Valeura Energy has reported a new oil discovery in the Gulf of Thailand while reaching a final investment decision on the Bussabong gas development, advancing two separate projects within its Thailand portfolio.
The new oil discovery was made at the Nong Yao D-13 exploration well in the Nong Yao field area. The well encountered oil-bearing sandstone reservoirs, providing an additional exploration result for Valeura as it continues to assess opportunities across its offshore acreage.
The discovery adds to activity at Nong Yao, where Valeura has been developing production through a series of drilling programmes. The company is continuing to assess the size and commercial potential of the newly discovered oil-bearing interval through further evaluation.
The development comes alongside progress at the Bussabong field, where Valeura has taken a final investment decision for a new gas development offshore Thailand. The project is being advanced through a fast-track development programme designed to bring new gas production online in a relatively short timeframe.
The Bussabong development is expected to involve the drilling of development wells and the use of existing offshore infrastructure. The approach is intended to reduce the time and capital required to bring the field into production compared with a standalone development.
The project has been designed around Thailand’s domestic gas market, providing Valeura with an additional source of natural gas production while supporting the company’s wider portfolio in the country.
The final investment decision represents a move from project evaluation into development execution. Work on the development is expected to progress towards drilling and construction activities, with first gas targeted following completion of the required development programme.
Valeura Energy Inc (TSX:VLE) is an upstream oil & gas company, with a clear strategy to add value for shareholders. The Company has a strong balance sheet positioning it for potential inorganic growth opportunities in the near/medium-term, and substantial longer-term upside potential through an operated deep, tight gas play.
