RCS - Valeura Energy Inc. - Q2 2025 Operations and Financial Update

Valeura EnergyAnnouncement

08/07/2025 08:15

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RNS Number : 1444Q  Valeura Energy Inc.  08 July 2025

 

Q2 2025 Operations and Financial Update

 

Singapore, July 8, 2025: Valeura Energy Inc. (TSX:VLE, OTCQX:VLERF) ("Valeura"
or the "Company") is pleased to provide an update on Q2 2025 operations.

 

 

Highlights

 

·    Safe ongoing operations, with oil production averaging 21.4
mbbls/d((1)) - maintaining full year production guidance of 23.0 - 25.5
mbbls/d;

·    Revenue of US$129.3 million;

·    Taxes of US$15.8 million paid, primarily in respect of the Jasmine
asset.  No further cash tax payments anticipated for the remainder of 2025;

·    Cash position of US$241.9 million and no debt; and

·    Final investment decision on the Wassana Field redevelopment and
construction phase commenced.

 

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

 

 

Dr. Sean Guest, President and CEO commented:

 

"During Q2 2025 we demonstrated another safe quarter of ongoing production and
drilling operations and took a positive final investment decision on our major
redevelopment project at the Wassana field, which is now moving to the
construction phase.

 

While production volumes are down quarter-on-quarter, our plan had always
assumed that production would be weighted to the second half of the year and
we are therefore maintaining our full-year production guidance range of 23.0 -
25.5 mbbls/d.

 

From a financial perspective, we continue to prioritise balance sheet
strength, and firmly believe this will serve our stakeholders well as we
pursue opportunities to add value.  While the headwinds of lower global oil
prices during the quarter are apparent in our revenue of US$129.3 million, we
are continuing to invest while maintaining a strong cash position."

 

 

Q2 2025 Update

 

Working interest share production before royalties averaged 21.4 mbbls/d
during Q2 2025, a decrease of 10.2% from Q1 2025.  Rates reflect the impact
of planned downtime and natural declines at Valeura's larger producing assets,
which is consistent with the Company's business plan.  Q2 was anticipated to
be the lowest production quarter of the year, and with rates weighted to the
second half of 2025, the Company is maintaining its full year production
guidance range of 23.0 - 25.5 mbbls/d.

 

Oil sales totalled 1.90 million bbls during Q2 2025.  The Company recorded a
net increase in oil inventory, as measured at the end of the quarter, to a
total of 0.93 million bbls at June 30, 2025.  In addition, a parcel of 0.24
million bbls of oil was sold just after the end of the quarter, on July 1,
2025.

 

Price realisations averaged US$67.95/bbl during Q2 2025, a US$0.67/bbl premium
over the weighted average Brent crude oil benchmark.  Realised price was down
14% from Q1 2025 given the significant drop in global oil prices.

 

Taxes for the Company's Thai I concession (Jasmine) are due in May of each
year for the prior full year, and US$15.8 million was duly paid during the
quarter primarily in respect of this asset.  Taxes for the Company's Thai III
concessions (Nong Yao, Manora, and Wassana) are due in May and August of each
year, however taxable income for the current tax period (2H 2024) was fully
offset by tax loss carry-forwards.   Given the above, no further tax
payments are expected in 2025.

 

Despite a relatively low oil price, a full quarter of spending on drilling
operations, and scheduled Thai tax payments, Valeura's cash position at June
30, 2025, was US$241.9 million (with no debt), up slightly from the previous
quarter-end.  In addition, US$19.6 million in revenue, relating to a lifting
on June 25, 2025, was not received until early in July 2025.  As a result,
this US$19.6 million is not included in the revenue or the Company's cash
balance at June 30, 2025, but will be correctly accounted in the Q2
financials.

 

 

Operations Update

Production operations are continuing safely on Valeura's four Gulf of Thailand
fields, with no lost time injuries.

 

During the quarter, Valeura mobilised its contracted drilling rig to Block
G11/48 (Nong Yao, 90% working interest).  The drilling campaign is
progressing as planned toward its objective of approximately 10 new
development wells and is expected to be complete in Q4 2025.  The campaign
will entail new development wells drilled from each of the three Nong Yao
wellhead facilities, and will therefore include the first ever infill
development wells on the Nong Yao C platform, which the Company installed in
2024.

 

In May 2025, Valeura took a final investment decision on redevelopment the
Wassana field in Licence G10/48 (100% interest).  The project will entail
deployment of a new central processing platform facility on the field,
intended to increase production, reduce costs, and create a hub for eventual
tie-in of potential additional satellite wellhead platforms.  The project is
on plan, and moving into its construction phase now.  First production is
planned for Q2 2027.

 

 

Results Timing

Valeura intends to release its full unaudited financial and operating results
for Q2 2025 on August 7, 2025, and will discuss the results in more detail
through a management webcast hosted later that day.

 

 

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; no
further cash tax payments being anticipated in 2025; timing and composition of
future drilling campaigns; the effect of the Wassana redevelopment project on
production, costs, and future growth of the G10/48 block; and timing for first
production from the Wassana redevelopment project. 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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