Valeura Energy Inc. has successfully increased production from the Nong Yao C field extension in the Gulf of Thailand, reaching a full output of 13,400 barrels per day (bpd). As a 90% owner of License G11/48, the Canadian oil and gas company claims 12,100 bpd of this total, with Palang Sophon Ltd. holding the remaining 10%. This development boosts Valeura’s overall net production by nearly 25%.
Before the extension, Valeura’s net production from Nong Yao was 8,900 bpd. Following the ramp-up of the southern extension project, achieved soon after announcing the startup earlier this month, the company’s portfolio-wide net production has grown significantly. This includes production from the Wassana field, which was recently restarted after an inspection, and together these fields have stabilised production at 26,200 bpd over the past week.
Wassana, which operates under Valeura’s 100% ownership in Block G10/48, was temporarily shut down in June due to a welding anomaly in the mobile production unit. However, after identifying the issue as a minor weld crack, the field resumed production on 2 August. For the second quarter, Valeura averaged over 21,000 bpd in total production.
Valeura has brought six wells into operation at Nong Yao C and plans to start a seventh in the coming weeks, adding spare capacity. At the end of 2023, Nong Yao had proven and probable reserves of 12.4 million barrels gross. The company also intends to drill infill wells in its Jasmine and Manora fields to counteract declines in production. These fields returned online in the second quarter following scheduled maintenance.
In April, Valeura announced three new oil discoveries in the Gulf of Thailand. Two were in the Wassana field, with the Niramai 4 well hitting a 90-foot oil payzone across two reservoirs. A second discovery, Niramai 4 ST1, a sidetrack well, encountered a 40-foot oil payzone in the Wassana North fault block. Though reservoir properties are still being evaluated, the company believes these volumes will support future development in Block G10/48.
The third discovery occurred in the Nong Yao D area, where the Nong Yao 13 well encountered a 30-foot oil payzone across several intervals. This confirmed oil migration into the area, which had been a risk, and revealed previously unproduced shallow reservoirs. Valeura intends to further analyse the area’s seismic data to identify potential locations for future drilling.
Valeura’s ongoing exploration and production efforts in the Gulf of Thailand, along with its recent discoveries, promise to extend the life of its fields and support future developments, providing long-term value to the company.
Valeura Energy Inc (TSX:VLE) is an upstream oil & gas company, with a clear strategy to add value for shareholders. The Company has a strong balance sheet positioning it for potential inorganic growth opportunities in the near/medium-term, and substantial longer-term upside potential through an operated deep, tight gas play.
