 million.
Valeura's cost of operations in Q1 2026 was in line with the Company's
expectations. Operating costs for the quarter totalled US$31.4 million,
which equates to US$15.6/bbl. In addition, the Company incurred lease costs
of US$7.0 million mostly in respect of its floating offshore infrastructure,
and capitalised US$12.6 million of crude oil inventories, resulting in
adjusted opex ((1)) of US$51.1 million, or US$25.4/bbl. Adjusted opex per
bbl((1)) was 6% higher than the same period in 2025, reflecting the offsetting
impacts of lower production in 2026 while also recording lower operating costs
and lease costs.
During Q1 2026, the Company purchased the Manora FSO for US$15.5 million.
Similar to the recent acquisition of the Nong Yao FSO, the savings in lease
costs are expected to make for a short payback period, relative to the
expected remaining field life.
The Company continuously reviews how best to provide relevant information to
the market and may seek to further enhance those disclosures via new or
updated Non-IFRS measures. In regards to evaluating the Company's cost of
operations, in the future Valeura intends to shift its focus primarily to
operating costs (which is an IFRS measure) as opposed to adjusted opex (which
is a non-IFRS measure).
Valeura generated adjusted cashflow from operations((1)) of US$21.3 million in
Q1 2026, which was 76% lower than the same period of 2025. The decrease is a
direct result of lower revenue, driven primarily by the deferral of
liftings/sales into Q2.
(1) Non-IFRS financial measure or non-IFRS ratio - see "Non-IFRS
Financial Measures and Ratios" section in this MD&A.
Operations Update and Outlook
During Q1 2026, Valeura had ongoing production operations at all of its Gulf
of Thailand fields, including Jasmine, Manora, Nong Yao, and Wassana,
resulting in average working interest share production before royalties of
22,326 bbls/d. One drilling rig was on contract throughout the quarter.
Jasmine / Ban Yen
Oil production before royalties from the Jasmine/Ban Yen field, in Licence
B5/27 (100% operated interest) averaged 8,144 bbls/d during Q1 2026.
Following the completion of a nine-well drilling campaign on the licence in Q4
2025, work has focused on production operations and maintenance.
Valeura conducted a planned 4.5-day annual maintenance shutdown of the Jasmine
field during the quarter. All work was performed safely, and the field has
since resumed normal production operations as planned.
Nong Yao
Oil production before royalties from the Nong Yao field, in Licence G11/48
(90% operated working interest) averaged 9,480 bbls/d during Q1 2026.
Valeura began a drilling campaign on the Nong Yao field during Q1 2026, which
is planned to continue through to June 2026 and is focused on both
production-oriented development targets and appraisal opportunities. The
Company will announce results of the campaign in due course.
In addition, Valeura has identified additional drilling opportunities in the
vicinity of the Nong Yao A platform and has taken a decision to add four
additional well slots to the platform to commercialise these targets earlier
than would otherwise be possible. Engineering work is well underway, and the
project is targeting readiness for drilling from the new well slots in Q4
2026.
Wassana
Oil production before royalties from the Wassana field, in Licence G10/48
(100% operated interest), averaged 2,505 bbls/d during Q1 2026. No wells
were drilled on the licence in Q1 2026, and no further wells are planned to be
drilled from the field's current production facility, the mobile offshore
production unit ("MOPU") Ingenium. Ongoing work is oriented toward
maintaining the MOPU in good
working order prior to deploying a new-build central processing platform
("CPP").
Construction work on the CPP remains on budget, and continues to progress
slightly ahead of schedule, with overall project completion currently above
65%. The Company projects that the CPP will be ready for Q4 2026
installation, which is in line with the project schedule to achieve first oil
production in Q2 2027.
Valeura has commissioned engineering studies to look at optimising the design
of satellite platforms which can be tied back to its CPPs. The Company has
already identified sufficient oil north of the Wassana field to justify a
satellite platform at that location. Exploration drilling is currently being
planned south of the Wassana field as the Company believes this area may have
even more potential than the northern satellite. The Company intends to
undertake this exploration drilling at optimal times within the development
drilling sequence.
Manora
Oil production before royalties from the Manora field, in Licence G1/48 (70%
operated working interest), averaged 2,197 bbls/d during Q1 2026. During the
quarter, Valeura announced completion of a five-well infill drilling campaign
on the field, which both increased production rates and successfully appraised
several additional targets for potential future drilling.
One exploration well is planned in Q3 2026 on a separate potential
accumulation in Licence G1/48. In a success case, this prospect could be
developed via a tie-in to the Manora platform.
