Valeura Energy has provided an update on Q3 2024 operations.
Highlights for Q3 2024
- Oil production averaged 22.2 mbbls/d(1) for Q3 2024 and 26.4 mbbls/d during September 2024(1);
- Nong Yao C development was commissioned and put on production, which resulted in a 66% increase in Nong Yao production(1,2);
- Production resumed at Wassana after confirming the safe operating condition of its production facility;
- Oil volumes sold of 1.8 million barrels with increased oil inventory at quarter end of 2 million bbls;
- Revenue of US$139 million with an average price realisation of approximately US$79/bbl;
- Cash of US$156 million, after having paid US$30.1 million in petroleum taxes related to H1 2024;
- Valeura remains debt free; and
- Recognised as one of Canada’s Top Growing Companies by The Globe and Mail, ranking no. 8 of over 400 companies evaluated.
(1) Working interest share production, before royalties.
(2) 11.6 mbbls/d (last seven days of Q3), compared to 7.0 mbbls/d (the week just prior to starting Nong Yao C).
Dr. Sean Guest, President and CEO commented:
'I am pleased to share preliminary details of our Q3 2024 performance, which illustrates both the financial resilience and the organic growth potential of our portfolio.
Our financial performance has been strong. We recorded gross revenue of US$139 million during the quarter on the back of 1.8 million bbls of oil sold. We closed out the quarter with a cash balance of US$156 million and no debt, and 1.2 million bbls of oil inventory. Two liftings totalling 0.51 million bbls occurred just after the end of the quarter, and will be recorded as revenue in Q4.
From an operations perspective, our Q3 performance demonstrates the value of pursuing organic developments within our portfolio, underscored by our Nong Yao C development, which began bolstering production rates from mid-August onward. The average working interest share oil production for the month of September was 26.4 mbbls/d (before royalties), an increase of 23% over Q2 2024 average production. With continued smooth production operations across the portfolio we forecast rates remaining in the 25 mbbls/d range for the remainder of 2024, in keeping with our full year guidance expectations.
Valeura’s portfolio is uniquely pre-disposed to generating strong cash flow, and I see this as a critical differentiating factor within our industry. We are driving toward an even stronger balance sheet, which remains wholly unlevered, thereby providing a distinct competitive advantage in an increasingly distressed market, precipitated by benchmark oil prices which have fallen more than 20% over the course of Q3. While we see volatility in commodity prices as a constant within our industry, we feel the current environment makes it prudent to maximise optionality by preserving a best-in-class financial position, setting ourselves up with an advantaged position when it comes to transacting on future growth opportunities.'
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Source: Valeura Energy
