RCS - Valeura Energy Inc. - Strategic Farm-in Agreement with PTTEP

Valeura EnergyAnnouncement

25/07/2025 12:15

For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20250725:nRSY6301Sa&default-theme=true

RNS Number : 6301S  Valeura Energy Inc.  25 July 2025

 

Strategic Farm-in Agreement with PTTEP

Major Offshore Acreage Expansion Creates New Growth Platform in the Gulf of
Thailand

 

 

Singapore, July 25, 2025: Valeura Energy Inc. (TSX:VLE, OTCQX:VLERF)
("Valeura" or the "Company") is pleased to announce that it has entered into a
Farm-in Agreement with PTT Exploration and Production Plc ("PTTEP"), through
its subsidiary, PTTEP Energy Development Company Limited to earn a 40%
interest in Blocks G1/65 and G3/65 (the "Blocks"), in the offshore Gulf of
Thailand (the "Farm-in").

 

Key Highlights

·    Strategic Partnership: Farm-in Agreement with PTTEP, the largest oil
and gas explorer, producer, and operator in Thailand;

·    Substantial Acreage Expansion: Increases Valeura's gross acreage
position in Thailand from 2,623 km² to 22,757 km²;

·    Prime Location Adjacent to Major Infrastructure: The Blocks are
strategically positioned next to some of Thailand's largest producing gas
fields and Valeura's oil fields;

·    Discoveries: 15 oil and gas discoveries on the Blocks, supported by
27 wells which encountered oil and gas pay;

·    Infrastructure-Led Growth: Existing discoveries and exploration
prospects that the Company believes can be tied back quickly to existing oil
and gas infrastructure; and

·    Immediate Activity: Exploration and appraisal work already underway
with 3D seismic acquisition planned to commence in the coming months.

 

 

Dr. Sean Guest, President and CEO commented:

"The spirit of collaboration between Valeura and PTTEP is strong, and we are
excited to begin work on this vast swath of prospective acreage in the Gulf of
Thailand with the potential for both near and long-term natural gas and oil
developments.  PTTEP has an unparalleled depth of knowledge in Thailand and a
proven track record of exploration and development success both in Thailand
and throughout the Southeast Asia region.

 

Acquiring an interest in these Blocks increases our acreage in the offshore
Gulf of Thailand substantially, and provides us with existing discoveries and
attractive exploration prospects immediately adjacent to several world class
gas fields and our producing oil assets.  Both Blocks already contain
existing discoveries, and new exploration drilling has commenced in 2025,
aimed at confirming sufficient gas and/or oil volumes for installation of new
platforms that can be tied back to existing infrastructure.  While our
initial focus is on pursuing these near-term development opportunities, there
are also higher-risk/higher-reward prospects which we plan to explore, with
the objective of building out a pathway for longer-term growth.

 

Our intent is to both expand and diversify our business both organically and
inorganically.  This Farm-in furthers that goal by layering in low cost,
infrastructure-led exploration, while also adding gas developments within a
welcoming jurisdiction that has prioritised energy development to fuel its
growing economy.  We see this Farm-in and strategic partnership with PTTEP as
an excellent opportunity to drive further value generation for our
stakeholders."

 

 

Farm-in

Under the terms of the Farm-in, Valeura is entitled to earn a 40% working
interest in the Blocks, with PTTEP holding the remaining 60% and continuing to
operate.  The parties have agreed to a work programme for 2025 that includes
drilling four exploration wells (all recently completed) and acquiring just
over 1,200 km(2) of new 3D seismic data.  To earn its interest, Valeura will
pay 40% of actual back costs (US$14.7 million to June 30, 2025).  These costs
include the recently completed four-well 2025 drilling programme, geological
and geophysical studies, PSCs signature bonuses, and general and
administrative costs incurred since the Blocks were awarded in March 2023.
 Valeura will also carry PTTEP on an additional seismic acquisition
(requested by Valeura) of approximately 165 km(2) on Block G3/65, located to
the northeast of the Nong Yao field - capped at US$3.7 million (gross).  For
costs thereafter, each of PTTEP and Valeura will pay their respective pro rata
share.

