RCS - Valeura Energy Inc. - Q1 2025 Operations and Financial Update

Valeura EnergyAnnouncement

09/04/2025 08:15

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RNS Number : 2821E  Valeura Energy Inc.  09 April 2025

 

Q1 2025 Operations and Financial Update

 

Singapore, April 9, 2025: Valeura Energy Inc. (TSX:VLE, OTCQX:VLERF)
("Valeura" or the "Company") is pleased to provide an update on Q1 2025
operations.

 

 

Highlights

 

·    Operations continuing smoothly, with oil production averaging 23.9
mbbls/d((1));

o  Continual programme of development and appraisal drilling throughout the
quarter;

o  Strong ongoing safety performance, with no lost time injuries;

·    Strong cash position at March 31, 2025 of US$238.3 million, and no
debt;

o  Taxes paid of US$39.2 million in Q1;

o  Repurchased 963,401 shares in Q1;

·    Resilient ongoing business based on strong balance sheet and cash
flow, creating growth optionality in the current volatile climate.

 

(1) Working interest share oil production, before royalties.

 

 

Dr. Sean Guest, President and CEO commented:

"Our strong operational and financial performance continued throughout Q1
2025, and our business is more resilient than ever.  With our corporate
restructuring completed in November 2024, and the final tax payment under the
previous structure now behind us, we see an energised ability to generate cash
flow as we look at the remainder of 2025.

 

We are carefully monitoring the current volatile market conditions while
simultaneously reviewing and optimising our expenditures.  However, our
strong financial position with cash of US$238 million and no debt makes
Valeura not only resilient, but also well positioned for attractive inorganic
opportunities that may emerge during such a turbulent market environment.

 

Notwithstanding the recent market volatility, we are maintaining all of our
previously disclosed guidance assumptions for the year."

 

 

Q1 2025 Update

 

Valeura's working interest share production before royalties averaged 23.9
mbbls/d during Q1 2025, a decrease of 8.4% from Q4 2024.  Rates were affected
by a planned seven-day annual maintenance shutdown of the Nong Yao field near
the end of the quarter.  All planned work on the Nong Yao facilities was
conducted safely and under time and budget with production resuming on April
1, 2025.  Valeura re-iterates its full year 2025 production guidance outlook
of 23.0 - 25.5 mbbls/d.

 

Oil sales totalled 1.88 million bbls during Q1 2025, less than the 2.15
million bbls produced.  Sales were lower than in Q4 2024 and reflect the fact
that at the beginning of the quarter, the Company had record low crude oil in
inventory.  At the end of the quarter Valeura had 0.89 million bbls in
inventory, which is expected to be sold in Q2 2025 (including a lifting of
approximately 0.25 million bbls which was sold on April 1, 2025).

 

Price realisations averaged US$78.7/bbl during Q1 2025, reflecting a
US$2.9/bbl premium over the Brent crude oil benchmark.  Oil revenue during Q1
2025 was US$148.1 million, 35% lower than Q4 2024.  The quarter-on-quarter
difference is due to less oil volumes sold, and also one sale occurring very
late in the quarter, for which revenue is expected to be received in April
2025.  Accordingly, the Company recorded a receivable associated with that
lifting of approximately US$30 million as at March 31, 2025.

 

In addition to routine operating costs and planned capital spending, the
Company has made a final tax payment of US$39.2 million in connection with its
corporate restructuring that was completed in November 2024.  This payment
effectively completes the tax obligations for its Thai III licences under
their previous organisation structure, and became due in Q1 2025, earlier than
usual tax payments for Thai III licences which are payable in May and August
of each year.  Following the restructuring, petroleum income tax loss
carry-forwards that were previously associated with only the Wassana asset are
now being applied to all of the Company's Thai III petroleum concessions,
being Wassana, Nong Yao, and Manora, thereby resulting in a more efficient tax
structure for the business.

 

While the Company acknowledges the global market and oil price volatility
experienced in early April 2025, at this time, Valeura re-affirms all of its
guidance outlook expectations for 2025.  The Company maintains a
scenario-based approach to planning its investments, driven largely by
forecast oil prices.  Recent market conditions underscore the importance of
such an approach, but more importantly highlight the value of maintaining a
strong balance sheet so as to capitalise on emerging inorganic growth
opportunities.  As of March 31, 2025, Valeura had US$238.3 million in cash,
with no debt.

 

During the quarter, the Company acquired 963,401 shares as part of its NCIB
programme.

 

 

Operations Update

 

Valeura provided an operations update on March 25, 2025, along with its
announcement of results for Q4 and the full year 2024.  Since that time, the
Company has been conducting a drilling campaign on the Jasmine / Ban Yen
field, and will provide an update in due course.

