Valeura Energy Inc. (TSX:VLE, OTCQX:VLERF) has announced record high proved plus probable (2P) reserves, an increase in its 2P reserves life index (RLI) and a third consecutive year of approximately 200% 2P reserves replacement ratio.
Highlights
- Record high proved (1P) reserves of 37.9 MMbbls, proved plus probable (2P) reserves of 57.8 MMbbls, and proved plus probable plus possible (3P) reserves of 71.2 MMbbls;
- Adding, not just replacing reserves, with a 2P reserves replacement ratio of 192%;
- 2P reserves net present value (NPV10) before tax of US$872 million and US$692 million on an after tax basis(1);
- Year-end 2025 cash position of US$306 million, and a net asset value (NAV) of US$998 million, equating to approximately C$13 per common share(2);
- RLI increased to a new record of 7.5 years, on a 2P basis(3); and
- Above volumes and values do not include the recent farm-in to blocks G1/65 and G3/65 in the Gulf of Thailand, which will be additive upon completion(4) .
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- Discounted at 10% (NPV10)
- 2P NPV10 after tax plus cash of US$305.7 million (no debt), using US$/C$ exchange rate of 1.3722 and 105.5 million common shares of the Company (the “Common Shares”) outstanding, as at 31 December 2025
- Based on 2P reserves divided by the mid-point of the Company’s 2026 guidance production of 21 Mbbls/d
- Subject to government approval
Dr. Sean Guest, Valeura Energy President and CEO commented:
“For the third time in a row we have added approximately double the reserves we produced during the year, achieving a 2P reserves replacement ratio of 192%. This outcome is especially strong given the sharp drop in oil prices in 2025, meaning our reserves were evaluated at a forward price much lower than in the prior year.
We are committed to seeing through the volatility in the global commodity market and have maintained our focus on adding to the ultimate potential and longevity of our portfolio. This is reflected in an improvement to our RLI, which is now at a new record high of 7.5 years (based on 2P reserves and anticipated 2026 production). Our RLI has increased steadily over the three years we have been operating in Thailand, and we see this as affirmation of our ability to add more years of future cash flow, for the benefit of all stakeholders.
The net asset value of our business, defined as year-end cash plus our 2P net revenue (NPV10), is US$1 billion which equates to approximately C$13/Common Share.
We are mindful of the concept of portfolio renewal and therefore continue to focus on contingent resources as well, which provides the feedstock for future reserves additions. We believe our decision to redevelop the Wassana field is an excellent example of this progression. At the same time, we have added more volumes through life-extending work with our Jasmine licence and through ongoing drilling success across the portfolio. In addition, upon completion of our strategic Farm-in Transaction to blocks G1/65 and G3/65 in the Gulf of Thailand, these new volumes will be additive to the volumes we have reported today.
We believe our year-end 2025 reserves and resources demonstrate our ability to drive deeper and longer-lived value from our assets, even when faced with a correction in commodity prices. I believe this underscores both the robustness of our portfolio and the relentless commitment to value shared by our world class team.”
Independent Reserves and Resources Evaluation
Valeura commissioned Netherland, Sewell & Associates, Inc. (“NSAI”) to assess reserves and resources for all of its Thailand assets as of 31 December 2025. NSAI’s evaluation is presented in a report dated 09 February 2026 (the “NSAI 2025 Report”). This follows previous evaluations conducted by NSAI for the previous three years ended 31 December 2024 (the “NSAI 2024 Report”), 31 December 2023 (the “NSAI 2023 Report”), and 31 December 2022.
