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Valeura Energy Inc. Announces Q3 2023 Operational Update

ACCESSWIRE - Thu Oct 5, 2023

Q3 2023 Operational Update

CALGARY, AB / ACCESSWIRE / October 6, 2023 / Valeura Energy Inc. (TSX:VLE)(OTCQX:VLERF) ("Valeura" or the "Company"), the upstream oil and gas company with assets in the Gulf of Thailand and the Thrace Basin of Turkey, is pleased to provide an operational update for Q3 2023.

The Company's net working interest oil production averaged 19,961 bbls/d during Q3 2023. Production performance from continuing operations on its Jasmine, Nong Yao, and Manora oil fields was relatively unchanged from the prior quarter as the impact of recently drilled production wells has effectively offset the impact of natural declines.

Production at the Wassana oil field was offline throughout most of the quarter, following the Company's precautionary suspension on July 7, 2023 to address safety concerns with operating practices on the third-party owned and operated floating storage and offloading vessel ("FSO"). Valeura is planning to implement a phased transition to a new sub-contractor to operate the FSO, resulting in production resuming in Q4 2023.

During the quarter, Valeura drilled a total of seven wells across its portfolio, with a 100% success rate. Drilling activity included two appraisal wells on the Wassana field which have increased the Company's expectation for recoverable oil from the field. The Company has begun the concept selection phase of a project to expand the development of the Wassana field to realise this increased potential.

As of September 30, 2023, the Company's net cash balance(1) had increased to US$103.4 million (vs. US$87.6 million as of June 30, 2023), after having paid petroleum income taxes ("PITA")(2) of US$29.0 million and repaying US$21.2 million of its outstanding debt during the quarter. As of September 30, 2023, the Company's outstanding debt(1) had been reduced to US$12.9 million.

(1) Net Cash & Outstanding Debt: Are non-IFRS measures which do not have a standardised meaning prescribed by IFRS and might not be comparable to similar financial measures disclosed by other issuers. These non-IFRS measures are provided because management uses the information to a) analyse financial strength and b) manage the capital of the Company. Net cash consists of cash and cash equivalents and restricted cash less outstanding debt. Outstanding debt consists of current portion of debt and long-term debt after reversal of accounting adjustments.

(2) In accordance with Thailand's Petroleum Income Tax Act, E&P companies active in Thailand are required to provide the Thai Revenue Department estimates of net profit in respect of any of its concession interests under Thai III fiscal terms, for the current year, and remit half of the estimated annual PITA by the end of August. A final payment of PITA is due by the end of May of the following year. The Company's interests in the Manora, Nong Yao, and Wassana concessions are governed by Thai III fiscal terms and accordingly, are subject to this treatment.

Sean Guest, President and CEO commented:

"We have had a strong operational performance across our portfolio during Q3. Our Jasmine, Nong Yao, and Manora fields all continue to demonstrate how infill drilling can sustain production rates. Meanwhile at Wassana, our appraisal wells have confirmed the potential for a larger scale of growth than previously envisaged and our team is working to select an appropriate re-development concept for the field while we prepare to resume production operations in Q4.

Our balance sheet remains robust and we are continuing to pay down debt while building cash. Even after having funded our operations and capital investments, and making cash payments of more than US$50 million toward PITA taxes and debt reduction, our net cash position has increased. We are building a highly cash generative business and establishing a solid financial foundation to support further growth."

Valeura intends to announce its complete Q3 2023 financial and operating results during the second week of November 2023. Specific timing and webcast details will be confirmed in due course.

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

AuctusAdvisors LLP (Corporate Broker to Valeura) +44 (0) 7711 627 449
Jonathan Wright
Valeura@auctusadvisors.co.uk

CAMARCO (Public Relations, Media Adviser to Valeura) +44 (0) 20 3757 4980
Owen Roberts, Billy Clegg
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. The Company 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: Valeura's planned implementation of a phased transition to a new sub-contractor to operate the Wassana FSO, resulting in production resuming in Q4 2023; the Company's increase in expectation for the ultimate potential of the Wassana asset and ability to realise this potential; and the ability of the Company's cash generation to support further growth..

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 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 news release 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 news release 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.

This information is provided by Reach, the non-regulatory press release distribution service of RNS, part of the London Stock Exchange. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

SOURCE: Valeura Energy Inc.



View source version on accesswire.com:
https://www.accesswire.com/790723/valeura-energy-inc-announces-q3-2023-operational-update

Provided Content: Content provided by ACCESSWIRE. The Globe and Mail was not involved, and material was not reviewed prior to publication.

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