Valeura Energy has reported its unaudited financial and operating results for the three month period ended 31 March 2026.
The complete quarterly reporting package for the Company, including the unaudited financial statements (the 'Interim Financial Statement') and associated management’s discussion and analysis ('MD&A') are being filed on SEDAR+ at www.sedarplus.ca and posted the Company’s website at www.valeuraenergy.com.
Highlights
- Oil production of 2.0 million bbls, averaging 22,326 bbls/d(1);
- Oil sales of 1.4 million bbls, resulting in an increase in crude oil inventory;
- Adjusted opex(2) of US$25.4/bbl, in line with the Company’s guidance expectations and operating costs of US$15.6/bbl(3);
- Adjusted cashflow from operations(2) of US$21.3 million;
- Purchased the Manora Princess floating storage and offloading ('FSO') vessel for US$15.5 million; and
- Net cash of US$261.6 million(4), with no debt.
Subsequent to Q1 2026
- Record monthly oil sales in April 2026 of 0.82 mmbbls at an average realised price of US$110.4/bbl, resulting in US$90.3 million in revenue;
- Announced a US$7 million project to add four additional well slots to the Nong Yao A platform; and
- Chartered the Shelf Drilling Enterprise jack-up drilling rig for a term of three years.
- Working interest share production before royalties.
- Non-IFRS financial measure or non-IFRS ratio – see “Non-IFRS Financial Measures and Ratios” section.
- Operating cost divided by production.
- Includes restricted cash.
Dr. Sean Guest, President and CEO commented:
'Our Q1 2026 performance demonstrates the resilience of our portfolio. We generated positive cash flow from operations, even with oil sales only from two months of the quarter, and at relatively low realised prices of US$66.2/bbl. While we are pleased with this outcome, we are excited by the potential of Q2, which we believe is poised for a very strong financial performance. As a result of the potential March sales being deferred into the higher oil price environment in April, we generated revenue of US$90.3 million in April, nearly as much as our total revenue for Q1.
While we have no control over global benchmark oil prices, we do have control over our operations, and on that front, we have recorded another strong performance, with both operating costs and production outcomes exactly in line with our guidance expectations.
We are also remaining nimble with our work programme, and have moved swiftly to set ourselves up for more drilling in the near term, both by way of a long-term contract to charter the Enterprise drilling rig, and by expanding our Nong Yao facility to expedite drilling on what is our most profitable field.
We remain focused on growing our business too. That includes progressing both exploration and development planning work in relation to our large farm-in blocks G1/65 and G3/65 where we are earning a 40% working interest(1). At the same time we continue to pursue a suite of inorganic opportunities, guided always by the principle of adding value for our stakeholders through growth.'
- Transfer of interest subject to Thailand government approval.
Financial Update
The Company’s Q1 2026 financial performance reflects ongoing strong production operations at all four of its fields in the offshore Gulf of Thailand, but was negatively impacted by buyers deferring sales from March 2026 into April 2026. Therefore revenue in Q1 2026 was based on oil sales volumes much lower than production during the quarter, and do not include the impact of the significant increase in benchmark oil prices that occurred in March due to the conflict in the Middle East. These deferred barrels have now been sold in Q2 2026, under the current higher price environment.
Valeura’s working interest share production before royalties averaged 22,326 bbls/d, for a total of 2.00 million bbls produced during Q1 2026, a decrease of 6% from Q1 2025. Production was in line with the Company’s expectations for the quarter and support its guidance assumptions for the full year 2026.
Oil sales totalled 1.39 million bbls during Q1 2026, which was substantially less than the volume produced and therefore contributed to an increase in oil inventory to 1.23 million bbls as at 31 March 2026.
The barrels sold in Q1 2026 achieved an average realised price of US$66.2/bbl. Lower price realisations were driven by the effect of oil sales only occurring in January and February 2026, which was prior to the substantial increase in benchmark prices driven by the conflict in the Middle East. The Company had no oil sales in March 2026. Valeura’s Q1 2026 revenue was US$92.3 million, which was 38% lower than in Q1 2025 when the Company sold 26% more volume and benefited from higher prevailing prices at that time.
