SINGAPORE, May 09, 2024 (GLOBE NEWSWIRE) -- Valeura Energy Inc. (TSX:VLE, OTCQX:VLERF) (“Valeura” or the “Company”), the upstream oil and gas company with assets in the Gulf of Thailand and the Thrace Basin of Türkiye, reports its unaudited financial and operating results for the three month period ended March 31, 2024.

The complete quarterly reporting package for the Company, including the unaudited financial statements and associated management’s discussion and analysis (“MD&A”), are being filed on SEDAR+ at www.sedarplus.ca and posted to the Company’s website at www.valeuraenergy.com.

Q1 2024 Highlights

• Oil production of 21.9 mbbls/d(1), up 14% from the previous quarter;
• Oil sales of 1.8 million bbls, at an average realised price of US$84.6/bbl, generating revenue of US$149.4 million;
• Adjusted EBITDAX of US$89.0 million(2) and adjusted cashflow from operations of US$47.8 million(2);
• Cash and net cash balance as of March 31, 2024 of US$193.7 million(3), with no debt; and
• Adjusted net working capital surplus of US$141.9 million(2).

Year to Date Achievements

• Five horizontal development wells successfully drilled on the Wassana field (block G10/48, 100% interest) resulting in Q1 2024 average oil production of 3,979 bbls/d, and 4,900 bbls/d for the first six days of May 2024;
• Three oil discoveries announced from one exploration well in the Nong Yao concession (block G11/48, 90% working interest) and two exploration wells north of Wassana field;
• Scheduled shutdowns for maintenance on the Manora and Jasmine field production facilities conducted safely and under planned time and budget; and
• Installed the Nong Yao C mobile offshore production unit ("MOPU") T7 Shirley on the Nong Yao field in preparation for development drilling.

(1) Working interest share oil production, before royalties.
(2) Non-IFRS financial measure or non-IFRS ratio – see “Non-IFRS Financial Measures and Ratios” section below.
(3) Includes restricted cash of US$17.3 million.

Sean Guest, President and CEO commented:

“I am pleased to share details of our strong Q1 2024 performance, led by oil production of 21.9 mbbls/d, up 14% from Q4 2023. We expanded the scope of our Wassana field drilling programme, with output increasing to new highs more than 50% above our exit rate for 2023. All of our assets are fully in production and trending on plan, with operations progressing safely throughout the quarter.

Our crude oil inventory position increased somewhat during the quarter. While that resulted in slightly less oil sales this quarter, it means the inventory was ultimately sold into the relatively higher price environment we saw early in Q2. We are continuing to see price realisations above of our guidance outlook, averaging US$1.6/bbl above the Brent benchmark.

Our operational efficiency has been strong, with adjusted opex(1) at just over US$26/bbl. We continue to find new opportunities to optimise operations, including through our planned acquisition of the Nong Yao field’s oil storage vessel, as announced during the quarter, which will provide more operational flexibility, and the potential to reduce costs further.

It was also an exciting quarter from a growth standpoint. We mobilised our new MOPU to the Nong Yao field and are now working to commission the facility in preparation for development drilling on Nong Yao C. We are targeting a 50% increase in production rates from the field to 11,000 bbls/d, later this year. We also began exploration drilling during the quarter, which ultimately resulted in three oil discoveries. These successes further bolster our investment thesis, that these assets offer meaningful opportunities to push the fields’ economic lives further into the future, expanding the time horizon for us to generate cash flow.

Our business is highly cash generative, as demonstrated by our adjusted cash flow(1) of US$47.8 million in Q1, resulting in a quarter-end cash balance of US$194 million and adjusted net working capital(1) surplus of US$142 million. With our continually strengthening financial position, we are better prepared than ever to grow our business, adhering as always to our strict screening criteria to ensure value add for all stakeholders.”

(1) Non-IFRS financial measure or non-IFRS ratio – see “Non-IFRS Financial Measures and Ratios” section below.

