CLOSING OF GULF OF THAILAND ACQUISITION
CALGARY, AB / ACCESSWIRE / June 15, 2022 / Valeura Energy Inc. (TSX:VLE, LSE:VLU) (“Valeura” or the “Company“) is pleased to announce it has completed the acquisition of the entire share capital of KrisEnergy International (Thailand) Holdings Ltd., as announced on April 28, 2022 (the “Acquisition“).
Through its subsidiaries, Valeura is now the holder of an 89% operated working interest in Licence G10/48 containing the Wassana oil field and a 43% operated working interest in the planned Rossukon oil field development in Licence G6/481, in addition to its pre-existing interest in the Thrace basin tight gas appraisal play in Turkey. The Company’s acquisition of the Mobile Offshore Production Unit Ingenium (“MOPU“)1 on location at the Wassana oil field, is proceeding as expected, according to the agreed phased payment schedule.
Upward revisions to reserves and resources in Licences G10/48 and G6/48 as released on June 13, 2022 have contributed to a significant increase in value associated with the Acquisition as compared to initial expectations.
1 Interests in Licence G10/48, Licence G6/48 and the MOPU are presented on a working interest acquired basis to the Valeura-controlled special purpose vehicle, Panthera Resources Pte. Ltd., in which Valeura holds 85% of the share capital.
Sean Guest, President and CEO of Valeura commented:
“I am delighted to complete our acquisition of these Gulf of Thailand assets within just seven weeks of agreeing to the deal, and we look forward to building relationships with our new partners and regulators as we establish our operating credentials in Thailand. I am also pleased to welcome approximately 30 staff to the Valeura team, as we begin the process of integrating this highly capable Thailand-based operating unit with our business.
Our highest priority is to re-activate production operations at the Wassana field. Work is already underway to complete the commercial arrangements and MOPU re-certification that will enable the resumption of oil production at a rate of approximately 3,000 bbls/d, net to the acquired interest, in Q4 2022. At the same time, we are actively engaged in discussions with both partners and regulators regarding the Rossukon oil field development, and will share additional details when we take a final investment decision, anticipated later this year.
We remain focused on increasing shareholder value by further growing our business inorganically, as well as progressing our tight gas appraisal play in Turkey.”
UK Listing Update
The Acquisition constitutes a reverse takeover for the purposes of the Listing Rules of the Financial Conduct Authority (“FCA“) and the Company has requested, in accordance with the Listing Rules, that the listing of the Company’s common shares (the “Shares“) on the standard segment of the Official List and trading in the Shares on the London Stock Exchange’s main market for listed securities should be cancelled with effect from 8:00 a.m. UK time on or about July 14, 2022.
The Company’s management continues to believe a listing on a London stock exchange will support Valeura’s long-term strategy and can provide greater access to international investors. Valeura intends to continue to evaluate the merits of re-listing in London and will update shareholders in due course.
Meanwhile, interests in the Shares purchased on the London Stock Exchange are fully fungible and can be transferred from the UK depositary to the Canadian depositary to be traded on the Toronto Stock Exchange, where the Shares continue to trade as usual. Shareholders interested in transferring their Shares should contact their broker or nominee to coordinate such a transaction with the Company’s registrar.
For further information, please contact:
Valeura Energy Inc. (General Corporate Enquiries) +1 403 237 7102Sean Guest, President and CEOHeather Campbell, CFO[email protected]
Valeura Energy Inc. (Capital Markets / Investor Enquiries) +1 403 975 6752
Robin James Martin, Investor Relations Manager +44 7392 940495
Auctus Advisors LLP (Corporate Broker to Valeura) +44 (0) 7711 627 449Jonathan Wright
CAMARCO (Public Relations, Media Adviser to Valeura) +44 (0) 20 3757 4980Owen Roberts, Billy Clegg[email protected]
Advisory and Caution Regarding Forward-Looking Information
Certain information included in this new 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 new release includes, but is not limited to: the Company’s ability to complete the commercial arrangements required to facilitate resuming production from the Wassana field in Q4 2022; expected production from the Wassana field; statements with respect to achieving final investment decision for the Rossukon field in the coming months; statements with regard to the Company continuing to grow its business through the Mergers and Acquisitions market and progressing its appraisal of the tight gas play in Turkey; and evaluating the merits of re-listing in London
Forward-looking information is based on management’s current expectations and assumptions regarding, among other things: the ability to successfully re-start production from the Wassana field in Q4 2022; political stability of the areas in which the Company is operating; ability to achieve regulatory approvals in the normal course; continued safety of operations and ability to proceed in a timely manner; the ability to identify attractive merger and acquisition opportunities to support growth; the prospectivity of the tight gas appraisal play; future sources of funding; future economic conditions; future currency exchange rates; the ability to meet drilling deadlines and fulfil commitments under licences and leases 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, high-pressure stimulation and other specialised oilfield equipment and service providers for onshore and offshore operations, changes in partners’ plans and unexpected delays and changes in market or regulatory 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 the Acquisition; inability to secure a new partner for the tight gas appraisal play in Turkey and execute potential mergers and acquisitions; evolving impacts of the COVID-19 pandemic including disruptions in global supply chains; the Company’s ability to manage growth; the Company’s ability to manage the costs related to inflation; uncertainty in capital markets and ability to raise debt and equity, as required, particularly for companies with a small market capitalisation; the ability to finance future development and/or inorganic growth; the risks of currency fluctuations; changes in oil and gas prices and netbacks in Thailand and Turkey; potential changes in joint venture partner strategies and participation in work programmes; potential assertions of pre-emptive rights by a partner or potential disputes with a partner in connection with the Acquisition; uncertainty regarding the contemplated timelines and costs for offshore development plans in Thailand and the tight gas appraisal play evaluation in Turkey; the risks of disruption to operations and access to worksites (including the impact of the COVID-19 pandemic); the ability of the Company to maintain its directors, senior management team and employees with relevant experience; potential changes in laws and regulations, and the uncertainty regarding government and other approvals; counterparty risk; the ability of the Company to maintain effective ICFR; counterparty risk; risks associated with weather delays and natural disasters; and the risk associated with international activity. The forward-looking information included in this new release is expressly qualified in its entirety by this cautionary statement. See the Company’s annual information form for the year ended December 31, 2021 for a detailed discussion of the risk factors.
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.
Additional information relating to Valeura is also available on SEDAR at www.sedar.com.
This Announcement contains inside information as defined in Article 7 of the Market Abuse Regulation No. 596/2014 (“MAR”) which is part of UK law by virtue of the European Union (Withdrawal) Act 2018. Upon the publication of this Announcement, this inside information is now considered to be in the public domain.
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SOURCE: Valeura Energy Inc.
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