Valeura Energy, the upstream oil and gas company with assets in the Gulf of Thailand and the Thrace Basin of Türkiye, has announced the results of its third-party independent reserves and resources assessment for its Thailand assets.
Highlights
- Reserves increased across all fields – 29.9 MMbbl 1P, 37.9 MMbbl 2P and 46.5 MMbbl 3P
- 1P and 2P Reserves Replacement more than double the volume of oil produced in 2023 – 219%
- 2P net present value before tax of US$616 million and US$429 million after tax(1)
- Considering year end 2023 cash position of US$150.9 million, 2P net asset value after tax of US$579 million, equating to C$7.56 per share(2)
- More than three-fold increase in best estimate (2C) contingent resources, on a risked basis.
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Discounted at 10% discount rate (NPV10)
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Proved plus probable (2P) NPV10 plus net cash of US$150.9 million at December 31, 2023 (cash US$150.9, debt nil), assuming C$/US$ exchange rate of 0.742, and 103.3 million shares outstanding
Sean Guest, President and CEO commented:
'I am very pleased to announce the results of our end 2023 reserves and resources evaluation, which show substantial increases on all fronts, whether expressed as volumes of barrels or dollars of value. Through our work programme in 2023 we have replaced more than double the oil we produced, extended the anticipated economic life of our portfolio, and recorded a significant up-tick in NPV. This is an additional year of results that supports our thesis that these assets will continue to deliver cashflow well into the future.
Not only has the value of our assets increased from US$261 million at end 2022 to US$429 million at end 2023 (on a 2P after-tax NPV10 basis), but during the intervening calendar year, cash flow from the assets’ 7.5 MMbbls(1) production has enabled us to fully pay down our debt while also accumulating US$151 million in cash by December 31, 2023. Together that creates a net asset value of US$579 million, which, based on our current shares outstanding and foreign exchange rates, equates to approximately C$7.56 per share.
Importantly, our performance in 2023 has resulted in 1P and 2P reserves growth at every one of our assets. For the more mature fields, Manora and Jasmine, our infill drilling programmes have increased reserves and extended field life. For the growth fields, Nong Yao and Wassana, these estimates underscore the value potential of pursuing further development opportunities. 2024 will serve as a proving ground for us to increase output from the Nong Yao field, with development of the Nong Yao C accumulation already well underway. At Wassana, largely as a result of our appraisal work in 2023, we have recorded a two-fold increase in 2P reserves, thereby validating our view that the field offers substantially more oil to commercialise than initially envisaged when we acquired the asset.
Our strategy is to continue pursuing value through growth in all its forms. That includes working to unlock contingent resources (which have also increased 3 ½-fold, year-on-year on a risked basis) and through an active near-field exploration programme this year.
We take great pride in our asset base in Thailand and are pleased to have such a high quality portfolio to continue driving further value growth for our stakeholders.'
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Including amounts relating to the period January 1, 2023 through March 22, 2023, prior to completion of the Company’s Gulf of Thailand acquisition from Mubadala Energy.
Valeura commissioned Netherland, Sewell & Associates, Inc. ('NSAI') to assess reserves and resources for all of its Thailand assets as of December 31, 2023. NSAI’s evaluation is presented in a report dated February 19, 2024 (the “NSAI 2023 Report”). This follows a previous evaluation whereby NSAI assessed reserves and resources for the same assets as of December 31, 2022, as disclosed in an NSAI report dated April 17, 2023 (the 'NSAI 2022 Report') and announced by the Company on April 18, 2023. Note that as the acquisition of a portion of Valeura’s Gulf of Thailand assets (Jasmine, Manora and Nong Yao) from Mubadala Energy was only completed on March 22, 2023, the NSAI 2022 Report is used as the basis for comparison, thereby comparing to the reserves at year end 2022 on a proforma asset basis.
Summary of Valeura’s Aggregate Thailand Reserves and Resources as of December 31, 2023
- Proved (1P) reserves of 29.9 MMbbls
- 1P NPV10 of US$301.4 million before tax / US$193.9 million after tax;
- Proved and probable (2P) reserves of 37.9 MMbbls,
- 2P NPV10 of US$616.4 million before tax / US$428.5 million after tax;
- Best estimate (2C) aggregate unrisked contingent resources of 19.9 MMbbls, or 8.9 MMbbls on a risked basis.
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Source: Valeura Energy
