Valeura Energy has reported an increase in oil production, reaching 26.4 mbbls/d in September, which marks a 23% rise from the Q2 2024 average and 22.2 mbbls/d for Q3 2024. The company expects revenue of $139 million for the third quarter, with an average oil price of about $79 per barrel, having sold 1.8 million barrels during the period. As of Q3, Valeura projects cash holdings of $156 million and remains debt-free.
By the end of the quarter, Valeura held a crude oil inventory of 1.2 million barrels, representing a 30% increase from the beginning of the period. However, 0.51 million barrels were lifted on 1 October 2024, which will be recognised as revenue in Q4. The company indicated that it expects oil production to remain steady at around 25,000 barrels per day for the rest of the year, aligning with its full-year guidance. Price realisations are forecast to stay close to the Brent benchmark.
Operationally, Valeura successfully commissioned the Nong Yao C development, boosting production at the field by 66%. The drilling programme at Nong Yao C performed better than expected, with costs coming in 25% below budget. The company also expects two new infill wells at the Jasmine field to yield 1,050 bbls/d and has extended its drilling programme at the Manora field while staying within its existing capital budget.
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.