Q1 2024 Performance Summary Table

 

		Three Months Ending March 31, 2024
Oil Production(1)	(bbls/d)	21,882
Oil Volumes Sold	(‘000 bbls)	1,765
Realised Price	(US$/bbl)	84.6
Oil Revenues	(US$ ‘000)	149,408
Adjusted EBITDAX(2)	(US$ ‘000)	88,721
Adjusted cashflow from operations (2)	(US$ ‘000)	47,855
Adjusted opex(2)	(US$ ‘000)	52,264
Adjusted capex(2)	(US$ ‘000)	29,257
Net earnings/(loss)	(US$ ‘000)	19,418
Weighted average shares outstanding - basic	(‘000 shares)	103,229

 

 

		As at March 31, 2024
Cash & Cash equivalent and Restricted cash	(US$ ‘000)	193,683
Debt(2)	(US$ ‘000)	Nil
Net Cash(2)	(US$ ‘000)	193,683
Adjusted Net Working Capital Surplus(2)	(US$ ‘000)	141,877

(1) Working interest share oil production, before royalties.
(2) Non-IFRS financial measure or non-IFRS ratio – see “Non-IFRS Financial Measures and Ratios” section below.

Financial Update

The Company’s Q1 2024 financial performance was influenced by maintenance activity, well workovers, and drilling operations across the portfolio, and benefited from strong overall production and an ongoing price realisation premium to the Brent oil benchmark. All activity was planned and had been included in the Company’s guidance outlook for the year 2024. Accordingly, Valeura’s management re-iterates its full year 2024 guidance outlook on all metrics, unchanged.

Oil production averaged 21.9 mbbls/d during Q1 2024 (Valeura’s working interest share, before royalties), an increase of 14% over Q4 2023. Q1 2024 was the Company’s first full quarter of production operations at the Wassana field, with its addition to the portfolio more than offsetting reduced rates from the other assets, which were affected by planned maintenance downtime. By quarter end, all fields were in operation with aggregate rates of approximately 23.0 mbbls/d, in line with management’s plan.  

Oil sales totalled 1.8 million bbls, during Q1 2024, slightly below the 2.0 million bbls produced during the quarter due to the timing of liftings. At quarter end, the Company held crude oil inventory of 0.9 million bbls, a 31% increase over the end Q4 2023 inventory due to the timing of liftings. This inventory, contained in the Company’s floating storage vessels, was subsequently sold in early Q2 2024.

Price realisations averaged US$84.6/bbl during Q1 2024, reflecting a US$1.6/bbl premium over the Brent crude oil benchmark average price. Premium prices achieved via tendering for each of the four assets has continued to meet or exceed management’s guidance outlook. The Company currently has no hedging arrangements in place in respect of its crude oil sales. The resulting oil revenue during Q1 2024 was US$149.4 million, a reduction of 12% from the US$169.9 million in Q4 2023 revenue, largely reflecting the build in crude oil inventory and consequently lower oil sales.

Operating expenses during Q1 2024 were US$41.8 million, a decrease of 16% from US$49.6 million in Q4 2023, reflecting the characteristically higher level of maintenance and well workover activity in Q4 2023. Adjusted opex during Q1 2024 was US$52.3 million, largely unchanged from the US$51.8 recorded in Q4 2023. Q1 2024 adjusted opex per barrel was US$26.2/bbl, a decrease of 11% from US$29.4/bbl in Q4 2023, primarily reflecting the increase in production in Q1 2024 versus the prior quarter. Adjusted opex is a non-IFRS measure which is more fully described in the “Non-IFRS Financial Measures and Ratios” section of this news release.

During Q1 2024, Valeura generated adjusted cashflow from operations of US$47.9 million, a decrease of 15% from the US$56.0 million in Q4 2023, which was primarily driven by lower sales due to inventory build. Adjusted cash flow from operations is a non-IFRS measure which is more fully described in the “Non-IFRS Financial Measures and Ratios” section of this news release.

