Calgary, October 4, 2022: Valeura Energy Inc. (TSX:VLE) (“Valeura” or the “Company”), the upstream oil and gas company with assets offshore Gulf of Thailand and the Thrace Basin of Turkey, is pleased to announce that it has agreed with Petrovietnam Drilling and Well Service Corporation to charter the PV Drilling I jack-up drilling rig to support its Gulf of Thailand operations in 2023.
The PV Drilling I rig is expected to mobilise to the Wassana oil field in mid Q2 2023, where it will conduct an initial scope of work comprised of the Company’s five well infill drilling programme. The arrangement includes an option to extend the scope of work thereafter, to include additional drilling operations at the Company’s discretion.
Valeura reiterates its previous target that it expects to re-start production from the Wassana oil field in Q4 2022, with initial oil production rates of up to 3,000 bbls/d (net to the 89% working interest held by Valeura’s subsidiaries) and is targeting an increase to approximately 4,500 bbls/d (net) as a result of the 2023 infill drilling programme. The Company is continuing to make good progress on the key work streams in support of production re-start at Wassana, including securing the recertification of the field’s Mobile Offshore Production Unit facility and procuring a suitable Floating Storage and Offloading Vessel.
Sean Guest, President and CEO commented:
“We remain confident in our ability to resume oil production at the Wassana field later this quarter. With positive progress on all key work streams, supporting the return to active production operations, we are already setting our sights on our growth targets, and with this drilling rig contract in place we will be well-prepared to increase production in 2023.”
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 Turkey, and is pursuing further inorganic growth opportunities 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 timing for arrival of the PV Drilling I drilling rig at the Wassana oil field; the five well infill drilling programme; statements with respect to the timing for resumption of production operations at the Wassana oil field and execution of the required work streams including recertification of the field’s Mobile Offshore Production Unit facility and procuring a suitable Floating Storage and Offloading Vessel; and the anticipated oil production rates from the Wassana oil field.
Forward-looking information is based on management’s current expectations and assumptions regarding, among other things: political stability of the areas in which the Company is operating and completing transactions; 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 ability to achieve recertification of the Mobile Offshore Production Unit facility in a timely manner and negotiate definitive contractual arrangements for the Floating Storage and Offloading Vessel and other service providers; the prospectivity of the Company’s lands; the continued favourable pricing and operating netbacks; future production rates and associated operating netbacks and cash flow; decline rates; future sources of funding; future economic conditions and commodity prices; future currency exchange rates; 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, stimulation and other specialised oilfield equipment and service providers, changes in partners’ plans and unexpected delays and changes in market conditions and commodity prices. 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 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 risks of further disruptions from the COVID-19 pandemic; the risks of currency fluctuations; changes in commodity prices and netbacks; potential changes in joint venture partner strategies and participation in work programmes; uncertainty regarding contemplated timelines and costs; the risks of disruption to operations and access to worksites; potential changes in laws and regulations, the uncertainty regarding government and other approvals; potential delays or issues with the recertification of the Mobile Offshore Production Unit facility; challenges with the negotiation of definitive contractual arrangements with service providers; 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 AIF for a detailed discussion of the risk factors.
The forward-looking information contained in this news 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.
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.