SINGAPORE, Feb. 13, 2025 (GLOBE NEWSWIRE) -- Valeura Energy Inc. (TSX:VLE, OTCQX:VLERF) ("Valeura” or the "Company”) is pleased to announce the results of its third-party independent reserves and resources assessment as at year-end 2024.
Highlights
- Record high year-end reserves: 32 MMbbl proved (1P), 50 MMbbl proved plus probable (2P) and 60 MMbbl proved plus probable plus possible (3P) reserves;
- 2P reserves replacement ratio of 245% even after annual production increase of 12%;
- 2P reserves and end of field life ("EOFL”) increased at every field;
- 2P reserves net present value before tax of US$934 million and US$752 million after tax(1);
- Considering year-end 2024 cash position of US$259 million, Company net asset value ("NAV”) is US$1,012 million, equating C$13.6 per common share(2);
- Contingent resources(3) of 48 MMbbl, more than double the total at end 2023; and
- Decommissioning costs significantly reduced through engineering studies and increased EOFL to beyond 2030.
| (1) | Discounted at 10% (NPV10) |
| (2) | Proved plus probable (2P) NPV10after tax plus cash of US$259.4 million (no debt), using US$/C$ exchange rate of 1.435, and 106.65 million common shares outstanding, as at December 31, 2024 |
| (3) | Unrisked 2C (best estimate) contingent resources |
"I am pleased to announce the results of our end 2024 reserves and resources evaluation, which shows again that our aggressive work programme can increase the ultimate potential of our fields and add value to our Company. In our second full year of operations we have again added more than double the reserves we produced, achieving a 2P reserves replacement ratio of 245%. This is a significant feat, considering we also increased production by 12% relative to 2023.
We also added to the ultimate potential of our portfolio, with all Thailand fields now having an economic field life lasting beyond 2030. Since taking over these assets, we have added at least four additional years of production life to each field. This means more years of future cash flow and is therefore a prime example of one key element of our strategy in action - driving further organic growth.
The net asset value of our business is now over US$1 billion - a record high, equating to more than C$13.6 per common share. This is based on our 2P after tax NPV10 increasing by 76% year-on-year, coupled with a new record year-end cash position.
In addition to discovering volumes through the drill bit and aggressively working to build our understanding of the intricate subsurface environment, various other financial and engineering studies have also added value. Our field abandonment costs have been reduced further through updated engineering studies which are benchmarked to actual abandonment operations in the Gulf of Thailand. The effect of this, combined with extended field life across the portfolio, is expected to reduce our Asset Retirement Obligation ("ARO”) on our balance sheet by more than 50% since we first assumed operatorship of these assets.
We are relentless in our pursuit of value and we remain focussed on allocating capital efficiently. Moreover, we see exciting reserves-adding opportunities ahead through the potential Wassana field redevelopment, as well as through ongoing infill development and appraisal drilling across the portfolio, and the selective exploration targets we will pursue this year.
At the same time, inorganic growth remains a key part of our strategy, and we are actively evaluating several opportunities to assess fit with our strict screening criteria.”
Valeura commissioned Netherland, Sewell & Associates, Inc. ("NSAI”) to assess reserves and resources for all of its Thailand assets as of December 31, 2024. NSAI's evaluation is presented in a report dated February 13, 2025 (the "NSAI 2024 Report”). This follows previous evaluations conducted by the same firm for December 31, 2023 (the "NSAI 2023 Report”) and December 31, 2022 (the "NSAI 2022 Report”).
