Valeura Energy Inc. (TSX:VLE, OTCQX:VLERF) has announced that it intends to accelerate its Wassana field redevelopment project on block G10/48 (100% operated interest) in the offshore Gulf of Thailand.
Dr. Sean Guest, President and CEO commented:
“Work on our new-build central processing platform (“CPP”) is proceeding on budget and remains ahead of schedule, with facility construction (also known as mechanical completion) in the yard expected to be complete by 01 October 2026. We are now taking the opportunity to install the facility earlier than originally planned, leading to the potential for first oil from the new development at approximately the beginning of Q2 2027.
As Valeura’s first organic greenfield development in Thailand, and the largest capital venture ever undertaken by our Company, I am very pleased that this project is exceeding our expectations.”
Project Acceleration
Valeura has finalised all commercial arrangements and contractual amendments required to start installation of the Wassana CPP in October 2026, approximately two months earlier than originally envisaged. Separately, the Company has provided notification to its drilling rig contractor to start its charter of the Shelf Enterprise drilling rig on 01 November 2026, to initially drill Nong Yao wells through the Nong Yao A facility’s additional well slots and thereafter to support earlier development drilling on the Wassana field.
Guidance
While costs for the Wassana redevelopment are on budget, the Company anticipates that accelerating the project, including the corresponding drilling activity, will result in additional 2026 spending, mainly reflecting a shift from its 2027 budget into 2026. As a result, Valeura’s new full year 2026 Adjusted capex(1) (including exploration spend) guidance is US$220 – 235 million (previously US$195 – 215 million). Given the anticipated production plateau rate of approximately 7,500 bbls/d from the new CPP, the Company anticipates that a two-month acceleration in start-up will result in approximately 430,000 bbls in additional oil production in 2027, versus the original project plan.
(1) Non-IFRS financial measure or non-IFRS ratio – see “Non-IFRS Financial Measures and Ratios” section
Wassana Redevelopment Background
In 2025, Valeura took a final investment decision to redevelop its Wassana field by deploying a new-build CPP with the objective of commercialising more oil volumes than would be possible with the existing production facility, the mobile offshore production unit (“MOPU”) Ingenium, which is due for decommissioning at approximately the end of 2027. The redevelopment project has resulted in an increase in the total anticipated recoverable oil volumes and an extension in the anticipated end of economic life of the field. In addition, the CPP has been designed to facilitate the tie-in of additional satellite production facilities, which may be built in the future to develop additional accumulations of oil both to the north and south of the Wassana field. Recent mapping of the area south of the Wassana field has identified significant additional oil volumes and the Company is currently reviewing exploration drilling options to fully assess this satellite potential.
