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Valeura Energy Inc. Announces Acquisition of Gulf of Thailand Assets
CALGARY, AB / ACCESSWIRE / April 28, 2022 / Valeura Energy Inc. (TSX:VLE)(LSE:VLU) (" Valeur...
About this update from Valeura Energy Inc.
[{"type":"text","content":"Valeura Energy Inc. Announces Acquisition of Gulf of Thailand AssetsCALGARY, AB / ACCESSWIRE / April 28, 2022 / Valeura Energy Inc. (TSX:VLE)(LSE:VLU) (\"Valeura\" or the \"Company\") is pleased to announce that it has entered into a Sale and Purchase Agreement with KrisEnergy (Asia) Ltd (the \"Seller\") to acquire all of the shares of KrisEnergy International (Thailand) Holdings Ltd. (the \"SPA\"), which holds an interest in two operated licences offshore Thailand for total initial cash consideration of US$3.1 million, plus certain contingent payments of up to a further US$7.0 million relating to future development milestones. Separately, Valeura has agreed to purchase an onsite Mobile Offshore Production Unit (\"MOPU\") from Nora Limited, for consideration of US$9.2 million (the \"MOPU Purchase\") which will be phased over approximately 14 months. Valeura expects to fund both the SPA and the MOPU Purchase (together the \"Acquisition\") from cash on hand and from initial cash flows generated by the assets.Acquisition Highlights· A new operating presence for the Company in Thailand, a country with a long history of oil and gas development, attractive fiscal terms, and well-defined cost structures for production and development activities;· Acquisition of working interests (\"WI\") in two shallow water Gulf of Thailand licences: G10/48 licence (89% operated WI) presenting a near-term production reactivation opportunity of the Wassana oil field, and the G6/48 licence (43% operated WI) containing the undeveloped but fully appraised Rossukon oil field;· Near-term cash flow from the developed Wassana oil field re-activation, with anticipated rates of approximately 3,000 bbls/d (net), expected starting in Q4 2022;· Anticipated net cash flows of approximately US$9 million per quarter upon reactivation of Wassana field, based on current benchmark commodity prices;· Total proved and probable (2P) reserves of approximately 4.0 mmbbls of oil;· Growth opportunities starting in 2023 through access to an additional aggregate 13.3 mmboe of 2C contingent unrisked resources including 5.0 mmbbls of oil at the undeveloped Rossukon oil field, pending the final investment decision;· Purchase of the MOPU located on the Wassana oil field, expected to enable lower cost operations and potentially extending field life; ...