NSAI 2025 Report: Oil and Gas Reserves by Field Based on Forecast Prices and Costs
| Reserves by Field | Gross (Before Royalties) Reserves, Working Interest Share (Mbbls) | |||||
| Jasmine (Light/Med.) | Manora (Light/Med.) | Nong Yao (Light/Med.) | Wassana (Heavy) | Total | ||
| Proved | Producing Developed | 6,465 | 1,557 | 4,751 | 1,319 | 14,091 |
| Non-Producing Developed | 1,413 | 77 | 153 | 432 | 2,074 | |
| Undeveloped | 3,301 | 842 | 3,823 | 13,753 | 21,719 | |
| Total Proved (1P) | 11,179 | 2,476 | 8,726 | 15,504 | 37,884 | |
| Total Probable (P2) | 10,032 | 469 | 5,193 | 4,201 | 19,896 | |
| Total Proved + Probable (2P) | 21,211 | 2,945 | 13,919 | 19,705 | 57,780 | |
| Total Possible (P3) | 6,295 | 475 | 4,120 | 2,569 | 13,459 | |
| Total Proved + Probable + Possible (3P) | 27,506 | 3,420 | 18,039 | 22,274 | 71,238 | |
Summary of Reserves Replacement, Value, and Field Life
Valeura added volumes within the 1P, 2P, and 3P categories in 2025. As compared to the NSAI 2024 Report, the NSAI 2025 Report indicates an increase of 5.6 MMbbls of proved (1P) reserves and 7.8 MMbbls of proved plus probable (2P) reserves, after having produced 8.5 MMbbls of oil in 2025. This implies a 1P reserves replacement ratio of 166% and a 2P reserves replacement ratio of 192%. 2025 was the Company’s third consecutive year of recording new reserves additions well in excess of volumes produced. The Company’s reserves replacement ratio on a 2P basis was 245% in 2024 and 218% in 2023.
Valeura’s RLI has increased for a third year in a row. Based on the mid-point of the Company’s 2026 production guidance of 19.5 – 22.5 Mbbls/d (21.0 Mbbls/d), on a 2P reserves basis as of 31 December 2025, the Company estimates its RLI to be approximately 7.5 years. This represents an increase from the Company’s RLI of 5.6 years as at 31 December 2024 and 4.5 years as at 31 December 2023 (calculated on the same basis).
While the 2025 2P reserves increased relative to 2024, the revenue and NPV10 associated with these reserves is slightly lower than 2024. This reduction in value is driven by the significant drop in benchmark oil prices in 2025, causing NSAI to use a much lower oil price forecast in their year-end 2025 evaluation. The Company estimates that, based on the 2P net present value of estimated future revenue after income taxes in the NSAI 2025 Report (based on a 10% discount rate), plus the Company’s 2025 year-end cash position of US$305.7 million, the Company has a 2P NAV of US$997.7 million. Using the year-end count of Common Shares outstanding (being 105,535,429 Common Shares) and 31 December 2025 foreign currency exchange rates (which reflects a stronger Canadian dollar), Valeura’s NAV equates to approximately C$13/Common Share.
| NAV Estimate | 1P NPV10 | 2P NPV10 | 3P NPV10 | |||
| Before Tax | After Tax | Before Tax | After Tax | Before Tax | After Tax | |
| NPV10 (US$ million) | 401.1 | 370.6 | 871.9 | 692.0 | 1,304.6 | 947.9 |
| Cash at 31 December 2025 (US$ million) (1) | 305.7 | 305.7 | 305.7 | 305.7 | 305.7 | 305.7 |
| Net Asset Value (US$ million) | 706.8 | 676.3 | 1,177.6 | 997.7 | 1,610.3 | 1,253.6 |
| Common shares (million) (2) | 105.5 | 105.5 | 105.5 | 105.5 | 105.5 | 105.5 |
| Estimated NAV per basic share (C$ per share) (3) | 9.2 | 8.8 | 15.3 | 13.0 | 20.9 | 16.3 |
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- Cash at 31 December 2025 of US$305.7 million
- Issued and outstanding Common Shares as at 31 December 2025
- US$/C$ exchange rate of 1.3722 at 31 December 2025
The NSAI 2025 Report indicates a further extension in the anticipated end of field life for the Jasmine, Wassana and Manora fields, and a slight reduction in the anticipated end of field life for the Nong Yao field.
