RCS - Valeura Energy Inc. - Thailand Drilling Rig Contract Execution

Valeura EnergyAnnouncement

04/10/2022 08:15

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RNS Number : 6377B  Valeura Energy Inc.  04 October 2022

Thailand Drilling Rig Contract Execution

Calgary, October 4, 2022: Valeura Energy Inc. (TSX:VLE) ("Valeura" or the
"Company"), the upstream oil and gas company with assets offshore Gulf of
Thailand and the Thrace Basin of Turkey, is pleased to announce that it has
agreed with Petrovietnam Drilling and Well Service Corporation to charter the
PV Drilling I jack-up drilling rig to support its Gulf of Thailand operations
in 2023.

The PV Drilling I rig is expected to mobilise to the Wassana oil field in mid
Q2 2023, where it will conduct an initial scope of work comprised of the
Company's five well infill drilling programme.  The arrangement includes an
option to extend the scope of work thereafter, to include additional drilling
operations at the Company's discretion.

Valeura reiterates its previous target that it expects to re-start production
from the Wassana oil field in Q4 2022, with initial oil production rates of up
to 3,000 bbls/d (net to the 89% working interest held by Valeura's
subsidiaries) and is targeting an increase to approximately 4,500 bbls/d (net)
as a result of the 2023 infill drilling programme.  The Company is continuing
to make good progress on the key work streams in support of production
re-start at Wassana, including securing the recertification of the field's
Mobile Offshore Production Unit facility and procuring a suitable Floating
Storage and Offloading Vessel.

Sean Guest, President and CEO commented:

"We remain confident in our ability to resume oil production at the Wassana
field later this quarter.  With positive progress on all key work streams,
supporting the return to active production operations, we are already setting
our sights on our growth targets, and with this drilling rig contract in place
we will be well-prepared to increase production in 2023."

For further information, please contact:

Valeura Energy Inc. (General Corporate
Enquiries)
+1 403 237 7102

Sean Guest, President and CEO

Heather Campbell, CFO
Contact@valeuraenergy.com (mailto:Contact@valeuraenergy.com)

Valeura Energy Inc. (Capital Markets / Investor
Enquiries)                       +1 403 975 6752

Robin James Martin, Investor Relations
Manager                                +44 7392
940495

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 Turkey, and is pursuing further inorganic growth opportunities in
Southeast Asia.

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 timing for arrival of the PV Drilling I drilling rig at the Wassana
oil field; the five well infill drilling programme; statements with respect to
the timing for resumption of production operations at the Wassana oil field
and execution of the required work streams including recertification of the
field's Mobile Offshore Production Unit facility and procuring a suitable
Floating Storage and Offloading Vessel; and the anticipated oil production
rates from the Wassana oil field.

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 and completing transactions; 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 ability to achieve recertification of the
Mobile Offshore Production Unit facility in a timely manner and negotiate
definitive contractual arrangements for the Floating Storage and Offloading
Vessel and other service providers; the prospectivity of the Company's lands;
the continued favourable pricing and operating netbacks; future production
rates and associated operating netbacks and cash flow; decline rates; future
sources of funding; future economic conditions and commodity prices; future
currency exchange rates; 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, stimulation and other
specialised oilfield equipment and service providers, changes in partners'
plans and unexpected delays and changes in market conditions and commodity
prices. 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 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 risks of further disruptions
from the COVID-19 pandemic; the risks of currency fluctuations; changes in
commodity prices and netbacks; potential changes in joint venture partner
strategies and participation in work programmes; uncertainty regarding
contemplated timelines and costs; the risks of disruption to operations and
access to worksites; potential changes in laws and regulations, the
uncertainty regarding government and other approvals; potential delays or
issues with the recertification of the Mobile Offshore Production Unit
facility; challenges with the negotiation of definitive contractual
arrangements with service providers; counterparty risk; risks associated with
weather delays and natural disasters; and the risk associated with
international activity. The forward-looking information included in this new
release is expressly qualified in its entirety by this cautionary statement.
See the AIF for a detailed discussion of the risk factors.

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 new
release is expressly qualified by this cautionary statement.

Additional information relating to Valeura is also available on SEDAR at
www.sedar.com
(https://www.sedar.com/DisplayCompanyDocuments.do?lang=EN&issuerNo=00014898)
.

 

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