Oil and Gas Reserves by Field Based on Forecast Prices and Costs
| Gross (Before Royalties) Reserves, Working Interest Share (Mbbl) | ||||||
| Reserves by Field | Jasmine
(Light/Medium) | Manora (Light/Medium) | Nong Yao
(Light/Medium) | Wassana
(Heavy) | Total | |
| Proved | Producing Developed | 5,268 | 1,370 | 6,541 | 2,894 | 16,073 |
| Non-Producing Developed | 703 | 433 | 153 | 242 | 1,531 | |
| Undeveloped | 4,713 | 705 | 3,742 | 5,490 | 14,650 | |
| Total Proved (1P) | 10,684 | 2,509 | 10,436 | 8,626 | 32,255 | |
| Total Probable (P2) | 6,108 | 848 | 6,500 | 4,297 | 17,753 | |
| Total Proved + Probable (2P) | 16,792 | 3,357 | 16,936 | 12,923 | 50,008 | |
| Total Possible (P3) | 3,647 | 718 | 4,297 | 1,027 | 9,689 | |
| Total Proved + Probable + Possible (3P) | 20,440 | 4,075 | 21,233 | 13,950 | 59,697 | |
Summary of Reserves Replacement, Value, and Field Life
As compared to the NSAI 2023 Report, the NSAI 2024 Report indicates an addition of 2.4 MMbbl of proved (1P) reserves and 12.1 MMbbl of proved plus probable (2P) reserves, after having produced 8.4 MMbbl of oil in 2024. This reflects a 1P reserves replacement ratio of 128% and a 2P reserves replacement ratio of 245%.
Based on the mid-point of the Company's 2025 production guidance of 23.0 - 25.5 Mbbl/d (24.25 Mbbl/d), on a 2P reserves basis as of December 31, 2024, the Company estimates its reserves life index ("RLI”) to be approximately 5.6 years. Using the same 2025 production estimate and 2P reserves as of December 31, 2023 and December 31, 2022, the RLI was approximately 4.3, and 3.3 years, respectively.
The net present value of estimated future revenue after income taxes, based on a 10% discount rate has increased between the NSAI 2023 Report and the NSAI 2024 Report from US$193.9 million to US$358.6 million on a 1P basis, an increase of 85%. On a 2P basis, the net present value of estimated future revenue after income taxes, based on a 10% discount rate has increased from US$428.5 million to US$752.2 million, an increase of 76%.
The Company estimates that, based on the 2P net present value of estimated future revenue after income taxes in the NSAI 2024 Report, based on a 10% discount rate, plus the Company's 2024 year-end cash position of US$259.4 million, as disclosed on January 8, 2025, the Company has a 2P net asset value ("NAV”) of US$1,011.6 million. Using the year-end count of common shares outstanding (being 106.65 million) and foreign exchange rates, Valeura's NAV equates to approximately C$13.6/share.
| 1P NPV10 | 2P NPV10 | 3P NPV10 | ||||
| Before Tax | After Tax | Before Tax | After Tax | Before Tax | After Tax | |
| NPV10(US$ million) | 360.7 | 358.6 | 933.9 | 752.2 | 1,339.1 | 990.2 |
| Cash at December 31, 2024 (US$ million)(1) | 259.4 | 259.4 | 259.4 | 259.4 | 259.4 | 259.4 |
| Net Asset Value (US$ million) | 620.1 | 618.0 | 1,193.3 | 1,011.6 | 1,598.5 | 1,249.6 |
| Common shares (million)(2) | 106.65 | 106.65 | 106.65 | 106.65 | 106.65 | 106.65 |
| Estimated NAV per basic share (C$ per share)(3) | 8.3 | 8.3 | 16.1 | 13.6 | 21.5 | 16.8 |
| (1) | Cash at December 31, 2024 of US$259.4 million, debt nil |
| (2) | Issued and outstanding common shares as of December 31, 2024 |
| (3) | US$/C$ exchange rate of 1.435 as at December 31, 2024 |
| Gross (Before Royalties) 2P Reserves, Working Interest Share | End of Field Life | 2P NPV10After Tax (US$ million) | |||||||||
| Fields | December 31, 2023 (MMbbl) | 2024 Production
(MMbbl) | Additions (MMbbl) | December 31, 2024 (MMbbl) | Reserves Replacement Ratio (%) | NSAI 2023 Report | NSAI 2024 Report | December 31, 2023 | December 31, 2024 | ||
| Jasmine | 10.4 | (2.9 | ) | 9.2 | 16.8 | 324 | % | Dec 2028 | Aug 2031 | 81.8 | 163.9 |
| Manora | 2.2 | (0.9 | ) | 2.1 | 3.4 | 223 | % | Jul 2027 | Apr 2030 | 21.2 | 45.7 |
| Nong Yao | 12.4 | (3.1 | ) | 7.7 | 16.9 | 245 | % | Dec 2028 | Dec 2033 | 185.6 | 416.1 |
| Wassana | 12.9 | (1.4 | ) | 1.5 | 12.9 | 102 | % | Jun 2032 | Dec 2035 | 139.9 | 126.6 |
| Total | 37.9 | (8.4 | ) | 20.5 | 50.0 | 245 | % | 428.5 | 752.2 | ||
Valeura has demonstrated two consecutive years of growth in both aggregate 2P reserves and the associated after-tax 2P NPV10 value.
