Valeura Energy has used its latest drilling work at the Manora field to reinforce the investment case around its Thailand portfolio, with new wells lifting production, confirming additional productive zones and extending the runway for further activity in the Gulf of Thailand.
The Manora campaign comprised three wells, including an appraisal well, a sidetrack and a horizontal development well. All three were completed as oil producers and brought into operation, giving the company an immediate operational gain while also improving reservoir understanding. Production at the field rose from 1,950 barrels of oil per day to 2,626 barrels per day after the wells came online, indicating that the programme delivered more than a routine maintenance benefit. It also showed that incremental capital at Manora can still unlock meaningful value from an asset that is already in production.
Valeura appears to have improved output through a focused infill campaign, which reduces some of the uncertainty that can surround mature offshore assets. The results from the MNA-41 appraisal well were also notable, with five productive zones confirmed in the upper sands. Meanwhile, the horizontal MNA-42H well achieved a lateral section containing 168 metres of net oil pay, supporting the view that the company is still finding commercially relevant opportunities within the field.
The campaign was executed from the Manora A platform, where the company holds a 70% operating interest, and management says the work has helped establish the basis for future development within block G1/48. A successful programme that stays on schedule and within budget can improve confidence in planning assumptions for subsequent drilling, especially in a market where offshore execution risk, service availability and cost control all influence valuation.
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.
