Valeura Energy Adds 21,200 bbls/d To Production With Closing Of Thailand Acquisition

Valeura Energy (TSX: VLE) has closed its acquisition of certain producing oil and gas assets in the country of Thailand. The assets are said to consist of operating interests in three separate offshore oil fields.

Originally announced in early December, Valeura has acquired Busrakham Oil and Gas, which was an operating subsidiary of Mubadala Energy. The purchase includes a 100% operated interest in a license in the Jasmine and Ban Yen oil fields, a 90% operated working interest in a license containing the Nong Yao oil field, and a 70% operated working interest in a license that contains the Manora oil field.

The licenses currently produce 21,200 boe/d of oil, net to the interest acquired. Operating costs meanwhile average out to US$22 per barrel, with costs primarily said to consist of fixed costs related to the offshore facilities. Proven plus probably reserves amount to 24.1 mmbbls of oil.

The assets were acquired for US$10.4 million in cash, with up to an additional US$50 million to be paid as contingent consideration. Curiously, despite the low price tag the assets are to have “immediate pre-tax cash flows of approximately US$30 million per month,” a statement that was based on US$85/bbl Brent crude.

Net economic benefits since September 1, 2022, are said to be included in the acquisition.

“With our expanded asset base, we can now begin to realise synergies across our operations, unlocking even more value for our stakeholders, while remaining mindful of our primary focus on safe, reliable operations. At the same time, our growth ambitions remain at the core of our forward strategy. We intend to pursue the organic growth opportunities within our portfolio, as well as further inorganic opportunities in Southeast Asia,” commented CEO Sean Guest on the closing of the transaction.

A reserves and resources evaluation is currently being undertaken for all of the firms Thailand-based assets.

Valeura Energy last traded at $2.43 on the TSX.

Information for this briefing was found via Sedar and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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