Valeura Energy, a Canada-based oil and gas company, has successfully finalised the acquisition of a floating storage and offloading (FSO) vessel, which is stationed at one of its fields off the coast of Thailand. This move follows the company’s decision to exercise its purchase option for the FSO Aurora in February 2024. The acquisition pertains to the vessel located at Valeura’s Nong Yao field in the Gulf of Thailand, previously leased from a member of the Omni Offshore Terminals group.
Valeura Energy invested $19 million from its cash resources to purchase the FSO Aurora, with the transaction being completed on June 11, 2024. The final handover took place offshore, directly on the vessel. The company’s strategic reason for acquiring the FSO is rooted in its belief that ownership will provide greater operational flexibility, allowing Valeura to optimise and reduce operating expenses.
In addition to this acquisition, Valeura has recently completed an infill drilling campaign at Nong Yao A, utilising Borr Drilling’s Mist jack-up rig. The company has also initiated development drilling on the Nong Yao C extension, both situated in the Gulf of Thailand. Valeura holds a 90% operated working interest in the Nong Yao oil field.
The recently drilled production-oriented horizontal wells at the Nong Yao A wellhead platform have been brought online as producers. The drilling campaign at the Nong Yao C asset includes plans for up to nine gross wells, encompassing six producer wells and three water injectors. The first oil from the Nong Yao C development is anticipated in the third quarter of 2024. For this field development, the mobile offshore production unit (MOPU) TSeven Shirley, marking T7 Global’s debut in Thai waters, will serve as the wellhead production platform.
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.