 

On March 28, 2025, an earthquake struck central Myanmar, which borders
Thailand to the north-west.  All Valeura's personnel were confirmed safe, and
all facilities continue to operate safely.

 

 

Results Timing and AGM

 

Valeura intends to release its full unaudited financial and operating results
for Q1 2025 on May 14, 2025, and will discuss the results in more detail
through a management webcast hosted in conjunction with its Annual General
Meeting of Shareholders (the "meeting") later that day.  The notice of
meeting and related Management's Information Circular have been mailed to
shareholders and are available on the Company's website at
www.valeuraenergy.com/governance (http://www.valeuraenergy.com/governance) and
on SEDAR+ at www.sedarplus.ca (http://www.sedarplus.ca) .

 

 

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

 

Valeura Energy Inc. (Investor and Media Enquiries)

+1 403 975 6752 / +44 7392 940495

Robin James Martin, Vice President, Communications and Investor Relations

IR@valeuraenergy.com

 

 

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.

 

 

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  anticipated full year 2025 guidance assumptions, being
full year working interest share oil production before royalties of 23.0 -
25.5 mbbls/d, capex of US$125 - 150 million, exploration expense of
approximately US$11 million, and adjusted opex of US$125 - 245 million, all as
more fully described in the January 9, 2025 press release; the anticipated
receivable of approximately US$30 million as at March 31, 2025; and Valeura's
expectation that it will benefit from a more efficient tax structure as a
result of the corporate restructuring.  Although the Company believes the
expectations and assumptions reflected in such forward-looking information are
reasonable, they may prove to be incorrect.

 

Forward-looking information is based on management's current expectations and
assumptions regarding, among other things: political stability of the areas in
which the Company is operating; continued safety of operations and ability to
proceed in a timely manner; continued operations of and approvals forthcoming
from governments and regulators in a manner consistent with past conduct;
ability to achieve extensions to licences in Thailand and Türkiye to support
attractive development and resource recovery; 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; the impact of conflicts in the Middle East; royalty rates
and taxes; management's estimate of cumulative tax losses being correct;
future capital and other expenditures; the success obtained in drilling new
wells and working over existing wellbores; the performance of wells and
facilities; the availability of the required capital to funds its exploration,
development and other operations, and the ability of the Company to meet its
commitments and financial obligations; the ability of the Company to secure
adequate processing, transportation, fractionation and storage capacity on
acceptable terms; the capacity and reliability of facilities; the application
of regulatory requirements respecting abandonment and reclamation; the
recoverability of the Company's reserves and contingent resources; future
growth; the sufficiency of budgeted capital expenditures in carrying out
planned activities; the impact of increasing competition; the availability and
identification of mergers and acquisition opportunities; the ability to
successfully negotiate and complete any mergers and acquisition opportunities;
the ability to efficiently integrate assets and employees acquired through
acquisitions; global energy policies going forward; international trade
policies; future debt levels; and the Company's continued ability to obtain
and retain qualified staff and equipment in a timely and cost efficient
manner. In addition, the Company's work programmes and budgets are in part
based upon expected agreement among joint venture partners and associated
exploration, development and marketing plans and anticipated costs and sales
prices, which are subject to change based on, among other things, the actual
results of drilling and related activity, availability of drilling, offshore
storage and offloading facilities and other specialised oilfield equipment and
service providers, changes in partners' plans and unexpected delays and
changes in market conditions. Although the Company believes the expectations
and assumptions reflected in such forward-looking information are reasonable,
they may prove to be incorrect.

 

Forward-looking information involves significant known and unknown risks and
uncertainties. Exploration, appraisal, and development of oil and natural gas
reserves and resources are speculative activities and involve a degree of
risk. A number of factors could cause actual results to differ materially from
those anticipated by the Company including, but not limited to: the ability of
management to execute its business plan or realise anticipated benefits from
acquisitions; the risk of disruptions from public health emergencies and/or
pandemics; competition for specialised equipment and human resources; the
Company's ability to manage growth; the Company's ability to manage the costs
related to inflation; disruption in supply chains; the risk of currency
fluctuations; changes in interest rates, oil and gas prices and netbacks; the
risk that the Company's tax advisors' and/or auditors' assessment of the
Company's cumulative tax losses varies significantly from management's
expectations of the same; potential changes in joint venture partner
strategies and participation in work programmes; uncertainty regarding the
contemplated timelines and costs for work programme execution; the risks of
disruption to operations and access to worksites; potential changes in laws
and regulations, including international treaties and trade policies; 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 news 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 news
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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