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Valeura Energy Inc. Announces Transformative Gulf of Thailand Acquisition
Transformative Gulf of Thailand Acquisition CALGARY, AB / ACCESSWIRE / December 6, 2022 / Va...
About this update from Valeura Energy Inc.
[{"type":"text","content":"Valeura Energy Inc. Announces Transformative Gulf of Thailand AcquisitionTransformative Gulf of Thailand AcquisitionCALGARY, AB / ACCESSWIRE / December 6, 2022 / Valeura Energy Inc. (TSX:VLE) (\"Valeura\" or the \"Company\") is pleased to announce that Valeura Energy Asia Pte. Ltd. (the \"SPV\"), a special purpose vehicle and a subsidiary of the Company, has entered into a Sale and Purchase Agreement with Mubadala Petroleum (Thailand) Holdings Limited (the \"Seller\") to acquire the Thailand upstream oil producing portfolio of Busrakham Oil and Gas Ltd (\"Busrakham\"), a subsidiary of Mubadala Energy (the \"Acquisition\").This Acquisition consists of operated interests in three offshore licences in the Gulf of Thailand that include the Nong Yao, Jasmine/Ban Yen and Manora oil fields, which collectively currently produce approximately 21,200 bbls/d of oil, net to the interest being acquired. The purchase consideration for the Acquisition is US$10.4 million plus up to an additional US$50 million, contingent upon certain upside price scenarios. The acquisition has an effective date of August 31, 2022 (\"Effective Date\") and is subject to customary closing conditions.Acquisition HighlightsA substantial expansion of Valeura's presence in Thailand, adding a portfolio of cash generative assets;Operatorship of three additional offshore licences in the Gulf of Thailand;Current production add of 21,200 bbls/d of oil, net to the acquired interests;Weighted average cash operating costs across the assets of approximately US$22/bbl, comprised primarily of fixed costs associated with offshore facilities;Immediate pre-tax cash flows of approximately US$30 million per month1;Total proved plus probable (2P) reserves of approximately 24.1 mmbbls oil2;Deal consideration of US$10.4 million as of the Effective Date plus up to an additional US$50 million, contingent upon certain upside price scenarios;Value accretive transaction, with no requirement for additional equity to complete the Acquisition, and hence no dilution to shareholders;Near-term production growth opportunity through Nong Yao field development project planned to be onstream in early 2024;Field life extension opportunities through ongoing infill drilling to continue the assets' long history of reserves additions, amounting to approximately 80% replacement of produced reserves over the...