Valeura Energy, the upstream oil and gas company with assets in the Gulf of Thailand and the Thrace Basin of Türkiye, today provides an update on Q1 2024 operations.

Highlights for Q1 2024

• Oil production averaged 21.9 mbbls/d, quarter exit rate of approximately 23.0 mbbls/d(1);
• Scheduled maintenance conducted safely and under planned time and budget on Manora and Jasmine production facilities;
• Price realisations of US$84.6/bbl, a US$1.5/bbl premium over Brent;
• Revenue of US$149.4 million while oil inventory increased 31% to 0.9 million bbls; and
• Cash at bank of US$193.6 million, no debt

(1) Working interest share oil production, before royalties

Sean Guest, President and CEO commented:
“I am pleased to share highlights of our Q1 2024 operational performance with production performance up 14% from Q4 2023 and very much in line with our plan. The increased production reflects strong performance of the new wells at the Wassana field, but was slightly offset by shutdowns for scheduled maintenance at two of our fields to ensure ongoing world class standards for integrity. We exited the quarter with aggregate production rates of approximately 23.0 mbbls/d. 

Our financial performance has been strong too. With price realisations at or slightly above our guidance outlook, we generated Q1 2024 revenue of US$149.4 million. After accounting for cash outflows, including spending which is tracking our guidance assumptions, the result was a further build in our cash position to US$193.6 million. Our balance sheet is going from strength to strength, and we feel it is appropriate to stay the course and to build even more resilience as we seek out value-accretive opportunities both within our portfolio and through potential mergers and acquisitions.

We are in a strong position at the close of Q1 and look forward to translating that strength into value through our exploration drilling campaign, followed by our development of the Nong Yao C accumulation thereafter, and further organic projects later in the year.”

Q1 2024 Update

Production averaged 21.9 mbbls/d during Q1 2024 (Valeura’s working interest share, before royalties), an increase of 14% over Q4 2023.  Q1 2024 average production rates were affected by planned downtime at the Jasmine and Manora fields for scheduled maintenance, which was conducted safely and under the planned time and budget. By the end of the quarter, maintenance work had been completed and all fields were in operation, with aggregate rates of approximately 23.0 mbbls/d. Overall production performance has been in line with management’s plan, and accordingly, Valeura is pleased to re-iterate its full year 2024 production guidance outlook of 21.5 – 24.5 mbbls/d.

Oil sales totalled 1.8 million bbls, during Q1 2024, slightly below the 2.0 million bbls sold during Q4 2023, due to the timing of liftings. At the end of the quarter, the Company held crude oil inventory of 0.9 million bbls, a 31% increase over the end Q4 2023 inventory. It is expected that this increased inventory will be sold in Q2 2024.

Price realisations averaged US$84.6/bbl during Q1 2024, reflecting a US$1.5/bbl premium over the Brent crude oil benchmark, which averaged US$83.1/bbl. Consistent with 2023, price realisations have continued to meet or slightly exceed management’s guidance outlook of approximate parity with the Brent benchmark.

Oil revenue during Q1 2024 was US$149.4 million. After accounting for outflows of cash during the quarter, including operating costs and capital spending in line with the Company’s guidance expectations, the Company’s cash at bank balance had increased to US$193.6 million at March 31, 2024, which includes US$17.3 million held as restricted cash. Valeura has no debt.

KeyFacts Energy: Valeura Energy Turkey country profile