Valeura Energy Reports Strong Q2 2024 Operations and Financial Performance

Valeura Energy Inc., a Canadian public company engaged in petroleum and natural gas exploration and production, has released its Q2 2024 operations and financial update. The company reported robust oil production, drilling success, and impressive financial performance during the quarter.

Oil production averaged 21.1 thousand barrels per day (mbbls/d) during Q2 2024, in line with expectations. The company demonstrated agility in its drilling program, successfully drilling exploration and infill wells at the Nong Yao field before commencing development drilling at Nong Yao C. The development project aims to increase production output from the greater Nong Yao area to a total of 11,000 bbls/d.

Valeura achieved a record price realization of US$87.7 per barrel, representing a premium of US$2.7 per barrel over the Brent crude oil benchmark. This increase in premiums is attributed to the company’s efforts to find more lucrative local markets for its heavier crudes. As a result, the company recorded gross revenue of US$164 million during the quarter.

Despite cash outlays related to tax payments and other one-off expenses totaling US$109 million, Valeura concluded the quarter with a solid cash position of US$145 million and no debt. This highlights the highly cash-generative nature of the company’s business and the resilience of its balance sheet.

In terms of operational updates, Valeura reported drilling success across its portfolio, particularly at the Nong Yao field. The company achieved an exploration discovery in the Nong Yao D area and drilled two production infill wells at Nong Yao A. Development drilling at Nong Yao C is progressing as planned, with first oil expected in Q3 2024. The Nong Yao asset is anticipated to be the largest source of production growth in 2024 and the largest single source of production in the portfolio.

Valeura also provided an update on the Wassana field, where production was steady throughout Q2 2024. However, a precautionary suspension of production was implemented after a crack was identified in one of the mobile offshore production unit’s steel legs. The company is conducting further inspections to determine the extent of the crack and the necessary repairs. Valeura has also initiated a front-end engineering and design (FEED) study for the Wassana field redevelopment, with a final investment decision expected by the end of 2024.

Valeura Energy Inc. remains committed to its growth-oriented strategy, focusing on value accretive growth and adhering to high standards of environmental, social, and governance responsibility. The company anticipates releasing its full unaudited financial and operating results for Q2 2024 on August 8, 2024.

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