Licence G10/48 (Wassana field)

Re-activation of a mid-life oil field

Valeura holds a 100% operated interest in Licence G10/48 containing the Wassana oil field, which is a collection of crude oil-bearing sandstone reservoir intervals of Miocene age.  The field is estimated to contain 2P reserves of 6.1 MMbbls of oil as of December 31, 2022*. 

Production operations were suspended by the previous operator in May 2020 and Valeura is planning a production re-activation project, with initial target rates of up to 3,000 bbls/d, net to the acquired working interest.  The field’s production is medium-weight crude oil, which has historically sold at a discount to the Brent oil benchmark of approximately US$6/bbl. 

The Wassana field was developed by way of production wells drilled off a Mobile Offshore Production Unit (“MOPU”), which is being purchased by Valeura through a separate transaction. Crude oil will be processed at the MOPU and stored in a leased Floating Storage and Offloading vessel. 

Valeura has identified the potential for ongoing infill drilling to increase recoverable reserves from the Wassana field in addition to the potential to access additional volumes through development of additional exploration discoveries on the block.

Valeura initially acquired an operated 89% working interest through a transaction that was completed on June 15, 2022, and acquired the remaining 11% interest in April 2023.

* Reserves and resources estimates are based on an independent third party reserves and resources assessment by Netherland, Sewell & Associates, Inc. as of December 31, 2022 and more fully described in the Company’s March 31, 2023 announcement.