Calgary, January 24, 2023: Valeura Energy Inc. (TSX:VLE) (“Valeura” or the “Company”), the upstream oil and gas company with assets in the offshore Gulf of Thailand and the Thrace Basin of Turkey, is pleased to provide an operations update.
Valeura is pleased to announce that it has increased its ownership stake of the special purpose vehicle subsidiary company, Valeura Energy Asia Pte. Ltd. (the “SPV”) from 85% to 87.5% as the result of Valeura’s cumulative cash contributions to the SPV. For clarity, the SPV is the corporate entity through which Valeura conducts all of its Thailand business. Accordingly, this increased ownership stake applies to the entire portfolio of Thailand assets, whether owned or proposed to be acquired by Valeura.
Wassana Oil Field
Valeura has received formal notification of the recertification of its Mobile Production Unit Ingenium, thereby enabling its ongoing use as the production and processing facility for crude oil from the Wassana oil field on Licence G10/48, offshore Gulf of Thailand. Separately, further to the announcement of November 20, 2022, the MT Jaka Tarub crude oil storage vessel is currently undergoing planned modifications in dry dock, which are expected to be completed in early February, after which the vessel will mobilise to the Wassana field. Once on location, Valeura intends to resume production operations, targeting initial oil production rates of up to 3,000 bbls/d with plans to increase production to 4,500 bbls/d thereafter as a result of the five well infill drilling campaign planned to commence in Q2 2023. All production figures are net to the 89% working interest in Licence G10/48 held by the SPV.
As announced on December 6, 2022, the SPV has agreed to acquire the Thailand upstream oil producing portfolio of Mubadala Energy, which includes several oil fields collectively producing approximately 21,200 bbls/d of oil, net to the interest being acquired (the “Acquisition”). All key workstreams are progressing in relation to satisfying the closing conditions and the Company anticipates that the Acquisition will close in Q1 2023 as previously announced.
Separately, planning work is underway in relation to the greenfield Rossukon oil field development on Licence G6/48, and the Company intends to provide further detail on the project once a final investment decision has been taken.
For further information, please contact:
Valeura Energy Inc. (General Corporate Enquiries) +1 403 237 7102
Sean Guest, President and CEO
Heather Campbell, CFO
Valeura Energy Inc. (Capital Markets / Investor Enquiries) +1 403 975 6752
Robin James Martin, Investor Relations Manager +44 7392 940495
Auctus Advisors LLP (Corporate Broker to Valeura) +44 (0) 7711 627 449
CAMARCO (Public Relations, Media Adviser to Valeura) +44 (0) 20 3757 4980
Owen Roberts, Billy Clegg
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, and is pursuing further inorganic growth 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 expected timing to complete modifications and to mobilise the MT Jaka Tarub vessel to the Wassana field; expected near-term and forecasted production from the Wassana field; the timing to commence the Wassana infill drilling programme; the Company’s intention to make a final investment decision on the Rossukon oil field development and to provide further detail on the project; the expected addition of 21,200 bbls/d of oil production from the Acquisition; the satisfaction of the conditions precedent to closing the Acquisition; and the closing of the Acquisition in Q1 2023.
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; the ability to close the Acquisition; the continuation of operations following the COVID-19 pandemic; 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; 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, 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 the Acquisition; the risk of further disruptions from the COVID-19 pandemic; 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. The forward-looking information included in this new release is expressly qualified in its entirety by this cautionary statement. See the most recent AIF and MD&A 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.
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.
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