Blocks G1/65 and G3/65
Valeura is actively working with its partner PTT Exploration and Production
Plc ("PTTEP") to progress development and exploration planning on Blocks G1/65
and G3/65, where the Company is farming in to earn a 40% non-operated working
interest. This farm-in is still subject to the final administrative step of
Ministerial approval.
Development planning is well underway in respect of several gas discoveries in
the Bussabong area of the G3/65 block. In the first quarter, the Bussabong
area was approved by the regulator as a production area. Valeura anticipates
readiness for a final investment decision ("FID") on two new gas production
platforms in Q3 2026. In all instances, the partners are focused on
opportunities that can be developed quickly, by leveraging existing production
infrastructure in adjacent blocks, operated by either PTTEP or Valeura.
During Q1 2026, processing of the new 3D seismic acquired in 2025 continued on
schedule, with processed data expected to be available within the coming
months. These new seismic data will be used to define prospects within key
focus areas on the blocks and will be integrated with historic well data to
define prospects for exploration drilling which is expected to commence in
early 2027.
In addition, Valeura is working to assess the full resource potential of
Blocks G1/65 and G3/65, and intends to disclose its findings in due course and
to provide more detailed information on the gas project FID.
Türkiye
Valeura's farm-in partner, Transatlantic Petroleum LLC ("Transatlantic"), has
been delayed in sourcing all the necessary equipment to configure the
Devepinar-1 well for a long-term test. Transatlantic intends to resume
testing operations this month with the objective to demonstrate that the well
can produce continuously, thereby demonstrating commerciality of the deep gas
play. Valeura believes that success with this could lead to similar
long-term tests of its other deep wells, which remain available, but in a
suspended status.
The work Transatlantic has done so far has satisfied the earning requirements
for the West Thrace licence and leases. Once government approval is granted
for the transfer of interest, this will result in 50% Transatlantic, 31.5%
Valeura, 18.5% Pinnacle Turkey, Inc. Valeura continues to hold 100% in the
neighbouring Banarli block.
Valeura's near-term efforts will focus on fulfilling commitments in the West
Thrace licence and leases and the Banarli licences, and to get approval of the
next phase of exploration, which is a two-year appraisal period. Each block
requires an exploration well, which are currently planned to be drilled as
shallow wells by the blocks' shallow rights owner, with Valeura and the other
deep partners contributing to support these wells which will satisfy the
commitments. The two-year appraisal period is subject to approval by the
regulator which is expected after drilling the commitment wells. The smaller
East Banarli licence has limited potential and will not be extended.
Valeura's management is encouraged by Transatlantic's ongoing participation in
the deep gas play and continues to maintain focus on how best to maximise
value of the play. Nevertheless, the Company intends to remain judicious in
its allocation of resources toward the Thrace basin.
Guidance
Production is currently on target and Valeura is maintaining its original full
year 2026 guidance. Guidance on full year adjusted opex is also maintained,
although the Company acknowledges that this metric is influenced by the cost
of diesel fuel, and is therefore currently trending above expectations as a
result of the recent higher oil price environment.
The capital projects associated with Valeura's original 2026 work programme
are all currently on budget, however the Company is revising upwards its
adjusted capex guidance based on increased scope of work. This includes the
Nong Yao A platform expansion and the Company's plan to do additional drilling
in Q4. Spending on these endeavours is well-covered by the Company's strong
net cash position and ongoing cash flow which is significantly boosted by the
high oil price.
Full Year 2026 Guidance
Original Guidance Revised Guidance
Production (bbls/d) 19,500 - 22,500 19,500 - 22,500
Adjusted Opex((1)) (US$ million) 190 - 220 190 - 220
Adjusted Capex((1)) (including exploration) (US$ million) 175 - 195 195 - 215
(1) Non-IFRS financial measure or non-IFRS ratio - see "Non-IFRS
Financial Measures and Ratios" section in this news release.
Sustainability
Valeura's 2025 sustainability reporting data was approved by the Company's
Board of Directors, and has been made available on the Company's website,
under the Sustainability section. The report highlights continuing positive
progress across the spectrum of environmental, social, and governance
responsibilties. Notably, Valeura again reduced its greenhouse gas emissions
intensity, which has decreased by 30% since the Company initially assumed
operatorship of its Thailand portfolio.
In addition, the Company has also published a report on its compliance with
the Fighting Against Forced Labour and Child Labour in Supply Chains Act
(commonly referred to as Canada's Moder Slavery Act) and has uploaded its
latest annual report in accordance with Canada's Extractive Sector
Transparency Measures Act.
