Valeura Energy Inc. (TSX:VLE) (“Valeura” or the “Company”), the upstream oil and gas company with assets in the offshore Gulf of Thailand and the Thrace Basin of Turkey, is pleased to provide a business update, its guidance outlook for the full year 2023 and the results of its third-party independent reserves and resources assessment for its Thailand assets.
Sean Guest, President and CEO commented:
“Following our recently completed acquisition of Gulf of Thailand assets from Mubadala Energy, I am pleased to present Valeura as a cash flow generating business with substantial growth opportunities centered on our strategy of ongoing value generation.
Our global portfolio includes assets which held 2P reserves of 29.1 million barrels of oil, as independently evaluated at December 31, 2022, in addition to an assessed unrisked best estimate 2C contingent resource total of 14.1 million barrels of oil in Thailand, plus our prospective resource in Turkey. This underscores the substantial value potential of Valeura and highlights the significant running room within our portfolio to continue pursuing the target of reserves replacement. Our focus will always revolve around delivering safe and reliable operations, in a responsible and sustainable way, geared toward cash generation and growth to create deeper value for shareholders.”
Update on Closing the Mubadala Acquisition
On December 6, 2022, Valeura announced a transformational Gulf of Thailand acquisition from Mubadala Energy, which was subsequently completed on March 22, 2023 (the “Mubadala Acquisition”). All net economic benefits accumulated by the Mubadala Acquisition assets from an effective date of September 1, 2022, were included with the acquired entity. Over that approximately seven-month period, the acquired assets’ oil production averaged 20,600 barrels per day (“bbls/d”), on a net working interest basis, generating aggregate revenue of US$363 million, resulting in an average of approximately US$30 million in pre-tax cash flow per month, in line with the Company’s previously published expectation.1,3
At completion of the Mubadala Acquisition on March 22, 2023, the acquired entity held cash and cash equivalent resources of approximately US$243 million. After accounting for, among other things, the impact of inventories, accounts payable, and tax liabilities, the increase in Valeura’s adjusted net working capital position as a result of the Mubadala Acquisition is estimated to be approximately US$105 million.
The Company intends to release its interim consolidated financial and operating results for the three month period ended March 31, 2023 on May 11, 2023. Production from the acquired assets in Q1 2023 was 20,475 bbls/d and capital spending was approximately US$34 million, on a net working interest basis. The Company’s Q1 2023 results will report a portion of these amounts relating to the period from completion of the Mubadala Acquisition through the end of the reporting period (from March 22, 2023 through March 31, 2023).