| Gross (Before Royalties) 2P Reserves, Working Interest Share (MMbbl) | 2P NPV10After Tax (US$ million) | |||||
| Fields | December 31, 2022 | December 31, 2023 | December 31, 2024 | December 31, 2022 | December 31, 2023 | December 31, 2024 |
| Jasmine | 10.0 | 10.4 | 16.8 | 37.1 | 81.8 | 163.9 |
| Manora | 1.8 | 2.2 | 3.4 | 12.1 | 21.2 | 45.7 |
| Nong Yao | 11.2 | 12.4 | 16.9 | 145.5 | 185.6 | 416.1 |
| Wassana | 6.1 | 12.9 | 12.9 | 66.3 | 139.9 | 126.6 |
| Total | 29.1 | 37.9 | 50.0 | 261.0 | 428.5 | 752.2 |
The NSAI 2024 Report does not assume a new redevelopment concept for the Wassana field and therefore does not include potential upside volumes associated with the Company's contemplated redevelopment. Valeura is targeting readiness for a final investment decision ("FID”) in early Q2 2025. Should the Company opt to proceed with the redevelopment, management anticipates a higher production profile, with longer field life than is currently reflected in the NSAI 2024 Report.
Net Present Values of Future Net Revenue Based on Forecast Prices and Costs
Net present values of future net revenue from oil reserves are based on cost estimates as of the date of the NSAI 2024 Report, and forecast Brent crude oil reference prices of US$75.58, US$78.51, US$79.89, US$81.82, and US$83.46 per bbl for the years ending December 31, 2025, 2026, 2027, 2028, and 2029, respectively, with 2% escalation thereafter. NSAI assumes cost inflation of 2% per annum. Price realisation forecasts for each field are based on the Brent crude oil reference prices above, and adjusted for oil quality, and market differentials.
Based on Valeura's revised corporate structure, as modified by the reorganisation completed in November 2024, values estimated by NSAI assume a combined, single tax filing for all of the Company's Thai III fiscal concessions, covering the Wassana, Nong Yao, and Manora fields. The Jasmine field, being a Thai I fiscal concession, is outside this scope.
All estimated costs associated with the eventual decommissioning of the Company's fields are included as part of the calculation of future net revenue, specifically within the Proved Producing Developed category.
