RCS - Valeura Energy Inc. - Q3 2025 Operations and Financial Update

Valeura EnergyAnnouncement

09/10/2025 08:15

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RNS Number : 7162C  Valeura Energy Inc.  09 October 2025

 

Q3 2025 Operations and Financial Update

 

Singapore, October 9, 2025: Valeura Energy Inc. (TSX:VLE, OTCQX:VLERF)
("Valeura" or the "Company") is pleased to provide an update on Q3 2025
operations, including the results of a ten-well drilling campaign at its Nong
Yao field on block G11/48 (90% operated working interest), offshore Gulf of
Thailand.

 

 

Key Highlights

·    Safe ongoing operations, with oil production averaging 23.0
mbbls/d((1));

·    Lifting of 2.16 million barrels at an average realised price of
US$72.06/bbl (US$2.52/bbl premium to Brent);

·    Cash position of US$248.3 million, plus a net crude receivable of
US$36.7 million;

·    Successful ten-well drilling campaign at block G11/48, resulting in a
production increase to 24.8 mbbls/d((1,2)) at quarter-end;

·    Major offshore acreage expansion through strategic farm-in agreement
in the Gulf of Thailand((3)); and

·    Progress on the Wassana field redevelopment project, with
construction on schedule.

 

(1) Average Q3 2025 working interest share oil production, before royalties.

(2) Seven-day average to September 30, 2025.

(3) Closing is subject to Government of Thailand approval.

 

 

Dr. Sean Guest, President and CEO commented:

"Our strong operational performance continued in Q3 2025, including an
extensive drilling campaign at our Nong Yao field.  Over our three years of
Gulf of Thailand operations, we have added material value for shareholders
through infill drilling, and the Nong Yao campaign is no exception.  Both
through accessing new reservoirs and ensuring the optimal sweep of existing
production intervals, we continue to add reserves and extend the economic
lives of our fields, while also identifying new appraisal targets.

 

Moreover, we believe this campaign showcases our world-class operating
capabilities, with our new wells accessing reservoirs further from our
production facilities than would have been thought possible just a few years
ago.  Importantly, the new wells and operations across the entire portfolio
were executed without any deviation from our high standards of health, safety,
and environmental stewardship.

 

Our average working interest share oil production before royalties increased
to 23.0 mbbls/d during Q3.  Toward the end of the quarter, with the new Nong
Yao wells online, our rates had risen to approximately 24.8 mbbls/d.

 

Our financial position remains strong as well with cash of just under a
quarter billion US dollars and no debt.  This position handily facilitates
our ongoing investments to add further value through growth.

 

On that front, we are making good progress on the construction phase of our
Wassana redevelopment project, and while still in its early days, the project
is on track with our target of first oil in Q2 2027.  Separately, this
quarter we have taken an exciting step toward shaping the longer-term future
of our portfolio by way of a strategic farm-in in the Gulf of Thailand.  With
gas accumulations already discovered on both the blocks, and within close
proximity to infrastructure, we anticipate moving rapidly toward development
and gas production.  Upon completion, the deal will formalise an important
strategic relationship in Thailand which I believe will serve all stakeholders
well for many years to come."

 

 

Q3 2025 Update

Working interest share oil production before royalties averaged 23.0 mbbls/d
during Q3 2025, an increase of 6.2% from Q2 2025.  Rates reflect the
resumption of normal operations at all assets, following planned downtime in
Q2 2025.  With the addition of production from the Nong Yao infill drilling
campaign, completed in late September, working interest share production
before royalties over the seven-day period ending September 30, 2025 had
increased to an average of 24.8 mbbls/d.  With nine months of 2025 production
now completed, and an observed up-tick in rates at the end of Q3, the Company
anticipates a full year average production outcome within, but at the lower
end of, its stated guidance range.

 

Oil sales totalled 2.16 million bbls during Q3 2025 which was up 8.7% from Q2.
 In addition, the Company had a total of 0.88 million bbls of oil inventory
at September 30, 2025, ready for sale.  Price realisations averaged
US$72.06/bbl during Q3 2025, a US$2.52/bbl premium over the weighted average
Brent crude oil benchmark.

 

Valeura's cash position at September 30, 2025, was US$248.3 million (with no
debt), an increase from the previous quarter end.  In addition, cash from
three liftings in September, amounting to US$36.7 million net to the Company,
is expected to be received in mid-October.  As a result, the Company will
record a net receivable to that amount to reflect the timing of payment
happening in Q4 rather than Q3 2025.

 

 

Nong Yao Drilling

Valeura drilled a total of ten wells in Q3 2025, covering all three of its
wellhead infrastructure facilities on the Nong Yao field.  The campaign was
primarily production-oriented and resulted in the Company's working interest
share oil production before royalties from the Nong Yao field increasing from
approximately 7,996 bbls/d prior to the first new wells coming on stream, to a
recent rate of 11,562 bbls/d, over the seven-day period ending September 30,
2025.  The Company anticipates that the reservoirs encountered may add to the
ultimate production potential of the Nong Yao field and can thereby further
extend its economic life.