Webcast
Valeura's Annual General and Special Meeting of Shareholders is scheduled for
today, 14 May 2026, at 16:00 in Calgary. Shareholders may attend in person,
as further detailed in the Management's Information Circular which was mailed
to shareholders and is available on the Company's website and on
www.sedarplus.ca (http://www.sedarplus.ca) . A webcast of the live event is
accessible with the link below. In addition to the meeting, Valeura's
management will discuss the Q1 2025 results and will host a question and
answer session. Written questions may be submitted through the webcast
system or by email to IR@valeuraenergy.com (mailto:IR@valeuraenergy.com) .
Participants are advised to register for the online event in advance, using
the following link:
https://events.teams.microsoft.com/event/89a443dd-00d3-4c3e-9e30-21d9544bc972@a196a1a0-4579-4a0c-b3a3-855f4db8f64b
(https://events.teams.microsoft.com/event/89a443dd-00d3-4c3e-9e30-21d9544bc972@a196a1a0-4579-4a0c-b3a3-855f4db8f64b)
An audio only feed of the event is available by phone using the Conference ID:
985 301 711#, and dial-in numbers:
Canada: (833) 845-9589,,985301711#
Singapore: +65 6450 6302,,985301711#
Thailand: +66 2 026 9035,,985301711#
Türkiye: 0800 142 034779,,985301711#
United Kingdom: 0800 640 3933,,985301711#
United States: (833) 846-5630,,985301711#
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
Robin James Martin, SVP, 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, Beacon Securities Limited,
Canaccord Genuity Ltd (UK), Cormark Securities Inc., Research Capital
Corporation, Roth Canada Inc., 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
Türkiye. The Company is executing a growth-oriented strategy, reinvesting
into its producing asset portfolio while deploying capital toward further
organic and inorganic growth across Southeast Asia. Valeura is committed to
delivering value-accretive growth for all stakeholders, underpinned by 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) .
Non-IFRS Financial Measures and Ratios
Adjusted EBITDAX: is a non-IFRS financial measure which does not have a
standardised meaning prescribed by IFRS Accounting Standards. This non-IFRS
financial measure is included because management uses the information to
analyse the financial performance of the Company. Adjusted EBITDAX is a
non-IFRS and non-standardised variant of EBITDAX, adjusted to remove non-cash
items as well as certain non-recurring costs including severance payments and
other one-off items in relation to the Company's recent acquisitions.
Adjusted EBITDAX is calculated by adjusting profit for the period before other
items as reported under IFRS Accounting Standards to exclude the effects of
other income, exploration, SRB, finance income and expense, depletion,
depreciation & amortisation ("DD&A"), other costs, and certain
non-cash items (such as impairments, foreign exchange, unrealised risk
management contracts, reassessment of contingent consideration and gains or
losses arising from the disposal of capital assets). In addition, share-based
compensation is excluded from adjusted EBITDAX, as the expenses are not
indicative of the underlying financial performance of the Company.
Three months ended
$'000 31 March 2026 31 March 2025
Profit for the period before other items 4,011 31,614
Other income (5,474) (2,342)
Exploration 398 275
SRB - 23
Finance costs 5,012 4,990
DD&A 33,359 45,642
Share-based compensation ((1)) 4,322 1,194
Adjusted EBITDAX 41,628 87,216
(1) Items are not shown in the Financial Statements. - see the Adjusted
G&A Expenses section for more details.
Adjusted opex and adjusted opex per barrel: are a non-IFRS financial measure
and a non-IFRS financial ratio respectively, which do not have standardised
meanings prescribed by IFRS Accounting Standards. This non-IFRS financial
measure and ratio are included because management uses the information to
analyse cash generation and financial performance of the Company. Operating
cost represents the operating cash expenses incurred by the Company during the
period including the leases that are associated with operations, such as
bareboat contracts for key operating equipment, such as FSOs, floating
production, storage, and offloading vessels ("FPSO"), MOPUs, and warehouses.
Adjusted opex is calculated by effectively adjusting non-cash items from the
operating cost and adding lease costs.
Adjusted opex is divided by production in the period to arrive at adjusted
opex per barrel. Valeura calculates adjusted opex per barrel to provide a
more consistent indication of the cost of field operations. Adjusted opex,
as opposed to operating expenses, excludes the impacts of non-recurring,
non-cash items such as prior period adjustments, and adds back lease costs in
relation to FSOs, FPSOs, MOPU, and other facilities.
