RCS - Valeura Energy Inc. - Nong Yao Development Drilling Update

Stifel FinancialAnnouncement

28/05/2024 08:15

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RNS Number : 0583Q  Valeura Energy Inc.  28 May 2024

Nong Yao Development Drilling Update

Calgary, May 28, 2024: Valeura Energy Inc. (TSX:VLE, OTCQX:VLERF) ("Valeura"
or the "Company"), an upstream oil and gas company with assets in the Gulf of
Thailand and the Thrace Basin of Türkiye, is pleased to announce the
successful completion of an infill drilling campaign at Nong Yao A and the
start of development drilling on the Nong Yao C extension, both part of the
Nong Yao oil field (90% operated working interest), offshore Gulf of Thailand.

 

Sean Guest, President and CEO commented:

"I am pleased with the results of our new Nong Yao A wells, which further
illustrate the potential of our assets to add volumes through ongoing infill
drilling.  Drilling these wells now was a nimble move by our team to shore up
production rates just before dedicating our rig to the Nong Yao C development
drilling programme.

The start of drilling operations at our brand new Nong Yao C infrastructure
marks a significant milestone for our Company.  This will be the first new
development for Valeura in Thailand, and is expected to serve as a substantial
source of production growth in the second half of this year.

We remain focused on safe and sustainable growth, and I am pleased to note
that our drilling operations have achieved an important safety record, logging
one full year of work without a lost time injury.  We remain committed to
delivering a top tier health, safety, and environmental performance across all
our operations."

 

Nong Yao A Infill Wells

Valeura has drilled two production-oriented horizontal wells at the Nong Yao A
wellhead platform, which were both successful and have been brought online as
producers.

The 37H well culminated in a horizontal section within the primary target
H12.5 reservoir.  That zone has been completed for production and is
currently contributing approximately 500 bbls/d of oil((1)), based on
performance over the past ten days.  In addition, the well encountered 68
feet of net oil pay across eight separate appraisal target intervals.  These
zones will now be further evaluated as targets for potential future
development wells, and once developed, may add further producible volumes to
the asset.

The 38H well has been completed as a horizontal producer in the H4.3 reservoir
interval and is currently contributing approximately 1,000 bbls/d of oil((1)),
based on performance over the past five days.  A thin oil-bearing sand was
encountered in the shallower H2.0 sand interval and will also be studied to
determine additional producible volumes.

 

Nong Yao C Development

The Company's contracted drilling rig has moved to the Nong Yao C mobile
offshore production unit where it has commenced batch drilling operations to
develop the Nong Yao C field extension.  The drilling campaign is anticipated
to take approximately four months and will be comprised of up to nine gross
wells, being six producer wells and up to three water injectors.  Valeura
anticipates first oil from the Nong Yao C development in Q3 2024, and
thereafter is targeting aggregate peak oil production rates from the expanded
Nong Yao field of 11,000 bbls/d, approximately a 50% increase over the 7,307
bbls/d reported for Q1 2024((1)).

(1) Working interest share production before royalties.

 

For further information, please contact:

Valeura Energy Inc. (General Corporate
Enquiries)                       +65 6373 6940

Sean Guest, President and CEO

Yacine Ben-Meriem, CFO
Contact@valeuraenergy.com

Valeura Energy Inc. (Investor
Enquiries)                             +1 403 975
6752 / +44 7392 940495
Robin James Martin, Vice President, Communications and Investor Relations
IR@valeuraenergy.com

CAMARCO (Public Relations, Media Adviser to Valeura)  +44 (0) 20 3757 4980

Owen Roberts, Billy Clegg
Valeura@camarco.co.uk

 

Contact details for the Company's advisors, covering research analysts and
joint brokers, including Auctus Advisors LLP, Canaccord Genuity Ltd (UK),
Cormark Securities Inc., Research Capital Corporation, Schachter Energy
Report, and Stifel Nicolaus Europe Limited, are listed on the Corporation's
website at www.valeuraenergy.com/investor-information/analysts/.

 

About the Corporation

Valeura Energy Inc. is a Canadian public company engaged in the exploration,
development and production of petroleum and natural gas in Thailand and in
Türkiye. The Corporation is pursuing a growth-oriented strategy and intends
to re-invest into its producing asset portfolio and to deploy resources toward
further organic and inorganic growth in Southeast Asia. Valeura aspires toward
value accretive growth for stakeholders while adhering to high standards of
environmental, social and governance responsibility.

Additional information relating to Valeura is also available on SEDAR+ at
www.sedarplus.ca.

 

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
expectation that start of drilling operations at Nong Yao C will serve as a
substantial source of production growth and the timing thereof; that the
potential for appraisal target to yield future development wells and to add
further producible volumes to the Nong Yao asset; timing to complete the Nong
Yao C development drilling programme, timing for first oil, and target rates
from the development.

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; 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; interest rates; the ability to meet drilling deadlines and
fulfil commitments under licences and leases; future commodity prices; the
impact of the Russian invasion of Ukraine; royalty rates and taxes; future
capital and other expenditures; the success obtained in drilling new wells and
working over existing wellbores; the performance of wells and facilities; the
availability of the required capital to funds its exploration, development and
other operations, and the ability of the Company to meet its commitments and
financial obligations; the ability of the Company to secure adequate
processing, transportation, fractionation and storage capacity on acceptable
terms; the capacity and reliability of facilities; the application of
regulatory requirements respecting abandonment and reclamation; the
recoverability of the Company's reserves and contingent resources; ability to
attract a partner to participate in its tight gas exploration/appraisal play
in Türkiye; future growth; the sufficiency of budgeted capital expenditures
in carrying out planned activities; the impact of increasing competition; the
ability to efficiently integrate assets and employees acquired through
acquisitions; global energy policies going forward; future debt levels; 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
acquisitions; the risk of disruptions from public health emergencies and/or
pandemics; 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. See
the most recent annual information form and management's discussion and
analysis of the Company 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.

 

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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that term is defined in the policies of the Toronto Stock Exchange) accepts
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