 

The Blocks are governed by the terms of Production Sharing Contracts ("PSCs")
granted by the Thailand Government through the Ministry of Energy which set
out fiscal terms including a royalty payable to the Thailand Government at 10%
of gross revenue, provisions for cost recovery up to 50% of gross revenue, and
profits thereafter shared 50% government / 50% contractor.  The corporate
income tax rate on contractor net profit is 20%.

 

The PSCs provide for a six-year exploration period, during which a total of
eight wells must be drilled (five on G1/65 and three on G3/65), and 800 km(2)
of 3D seismic must be acquired (500 km(2) in G1/65 and 300 km(2) in G3/65)
before the end of the exploration period in May 2029. A three-year extension
to the exploration period may be provided thereafter.  Fields developed under
the PSC regime are given a 20-year production period, with a potential 10-year
extension thereafter.

 

Closing of the Farm-in is subject to the approval of the Government of
Thailand.

 

 

Block G1/65

Block G1/65 comprises a gross area of 8,487 km(2) immediately south of
Valeura's B5/27 block (Jasmine/Ban Yen fields, 100% Valeura interest) and west
of PTTEP-operated large gas fields (Erawan, Platong, and Benchamas, currently
producing 900 mmcf/d, 27 mbbls/d condensate, and 23 mbbls/d oil, respectively,
based on May 2025 production data disclosed by Thailand's Department of
Mineral Fuels).  The block is approximately 240 km long covering the
north-western flank of the Pattani basin, the most prolific basin in the Gulf
of Thailand, and encircles the Rossukon oil field (2% Valeura gross royalty
interest).  The block includes eight oil and gas discoveries, supported by 12
wells which encountered oil and gas pay, as well as several undrilled
prospective trends.  PTTEP and Valeura have high-graded two focus areas on
Block G1/65 which will guide their initial work programme.

 

·    The Jarmjuree South area: A liquids-rich gas and oil-bearing
structural trend between the producing Benchamas and Platong fields.  The
Company believes that the area has been substantially de-risked by four wells
which confirmed the accumulation of both oil and gas in multiple stacked
reservoir intervals.  PTTEP has just completed a three-well appraisal
drilling campaign in the Jarmjuree South area to further delineate the
opportunity, and to date, one well has been disclosed by the Department of
Mineral Fuels to have encountered gas pay.  Valeura anticipates that field
development planning will follow in the near term, and after closing of the
Farm-in, the Company intends to provide further detail on the next steps
towards the commercialisation of this area.

 

·    The Maratee-Bussaba area: Located immediately south of the Rossukon
oil field, contains a three-way closure structure as well as several combined
structural/stratigraphic traps which have been identified as drilling
candidates, based on existing 3D seismic data over the area.  Based on nearby
producing fields and discoveries in the vicinity, the Company expects the
trend to be an oil-prone fairway.  The planned 3D seismic acquisition on
Block G1/65 will focus on the western portion of the Maratee-Bussuba area to
better image the reservoir to support further exploration drilling in this
area.

 

 

Block G3/65

Block G3/65 comprises a gross area of 11,647 km(2), bounding Valeura's G11/48
block in the north (Nong Yao field, 90% Valeura working interest) and is
immediately west of the large PTTEP-operated Bongkot gas field, which
currently produces 850 mmcf/d gas and 24 mbbls/d condensate, based on May 2025
production data disclosed by Thailand's Department of Mineral Fuels.  The
block is approximately 200 km long covering the northwest flank of the North
Malay basin, and has seven identified oil and gas discoveries, supported by 15
wells with oil and gas pay.  Two key focus areas have been identified on
Block G3/65 which will guide the initial work programme.