Valeura generated adjusted EBITDAX of US$88.7 million in Q1 2024, approximately 8% lower than the US$96.7 million in Q4 2023, due to lower oil sales as well as an increase in depletion and depreciation expense. Adjusted EBITDAX is a non-IFRS and non-standardised variant of EBITDAX, as more fully described in the “Non-IFRS Financial Measures and Ratios” section of this news release.

There were no cash taxes paid in Q1 2024, in accordance with Thailand’s taxation regime which mandates payment of taxes in May and in August in respect of its Thai III concessions (relating to the Nong Yao, Manora and Wassana fields), and payment of taxes in May in respect of its Thai I concession (relating to the Jasmine field). The Company recorded a deferred tax recovery of US$16.3 million and a non-cash tax expense of US$24.2 million.

As of March 31, 2024, Valeura had cash and cash equivalents of US$193.6 million (including restricted cash of US$17.3 million), compared to US$151.2 million at December 31, 2023. This reflects a net inflow of cash due to ongoing oil production operations during Q1 2024.

Valeura had an adjusted net working capital surplus of US$141.9 million at March 31, 2024, versus US$118.1 million at December 31, 2024, an increase of 20%. This reflects the net effect of increased current assets, led by its cash balance, in excess of the increase in current liabilities including future tax obligations. Adjusted net working capital surplus is a non-IFRS measure, and is more fully described in the “Non-IFRS Financial Measures and Ratios” section of this news release.

Operations Update

During Q1 2024, the Company had ongoing production operations on all of its Gulf of Thailand fields including the Jasmine, Nong Yao, Manora, and Wassana fields. This was the first full quarter of production operations at the Wassana field, following its re-start in Q4 2023. In aggregate the Company’s net working interest share production was 21.9 mbbls/d. One drilling rig was under contract throughout the quarter.

Jasmine/Ban Yen

Oil production (before royalties) from the Jasmine/Ban Yen field, in Licence B5/27 (100% interest) averaged 7.7 mbbls/d during Q1 2024. Production during the quarter was impacted by planned downtime to conduct scheduled maintenance activity at the field, which was completed during the quarter.

No wells were drilled and there was no well workover activity on the B5/27 block during the quarter. It is currently planned to mobilise a workover rig to the field in Q2 and the Company is planning for a drilling campaign later in 2024, comprising approximately five infill development wells intended to increase production volumes.

Nong Yao

At the Nong Yao field, in Licence G11/48 (90% working interest), Valeura’s working interest share of oil production before royalties averaged 7.3 mbbls/d during Q1 2024. Subsequent to quarter end, the drilling rig was mobilised to the Nong Yao A facility to drill two new development wells. Operations on the two new wells are expected to be complete in the coming week; once tied in, the wells are expected to yield increased production from the field.

Growth activities focussed on preparations for the development of the Nong Yao C accumulation. During the quarter the T7 Shirley MOPU arrived on location and subsequent to quarter end the unit has been fixed to the seabed and all of the conductors, which will contain all of the production wells, have been installed from the MOPU, as well as risers for production having been connected to the subsea pipeline. The Company anticipates development drilling will result in first oil from the development in Q3 2024. Through this development project, Valeura is targeting an increase in block G11/48 peak oil production to approximately 11 mbbls/d (Valeura’s working interest share, before royalties).  

The Company began an exploration drilling campaign in Q1 2024, starting with the open water well Nong Yao-13, which tested the Nong Yao D prospect. Subsequent to quarter end, Valeura announced that the well was a success, discovering just over 30 feet of new oil pay across several intervals. The Company has begun further analysis of seismic data, seeking out potential locations for follow-up exploration and appraisal drilling in the vicinity, with the ultimate objective of amassing sufficient volumes to justify a future development hub.

Also during Q1 2024, the Company announced that it had agreed to purchase the Nong Yao field’s floating storage and offloading (“FSO”) vessel, the Aurora, for US$19 million. Closing of the transaction is expected in June 2024. Valeura anticipates that owning, as opposed to leasing the FSO is value accretive, will provide operational flexibility, and will reduce operating expenses for the field.