| Fields | Gross (Before Royalties) 2P Reserves, Working Interest Share | End of Field Life | 2P NPV10 After Tax (US$ million) | ||||||
| 31 December 2024 (MMbbls) | 2025 Production (MMbbls) | Additions (MMbbls) | 31 December 2025 (MMbbls) | Reserves Replacement Ratio (%) | NSAI 2024 Report | NSAI 2025 Report | 31 December 2024 | 31 December 2025 | |
| Jasmine | 16.8 | (3.0) | 7.4 | 21.2 | 249% | Aug-31 | Oct-34 | 163.9 | 177.2 |
| Manora | 3.4 | (0.8) | 0.4 | 2.9 | 47% | Apr-30 | Aug-31 | 45.7 | 17.2 |
| Nong Yao | 16.9 | (3.6) | 0.6 | 13.9 | 16% | Dec-33 | Sep-33 | 416.1 | 257.4 |
| Wassana | 12.9 | (1.2) | 7.9 | 19.7 | 686% | Dec-35 | Dec-41 | 126.6 | 240.1 |
| Total | 50.0 | (8.5) | 16.3 | 57.8 | 192% | 752.2 | 692.0 | ||
2P reserves by field, and their associated after-tax 2P NPV10 values are indicated below. The year-on-year change between the NSAI 2024 Report and NSAI 2025 Report indicates an increase in both 2P reserves volumes and the associated after-tax value for both the Jasmine and Wassana fields, reflecting the conversion of 2C resources to 2P reserves in both instances, bolstered in particular by the Company’s decision to proceed with redevelopment of the Wassana field, for which the final investment decision was announced in May 2025.
Reserves volumes and associated after-tax 2P values for the Manora and Nong Yao fields have decreased between the NSAI 2024 Report and NSAI 2025 Report, driven primarily by the significantly reduced forecast oil pricing applied in the year-end 2025 evaluation vs the year-end 2024 evaluation. In the case of Nong Yao, the year-on-year decline in NPV10is also influenced by the valuation “roll-forward” effect: following the field’s expansion in 2024, Nong Yao delivered strong production in 2025, effectively bringing forward and monetising a meaningful portion of the value previously reflected in NSAI 2024 Report. This value realisation was partially offset by reserves replacement at Nong Yao, with NSAI reporting additions during 2025 that helped replenish the reserve base and support ongoing field life.
| Fields | Gross (Before Royalties) 2P Reserves, Working Interest Share (MMbbls) | 2P NPV10 After Tax (US$ million) | ||||
| 31 December 2023 | 31 December 2024 | 31 December 2025 | 31 December 2023 | 31 December 2024 | 31 December 2025 | |
| Jasmine | 10.4 | 16.8 | 21.2 | 81.8 | 163.9 | 177.2 |
| Manora | 2.2 | 3.4 | 2.9 | 21.2 | 45.7 | 17.2 |
| Nong Yao | 12.4 | 16.9 | 13.9 | 185.6 | 416.1 | 257.4 |
| Wassana | 12.9 | 12.9 | 19.7 | 139.9 | 126.6 | 240.1 |
| Total | 37.9 | 50.0 | 57.8 | 428.5 | 752.2 | 692.0 |
Near-term forecast oil prices in the NSAI 2025 Report are 19% lower than in the NSAI 2024 Report. The Brent crude oil reference prices used in estimating the future net revenue from oil reserves have been revised downward in accordance with the Canadian Oil and Gas Evaluation Handbook requirements, which mandates the use of forward curve prices in near-term forecasts.
| Report | Brent crude oil reference price for the year ended | |||||
| 31 December 2026 | 31 December 2027 | 31 December 2028 | 31 December 2029 | 31 December 2030 | Thereafter | |
| NSAI 2024 Report (US$/bbl) | 78.51 | 79.89 | 81.82 | 83.46 | 85.13 | 2% inflation |
| NSAI 2025 Report (US$/bbl) | 63.92 | 69.13 | 74.36 | 76.10 | 77.62 | 2% inflation |
| Difference (US$/bbl) | (14.59) | (10.76) | (7.46) | (7.36) | (7.51) | – |
| Difference (%) | (19%) | (13%) | (9%) | (9%) | (9%) | (9%) |
Net present values of future net revenue from oil reserves are based on cost estimates as of the date of the NSAI 2025 Report, and the forecast Brent crude oil reference prices as indicated above. Specific price forecasts for each of the Company’s fields are adjusted for oil quality and market differentials, as guided by actual recent price realisations for each of the fields’ crude oil sales.
