Valeura Energy Inc. (TSX:VLE, OTCQX:VLERF) has provided an update on Q2 2025 operations.
Highlights
- Safe ongoing operations, with oil production averaging 21.4 mbbls/d(1) – maintaining full year production guidance of 23.0 – 25.5 mbbls/d;
- Revenue of US$129.3 million;
- Taxes of US$15.8 million paid, primarily in respect of the Jasmine asset. No further cash tax payments anticipated for the remainder of 2025;
- Cash position of US$241.9 million and no debt; and
- Final investment decision on the Wassana Field redevelopment and construction phase commenced.
(1) Working interest share oil production, before royalties.
Dr. Sean Guest, Valeura Energy President and CEO commented:
“During Q2 2025 we demonstrated another safe quarter of ongoing production and drilling operations and took a positive final investment decision on our major redevelopment project at the Wassana field, which is now moving to the construction phase.
While production volumes are down quarter-on-quarter, our plan had always assumed that production would be weighted to the second half of the year and we are therefore maintaining our full-year production guidance range of 23.0 – 25.5 mbbls/d.
From a financial perspective, we continue to prioritise balance sheet strength, and firmly believe this will serve our stakeholders well as we pursue opportunities to add value. While the headwinds of lower global oil prices during the quarter are apparent in our revenue of US$129.3 million, we are continuing to invest while maintaining a strong cash position.”
Q2 2025 Update
Working interest share production before royalties averaged 21.4 mbbls/d during Q2 2025, a decrease of 10.2% from Q1 2025. Rates reflect the impact of planned downtime and natural declines at Valeura’s larger producing assets, which is consistent with the Company’s business plan. Q2 was anticipated to be the lowest production quarter of the year, and with rates weighted to the second half of 2025, the Company is maintaining its full year production guidance range of 23.0 – 25.5 mbbls/d.
Oil sales totalled 1.90 million bbls during Q2 2025. The Company recorded a net increase in oil inventory, as measured at the end of the quarter, to a total of 0.93 million bbls at June 30, 2025. In addition, a parcel of 0.24 million bbls of oil was sold just after the end of the quarter, on July 1, 2025.
Price realisations averaged US$67.95/bbl during Q2 2025, a US$0.67/bbl premium over the weighted average Brent crude oil benchmark. Realised price was down 14% from Q1 2025 given the significant drop in global oil prices.
Taxes for the Company’s Thai I concession (Jasmine) are due in May of each year for the prior full year, and US$15.8 million was duly paid during the quarter primarily in respect of this asset. Taxes for the Company’s Thai III concessions (Nong Yao, Manora, and Wassana) are due in May and August of each year, however taxable income for the current tax period (2H 2024) was fully offset by tax loss carry-forwards. Given the above, no further tax payments are expected in 2025.
Despite a relatively low oil price, a full quarter of spending on drilling operations, and scheduled Thai tax payments, Valeura’s cash position at June 30, 2025, was US$241.9 million (with no debt), up slightly from the previous quarter-end. In addition, US$19.6 million in revenue, relating to a lifting on June 25, 2025, was not received until early in July 2025. As a result, this US$19.6 million is not included in the revenue or the Company’s cash balance at June 30, 2025, but will be correctly accounted in the Q2 financials.
Operations Update
Production operations are continuing safely on Valeura’s four Gulf of Thailand fields, with no lost time injuries.
During the quarter, Valeura mobilised its contracted drilling rig to Block G11/48 (Nong Yao, 90% working interest). The drilling campaign is progressing as planned toward its objective of approximately 10 new development wells and is expected to be complete in Q4 2025. The campaign will entail new development wells drilled from each of the three Nong Yao wellhead facilities, and will therefore include the first ever infill development wells on the Nong Yao C platform, which the Company installed in 2024.
In May 2025, Valeura took a final investment decision on redevelopment the Wassana field in Licence G10/48 (100% interest). The project will entail deployment of a new central processing platform facility on the field, intended to increase production, reduce costs, and create a hub for eventual tie-in of potential additional satellite wellhead platforms. The project is on plan, and moving into its construction phase now. First production is planned for Q2 2027.
Results Timing
Valeura Energy intends to release its full unaudited financial and operating results for Q2 2025 on August 7, 2025, and will discuss the results in more detail through a management webcast hosted later that day.