| Before Tax NPV10(US$ million) | ||||||||||
| Future Net Revenue by Field | Jasmine | Manora | Nong Yao | Wassana | Total | |||||
| Proved | Producing Developed | (124.7) | (27.6) | 146.2 | (160.7) | (166.8) | ||||
| Non-Producing Developed | 35.3 | 27.9 | 7.0 | 16.2 | 86.4 | |||||
| Undeveloped | 93.6 | 7.9 | 108.1 | 231.5 | 441.0 | |||||
| Total Proved (1P) | 4.2 | 8.2 | 261.3 | 87.0 | 360.7 | |||||
| Total Probable (P2) | 217.4 | 39.1 | 204.5 | 112.3 | 573.3 | |||||
| Total Proved + Probable (2P) | 221.5 | 47.3 | 465.8 | 199.3 | 933.9 | |||||
| Total Possible (P3) | 168.8 | 29.6 | 150.7 | 56.1 | 405.1 | |||||
| Total Proved + Probable + Possible (3P) | 390.3 | 76.9 | 616.5 | 255.4 | 1,339.1 | |||||
| After Tax NPV10(US$ million) | ||||||||||
| Future Net Revenue by Field | Jasmine | Manora | Nong Yao | Wassana | Total | |||||
| Proved | Producing Developed | (131.4) | (27.6) | 146.2 | (160.7) | (173.4) | ||||
| Non-Producing Developed | 33.9 | 27.9 | 7.0 | 16.2 | 85.1 | |||||
| Undeveloped | 99.6 | 7.9 | 108.1 | 231.5 | 447.0 | |||||
| Total Proved (1P) | 2.1 | 8.2 | ()[\]\\.,;:\s@\"]+)*)|(\".+\"))@((\[[0-9]{1,3}\.[0-9]{1,3}\.[0-9]{1,3}\.[0-9]{1,3}\])|(([a-zA-Z\-0-9]+\.)+[a-zA-Z]{2,}))$/;return b.test(a)}$(document).ready(function(){if(performance.navigation.type==2){location.reload(true)}$("iframe[data-lazy-src]").each(function(b){$(this).attr("src",$(this).attr("data-lazy-src"))});if($(".owl-article-body-images").length){$(".owl-article-body-images").owlCarousel({items:1,loop:true,center:false,dots:false,autoPlay:true,mouseDrag:false,touchDrag:false,pullDrag:false,nav:true})}var a=$("#display_full_text").val();if(a==0){$.ajax({url:"/ajax/set-article-cookie",type:"POST",data:{cmsArticleId:$("#cms_article_id").val()},dataType:"json",success:function(b){},error:function(b,d,c){}})}$(".read-full-article").on("click",function(d){d.preventDefault();var b=$(this).attr("data-cmsArticleId");var c=$(this).attr("data-productId");var f=$(this).attr("data-href");dataLayer.push({event:"paywall_click",paywall_name:"the_manila_times_premium",paywall_id:"paywall_article_"+b});$.ajax({url:"/ajax/set-article-cookie",type:"POST",data:{cmsArticleId:b,productId:c},dataType:"json",success:function(e){window.location.href=$("#BASE_URL").val()+f},error:function(e,h,g){}})});$(".article-embedded-newsletter-form .close-btn").on("click",function(){$(".article-embedded-newsletter-form").fadeOut(1000)})});$(document).on("click",".article-embedded-newsletter-form .newsletter-button",function(){var b=$(".article-embedded-newsletter-form .newsletter_email").val();var d=$("#ga_user_id").val();var c=$("#ga_user_yob").val();var a=$("#ga_user_gender").val();var e=$("#ga_user_country").val();if(validateEmail(b)){$.ajax({url:"/ajax/sendynewsletter",type:"POST",data:{email:b},success:function(f){$(".article-embedded-newsletter-form .nf-message").html(f);$(".article-embedded-newsletter-form .nf-message").addClass("show");setTimeout(function(){$(".article-embedded-newsletter-form .nf-message").removeClass("show");$(".article-embedded-newsletter-form .nf-message").html("")},6000);dataLayer.push({event:"newsletter_sub",user_id:d,product_name:"newsletter",gender:a,yob:c,country:e})},error:function(f,h,g){}})}else{$(".article-embedded-newsletter-form .nf-message").html("Please enter a valid email address.");$(".article-embedded-newsletter-form .nf-message").addClass("show");setTimeout(function(){$(".article-embedded-newsletter-form .nf-message").removeClass("show");$(".article-embedded-newsletter-form .nf-message").html("")},6000)}});$(document).on("click",".article-embedded-newsletter-form .nf-message",function(){$(this).removeClass("show");$(this).html("")});
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