Wassana

Oil production at the Wassana field, in Licence G10/48 (100% working interest), averaged 4.0 mbbls/d during Q1 2024 (before royalties). In February 2024, Valeura announced its intent to expand the scope of its in-progress development drilling programme on the Wassana field from three horizontal wells to five, and subsequently completed the campaign during the quarter. All wells encountered their targets in line with expectations and thereafter the field has increased production to an average of 4.9 mbbls/d in the first six days of May 2024, and has demonstrated daily production results above 5.0 mbbls/d.

During Q1 2024, the Company continued progressing its work to select a concept for re-development of the Wassana field to commercialise additional volumes encountered through appraisal drilling on the field in 2023. Valeura anticipates finalising its concept-select phase in Q2 2024, leading to a final investment decision on the redevelopment around the end of the year.

At the end of Q1 2024, the Company was continuing an exploration drilling campaign, which concluded in Q2 with two oil discoveries on Licence G10/48. The Niramai-4 well and Niramai-4 ST1 well (Wassana North Prospect) discovered over 90 feet, and approximately 40 feet of new oil pay, respectively. Based on preliminary estimates, when combined with the pre-existing Niramai volumes the total recoverable volumes in the north-east portion of the G10/48 block are believed to exceed management’s requirements to support an additional future development, beyond the scope of the currently-contemplated redevelopment.

Manora

At the Manora field, in Licence G1/48 (70% working interest), Valeura’s working interest share of oil production before royalties averaged 2.9 mbbls/d during Q1 2024. Production rates during the quarter were impacted by scheduled downtime to conduct planned maintenance, which was completed on time and under budget, and by quarter end the field had resumed normal production operations.

Subsequent to quarter end a workover rig was mobilised to the Manora facility where it has since completed two well workovers intended to offset recent natural production declines. The workover unit will be mobilised to the Jasmine field to conduct further planned workovers.

The team have continued to review the drilling results and production data from 2022 and 2023 drilling campaigns and are currently proposing additional development and appraisal drilling. Valeura anticipates that a Manora field drilling campaign will be included in the drill sequence in late 2024 or early 2025.

AGM and Webcast

Valeura’s Annual and Special Meeting of Shareholders is scheduled for today, May 9, 2024, at 4:00 P.M. in Calgary. Shareholders may attend in person, as further detailed in the Management’s Information Circular which was mailed to shareholders and is available on the Company’s website and on www.sedarplus.ca. A webcast of the live event is available with the link below. In addition to the meeting, Valeura’s management will discuss the Q1 2024 results and will host a question and answer session. Written questions may be submitted through the webcast system or by email to IR@valeuraenergy.com.

Webcast link: https://teams.microsoft.com/l/meetup-join/19%3ameeting_MzRlZWIxZjEtNDA4Yi00MjgxLWFjNjYtMjg3NTBkNjM0YTA2%40thread.v2/0?context=%7B%22Tid%22%3A%22a196a1a0-4579-4a0c-b3a3-855f4db8f64b%22%2C%22Oid%22%3A%22241f769c-12ae-4efc-8c14-d2e523040a83%22%2C%22IsBroadca

An audio only feed of the event is available by phone using the conference ID and dial-in numbers below.

Conference ID: 893 125 625#

Dial-in numbers:

Canada: 833-845-9589
Singapore: +65 6450 6302
Thailand: +66 2 026 9035
Türkiye: 00800142034779
UK: 0800 640 3933
USA: 833-846-5630

For further information, please contact:

 

Valeura Energy Inc. (General Corporate Enquiries)	+65 6373 6940
Sean Guest, President and CEO
Yacine Ben-Meriem, CFO
Contact@valeuraenergy.com
Valeura Energy Inc. (Investor Enquiries)	+1 403 975 6752 / +44 7392 940495
Robin James Martin, Vice President, Communications and Investor Relations
IR@valeuraenergy.com
CAMARCO (Public Relations, Media Adviser to Valeura)	+44 (0) 20 3757 4980
Owen Roberts, Billy Clegg
Valeura@camarco.co.uk

Contact details for the Company’s advisors, covering research analysts, and joint brokers, including Auctus Advisors LLP, Cormark Securities Inc., Research Capital Corporation, Schachter Energy Report, and Stifel Nicolaus Europe Limited, are listed on the Company’s website at www.valeuraenergy.com/investor-information/analysts/.