Subsequent to the end of the quarter, much of the oil inventory was sold within the first week of April 2026 and resulted in a new record for the Company for monthly oil sales of 0.82 mmbbls. The average realised price for April 2026 sales was US$110.4/bbl generating revenue for the month of more than US$90.3 million.
Valeura’s cost of operations in Q1 2026 was in line with the Company’s expectations. Operating costs for the quarter totalled US$31.4 million, which equates to US$15.6/bbl. In addition, the Company incurred lease costs of US$7.0 million mostly in respect of its floating offshore infrastructure, and capitalised US$12.6 million of crude oil inventories, resulting in adjusted opex (1) of US$51.1 million, or US$25.4/bbl. Adjusted opex per bbl(1) was 6% higher than the same period in 2025, reflecting the offsetting impacts of lower production in 2026 while also recording lower operating costs and lease costs.
During Q1 2026, the Company purchased the Manora FSO for US$15.5 million. Similar to the recent acquisition of the Nong Yao FSO, the savings in lease costs are expected to make for a short payback period, relative to the expected remaining field life.
The Company continuously reviews how best to provide relevant information to the market and may seek to further enhance those disclosures via new or updated Non-IFRS measures. In regards to evaluating the Company’s cost of operations, in the future Valeura intends to shift its focus primarily to operating costs (which is an IFRS measure) as opposed to adjusted opex (which is a non-IFRS measure).
Valeura generated adjusted cashflow from operations(1) of US$21.3 million in Q1 2026, which was 76% lower than the same period of 2025. The decrease is a direct result of lower revenue, driven primarily by the deferral of liftings/sales into Q2.
- Non-IFRS financial measure or non-IFRS ratio – see “Non-IFRS Financial Measures and Ratios” section in this MD&A.
Operations Update and Outlook
During Q1 2026, Valeura had ongoing production operations at all of its Gulf of Thailand fields, including Jasmine, Manora, Nong Yao, and Wassana, resulting in average working interest share production before royalties of 22,326 bbls/d. One drilling rig was on contract throughout the quarter.
Jasmine / Ban Yen
Oil production before royalties from the Jasmine/Ban Yen field, in Licence B5/27 (100% operated interest) averaged 8,144 bbls/d during Q1 2026. Following the completion of a nine-well drilling campaign on the licence in Q4 2025, work has focused on production operations and maintenance.
Valeura conducted a planned 4.5-day annual maintenance shutdown of the Jasmine field during the quarter. All work was performed safely, and the field has since resumed normal production operations as planned.
Nong Yao
Oil production before royalties from the Nong Yao field, in Licence G11/48 (90% operated working interest) averaged 9,480 bbls/d during Q1 2026.
Valeura began a drilling campaign on the Nong Yao field during Q1 2026, which is planned to continue through to June 2026 and is focused on both production-oriented development targets and appraisal opportunities. The Company will announce results of the campaign in due course.
In addition, Valeura has identified additional drilling opportunities in the vicinity of the Nong Yao A platform and has taken a decision to add four additional well slots to the platform to commercialise these targets earlier than would otherwise be possible. Engineering work is well underway, and the project is targeting readiness for drilling from the new well slots in Q4 2026.
Wassana
Oil production before royalties from the Wassana field, in Licence G10/48 (100% operated interest), averaged 2,505 bbls/d during Q1 2026. No wells were drilled on the licence in Q1 2026, and no further wells are planned to be drilled from the field’s current production facility, the mobile offshore production unit (“MOPU”) Ingenium. Ongoing work is oriented toward maintaining the MOPU in good working order prior to deploying a new-build central processing platform (“CPP”).
Construction work on the CPP remains on budget, and continues to progress slightly ahead of schedule, with overall project completion currently above 65%. The Company projects that the CPP will be ready for Q4 2026 installation, which is in line with the project schedule to achieve first oil production in Q2 2027.
