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Licence G10/48 (Wassana oil field)

Re-activation of a mid-life oil field

Block G10/48 contains the Wassana oil field, which is a collection of crude oil-bearing sandstone reservoir intervals of Miocene age.  Valeura’s management estimates that the Wassana field contains 2P reserves of 4.0 MMbbls of oil as of December 31, 2021*. 

Production operations were suspended by the previous operator in May 2020 and are planned to resume in Q4 2022 at an initial rate of 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’s acquisition of an 89% operated interest is anticipated to be completed in Q2 2022.  The remaining 11% interest is held by Palang Sophon.

* Reserves and resource estimates are based on the Company’s internal assessment (non-independent) effective December 31, 2021. See “Oil & Gas Advisories” in the Company’s April 28, 2022 press release.