Valeura holds an operated working interest in two licences located offshore in the Gulf of Thailand. The interests were acquired by way of a Sale and Purchase Agreement announced April 28, 2022, and which closed on June 15, 2022. Reserves and resources associated with the Thai assets were evaluated by the petroleum engineering firm, Netherland, Sewell & Associates Inc. (“NSAI”) and were announced by the Company on June 13, 2022:
In addition, a Valeura subsidiary has entered into an agreement to acquire an interest in three additional shallow water offshore Gulf of Thailand licences from Mubadala Energy, as announced by the Company on December 6, 2022. The transaction is subject to customary closing conditions and Valeura anticipates closing the transaction in Q1 2023. According to the Management’s internal (non-independent) assessment, as of December 31, 2021, reserves associated with the additional assets being acquired are:
Valeura intends to commission Netherland, Sewell & Associates, Inc. to conduct a reserves and contingent resources evaluation for all of its Thailand assets effective December 31, 2022, in accordance with the Canadian Oil and Gas Evaluation Handbook, with results to be published by the Company in due course.
Valeura views its deep gas play in Turkey as a core constituent of its portfolio and believes this play to be a material source of potential long-term value for shareholders.
In February 2018, the Company announced results of an independent evaluation of the Company’s prospective resources in the tight gas play as prepared by DeGolyer and MacNaughton which attributed 10.1 trillion cubic feet of estimated unrisked mean prospective resources of natural gas which includes 236 MMbbls of condensate, to Valeura’s working interest of the play, at that time.
In February 2020, Valeura’s joint venture partner for the deep gas appraisal programme elected to discontinue participation in the play and their working interest reverted to the remaining partners. As a result, Valeura’s management estimates that its working interest share of unrisked recoverable natural gas prospective resource in the play has increased to 19.7 trillion cubic feet equivalent.