 

·    The Nong Yao North-East area: Believed by the Company to contain an
oil-bearing fairway between the Company's Nong Yao field and the undeveloped
Ubon oil field to the north.  The area is expected to be covered with 3D
seismic in 2025 to accurately define the prospects and thereafter Valeura
anticipates the start of exploration and appraisal drilling.  Given this new
opportunity, the Company's objective is to determine whether this area, or the
recent Nong Yao-D discovery by Valeura in 2024, are better placed as the next
tie-back development to Valeura's operated processing infrastructure on the
Nong Yao Field.

 

·    The Bussabong-Angun area: Located immediately west of PTTEP's Bongkot
gas field, is thought to contain extensive gas accumulations, as substantiated
by multiple existing gas discoveries.  PTTEP recently drilled an exploration
well to fully validate the Bussabong opportunity, which has been disclosed by
the Department of Mineral Fuels to have encountered gas pay.  The Bussabong
discovery is a prime candidate for a fast-track gas development, potentially
resulting in Company's first gas reserves in Thailand.  Valeura is optimistic
that development planning will progress at pace, and after completion of the
Farm-in, the Company intends to provide further disclosure on next steps for
the Bussabong gas accumulation.

 

 

Results Timing

Valeura intends to release its unaudited financial and operating results for
the three and six-month periods ended June 30, 2025 on August 7, 2025 and will
host a webinar the same day to discuss the results as well as today's
announcement.

 

 

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 / +44
7392 940495
Robin James Martin, Vice President, 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, Canaccord Genuity Ltd (UK),
Cormark Securities Inc., Research Capital Corporation, 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 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 (http://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, planned 3D seismic acquisition in respect of the Blocks commencing
in the coming months; Valeura's plan to leverage higher-risk/higher-reward
prospects to build out a pathway for longer-term growth; the Farm-in driving
value generation for Valeura's stakeholders; the work programme in 2025,
including the drilling of four exploration wells and the acquisition of just
over 1,200 km(2) of new 3D seismic data; Valeura paying 40% of the actual back
costs relating to the award of the Blocks, and such costs being equal to
(US$14.7 million to June 30 2025); Valeura paying only 40% of its share of
drilling, seismic and studies costs, and carrying the cost of the seismic
acquisition request from Valeura for approximately 165 km(2) located to the
northeast of the Nong Yao field; anticipated cost recovery of a portion of the
Company's earning provisions; the Farm-in receiving approval of Thailand's
minister of energy; Valeura's expectation that field development planning in
the Jarmjuree South Area will follow in the near term, and Valeura's timing
for providing further detail on the next steps towards the commercialisation
of this area; Valeura's expectation that the Maratee-Bussaba area is an
oil-prone fairway; the Company's expectation that part of the planned 3D
seismic acquisition on Block G1/65 will focus on the Maratee-Bussaba area; the
Company's belief that the Nong Yao North-East focus area contains an oil
bearing fairway; the Company's expectation that the Nong Yao North-East focus
area will be covered with 3D seismic in 2025 and the Company's anticipated
exploration and appraisal drilling starting thereafter; the Company's
expectation that the Bussabong area contains extensive gas accumulations; the
possibility that the Bussabong area may become the Company's first gas
reserves in Thailand; the Company's expectation that development planning in
the Bussabong area will progress at expected pace, and the expected timing on
which the Company will provide further disclosure on the next steps for the
Bussabong gas accumulation; the Company's anticipated timing for releasing its
unaudited financial and operating results for the three and six month periods
ending June 30, 2025.

 

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.

 

Gulf of Thailand map

The Gulf of Thailand map featured in this press release has been compiled by
Valeura based on various public and proprietary data sources.  Polygons
identified as oil fields and gas fields are not necessarily indicative of
commercial viability, nor does the Company represent that aerial extent of
such polygons correlates to ultimate potential recovery of oil and gas from
such accumulations.

 

 

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.

This information is provided by Reach, the non-regulatory press release distribution service of RNS, part of the London Stock Exchange. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  NRAKZGZNLKVGKZG