Valeura Energy Inc. has reported a significant milestone in the ramp-up of oil production at its Nong Yao C development, located in Licence G11/48, offshore in the Gulf of Thailand. The entire Nong Yao complex is now running at full processing capacity, with stable average production over the past week reaching 13.4 mbbls/d. Of this, 12.1 mbbls/d is attributable to the company’s 90% working interest, before royalties. This increase, combined with the restart of production at the Wassana field, has resulted in a steady aggregate oil output of 26.2 mbbls/d over the last week, before royalties are considered.
Dr. Sean Guest, President and CEO of Valeura Energy, expressed his satisfaction with the progress. He highlighted how quickly the Nong Yao complex reached its full potential, just two weeks after first oil was achieved from the Nong Yao C development. He praised the rapid and incident-free commissioning process of the new facility, which saw production stabilise over the past seven days from six development wells. The company is also planning to bring a seventh well online in the coming weeks to ensure spare capacity.
Guest further emphasised that this successful project has bolstered their overall operations, particularly with the steady performance from the Wassana field. Over the past week, the company’s total working interest production averaged 26.2 mbbls/d, before royalties. Looking ahead, Valeura Energy’s work programme for the rest of the year includes drilling infill development wells at the Jasmine and Manora fields. This is part of their strategy to offset natural production declines and maintain an output of around 25 mbbls/d over the next four months.
Additionally, Guest pointed to the company’s strong financial performance as seen in their results for the period ending June 30, 2024. Valeura Energy continues to generate healthy cash flow and remains focused on deploying its net cash in ways that will maximise value for its shareholders.
This recent success highlights Valeura Energy’s growing operational capacity and its commitment to maintaining steady production levels across its portfolio.
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.
