Canada-based Valeura Energy has initiated a development drilling campaign off the coast of Thailand, utilizing a jack-up rig provided by Borr Drilling.
Following the successful completion of an infill drilling campaign at Nong Yao A, Valeura has started development drilling on the Nong Yao C extension in the Gulf of Thailand. Both projects are part of the Nong Yao oil field, where Valeura holds a 90% operated working interest. At the Nong Yao A wellhead platform, the company drilled two horizontal production wells that are now operational. The 37H well successfully drilled a horizontal section within the primary target H12.5 reservoir, which is now producing oil.
This zone is contributing approximately 500 barrels per day (bbls/d) of oil, based on performance over the past ten days. Additionally, the well encountered 68 feet of net oil pay across eight separate appraisal intervals, which are being evaluated for potential future development. These could significantly boost producible volumes from the asset.
The 38H well was completed as a horizontal producer in the H4.3 reservoir interval and is producing around 1,000 bbls/d of oil, based on the past five days’ performance. A thin oil-bearing sand was also encountered in the shallower H2.0 sand interval, which will be analyzed for further production potential.
Sean Guest, President and CEO of Valeura Energy, expressed satisfaction with the results: “I am pleased with the results of our new Nong Yao A wells, which further illustrate the potential of our assets to add volumes through ongoing infill drilling. Drilling these wells now was a nimble move by our team to shore up production rates just before dedicating our rig to the Nong Yao C development drilling programme.”
Guest also highlighted the significance of starting drilling operations at the new Nong Yao C infrastructure: “This will be the first new development for Valeura in Thailand and is expected to serve as a substantial source of production growth in the second half of this year.”
Valeura’s contracted rig, Borr Drilling’s Mist jack-up, has now moved to the Nong Yao C mobile offshore production unit (MOPU) and begun batch drilling operations to develop the Nong Yao C field extension. This four-month campaign will involve drilling up to nine wells, including six producer wells and up to three water injectors.
Valeura expects to see first oil from the Nong Yao C development in the third quarter of 2024. The company is targeting peak oil production rates of 11,000 bbls/d from the expanded Nong Yao field, representing a 50% increase over the 7,307 bbls/d reported in Q1 2024. The MOPU TSeven Shirley, marking T7 Global’s debut in Thai waters, serves as the wellhead production platform for the Nong Yao C field development.
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.
