Valeura Energy, an oil and gas company based in Canada, has successfully boosted production from its Nong Yao field, located offshore Thailand. The company achieved this by completing the drilling operations for the Nong Yao C extension in early August 2024. The extension project involved six planned horizontal development wells, a water injection well, and an additional successful appraisal well. Production from the first wells began on August 15, 2024, and the remaining wells came online shortly thereafter, including a seventh well which was completed as a producer.
As a result of the Nong Yao C development, output from the field has increased by 66%, with recent production rates averaging 11.6 thousand barrels per day during the last week of the third quarter, compared to 7.0 thousand barrels per day the week before starting the new development. Valeura noted that the drilling program exceeded expectations, with total costs coming in about 25% below budget due to faster drilling execution while maintaining high standards for operational safety.
In addition to the progress at Nong Yao, Valeura Energy’s other assets in the Gulf of Thailand have also seen significant activity. At the Wassana field, which the company fully owns, a precautionary suspension of production was implemented before the start of the third quarter to investigate a potential structural risk at the production facility. Following inspection, the facility was confirmed to be in safe operating condition, and production resumed in early August.
At Jasmine field, Valeura successfully drilled two horizontal infill development wells starting in late August. The 41H well encountered 1,982 feet of net oil pay, while the 42H well found 1,555 feet of mixed-phase/oil pay. Both wells were brought into production, delivering an initial rate of 1,050 barrels per day on average. Drilling continued efficiently, with the contracted drilling rig undergoing maintenance before returning to resume infill drilling at Jasmine, where three more wells are planned.
The work program at Manora field has also been adjusted, with more drilling planned than originally anticipated, without any increase in the capital budget. This change is due to the accelerated pace of drilling throughout 2024. The company expects to begin a five-well infill drilling and appraisal programme at its Manora field, where Valeura holds a 70% interest, before the year ends.
The company’s President and CEO, Sean Guest, shared insights into their third-quarter performance, which highlighted both financial strength and organic growth potential. Valeura reported gross revenue of $139 million for the quarter, supported by 1.8 million barrels of oil sold. By the end of the quarter, the company had a cash balance of $156 million, no debt, and 1.2 million barrels in oil inventory. Guest also noted that production from Nong Yao C had driven a 23% increase in oil production during September compared to the second quarter, and that the forecast for production rates for the rest of 2024 remains stable at around 25 thousand barrels per day.
Valeura’s expansion at Nong Yao, along with its other developments in the Gulf of Thailand, illustrates the company’s focus on operational efficiency and organic growth, setting it up for sustained production throughout 2024.
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.