About the Company

Valeura Energy Inc. is a Canadian public company engaged in the exploration, development and production of petroleum and natural gas in Thailand and in Türkiye. The Company is pursuing a growth-oriented strategy and intends to re-invest into its producing asset portfolio and to deploy resources toward further organic and inorganic growth in Southeast Asia. Valeura aspires toward value accretive growth for stakeholders while adhering to high standards of environmental, social and governance responsibility.

Additional information relating to Valeura is also available on SEDAR+ at www.sedarplus.ca.

Non-IFRS Financial Measures and Ratios

This news release includes references to financial measures commonly used in the oil and gas industry such as adjusted EBITDAX, adjusted net working capital, adjusted cashflow from operations, adjusted opex, and adjusted capex which are not generally accepted accounting measures under International Financial Reporting Standards (“IFRS Accounting Standards”) and do not have any standardised meaning prescribed by IFRS and, therefore, may not be comparable with similar definitions that may be used by other public companies. Management believes that adjusted EBITDAX, adjusted net working capital, adjusted cashflow from operations, adjusted opex, and adjusted capex are useful supplemental measures that may assist shareholders and investors in assessing the financial performance and position of the Company. Non-IFRS financial measures should not be considered in isolation or as a substitute for measures prepared in accordance with IFRS.

Adjusted EBITDAX: is a non-IFRS financial measure which does not have a standardised meaning prescribed by IFRS. This non-IFRS financial measure is included because management uses the information to analyse the financial performance of the Company. Adjusted EBITDAX is a non-IFRS and non-standardised variant of EBITDAX, adjusted to remove non-cash items as well as certain non-recurring costs including severance payments and other one-off items in relation to the Company’s recent acquisitions. Adjusted EBITDAX is calculated by adjusting profit (loss) for the year before other items as reported under IFRS to exclude the effects of other income, exploration, special remuneratory benefit (“SRB”), finance income and expenses, transaction costs, and depreciation, depletion and amortisation (“DD&A”), restructuring and other costs, and certain non-cash items (such as impairments, foreign exchange, unrealised risk management contracts, reassessment of contingent consideration, and share-based compensation) and gains or losses arising from the disposal of capital assets. In addition, other unusual or non-recurring items are excluded from Adjusted EBITDAX, as they are not indicative of the underlying financial performance of the Company.

Adjusted opex and adjusted opex per bbl: are a Non-IFRS financial measure, and a non—IFRS financial ratio, respectively, which do not have standardised meanings prescribed by IFRS. These are included because management uses the information to analyse cash generation and financial performance of the Company. Operating cost represents the operating cash expenses incurred by the Company during the period including the leases that are associated with operations, such as bareboat contracts for key operating equipment, such as FSOs, floating production, storage, and offloading vessels (“FPSOs”), and warehouses. Adjusted opex is calculated by effectively adjusting non-cash items from the operating cost and adding lease costs. Adjusted opex is divided by production in the period to arrive at adjusted opex per bbl. Valeura calculates adjusted opex per barrel, a non-IFRS measure, to provide a more consistent indication of the cost of field operations. Adjusted opex, as opposed to operating expenses, excludes the impacts of non-recurring, non-cash items such as prior period adjustments, and adds back lease costs in relation to FSOs, FPSOs, and other facilities.

