Nong Yao Development Drilling Update

CALGARY, Alberta, May 28, 2024 (GLOBE NEWSWIRE) -- Valeura Energy Inc. (TSX:VLE, OTCQX:VLERF) ("Valeura" or the "Company"), an upstream oil and gas company with assets in the Gulf of Thailand and the Thrace Basin of Türkiye, is pleased to announce the successful completion of an infill drilling campaign at Nong Yao A and the start of development drilling on the Nong Yao C extension, both part of the Nong Yao oil field (90% operated working interest), offshore Gulf of Thailand.

Sean Guest, President and CEO commented:

"I am pleased with the results of our new Nong Yao A wells, which further illustrate the potential of our assets to add volumes through ongoing infill drilling.  Drilling these wells now was a nimble move by our team to shore up production rates just before dedicating our rig to the Nong Yao C development drilling programme. 

The start of drilling operations at our brand new Nong Yao C infrastructure marks a significant milestone for our Company.  This will be the first new development for Valeura in Thailand, and is expected to serve as a substantial source of production growth in the second half of this year. 

We remain focused on safe and sustainable growth, and I am pleased to note that our drilling operations have achieved an important safety record, logging one full year of work without a lost time injury.  We remain committed to delivering a top tier health, safety, and environmental performance across all our operations." 

Nong Yao A Infill Wells

Valeura has drilled two production-oriented horizontal wells at the Nong Yao A wellhead platform, which were both successful and have been brought online as producers.  

The 37H well culminated in a horizontal section within the primary target H12.5 reservoir.  That zone has been completed for production and is currently contributing approximately 500 bbls/d of oil⁽¹⁾, based on performance over the past ten days.  In addition, the well encountered 68 feet of net oil pay across eight separate appraisal target intervals.  These zones will now be further evaluated as targets for potential future development wells, and once developed, may add further producible volumes to the asset.

The 38H well has been completed as a horizontal producer in the H4.3 reservoir interval and is currently contributing approximately 1,000 bbls/d of oil⁽¹⁾, based on performance over the past five days.  A thin oil-bearing sand was encountered in the shallower H2.0 sand interval and will also be studied to determine additional producible volumes.

Nong Yao C Development

The Company's contracted drilling rig has moved to the Nong Yao C mobile offshore production unit where it has commenced batch drilling operations to develop the Nong Yao C field extension.  The drilling campaign is anticipated to take approximately four months and will be comprised of up to nine gross wells, being six producer wells and up to three water injectors.  Valeura anticipates first oil from the Nong Yao C development in Q3 2024, and thereafter is targeting aggregate peak oil production rates from the expanded Nong Yao field of 11,000 bbls/d, approximately a 50% increase over the 7,307 bbls/d reported for Q1 2024⁽¹⁾.

^{(1) Working interest share production before royalties.}

For further information, please contact:

Contact details for the Company's advisors, covering research analysts and joint brokers, including Auctus Advisors LLP, Canaccord Genuity Ltd (UK), Cormark Securities Inc., Research Capital Corporation, Schachter Energy Report, and Stifel Nicolaus Europe Limited, are listed on the Corporation's website at www.valeuraenergy.com/investor-information/analysts/.

About the Corporation

Valeura Energy Inc. is a Canadian public company engaged in the exploration, development and production of petroleum and natural gas in Thailand and in Türkiye. The Corporation is pursuing a growth-oriented strategy and intends to re-invest into its producing asset portfolio and to deploy resources toward further organic and inorganic growth in Southeast Asia. Valeura aspires toward value accretive growth for stakeholders while adhering to high standards of environmental, social and governance responsibility.

Additional information relating to Valeura is also available on SEDAR+ at www.sedarplus.ca.

