Valeura Energy Inc., a Canadian company focused on petroleum and natural gas exploration and production, recently finalised a reorganisation of its subsidiaries in Thailand. This internal restructuring now consolidates Valeura’s interests in the Nong Yao, Manora, and Wassana fields under one entity, Valeura Energy (Thailand) Ltd. Previously, only the Wassana asset was held by this subsidiary.
The company expects this consolidation to enhance operational efficiency and financial performance by centralising resources and reducing redundant costs. Valeura aims to benefit from shared contracts and pooled procurement for future expenses. Additionally, the company estimates accumulated tax loss carry-forwards of $397 million as of September 2024, which could offer significant tax benefits.
President and CEO Sean Guest highlighted that the reorganisation marks a significant step in their strategy to deliver greater value for shareholders. He noted that the consolidation would support Valeura’s broader investment plans in Thailand, allowing for direct reinvestment into organic growth initiatives within their portfolio. Guest also emphasised the potential for additional growth through future acquisitions.
Under the new structure, Thailand’s income tax laws will treat the consolidated assets as a single taxable entity, with revised tax obligations to be addressed within a 30-day period. However, this restructuring will not affect the tax arrangements for the Jasmine field, which operates under a separate fiscal framework.
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.