Valeura has commissioned engineering studies to look at optimising the design of satellite platforms which can be tied back to its CPPs. The Company has already identified sufficient oil north of the Wassana field to justify a satellite platform at that location. Exploration drilling is currently being planned south of the Wassana field as the Company believes this area may have even more potential than the northern satellite. The Company intends to undertake this exploration drilling at optimal times within the development drilling sequence.
Manora
Oil production before royalties from the Manora field, in Licence G1/48 (70% operated working interest), averaged 2,197 bbls/d during Q1 2026. During the quarter, Valeura announced completion of a five-well infill drilling campaign on the field, which both increased production rates and successfully appraised several additional targets for potential future drilling.
One exploration well is planned in Q3 2026 on a separate potential accumulation in Licence G1/48. In a success case, this prospect could be developed via a tie-in to the Manora platform.
Blocks G1/65 and G3/65
Valeura is actively working with its partner PTT Exploration and Production Plc (“PTTEP”) to progress development and exploration planning on Blocks G1/65 and G3/65, where the Company is farming in to earn a 40% non-operated working interest. This farm-in is still subject to the final administrative step of Ministerial approval.
Development planning is well underway in respect of several gas discoveries in the Bussabong area of the G3/65 block. In the first quarter, the Bussabong area was approved by the regulator as a production area. Valeura anticipates readiness for a final investment decision (“FID”) on two new gas production platforms in Q3 2026. In all instances, the partners are focused on opportunities that can be developed quickly, by leveraging existing production infrastructure in adjacent blocks, operated by either PTTEP or Valeura.
During Q1 2026, processing of the new 3D seismic acquired in 2025 continued on schedule, with processed data expected to be available within the coming months. These new seismic data will be used to define prospects within key focus areas on the blocks and will be integrated with historic well data to define prospects for exploration drilling which is expected to commence in early 2027.
In addition, Valeura is working to assess the full resource potential of Blocks G1/65 and G3/65, and intends to disclose its findings in due course and to provide more detailed information on the gas project FID.
Türkiye
Valeura’s farm-in partner, Transatlantic Petroleum LLC (“Transatlantic”), has been delayed in sourcing all the necessary equipment to configure the Devepinar-1 well for a long-term test. Transatlantic intends to resume testing operations this month with the objective to demonstrate that the well can produce continuously, thereby demonstrating commerciality of the deep gas play. Valeura believes that success with this could lead to similar long-term tests of its other deep wells, which remain available, but in a suspended status.
The work Transatlantic has done so far has satisfied the earning requirements for the West Thrace licence and leases. Once government approval is granted for the transfer of interest, this will result in 50% Transatlantic, 31.5% Valeura, 18.5% Pinnacle Turkey, Inc. Valeura continues to hold 100% in the neighbouring Banarli block.
Valeura’s near-term efforts will focus on fulfilling commitments in the West Thrace licence and leases and the Banarli licences, and to get approval of the next phase of exploration, which is a two-year appraisal period. Each block requires an exploration well, which are currently planned to be drilled as shallow wells by the blocks’ shallow rights owner, with Valeura and the other deep partners contributing to support these wells which will satisfy the commitments. The two-year appraisal period is subject to approval by the regulator which is expected after drilling the commitment wells. The smaller East Banarli licence has limited potential and will not be extended.
Valeura’s management is encouraged by Transatlantic’s ongoing participation in the deep gas play and continues to maintain focus on how best to maximise value of the play. Nevertheless, the Company intends to remain judicious in its allocation of resources toward the Thrace basin.
Guidance
Production is currently on target and Valeura is maintaining its original full year 2026 guidance. Guidance on full year adjusted opex is also maintained, although the Company acknowledges that this metric is influenced by the cost of diesel fuel, and is therefore currently trending above expectations as a result of the recent higher oil price environment.
The capital projects associated with Valeura’s original 2026 work programme are all currently on budget, however the Company is revising upwards its adjusted capex guidance based on increased scope of work. This includes the Nong Yao A platform expansion and the Company’s plan to do additional drilling in Q4. Spending on these endeavours is well-covered by the Company’s strong net cash position and ongoing cash flow which is significantly boosted by the high oil price.
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Source: Valeura Energy