Advisory and Caution Regarding Forward-Looking Information

Certain information included in this news release constitutes forward-looking information under applicable securities legislation. Such forward-looking information is for the purpose of explaining management's current expectations and plans relating to the future. Readers are cautioned that reliance on such information may not be appropriate for other purposes, such as making investment decisions. Forward-looking information typically contains statements with words such as "anticipate", "believe", "expect", "plan", "intend", "estimate", "propose", "project", "target" or similar words suggesting future outcomes or statements regarding an outlook. Forward-looking information in this news release includes, but is not limited to: the expectation that start of drilling operations at Nong Yao C will serve as a substantial source of production growth and the timing thereof; that the potential for appraisal target to yield future development wells and to add further producible volumes to the Nong Yao asset; timing to complete the Nong Yao C development drilling programme, timing for first oil, and target rates from the development.

Forward-looking information is based on management's current expectations and assumptions regarding, among other things: political stability of the areas in which the Company is operating; continued safety of operations and ability to proceed in a timely manner; continued operations of and approvals forthcoming from governments and regulators in a manner consistent with past conduct; future drilling activity on the required/expected timelines; the prospectivity of the Company's lands; the continued favourable pricing and operating netbacks across its business; future production rates and associated operating netbacks and cash flow; decline rates; future sources of funding; future economic conditions; the impact of inflation of future costs; future currency exchange rates; interest rates; the ability to meet drilling deadlines and fulfil commitments under licences and leases; future commodity prices; the impact of the Russian invasion of Ukraine; royalty rates and taxes; future capital and other expenditures; the success obtained in drilling new wells and working over existing wellbores; the performance of wells and facilities; the availability of the required capital to funds its exploration, development and other operations, and the ability of the Company to meet its commitments and financial obligations; the ability of the Company to secure adequate processing, transportation, fractionation and storage capacity on acceptable terms; the capacity and reliability of facilities; the application of regulatory requirements respecting abandonment and reclamation; the recoverability of the Company's reserves and contingent resources; ability to attract a partner to participate in its tight gas exploration/appraisal play in Türkiye; future growth; the sufficiency of budgeted capital expenditures in carrying out planned activities; the impact of increasing competition; the ability to efficiently integrate assets and employees acquired through acquisitions; global energy policies going forward; future debt levels; and the Company's continued ability to obtain and retain qualified staff and equipment in a timely and cost efficient manner. In addition, the Company's work programmes and budgets are in part based upon expected agreement among joint venture partners and associated exploration, development and marketing plans and anticipated costs and sales prices, which are subject to change based on, among other things, the actual results of drilling and related activity, availability of drilling, offshore storage and offloading facilities and other specialised oilfield equipment and service providers, changes in partners' plans and unexpected delays and changes in market conditions. Although the Company believes the expectations and assumptions reflected in such forward-looking information are reasonable, they may prove to be incorrect.

Forward-looking information involves significant known and unknown risks and uncertainties. Exploration, appraisal, and development of oil and natural gas reserves and resources are speculative activities and involve a degree of risk. A number of factors could cause actual results to differ materially from those anticipated by the Company including, but not limited to: the ability of management to execute its business plan or realise anticipated benefits from acquisitions; the risk of disruptions from public health emergencies and/or pandemics; competition for specialised equipment and human resources; the Company's ability to manage growth; the Company's ability to manage the costs related to inflation; disruption in supply chains; the risk of currency fluctuations; changes in interest rates, oil and gas prices and netbacks; potential changes in joint venture partner strategies and participation in work programmes; uncertainty regarding the contemplated timelines and costs for work programme execution; the risks of disruption to operations and access to worksites; potential changes in laws and regulations, the uncertainty regarding government and other approvals; counterparty risk; the risk that financing may not be available; risks associated with weather delays and natural disasters; and the risk associated with international activity. See the most recent annual information form and management's discussion and analysis of the Company for a detailed discussion of the risk factors.

The forward-looking information contained in this new release is made as of the date hereof and the Company undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, unless required by applicable securities laws. The forward-looking information contained in this new release is expressly qualified by this cautionary statement.

This announcement does not constitute an offer to sell or the solicitation of an offer to buy securities in any jurisdiction, including where such offer would be unlawful. This announcement is not for distribution or release, directly or indirectly, in or into the United States, Ireland, the Republic of South Africa or Japan or any other jurisdiction in which its publication or distribution would be unlawful.

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source: Valeura Energy Inc.