All estimated costs associated with the eventual decommissioning of the Company’s fields are included as part of the calculation of future net revenue. As in previous years, this can result in a negative future net revenue estimate for the 1P Proved Producing Developed category as these most conservative volumes are encumbered with the entire decommissioning cost for the field.
| Future Net Revenue by Field | Before Tax NPV10 (US$ million) | |||||
| Jasmine (Light/Med.) | Manora (Light/Med.) | Nong Yao (Light/Med.) | Wassana (Heavy) | Total | ||
| Proved | Producing Developed | (53.7) | (8.1) | 25.7 | 34.3 | (70.5) |
| Non-Producing Developed | 63.6 | 4.5 | 7.0 | 20.0 | 95.2 | |
| Undeveloped | (5.4) | 3.4 | 98.6 | 279.8 | 376.4 | |
| Total Proved (1P) | 4.4 | (0.2) | 131.3 | 265.5 | 401.1 | |
| Total Probable (P2) | 222.5 | 18.9 | 177.4 | 52.0 | 470.8 | |
| Total Proved + Probable (2P) | 226.9 | 18.7 | 308.7 | 317.6 | 871.9 | |
| Total Possible (P3) | 201.6 | 19.4 | 150.5 | 61.2 | 432.7 | |
| Total Proved + Probable + Possible (3P) | 428.6 | 38.2 | 459.1 | 378.8 | 1,304.6 | |
| Future Net Revenue by Field | After Tax NPV10 (US$ million) | |||||
| Jasmine (Light/Med.) | Manora (Light/Med.) | Nong Yao (Light/Med.) | Wassana (Heavy) | Total | ||
| Proved | Producing Developed | (59.0) | (8.1) | 25.7 | (34.3) | (75.8) |
| Non-Producing Developed | 58.9 | 4.5 | 7.0 | 20.0 | 90.5 | |
| Undeveloped | 2.5 | 3.4 | 97.1 | 253.0 | 356.0 | |
| Total Proved (1P) | 2.4 | (0.2) | 129.7 | 238.7 | 370.6 | |
| Total Probable (P2) | 174.9 | 17.4 | 127.7 | 1.4 | 321.3 | |
| Total Proved + Probable (2P) | 177.2 | 17.2 | 257.4 | 240.1 | 692.0 | |
| Total Possible (P3) | 124.5 | 14.7 | 92.4 | 24.3 | 255.9 | |
| Total Proved + Probable + Possible (3P) | 301.7 | 31.9 | 349.8 | 264.4 | 947.9 | |
Contingent Resources
NSAI assessed the Company’s contingent resources of its Thailand assets for additional reservoir accumulations and reported estimates in the NSAI 2025 Report, as it has done in each of the preceding three years. Contingent resources are heavy crude oil and light/medium crude oil, and are further divided into three subcategories, being Development Unclarified, Development Not Viable, and Development on Hold (see oil and gas advisories). Each subcategory is assigned a percentage risk, reflecting the estimated chance of development. Aggregate totals are provided below.
| Contingent Resources | NSAI 2023 Report Gross (Before Royalties) Working Interest Share | NSAI 2024 Report Gross (Before Royalties) Working Interest share | NSAI 2025 Report Gross (Before Royalties) Working Interest Share | |||
| Unrisked (MMbbls) | Risked (MMbbls) | Unrisked (MMbbls) | Risked (MMbbls) | Unrisked (MMbbls) | Risked (MMbbls) | |
| Low Estimate (1C) | 15.2 | 6.5 | 29.4 | 9.2 | 29.9 | 10.3 |
| Best Estimate (2C) | 19.9 | 8.9 | 48.5 | 13.5 | 39.5 | 7.0 |
| High Estimate (3C) | 27.9 | 11.6 | 72.1 | 18.0 | 58.9 | 8.9 |
During 2025, Valeura Energy successfully converted a substantial portion of its Best Estimate (2C) Contingent Resources to Reserves.
The above Contingent Resources do not include any resources from the Farm-in Transaction, where Valeura expects to earn a 40% non-operated working interest in Gulf of Thailand blocks G1/65 and G3/65. The Farm-in Transaction is subject to government approval, which is anticipated in due course, following completion of Thailand’s general election.