 

Nong Yao A

Valeura drilled three horizontal development wells from its Nong Yao A
wellhead and production facility.  All were successful and are on-stream as
oil producers.  The wells were successfully geosteered on a real-time basis
to maximise exposure to the oil-bearing interval of the reservoir, threading
narrowly between other reservoir fluids.

 

Wells NYA-39H and NYA-41ST 1H were drilled as horizontal infill development
wells within the H3.0 and H4.4 sand reservoirs, respectively.  Both
encountered their targets as expected and are now on stream.

 

Well NYA-40H was drilled as a horizontal infill development well within the
target H2.0 sand reservoir and was extended further than the original well
design as the lateral extent of the reservoir exceeded management's
expectations.  In addition, while directionally drilling toward the target
interval, this well encountered potential upside bypassed oil in the shallower
H2.5 and H3.0 reservoirs, which will be further evaluated for future
development.

 

 

Nong Yao B

Valeura drilled four horizontal development wells and one successful appraisal
well from its Nong Yao B wellhead platform.  Three of the development wells
were completed as producers.  This part of the Nong Yao drilling campaign
included some of the most technically challenging wells ever drilled in the
Gulf of Thailand basin, influenced by both geological complexity and also
their extended reach from the wellhead platform, in one instance measuring a
total drilled length of over 9,800'.

 

Well NYB-27H was drilled as a horizontal infill development well to test the
Company's thesis of bypassed oil within the target H1.8 sand reservoir at this
location and is currently onstream as a producer.

 

Wells NYB-28H and NYB-30H were drilled as a horizontal infill development
wells within the H1.8 and H6.4 sand reservoirs, respectively.  In both
instances, results were as expected and the wells are on stream as producers.

 

Well NYB-29 was drilled as a deviated appraisal well to assess the development
potential of various reservoir intervals.  The well successfully confirmed
the potential for development of both the H8.0 and H8.5 sand reservoirs, which
will now be further studied for inclusion in a future development drilling
campaign.

 

Well NYB-29ST 1H was drilled as a development sidetrack from the NYB-29
well.  While the well encountered its target as anticipated, results indicate
that this particular interval was already being adequately swept by a
pre-existing well, and therefore was not completed as a producer.

 

Nong Yao C

Valeura drilled two horizontal wells from its Nong Yao C mobile offshore
production unit, one was completed as a producer and information from the
other well has allowed the Company to increase production from existing wells.

 

Well NYC-11H was drilled as a horizontal infill development well within the
target H4.0 sand reservoir.  The well exceeded management's expectations,
encountering net oil pay throughout virtually all of its horizontal section
and is now on stream as a producer.

 

Well NYC-12H was drilled to further develop two already-producing reservoirs,
but was not completed as a producer.  Logging results from one of the target
intervals have furthered management's understanding of the reservoir at this
location, indicating that the pre-existing wells can adequately sweep oil from
the H2.0 sand reservoir.  So, while the NYC-12H well does not contribute to
production in itself, with the additional learnings gathered, the Company has
implemented a deliberate increase in production rates from the pre-existing
wells in this reservoir.

 

The Nong Yao drilling campaign was completed safely, on time, and on budget.
Valeura's contracted drilling rig has now been mobilised to the Jasmine field
on block B5/27, where the Company has commenced a programme of up to nine
development wells, some which include additional appraisal targets.

 

 

Operations Update

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

 

During Q2 2025, the Company progressed the construction phase of its Wassana
redevelopment project, which will support an expansion of the Company's
Wassana field, on block G10/48 (100% interest).  The project is progressing
on plan for deployment of the new-build wellhead production facility in late
2026 and first production in Q2 2027.  The Wassana redevelopment project is
intended to increase production, reduce unit costs, and create a hub for
eventual tie-in of potential additional satellite wellhead platforms.

 

On blocks G1/65 and G3/65 (40% working interest, subject to closing of the
strategic farm-in with PTT Exploration and Production Plc ("PTTEP")), the
operator has completed the acquisition of a total of 1,200 km2 of 3D seismic,
which is now being processed, and will ultimately guide the next exploration
steps on these blocks. In addition, to date in 2025, wells drilled on both
blocks (at Jarmjuree South in block G1/65 and Bussabong in block G3/65) have
discovered gas, which will lead to further discussion between the partners in
relation to an eventual field development plan.

 

Results Timing

Valeura intends to release its full unaudited financial and operating results
for Q3 2025 on November 14, 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 ability to move rapidly toward development and gas production on
blocks G1/65 and G3/65; the closing of its strategic farm-in and the benefits
therefrom; full year 2025 average production being within its stated guidance
range; the receipt of cash from liftings; the potential for the reservoirs
encountered in the Nong Yao field drilling campaign adding to the ultimate
production potential of the field and thereby extending its economic life; the
potential for appraisal targets encountered in the Nong Yao drilling campaign
creating future development opportunities; and the timing to deploy the
new-build wellhead production facility on the Wassana field, timing to achieve
first production, and potential for the project to reduce unit costs and
create a hub for eventual tie-in of potential additional satellite wellhead
platforms.

 

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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