REG - Valeura Energy Inc. - CLOSING OF GULF OF THAILAND ACQUISITION

Valeura EnergyAnnouncement

15/06/2022 14:30

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RNS Number : 0133P  Valeura Energy Inc.  15 June 2022

CLOSING OF GULF OF THAILAND ACQUISITION

Calgary, June 15, 2022: Valeura Energy Inc. (TSX:VLE, LSE:VLU) ("Valeura" or
the "Company") is pleased to announce  it has completed the acquisition of
the entire share capital of KrisEnergy International (Thailand) Holdings Ltd.,
as announced on April 28, 2022 (the "Acquisition").

Through its subsidiaries, Valeura is now the holder of an 89% operated working
interest in Licence G10/48 containing the Wassana oil field and a 43% operated
working interest in the planned Rossukon oil field development in Licence
G6/48(1), in addition to its pre-existing interest in the Thrace basin tight
gas appraisal play in Turkey. The Company's acquisition of the Mobile Offshore
Production Unit Ingenium ("MOPU")(1) on location at the Wassana oil field, is
proceeding as expected, according to the agreed phased payment schedule.

Upward revisions to reserves and resources in Licences G10/48 and G6/48 as
released on June 13, 2022 have contributed to a significant increase in value
associated with the Acquisition as compared to initial expectations.

  (1) Interests in Licence G10/48, Licence G6/48 and the MOPU are presented
on a working interest acquired basis to the Valeura-controlled special purpose
vehicle, Panthera Resources Pte. Ltd., in which Valeura holds 85% of the share
capital.

 

Sean Guest, President and CEO of Valeura commented:

"I am delighted to complete our acquisition of these Gulf of Thailand assets
within just seven weeks of agreeing to the deal, and we look forward to
building relationships with our new partners and regulators as we establish
our operating credentials in Thailand.  I am also pleased to welcome
approximately 30 staff to the Valeura team, as we begin the process of
integrating this highly capable Thailand-based operating unit with our
business.

Our highest priority is to re-activate production operations at the Wassana
field.  Work is already underway to complete the commercial arrangements and
MOPU re-certification that will enable the resumption of oil production at a
rate of approximately 3,000 bbls/d, net to the acquired interest, in Q4
2022.  At the same time, we are actively engaged in discussions with both
partners and regulators regarding the Rossukon oil field development, and will
share additional details when we take a final investment decision, anticipated
later this year.

We remain focused on increasing shareholder value by further growing our
business inorganically, as well as progressing our tight gas appraisal play in
Turkey."

 

UK Listing Update

The Acquisition constitutes a reverse takeover for the purposes of the Listing
Rules of the Financial Conduct Authority ("FCA") and the Company has
requested, in accordance with the Listing Rules, that the listing of the
Company's common shares (the "Shares") on the standard segment of the Official
List and trading in the Shares on the London Stock Exchange's main market for
listed securities should be cancelled with effect from 8:00 a.m. UK time on or
about July 14, 2022.

The Company's management continues to believe a listing on a London stock
exchange will support Valeura's long-term strategy and can provide greater
access to international investors.  Valeura intends to continue to evaluate
the merits of re-listing in London and will update shareholders in due
course.

Meanwhile, interests in the Shares purchased on the London Stock Exchange are
fully fungible and can be transferred from the UK depositary to the Canadian
depositary to be traded on the Toronto Stock Exchange, where the Shares
continue to trade as usual.  Shareholders interested in transferring their
Shares should contact their broker or nominee to coordinate such a transaction
with the Company's registrar.

 

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)

 

Advisory and Caution Regarding Forward-Looking Information

Certain information included in this new 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 new release includes, but is not limited to: the Company's
ability to complete the commercial arrangements required to facilitate
resuming production from the Wassana field in Q4 2022; expected production
from the Wassana field; statements with respect to achieving final investment
decision for the Rossukon field in the coming months; statements with regard
to the Company continuing to grow its business through the Mergers and
Acquisitions market and progressing its appraisal of the tight gas play in
Turkey; and evaluating the merits of re-listing in London

Forward-looking information is based on management's current expectations and
assumptions regarding, among other things: the ability to successfully
re-start production from the Wassana field in Q4 2022; political stability of
the areas in which the Company is operating; ability to achieve regulatory
approvals in the normal course; continued safety of operations and ability to
proceed in a timely manner; the ability to identify attractive merger and
acquisition opportunities to support growth; the prospectivity of the tight
gas appraisal play; future sources of funding; future economic conditions;
future currency exchange rates; the ability to meet drilling deadlines and
fulfil commitments under licences and leases 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,
high-pressure stimulation and other specialised oilfield equipment and service
providers for onshore and offshore operations, changes in partners' plans and
unexpected delays and changes in market or regulatory 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
the Acquisition; inability to secure a new partner for the tight gas appraisal
play in Turkey and execute potential mergers and acquisitions; evolving
impacts of the COVID-19 pandemic including disruptions in global supply
chains; the Company's ability to manage growth; the Company's ability to
manage the costs related to inflation; uncertainty in capital markets and
ability to raise debt and equity, as required, particularly for companies with
a small market capitalisation; the ability to finance future development
and/or inorganic growth; the risks of currency fluctuations; changes in oil
and gas prices and netbacks in Thailand and Turkey; potential changes in joint
venture partner strategies and participation in work programmes; potential
assertions of pre-emptive rights by a partner or potential disputes with a
partner in connection with the Acquisition; uncertainty regarding the
contemplated timelines and costs for offshore development plans in Thailand
and the tight gas appraisal play evaluation in Turkey; the risks of disruption
to operations and access to worksites (including the impact of the COVID-19
pandemic); the ability of the Company to maintain its directors, senior
management team and employees with relevant experience; potential changes in
laws and regulations, and the uncertainty regarding government and other
approvals; counterparty risk; the ability of the Company to maintain effective
ICFR; 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 Company's
annual information form for the year ended December 31, 2021 for a detailed
discussion of the risk factors.

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.

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

This Announcement contains inside information as defined in Article 7 of the
Market Abuse Regulation No. 596/2014 ("MAR") which is part of UK law by virtue
of the European Union (Withdrawal) Act 2018. Upon the publication of this
Announcement, this inside information is now considered to be in the public
domain.

This announcement 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 announcement 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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