RCS - Valeura Energy Inc. - Successful Wassana Drilling and Production Update

Valeura EnergyAnnouncement

18/09/2023 08:15

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RNS Number : 6852M  Valeura Energy Inc.  18 September 2023

Successful Wassana Drilling and Production Update

Singapore, September 18, 2023: Valeura Energy Inc. (TSX:VLE, OTCQX:VLERF)
("Valeura" or the "Company"), the upstream oil and gas company with assets in
the Gulf of Thailand and the Thrace Basin of Turkey, is pleased to announce
the results of two appraisal wells drilled at the Wassana oil field and to
provide an update on plans for restart of production operations.

Highlights

·    Two appraisal wells were successfully drilled on flanks of Wassana
oil field targeting deeper portions of reservoir;

·    Wells A28 and A28-ST1 confirmed net oil pay of 72 ft and 75 ft
respectively and were successful in confirming presence of oil deeper than
previously proven;

·    Valeura is currently re-mapping Wassana to integrate the new data and
anticipates that the results will yield an increase in its volumetric
estimates and could yield an additional approximately 20 production well
locations; and

·    On the strength of these results, the Company has commenced a review
of development options to expand the production infrastructure which could
increase production and extend the field life beyond 2030.

Appraisal wells

Valeura has drilled two appraisal wells on the flanks of the Wassana oil field
to test for suspected additional oil accumulations in the field's Tertiary
clastic section. Both wells targeted the deeper portions of the reservoir
section (2.0 and 2.1 sands), which holds most of the remaining underdeveloped
oil reservoirs in the field.  The appraisal programme was driven by the fact
that an oil-water contact in this section had not yet been penetrated,
implying potential for additional down-dip oil volumes. Further, recently
reprocessed 3D seismic data suggested upside in a thickening of the reservoir
section in the targeted locations. Both wells were successful in fulfilling
these objectives and the Company believes the well results indicate the
potential for substantial further development of the field which could yield
an increase in production and a significant extension of the field's economic
life.

The first well, A28, was drilled in the main producing fault block of the
field, downdip of existing production wells and encountered 72 ft of net oil
pay. While previous reserves estimates were based on a demonstrated
oil-down-to depth of 5,517 ft true vertical depth sub-sea ("TVDSS"), the new
well has confirmed the presence of oil down to at least 5,594 ft TVDSS,
exceeding the Company's expectations for the vertical extent of the oil
column.  In addition, the well encountered a thicker package of reservoir
sands and new oil-filled sands that have not been previously developed.

The second well, A28-ST1, was drilled to confirm the presence of oil in an
untested area south of the main producing part of the field.  The well
encountered 75 ft of net oil pay proving the presence of oil in this
undeveloped area.

Valeura is currently re-mapping the field to integrate the new data and
anticipates that the results will yield an increase in its volumetric
estimates.  These additional volumes will be assessed as part of the
Company's next external third-party reserves and resources evaluation.
 Preliminary analysis indicates that an additional approximately 20
production well targets are now potentially viable within the reservoir
section appraised by these two wells.  In light of this upside potential,
Valeura has begun the concept selection phase of a project to expand the
development of the Wassana field.  The Company envisages this will involve
deploying additional wellhead and oil processing structures to be used as a
higher-capacity production hub than is currently available through the
existing mobile production facility.

The drill rig has since mobilised to the Jasmine oil field where it is
commencing a four well drilling programme comprising two production wells and
two appraisal wells to support additional production well drilling in 2024.
 After the programme at Jasmine, the rig is scheduled return to the Nong Yao
oil field for a five well infill drilling campaign.

Wassana Field production update

In July 2023, Valeura suspended production operations at the Wassana field in
order to undertake a review of safety and operating practices of the field's
third-party-owned and operated floating storage and offloading vessel
("FSO").  As a result of this review, Valeura and the FSO's third-party owner
have opted to select a new sub-contractor to operate the FSO going forward and
are working together to formalise the engagement.  The Company intends to
implement a phased transition plan resulting in production resuming in Q4
2023.

Sean Guest, President and CEO commented:

"This is an excellent outcome for the Wassana field and a demonstration of our
team's ability to uncover further value-adding subsurface opportunities.  As
a result of a thorough review of the asset, we are now facing several
opportunities to increase the scale of the Wassana field, and see the
potential for further reserves development, increased production, and an
extension of the field's economic life well into the 2030's.

Wassana is shaping up to deliver much more than its original expectations, a
characteristic which is consistent with the ultimate recovery we are achieving
at our other fields in the Gulf of Thailand.

We are also making good strides toward resuming production operations at the
field, which prior to the suspension, accounted for approximately 10% of our
total aggregate production.  We look forward to re-starting under conditions
that fit with our high standards for health, safety, and environmental
responsibility."

 

For further information, please contact:

Valeura Energy Inc. (General Corporate
Enquiries)                       +1 403 237 7102
Sean Guest, President and CEO
Yacine Ben-Meriem, CFO

Contact@valeuraenergy.com (mailto:Contact@valeuraenergy.com)

Valeura Energy Inc. (Investor
Enquiries)                             +1 403 975
6752 / +44 7392 940495

Robin James Martin, Vice President, Communications and Investor
Relations

IR@valeuraenergy.com (mailto:IR@valeuraenergy.com)

Auctus Advisors LLP (Corporate Broker to
Valeura)                     +44 (0) 7711 627 449
Jonathan Wright

Valeura@auctusadvisors.co.uk (mailto:Valeura@auctusadvisors.co.uk)

CAMARCO (Public Relations, Media Adviser to Valeura)  +44 (0) 20 3757 4980

Owen Roberts, Billy Clegg
Valeura@camarco.co.uk (mailto:Valeura@camarco.co.uk)

 

About the Company

Valeura Energy Inc. is a Canada-based public company engaged in the
exploration, development and production of petroleum and natural gas in
Thailand and in Turkey.  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: the
potential for substantial further development of the field which could yield
an increase in production and a significant extension of the field's economic
life; the Company's anticipation that the results will yield an increase in
its volumetric estimates; the expectation that the additional volumes will be
assessed as part of the Company's next external third-party reserves and
resources evaluation; the potential for an additional approximately 20
production well targets; the timing and composition of future drilling
campaigns on the Jasmine and Nong Yao oil fields; and the timing to implement
a phased transition plan at the Wassana FSO and to restart production in Q4
2023.

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 Russian invasion of 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 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
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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