Valeura Energy delivers drilling upside in Gulf of Thailand

Valeura Energy

Valeura Energy has just wrapped up a high-impact drilling campaign in the Gulf of Thailand, and the results are pointing towards a new phase of production momentum. With all eight wells drilled and producing or prepared for future upside, the company is moving forward with renewed operational confidence and a strong footing for further development.

The eight-well programme, carried out across three key platforms, Jasmine C, Jasmine D, and Ban Yen A, was designed to blend near-term production support with longer-term appraisal insight. Impressively, the results exceeded expectations. The development wells at Jasmine C and Jasmine D encountered significantly more oil pay than initially forecasted. These wells are already online, contributing meaningful volumes to current production, helping Valeura counter natural decline curves and maintain output consistency.

At Ban Yen A, the story is similarly upbeat. Two development wells delivered better-than-expected results and are now contributing to field output. These outcomes strengthen Valeura’s case for further infrastructure-led development in this area, where enhanced reservoir knowledge continues to unlock incremental value from existing assets.

An exploratory wildcat well at the Ratree prospect intersected the intended sand targets. Although only trace hydrocarbons were found, the well served its geological purpose by confirming limited hydrocarbon charge along that particular trend. With the data now gathered, Valeura can refine its subsurface understanding and shift exploration focus to higher-probability zones in its regional portfolio.

Critically, the entire campaign was executed safely, under budget, and on schedule—three operational metrics that are becoming a hallmark of Valeura’s disciplined approach in the Gulf. By keeping costs tight and delivering wells efficiently, the company continues to demonstrate its operational leverage in shallow water developments, where lower costs translate directly into stronger cash flows and capital recycling potential.

With this campaign completed, Valeura is already moving its contracted jack-up drilling rig to the Nong Yao field. There, a new drilling phase—targeting ten development wells—is set to begin. The strategic intent is clear: extend field life, optimise asset value, and keep production volumes resilient in the face of reservoir decline. This forward movement reflects a broader strategy of infrastructure-led growth, where existing facilities and data are leveraged for low-risk, high-reward drilling.

Operational execution and reservoir performance are clearly aligned. Valeura’s results from this campaign not only reaffirm the productivity of its existing assets but also validate the company’s integrated development strategy. In an environment where disciplined capital deployment and production stability are paramount, Valeura stands out as a nimble operator that is both technically adept and commercially focused.

As the company turns its attention to the next phase of drilling at Nong Yao, investors should watch for updated production guidance and potential upward revisions to reserve estimates. Each successful well drilled in this region adds to the long-term value proposition, underpinned by low lifting costs and high-margin barrels.

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. 

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