Three months ended
$'000 31 March 2026 31 March 2025
Operating Costs((1)) 31,438 38,852
Adjustment of accounting related to inventory capitalisation((2)) 12,636 4,326
Leases((3)) 6,999 8,506
Adjusted Opex 51,073 51,684
Production Volumes during the period (mbbl) 2,009 2,147
Adjusted Opex per Barrel ($/bbl) 25.4 24.1
(1) Operating costs, derived from the Interim Financial Statements, are
presented net of crude oil inventory capitalisation
(2) The item is not shown in the Financial Statements. The cost of
crude inventory is capitalised from operating costs. As a result, the Company
has excluded the effect of crude inventory capitalisation.
(3) In accordance with IFRS 16 Leases, the Company recognised cost
related to its operating leases - attributed to FSO and FPSO vessels and MOPU
used at its Jasmine/Ban Yen, Nong Yao, Manora, and Wassana fields, as well as
onshore warehouse facilities costs to its balance sheet and finance cost in
the profit and loss statement. In order to report a more relevant lifting
cost, the Company has included costs associated with these leases in the
adjusted operating cost calculation. This will be a recurring adjustment.
Adjusted G&A expenses: is a non-IFRS financial measure, which does not
have standardised meanings prescribed by IFRS Accounting Standards. This
non-IFRS financial measure is included because management uses the information
to analyse cash generation and financial performance of the Company. G&A
expenses represent the administrative expenses incurred by the Company during
the period, including personnel and office expenses, share-based compensation,
severance, IT licences and consultancy and professional services. To analyse
the Company's cash generation and financial performance, adjusted G&A
expenses is calculated by deducting non-cash items such as the provision for
severance, and share-based compensation, from the G&A expenses reported in
the financial statements.
Three months ended
$'000 31 March 2026 31 March 2025
Personnel and office costs 5,134 3,952
Share-based compensation 4,322 1,194
Severance 142 190
IT hardware and software licences - 112
Consultancy and professional services 851 697
Total G&A expenses 10,449 6,145
Non-cash items (4,519) (1,347)
Adjusted G&A expenses((1)) 5,930 4,771
(1) Adjusted G&A expenses are newly presented in the current period.
Adjusted cashflow from operations and adjusted cashflow from operations per
barrel: are a non-IFRS financial measure and a non-IFRS financial ratio
respectively, which do not have a standardised meaning prescribed by IFRS
Accounting Standards. This non-IFRS finance measure and ratio are included
because management uses the information to analyse cash generation and
financial performance of the Company. Adjusted cashflow from operations is
calculated using two methods which generate the same figures: a) by
subtracting from oil revenues, adjusted opex, royalties, general and
administrative costs which are adjusted for non-recurring charges (generating
the adjusted pre-tax cashflow), and accrued PITA taxes and SRB expenses, and
b) to enhance and facilitate to the reader a reconciliation of this non-IFRS
measure, the Company also presented the adjusted cash flow from operations by
calculating from cash generated from (used in) operating activities in the
consolidated statement of cash flows, adjusting with non-cash items, adjusted
opex, general and administrative costs which are adjusted for non-recurring
charges (generating the adjusted pre-tax cashflow), and accrued PITA tax and
SRB expenses.
Adjusted cashflow from operations is divided by production in the period to
arrive at adjusted cashflow from operations per bbl. Valeura calculates
adjusted cashflow from operations per barrel, to provide a more consistent
indication of cashflow generated from operations by the Company.
Three months ended
$'000 31 March 2026 31 March 2025
Oil revenues 92,253 148,081
Royalties (13,060) (17,062)
Adjusted opex (51,073) (51,684)
Adjusted G&A expenses((1)) (5,930) (4,771)
Adjusted pre-tax cashflow from operations 22,190 74,564((2))
Income tax / PITA tax (901) (407)
SRB - (23)
Adjusted cashflow from operations 21,289 74,134((2))
Production during the period (bbls) 2,009 2,147
Adjusted cashflow from operations per barrel ($/bbl) 10.6 34.5((2))
Three months ended
$'000 31 March 2026 31 March 2025
Cash generated from operating activities 27,407 27,175
Change in non-cash working capital 16,687 48,330
Non-cash items 35,099 55,514
Adjusted opex (51,073) (51,684)
Adjusted G&A expenses((1)) (5,930) (4,771)
Adjusted pre-tax cashflow from operations 22,190 74,564((2))
Income tax / PITA tax (901) (407)
SRB - (23)
Adjusted cashflow from operations 21,289 74,134((2))
Production during the period (bbls) 2,009 2,147
Adjusted cashflow from operations per barrel ($/bbl) 10.6 34.5((2))
(1) Adjusted G&A expenses are newly applied to present adjusted cash
flow from operations.
