Valeura Energy's Q4 2024 Operational Success and 2025 Vision

Valeura Energy’s Quarterly Overview and Future Direction

Valeura Energy Inc. (TSX:VLE, OTCQX:VLERF) is excited to share its operational and financial update for the fourth quarter of 2024, alongside guidance for the upcoming year. The company's remarkable performance reflects ongoing efforts in advancing its business strategy.

Key Highlights from Q4 2024

In the fourth quarter of 2024, Valeura experienced significant milestones that underscore its operational efficiency and growth capacity. The company reported record oil production, averaging an impressive 26,109 bbls/d, leading to a yearly average of 22,825 bbls/d.

• During this quarter, Valeura sold 2.95 million barrels of oil, which contributed to a full-year total of 8.35 million barrels.
• The quarter saw oil price realizations averaging US$76.7/bbl, resulting in quarterly revenue of US$226 million and total annual revenue of US$679 million.
• As of December 31, 2024, Valeura's cash reserves reached US$259.4 million with no outstanding debt.
• The company successfully completed a restructuring of its subsidiary operations in Thailand, yielding improved operational and tax efficiencies starting from early November 2024.
• Valeura continued its successful development and appraisal drilling with the completion of a five well program on the Jasmine asset.
• Importantly, the company maintained a robust safety record, reporting zero lost time injuries in 2024.
• Furthermore, Valeura achieved a 17% reduction in GHG emissions intensity compared to the previous year.
• The company also executed the repurchase of 348,400 shares in Q4 2024 under its normal course issuer bid.

Looking Ahead: 2025 Guidance

Valeura is setting ambitious targets for 2025, forecasting full-year oil production between 23,000 and 25,500 bbls/d. The company’s capital expenditures (Capex) are estimated to be in the range of US$125 - 150 million, along with an exploration budget approximated at US$11 million. Moreover, adjusted operating expenses are projected to be between US$215 million and US$245 million.

• The company aims to persist in enhancing its production levels and believes that its production strategies will continue to align with the benchmarks set by the Brent crude oil price.
• Additional investments will focus on drilling and brownfield developments, with 85% of Capex and exploration spending directed towards drilling activities.

Operational Updates and Strategic Developments

In Q4 2024, Valeura’s oil production averaged 26.1 mbbls/d, marking an 18% increase from the preceding quarter and a significant 36% increase from Q4 2023. This positive trend was primarily due to the successful full operational integration of the Nong Yao C field, which commenced in August 2024.

Production rates were further enhanced by an infill drilling program at the Jasmine field, with new production capabilities coming onstream in late November 2024. Following this, Valeura mobilized its drilling rig to the Manora field where a five-well program is currently underway.

Enhancing Cash Flow and Financial Position

Oil sales for Q4 2024 reached 2.95 million bbls, representing a remarkable 67% increase from the previous quarter. This influx of revenue helped bolster Valeura's cash position, allowing for the generation of significant net revenue without incurring taxes during the quarter, which subsequently minimized cash outflows.

Strategic Work Program for 2025

Valeura's work program for 2025 emphasizes growth and sustainability across its assets:

• Nong Yao: The Nong Yao field is projected to account for 40% of the company's production in 2025, with plans to drill 11 development and appraisal wells aimed at optimizing production.
• Jasmine: Approximately 35% of production will stem from the Jasmine field, with the company set to drill 13 new wells to enhance oil recovery.
• Manora: Expected to contribute around 10% of total production, with a planned infill drilling program underway.
• Wassana: While no new drilling is set for 2025, the company is progressing with FEED work for potential redevelopment.

Valeura remains committed to a growth-oriented strategy that emphasizes reserve recovery and economic longevity. By investing in both organic and inorganic growth, the company aims to optimize its asset portfolio while prioritizing shareholder returns through ongoing stock buyback initiatives.

Frequently Asked Questions

What were Valeura's key achievements in Q4 2024?

Valeura achieved record oil production, significant cash reserves, and implemented a successful share buyback program.

What are Valeura's projections for 2025 oil production?

The company forecasts oil production to be between 23,000 and 25,500 bbls/d for 2025.

How does Valeura plan to manage its Capex in 2025?

Valeura plans to manage a Capex budget of US$125 - 150 million primarily focused on drilling and operational improvements.

What environmental initiatives is Valeura pursuing?

Valeura aims to reduce GHG emissions through innovative projects, including a low BTU gas generator for the Jasmine field.

How does Valeura ensure a strong cash flow?

The company generates cash flow through effective operational strategies and has maintained a debt-free position.

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