Canada-based oil and gas company Valeura Energy has completed the acquisition of the floating storage and offloading (FSO) vessel Aurora, which is already on location at its Nong Yao field in the Gulf of Thailand. The acquisition followed Valeura exercising its purchase option to acquire the vessel, which it had previously leased from a member of the Omni Offshore Terminals group. The purchase, priced at $19 million, was funded with the company’s cash resources, with the transaction finalised on June 11, 2024, offshore on the vessel itself.
Valeura anticipates that owning the FSO, rather than leasing it, will offer operational flexibility and allow the company to optimise and reduce operating expenses. Valeura holds a 90% working interest in Licence G11/48, which includes the Nong Yao oil field, producing approximately 8,900 barrels per day of medium sweet crude oil. The remaining 10% interest is held by Palang Sophon. The Nong Yao field has been developed with wells drilled from two wellhead platforms connected to a leased FSO vessel.
A development project is currently underway to commercialise a southern extension of the field, known as the Nong Yao C accumulation, by drilling additional development wells from a new mobile offshore production unit (MOPU). The company expects this extension to increase production to 11,000 barrels per day. In May 2024, Valeura commenced development drilling operations at the Nong Yao C extension, following the completion of an infill drilling campaign at Nong Yao A.
A month earlier, Valeura discovered oil in the Nong Yao-13 well, drilled to a depth of 5,399 feet, with over 30 feet of new oil pay discovered across several intervals. This result confirmed that oil had successfully migrated into this area of the block, addressing a risk previously identified in the Nong Yao D area.
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.