(2) Prior year adjusted pre-tax cashflow from operations and Adjusted
cashflow from operations are revised to align with the current period's
presentation
Outstanding debt and net cash: are non-IFRS financial measures which do not
have a standardised meaning prescribed by IFRS Accounting Standards. These
non-IRFS financial measures are provided because management uses the
information to a) analyse financial strength and b) manage the capital
structure of the Company. These non-IFRS measures are used to ensure capital
is managed effectively in order to support the Company's ongoing operations
and needs.
$'000 31 March 2026 31 December 2025
Outstanding Debt - -
Cash and cash equivalents 238,705 282,739
Restricted cash (Current) 8 8
Restricted cash (Non-current) 22,942 22,991
Cash balance 261,655 305,738
Net cash 261,655 305,738
Net working capital and adjusted net working capital: are non-IFRS financial
measures which do not have a standardised meaning prescribed by IFRS
Accounting Standards. These non-IFRS financial measures are included because
management uses the information to analyse liquidity and financial strength of
the Company. Net working capital is calculated by deducting current
liabilities from current assets. Adjusted net working capital is calculated
by adding back the current leases liabilities and including non-current
restricted cash in net working capital.
The leases are associated with operations, such as bareboat contracts for key
operating equipment, such as FSOs, FPSOs, MOPU, and warehouses which are
included in the Company's disclosed adjusted opex (and adjusted opex
guidance). Management believes the adjusted net working capital provides a
useful data point to the reader to ascertain the business' next-twelve-months
surplus or deficit capital requirement. It is also a data point that
management uses for cash management.
$'000 31 March 2026 31 December 2025
Current assets 359,390 382,253
Current liabilities (160,712) (180,695)
Net working capital 198,678 201,558
Current lease liabilities 20,201 36,949
Restricted cash (Non-current) 22,942 22,991
Adjusted net working capital 241,821 261,498
Adjusted capex: is a non-IFRS measure which does not have a standardised
meaning prescribed by IFRS Accounting Standards. Adjusted capex is defined
as the addition in capital expenditure for capital work-in-progress, drilling,
brownfield, and other PP&E. Management uses this non-IFRS measure to
analyse the capital spending of the Company and assess investments in its
assets.
Three months ended
$'000 31 March 2026 31 March 2025
Capital work-in-progress((1)) 16,098 -
Drilling 25,292 26,624
Brownfield 5,094 6,423
Other PP&E 9,777 (148)
Adjusted Capex 56,261 32,899
(1) Capital work-in-progress represents expenditures related to the
Wassana redevelopment project incurred prior to the commencement of
production.
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: timing and cost for the project to add four additional wells slots to the
Nong Yao A platform; timing for the arrival of the Enterprise rig; the
Company's expectations for the potential of Q2 2026; the potential for a
strong financial performance in Q2 2026; completion of the transfer of
Valeura's 40% working interest in Blocks G1/65 and G3/65 pursuant to the
farm-in and such farm-in receiving approval of the Thailand Government; the
Company's expectations that it will continue to pursue inorganic
opportunities; reduced costs as a result of owning, rather than leasing, the
Manora FSO and timing for payback; the Company's expectation that it will
evaluate operating costs by operating costs rather than adjusted opex in the
future; timing for completion of the Nong Yao drilling campaign; timing for
installation of the Wassana CPP and timing to achieve first oil production;
the Company's expectation that the potential of the Wassana field south
satellite area to have more potential than the northern satellite area; the
Company's exploration drilling expectations on the Wassana field south
satellite area and the anticipated timing thereof; the expected remaining
field life of the Manora field; the potential to develop the exploration
accumulation in Licence G1/48 via tie-in to the Manora platform; timing for a
Bussabong gas development FID; timing for exploration drilling on Blocks G1/65
and G3/65; Valeura's expectations to release its finding on the Blocks
potential and the timing of FID thereof; timing to resume Devepinar-1 testing
operations; the ability for success with Devepinar-1 to lead to similar
long-term test of other deep wells in the deep gas play; the transfer of West
Thrace interests to Transatlantic and the anticipated timing thereof; plans
for drilling exploration commitment wells on the West Thrace and Banarli
Licences; the Company's expectations that the West Thrace and Barnali Licences
will be extended; and 2026 guidance estimates and anticipated outcomes.
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 ongoing conflicts between the U.S.-Israel and Iran, and between
Russia and 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;
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 Company's most recent annual information form and the
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.
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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. END NRAEZLBFQELBBBE
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