Valeura Energy Inc. has achieved record-breaking oil production in the fourth quarter of 2024, reinforcing its growth trajectory and financial strength. With production and sales surging significantly, the company is poised for continued expansion, driven by strategic drilling initiatives and efficient resource management.
In the final quarter of 2024, Valeura’s oil production reached an unprecedented average of 26,109 barrels per day, marking an 18% increase from the previous quarter and a substantial 36% rise compared to the same period in 2023. Meanwhile, oil sales soared to 2.95 million barrels, up 67% from the third quarter and 48% year-over-year. These milestones underscore the company’s operational efficiency and ability to capitalise on market demand.
The remarkable production growth was largely attributed to a full quarter of operations at the Nong Yao C field extension, which commenced production in August 2024. Additionally, Valeura’s infill drilling programme at the Jasmine field significantly contributed to the output boost, with the last three wells of the initiative coming online in late November 2024.
Strengthened by these operational successes, Valeura reported a robust cash position of $259 million, laying a solid foundation for an ambitious 2025 work programme. President and CEO Sean Guest highlighted the company’s strategy to drive further value creation, leveraging its own cash reserves and cash flow to fund its initiatives.
Oil sales outpaced production during the quarter due to a larger-than-usual inventory carried over from the end of the third quarter. As of December 31, 2024, Valeura held 0.64 million barrels in crude oil inventory. The company recorded fourth-quarter oil revenue of $226 million, reflecting a 62% increase from the previous quarter. While prices experienced a slight decline, Valeura capitalised on higher sales volumes, achieving an average price realisation of approximately $76.7 per barrel—an advantageous $2.0 per barrel premium over the Brent crude benchmark.
Looking ahead, Valeura forecasts 2025 full-year oil production to average between 23,000 and 25,500 barrels per day. The company has earmarked $125-150 million for capital expenditure, alongside an additional $11 million for exploration drilling. With its corporate restructuring completed in Q4 2024, Valeura is now positioned to maximise cash flow, expand reserves, pursue strategic acquisitions, and enhance shareholder value through its ongoing share buyback programme.
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.
