Star Metro - Valeura Energy Inc. Announces Q2 2025 Operations and Financial Update

Highlights

• Safe ongoing operations, with oil production averaging 21.4 mbbls/d⁽¹⁾ - maintaining full year production guidance of 23.0 - 25.5 mbbls/d;

• Revenue of US$129.3 million;

• Taxes of US$15.8 million paid, primarily in respect of the Jasmine asset. No further cash tax payments anticipated for the remainder of 2025;

• Cash position of US$241.9 million and no debt; and

• Final investment decision on the Wassana Field redevelopment and construction phase commenced.

(1) Working interest share oil production, before royalties.

Dr. Sean Guest, President and CEO commented:

"During Q2 2025 we demonstrated another safe quarter of ongoing production and drilling operations and took a positive final investment decision on our major redevelopment project at the Wassana field, which is now moving to the construction phase.

While production volumes are down quarter-on-quarter, our plan had always assumed that production would be weighted to the second half of the year and we are therefore maintaining our full-year production guidance range of 23.0 - 25.5 mbbls/d.

From a financial perspective, we continue to prioritise balance sheet strength, and firmly believe this will serve our stakeholders well as we pursue opportunities to add value. While the headwinds of lower global oil prices during the quarter are apparent in our revenue of US$129.3 million, we are continuing to invest while maintaining a strong cash position."

Q2 2025 Update

Working interest share production before royalties averaged 21.4 mbbls/d during Q2 2025, a decrease of 10.2% from Q1 2025. Rates reflect the impact of planned downtime and natural declines at Valeura's larger producing assets, which is consistent with the Company's business plan. Q2 was anticipated to be the lowest production quarter of the year, and with rates weighted to the second half of 2025, the Company is maintaining its full year production guidance range of 23.0 - 25.5 mbbls/d.

Oil sales totalled 1.90 million bbls during Q2 2025. The Company recorded a net increase in oil inventory, as measured at the end of the quarter, to a total of 0.93 million bbls at June 30, 2025. In addition, a parcel of 0.24 million bbls of oil was sold just after the end of the quarter, on July 1, 2025.

Price realisations averaged US$67.95/bbl during Q2 2025, a US$0.67/bbl premium over the weighted average Brent crude oil benchmark. Realised price was down 14% from Q1 2025 given the significant drop in global oil prices.

Taxes for the Company's Thai I concession (Jasmine) are due in May of each year for the prior full year, and US$15.8 million was duly paid during the quarter primarily in respect of this asset. Taxes for the Company's Thai III concessions (Nong Yao, Manora, and Wassana) are due in May and August of each year, however taxable income for the current tax period (2H 2024) was fully offset by tax loss carry-forwards. Given the above, no further tax payments are expected in 2025.

Despite a relatively low oil price, a full quarter of spending on drilling operations, and scheduled Thai tax payments, Valeura's cash position at June 30, 2025, was US$241.9 million (with no debt), up slightly from the previous quarter-end. In addition, US$19.6 million in revenue, relating to a lifting on June 25, 2025, was not received until early in July 2025. As a result, this US$19.6 million is not included in the revenue or the Company's cash balance at June 30, 2025, but will be correctly accounted in the Q2 financials.

Operations Update

Production operations are continuing safely on Valeura's four Gulf of Thailand fields, with no lost time injuries.

During the quarter, Valeura mobilised its contracted drilling rig to Block G11/48 (Nong Yao, 90% working interest). The drilling campaign is progressing as planned toward its objective of approximately 10 new development wells and is expected to be complete in Q4 2025. The campaign will entail new development wells drilled from each of the three Nong Yao wellhead facilities, and will therefore include the first ever infill development wells on the Nong Yao C platform, which the Company installed in 2024.

In May 2025, Valeura took a final investment decision on redevelopment the Wassana field in Licence G10/48 (100% interest). The project will entail deployment of a new central processing platform facility on the field, intended to increase production, reduce costs, and create a hub for eventual tie-in of potential additional satellite wellhead platforms. The project is on plan, and moving into its construction phase now. First production is planned for Q2 2027.

Results Timing

Valeura intends to release its full unaudited financial and operating results for Q2 2025 on August 7, 2025, and will discuss the results in more detail through a management webcast hosted later that day.

For further information, please contact:

Valeura Energy Inc. (General Corporate Enquiries)
+65 6373 6940
Sean Guest, President and CEO
Yacine Ben-Meriem, CFO
[email protected]

Valeura Energy Inc. (Investor and Media Enquiries)
+1 403 975 6752 / +44 7392 940495
Robin James Martin, Vice President, Communications and Investor Relations
[email protected]

About the Company

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 Company 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 Company's anticipated full year 2025 guidance assumptions; no further cash tax payments being anticipated in 2025; timing and composition of future drilling campaigns; the effect of the Wassana redevelopment project on production, costs, and future growth of the G10/48 block; and timing for first production from the Wassana redevelopment project. 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 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; ability to achieve extensions to licences in Thailand and Türkiye to support attractive development and resource recovery; 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; the impact of conflicts in the Middle East; royalty rates and taxes; management's estimate of cumulative tax losses being correct; 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; future growth; the sufficiency of budgeted capital expenditures in carrying out planned activities; the impact of increasing competition; the availability and identification of mergers and acquisition opportunities; the ability to successfully negotiate and complete any mergers and acquisition opportunities; the ability to efficiently integrate assets and employees acquired through acquisitions; global energy policies going forward; international trade policies; 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; the risk that the Company's tax advisors' and/or auditors' assessment of the Company's cumulative tax losses varies significantly from management's expectations of the same; 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, including international treaties and trade policies; 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.

Certain forward-looking information in this news release may also constitute "financial outlook" within the meaning of applicable securities legislation. Financial outlook involves statements about Valeura's prospective financial performance or position and is based on and subject to the assumptions and risk factors described above in respect of forward-looking information generally as well as any other specific assumptions and risk factors in relation to such financial outlook noted in this news release. Such assumptions are based on management's assessment of the relevant information currently available, and any financial outlook included in this news release is made as of the date hereof and provided for the purpose of helping readers understand Valeura's current expectations and plans for the future. Readers are cautioned that reliance on any financial outlook may not be appropriate for other purposes or in other circumstances and that the risk factors described above or other factors may cause actual results to differ materially from any financial outlook.

The forward-looking information contained in this news 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 news release is expressly qualified by this cautionary statement.

This news release 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 news release 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.

Neither the Toronto Stock Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Toronto Stock Exchange) accepts responsibility for the adequacy or accuracy of this news release.

This information is provided by Reach, the non-regulatory press release distribution service of RNS, part of the London Stock Exchange. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [email protected] or visit www.rns.com.

SOURCE: Valeura Energy Inc.

View the original press release on ACCESS Newswire

F.Tremblay--SMC