Valeura Energy, the upstream oil and gas company with assets in the Gulf of Thailand and the Thrace Basin of Türkiye, has reported its financial and operating results for the three month period and year ended December 31, 2023.
The complete reporting package for the Company, including the audited financial statements and associated management’s discussion and analysis ('MD&A') and the 2023 annual information form ('AIF'), are available on the Company’s website at www.valeuraenergy.com.
2023 Highlights
- Closed the Mubadala Acquisition(1) for cash consideration of US$10.4 million, adding three producing offshore Gulf of Thailand fields to the Valeura portfolio;
- Four producing fields yielded average oil production of 20,440 bbls/d(2);
- Restarted production from the Wassana field and drilled appraisal wells which confirmed the presence of oil deeper than previously proven, leading to a potential re-development of the field and extension of field life beyond 2030;
- Drilling activity extended the economic life of all fields in the Company’s Thailand portfolio;
- Replaced more than double the volume of oil produced by all fields in 2023 – 219% through proved (1P) and proved plus probable (2P) reserves additions (reserves replacement ratio);
- Generated adjusted cash flow from operations of US$152 million(3);
- Fully paid off debt and had accumulated cash of US$151 million as of December 31, 2023;
- Further strengthened the balance sheet by reassessing and reducing decommissioning obligation on the balance sheet by 30% to US$129 million(4);
- Increased 2P net present value (NPV) before tax to US$616 million and US$429 million after tax(5); and
- Considering year end 2023 cash position, increased 2P net asset value (NAV) after tax to US$579 million, equating to C$7.56 per share(6).
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As more fully defined in the AIF, closed March 22, 2023.
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Working interest share production, before royalties, from closing of the Mubadala Acquisition on March 22, 2023 through December 31, 2023.
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Non-IFRS financial measure (defined below) or non-IFRS ratio – see “Non-IFRS Financial Measures and Ratios” section within this news release.
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Compared to decommissioning obligation of US$184 million as first reported following the Mubadala Acquisition as at March 31, 2023.
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Discounted at 10% discount rate (NPV10).
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2P NPV10 plus net cash at December 31, 2023, assuming C$/US$ exchange rate of 0.742, and 103.3 million shares outstanding (as of February 19, 2024).
Sean Guest, President and CEO commented:
'I am very pleased to present our first full year financial results which reflect the true scale of our now-transformed business. Through the Gulf of Thailand acquisitions we completed in 2022 and 2023 and the hard work our team has performed throughout the year, Valeura has become a strongly cash flow generating business, with assets that are exceeding expectations on all fronts.
Importantly, we have also created a clean and resilient balance sheet. The cash flow capacity of our assets has allowed us to rapidly pay off all debt and exit the year with US$151 million in cash. We have also seen our decommissioning obligations drop to US$129 million, a 30% reduction from the total we reported just after closing the Mubadala Acquisition. Valeura’s financial position is exceptional and positions us very well for further growth.
Drilling activity and studies performed in 2023 resulted in our independent third-party reserves evaluator significantly increasing reserves volumes and value. The life of all fields was extended on the back of a reserves replacement ratio of 219%. Additionally, appraisal of the Wassana field has proven more oil than previously reported which will underpin a 2024 decision on field expansion. This increase in 2P reserves value, when coupled with our cash, generates a net asset value of over C$7/share.
The complementary nature of our assets is becoming increasingly apparent as we completed the process to merge the companies into a single organisation. We reduced unit operating costs in 2023 and the team are enthusiastically seeking further synergies in cost optimisation and tax efficiency as we look to 2024.
We intend to continue to aggressively pursue value through our growth-oriented strategy, which continues to include aspirations to growth both organically and inorganically by way of mergers and acquisitions opportunities, which we continue to see in our core Southeast Asia region.
We continue to drive safety and sustainability as a priority throughout our operations and will publish our inaugural sustainability report in the near term to articulate key performance metrics for the business in 2023. Through the sustainability report we aspire to be transparent about our performance and to create a baseline from which to measure improvement over time, so as to best assure the ongoing sustainability of our business.'
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Source: Valeura Energy