Adjusted cashflow from operations: is a non-IFRS financial measure which does not have a standardised meaning prescribed by IFRS. This non-IFRS finance measure is included because management uses the information to analyse cash generation and financial performance of the Company. Adjusted cashflow from operations is calculated essentially using two methods which generate the same figures. A) by subtracting from oil revenues, royalties, adjusted opex, general and administrative costs which are adjusted for non-recurring charges, and accrued petroleum income tax (“PITA”) taxes and SRB expenses, and B) to enhance and facilitate to the reader a reconciliation of this non-IFRS measure, the Company also presented the adjusted cash flow from operations by calculating from cash generated from (used in) operating activities in the consolidated statement of cash flows, adjusting with non-cash items, adjusted opex, general and administrative costs which are adjusted for non-recurring charges, and accrued PITA tax and SRB expenses.

Net cash: is a non-IFRS financial measure which does not have a standardised meaning prescribed by IFRS. This non-IRFS financial measure is provided because management uses the information to a) analyse financial strength and b) manage the capital structure of the Company. This non-IFRS measure is used to ensure capital is managed effectively in order to support the Company’s ongoing operations and needs.

Adjusted net working capital: is a non-IFRS financial measure which does not have a standardised meaning prescribed by IFRS. This non-IFRS financial measure is included because management uses the information to analyse liquidity and financial strength of the Company. Adjusted net working capital is calculated by adding back current leases liability to net working capital.

The leases are associated with operations, such as bareboat contracts for key operating equipment, such as FSOs, FPSOs, and warehouses which are included in the Company’s disclosed adjusted opex (and adjusted opex guidance). Management believes adjusted net working capital provides a useful data point to the reader to ascertain the business’ next-twelve-months surplus or deficit capital requirement. It is also a data point that management uses for cash management.

Adjusted capex: is a non-IFRS measure which does not have a standardised meaning prescribed by IFRS. Capex is defined as the addition in capital expenditure for drilling, brownfield, and other property, plant & equipment (“PP&E”).

Advisory and Caution Regarding Forward-Looking Information

Certain information included in this news release constitutes forward-looking information under applicable securities legislation. Such forward-looking information is for the purpose of explaining management’s current expectations and plans relating to the future. Readers are cautioned that reliance on such information may not be appropriate for other purposes, such as making investment decisions. Forward-looking information typically contains statements with words such as “anticipate”, “believe”, “expect”, “plan”, “intend”, “estimate”, “propose”, “project”, “target” or similar words suggesting future outcomes or statements regarding an outlook. Forward-looking information in this news release includes, but is not limited to: the investment thesis, that the Company’s assets offer opportunities to push field economic lives into the future; the Company’s strengthening financial position resulting in being better prepared to grow its business; the Company’s reiteration of its guidance outlook for 2024; the Company’s plan for drilling on Jasmine comprising approximately five infill development wells; the expectation to bring on the new Nong Yao A wells in the coming days; the Company’s expectation to commission the T7 Shirley MOPU; timing to mobilise the drilling rig to Nong Yao C, timing for first oil, and target rates from the development; timing for completion of the FSO Aurora acquisition and the potential for more operational flexibility and reduced operating expenses; timing to complete the concept-select phase and final investment decision on the Wassana field redevelopment; expectations that well workovers on the Manora field will offset recent production declines; and the expectation that a Manora drilling campaign will be included in the drill sequence in late 2024 or early 2025. In addition, statements related to “reserves” are deemed to be forward-looking information as they involve the implied assessment, based on certain estimates and assumptions, that the resources can be discovered and profitably produced in the future.

