Valeura Energy has provided an update on Q2 2024 operations.
Highlights for Q2 2024
- Oil production averaged 21.1 mbbls/d(1);
- Drilling success across the portfolio, including exploration success at Nong Yao D, production wells at Nong Yao A, and the start of development drilling at Nong Yao C;
- Price realisations of US$87.7/bbl, a record US$2.7/bbl premium over Brent;
- Revenue of US$164 million; and
- No debt, and cash of US$145 million, after having paid an aggregate US$109 million in taxes, purchase of the Nong Yao Floating Storage and Offloading (“FSO”) vessel, and final contingent consideration associated with the asset acquisition from KrisEnergy (Asia) Ltd.
(1) Wor
Sean Guest, President and CEO commented:
'I am pleased to share that production was robust throughout the quarter and in line with our expectations, averaging 21.1 mbbls/d. Demonstrating our agility, we have remained nimble with our drilling programme, and took the opportunity to drill both exploration and infill wells at Nong Yao, before starting our extensive development programme on Nong Yao C, which is now well underway and progressing on track for first oil later in Q3 2024.
Our financial performance has been strong. We recorded gross revenue of US$164 million during the quarter on the back of 1.9 million bbls of liftings, and improved oil prices. During the quarter, we had cash outlays related to scheduled tax payments and several one-off payments amounting to US$109 million in total, but still concluded the period with a solid cash position of US$145 million and no debt. We believe this performance highlights the highly cash-generative nature of our business and the resilience of our balance sheet.
On June 27, 2024, we announced a precautionary suspension of production at our Wassana field to ensure a safe situation while we investigate a potential risk to the production facility’s structural integrity. While the temporary deferral of production at Wassana is an unfortunate setback in an operational sense, and results in our current production being in the 17.0 mbbls/d range (Valeura working interest share before royalty over the past 10 days), safety remains our top priority in such matters, and we are progressing swiftly to fully understand the situation, implement potential remedies, and restart production as soon as possible.
I am also pleased to announce that we have started FEED study work on the greater Wassana redevelopment project to include new discovered resources and the existing production area. We anticipate taking a final investment decision on this project at approximately the end of 2024. Growth projects like greater Wassana, alongside a potential pipeline of merger and acquisition-led opportunities we see in the region continue to form the backbone of our growth-oriented strategy.'
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Source: Valeura Energy
