Valeura Energy, the upstream oil and gas company with assets in the Gulf of Thailand and the Thrace Basin of Türkiye, reports its unaudited financial and operating results for the three month period ended March 31, 2024.
The complete quarterly reporting package for the Company, including the unaudited financial statements and associated management’s discussion and analysis ('MD&A'), are being filed on SEDAR+ at www.sedarplus.ca and posted to the Company’s website at www.valeuraenergy.com.
Q1 2024 Highlights
- Oil production of 21.9 mbbls/d(1), up 14% from the previous quarter;
- Oil sales of 1.8 million bbls, at an average realised price of US$84.6/bbl, generating revenue of US$149.4 million;
- Adjusted EBITDAX of US$89.0 million(2) and adjusted cashflow from operations of US$47.8 million(2);
- Cash and net cash balance as of March 31, 2024 of US$193.7 million(3), with no debt; and
- Adjusted net working capital surplus of US$141.9 million(2).
Year to Date Achievements
- Five horizontal development wells successfully drilled on the Wassana field (block G10/48, 100% interest) resulting in Q1 2024 average oil production of 3,979 bbls/d, and 4,900 bbls/d for the first six days of May 2024;
- Three oil discoveries announced from one exploration well in the Nong Yao concession (block G11/48, 90% working interest) and two exploration wells north of Wassana field;
- Scheduled shutdowns for maintenance on the Manora and Jasmine field production facilities conducted safely and under planned time and budget; and
- Installed the Nong Yao C mobile offshore production unit (“MOPU”) T7 Shirley on the Nong Yao field in preparation for development drilling.
(1) Working interest share oil production, before royalties.
(2) Non-IFRS financial measure or non-IFRS ratio – see “Non-IFRS Financial Measures and Ratios” section below.
(3) Includes restricted cash of US$17.3 million.
Sean Guest, President and CEO commented:
'I am pleased to share details of our strong Q1 2024 performance, led by oil production of 21.9 mbbls/d, up 14% from Q4 2023. We expanded the scope of our Wassana field drilling programme, with output increasing to new highs more than 50% above our exit rate for 2023. All of our assets are fully in production and trending on plan, with operations progressing safely throughout the quarter.
Our crude oil inventory position increased somewhat during the quarter. While that resulted in slightly less oil sales this quarter, it means the inventory was ultimately sold into the relatively higher price environment we saw early in Q2. We are continuing to see price realisations above of our guidance outlook, averaging US$1.6/bbl above the Brent benchmark.
Our operational efficiency has been strong, with adjusted opex(1) at just over US$26/bbl. We continue to find new opportunities to optimise operations, including through our planned acquisition of the Nong Yao field’s oil storage vessel, as announced during the quarter, which will provide more operational flexibility, and the potential to reduce costs further.
It was also an exciting quarter from a growth standpoint. We mobilised our new MOPU to the Nong Yao field and are now working to commission the facility in preparation for development drilling on Nong Yao C. We are targeting a 50% increase in production rates from the field to 11,000 bbls/d, later this year. We also began exploration drilling during the quarter, which ultimately resulted in three oil discoveries. These successes further bolster our investment thesis, that these assets offer meaningful opportunities to push the fields’ economic lives further into the future, expanding the time horizon for us to generate cash flow.
Our business is highly cash generative, as demonstrated by our adjusted cash flow(1) of US$47.8 million in Q1, resulting in a quarter-end cash balance of US$194 million and adjusted net working capital(1) surplus of US$142 million. With our continually strengthening financial position, we are better prepared than ever to grow our business, adhering as always to our strict screening criteria to ensure value add for all stakeholders.'
(1) Non-IFRS financial measure or non-IFRS ratio – see 'Non-IFRS Financial Measures and Ratios' section below.
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Source: Valeura Energy
