RCS - Valeura Energy Inc. - Wassana Re-start and Change to Working Interests

TMXAnnouncement

28/04/2023 10:15

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RNS Number : 8657X  Valeura Energy Inc.  28 April 2023

Wassana Production Re-start and Change to Working Interests

Calgary, April 28, 2023: Valeura Energy Inc. (TSX:VLE) ("Valeura" or the
"Company"), the upstream oil and gas company with assets in the offshore Gulf
of Thailand and the Thrace Basin of Turkey, is pleased to announce the
re-start of oil production  from the Wassana field and changes to its working
interest in Licences G6/48 and G10/48, offshore Gulf of Thailand.

Wassana Production Re-start

On April 28, 2023 Wassana's production was re-started, introducing crude oil
into the field's processing facilities for the first time in nearly three
years.  With the activation of additional wells shortly thereafter,
production rates have begun ramping up.  Operations are proceeding as
intended, with no deviations to the Company's safe operating parameters.

Increase in Wassana (Licence G10/48) Working Interest

Valeura's 11% partner in Licence G10/48, Palang Sophon Limited ("PSL"), has
opted to discontinue its participation in the licence.  By agreement between
PSL and Valeura, PSL will transfer its 11% working interest to Valeura.
Accordingly, Valeura will proceed with further Wassana oil field operations on
a 100% working interest basis, including its planned infill drilling campaign
which is scheduled to begin in Q3 2023.  In consideration, Valeura has agreed
to discharge PSL of outstanding liabilities owed in connection with joint
operations on the licence as well as any future liabilities associated with
its past involvement in the licence.

Rossukon (Licence G6/48) Working Interest

Since its acquisition of an interest in Licence G6/48 in mid 2022, Valeura has
worked diligently to assess the potential for development of the Rossukon oil
field.   Following consideration of the project's tight schedule
requirements and an estimated capital requirement of approximately US$100
million (gross), Valeura has opted to divest its working interest in the
license to its partner Northern Gulf Petroleum ("NGP") for a contingent cash
consideration of US$5 million, payable at first oil from the Rossukon oil
field, and a further 4.65% overriding royalty associated with the Company's
43% working interest (2% of gross production) from the field thereafter.

Sean Guest, President and CEO commented:

"I am delighted to announce the re-start of production from the Wassana oil
field and grateful to our team who oversaw this safe re-activation.  This
achievement fulfils the vision we set when we completed our acquisition of
these assets in mid 2022, and our success is energised by our increased
working interest in the project.  Raising our sights, we are now looking with
excitement toward Wassana's upcoming growth phase as we prepare for infill
drilling to start in Q3 2023, with the target of increasing field output
toward approximately 5,000 bbls/d (on a 100% Valeura interest basis).

Separately, I am pleased to have arrived at an efficient way to realise
potential value from Licence G6/48.  Valeura will bear no risk, and no
obligation for any capital costs in relation to the Rossukon oil field
development and the contingent payment due to us upon first oil will
effectively offset the contingent payment owed by us to the receiver upon
first oil (in connection with our acquisition of the licence interest in
2022).  At the same time, the arrangement provides us a long-term potential
revenue stream by way of an overriding royalty."

Valeura intends to begin immediately the administrative processes to transfer
the subject licence interests.

For further information, please contact:

Valeura Energy Inc. (General Corporate
Enquiries)                       +1 403 237 7102

Sean Guest, President and CEO

Heather Campbell, CFO
Contact@valeuraenergy.com (mailto: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 (mailto:IR@valeuraenergy.com)

 

Auctus Advisors LLP (Corporate Broker to
Valeura)                     +44 (0) 7711 627 449

Jonathan Wright

Valeura@auctusadvisors.co.uk (mailto:Valeura@auctusadvisors.co.uk)

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

Owen Roberts, Billy Clegg
Valeura@camarco.co.uk (mailto:Valeura@camarco.co.uk)

 

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 in Turkey, and is pursuing further inorganic growth 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 transfer
of PSL's 10% working interest to Valeura; the expected timing for the Wassana
infill drilling programme and target production rates; and the transfer of
Valeura's working interest to NGP.

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; 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 further disruptions from the COVID- 19 pandemic;
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;
the risk associated with international activity; and the uncertainty as to
whether the Rossukon oil field will be developed, resulting in the requirement
for NGP to pay to Valeura contingent cash consideration of US$5 million and a
further royalty thereafter. The forward-looking information included in this
new release is expressly qualified in its entirety by this cautionary
statement. See the most recent AIF and MD&A 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.

Additional information relating to Valeura is also available on SEDAR at
www.sedar.com
(https://www.sedar.com/DisplayCompanyDocuments.do?lang=EN&issuerNo=00014898)
.

 

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.

 

 

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