Forward-looking information is based on management’s current expectations and assumptions regarding, among other things: political stability of the areas in which the Company is operating; continued safety of operations and ability to proceed in a timely manner; continued operations of and approvals forthcoming from governments and regulators in a manner consistent with past conduct; future drilling activity on the required/expected timelines; the prospectivity of the Company’s lands; the continued favourable pricing and operating netbacks across its business; future production rates and associated operating netbacks and cash flow; decline rates; future sources of funding; future economic conditions; the impact of inflation of future costs; future currency exchange rates; interest rates; the ability to meet drilling deadlines and fulfil commitments under licences and leases; future commodity prices; the impact of the Russian invasion of Ukraine; royalty rates and taxes; future capital and other expenditures; the success obtained in drilling new wells and working over existing wellbores; the performance of wells and facilities; the availability of the required capital to funds its exploration, development and other operations, and the ability of the Company to meet its commitments and financial obligations; the ability of the Company to secure adequate processing, transportation, fractionation and storage capacity on acceptable terms; the capacity and reliability of facilities; the application of regulatory requirements respecting abandonment and reclamation; the recoverability of the Company’s reserves and contingent resources; ability to attract a partner to participate in its tight gas exploration/appraisal play in Türkiye; future growth; the sufficiency of budgeted capital expenditures in carrying out planned activities; the impact of increasing competition; the ability to efficiently integrate assets and employees acquired through acquisitions; global energy policies going forward; future debt levels; and the Company’s continued ability to obtain and retain qualified staff and equipment in a timely and cost efficient manner. In addition, the Company’s work programmes and budgets are in part based upon expected agreement among joint venture partners and associated exploration, development and marketing plans and anticipated costs and sales prices, which are subject to change based on, among other things, the actual results of drilling and related activity, availability of drilling, offshore storage and offloading facilities and other specialised oilfield equipment and service providers, changes in partners’ plans and unexpected delays and changes in market conditions. Although the Company believes the expectations and assumptions reflected in such forward-looking information are reasonable, they may prove to be incorrect.

Forward-looking information involves significant known and unknown risks and uncertainties. Exploration, appraisal, and development of oil and natural gas reserves and resources are speculative activities and involve a degree of risk. A number of factors could cause actual results to differ materially from those anticipated by the Company including, but not limited to: the ability of management to execute its business plan or realise anticipated benefits from acquisitions; the risk of disruptions from public health emergencies and/or pandemics; competition for specialised equipment and human resources; the Company’s ability to manage growth; the Company’s ability to manage the costs related to inflation; disruption in supply chains; the risk of currency fluctuations; changes in interest rates, oil and gas prices and netbacks; potential changes in joint venture partner strategies and participation in work programmes; uncertainty regarding the contemplated timelines and costs for work programme execution; the risks of disruption to operations and access to worksites; potential changes in laws and regulations, the uncertainty regarding government and other approvals; counterparty risk; the risk that financing may not be available; risks associated with weather delays and natural disasters; and the risk associated with international activity. See the most recent annual information form and management’s discussion and analysis of the Company for a detailed discussion of the risk factors.

Certain forward-looking information in this news release may also constitute “financial outlook” within the meaning of applicable securities legislation. Financial outlook involves statements about Valeura’s prospective financial performance or position and is based on and subject to the assumptions and risk factors described above in respect of forward-looking information generally as well as any other specific assumptions and risk factors in relation to such financial outlook noted in this news release. Such assumptions are based on management’s assessment of the relevant information currently available, and any financial outlook included in this news release is made as of the date hereof and provided for the purpose of helping readers understand Valeura’s current expectations and plans for the future. Readers are cautioned that reliance on any financial outlook may not be appropriate for other purposes or in other circumstances and that the risk factors described above or other factors may cause actual results to differ materially from any financial outlook. The forward-looking information contained in this new release is made as of the date hereof and the Company undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, unless required by applicable securities laws. The forward-looking information contained in this new release is expressly qualified by this cautionary statement.

This news release does not constitute an offer to sell or the solicitation of an offer to buy securities in any jurisdiction, including where such offer would be unlawful. This news release is not for distribution or release, directly or indirectly, in or into the United States, Ireland, the Republic of South Africa or Japan or any other jurisdiction in which its publication or distribution would be unlawful.

Neither the Toronto Stock Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Toronto Stock Exchange) accepts responsibility for the adequacy or accuracy of this news release.

This information is provided by Reach, the non-regulatory press release distribution service of RNS, part of the London Stock Exchange. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.