Valeura Energy Inc. (TSX:VLE, OTCQX:VLERF) has reported its unaudited financial and operating results for the three and nine month periods ended September 30, 2025.
Q3 Highlights
- Oil production of 23.0 mbbls/d(1) and oil sales of 2.2 million bbls;
- Average realised price of US$72.1/bbl, generating revenue of US$155.7 million;
- Adjusted EBITDAX of US$80.7 million(2) and adjusted after tax cashflow from operations of US$73.2 million(2);
- Cash and net cash balance as of September 30, 2025 of US$248.4 million(2,3), with no debt;
- Adjusted working capital as of September 30, 2025 of US$275.2 million(2);
- Successful ten-well drilling campaign at block G11/48, resulting in a production increase to 24.8 mbbls/d at quarter-end(1,4);
- Major offshore acreage expansion through strategic farm-in agreement in the Gulf of Thailand(5);
- Continued progress on the Wassana field redevelopment project; and
- Recognised by Report on Business Magazine as Canada’s No. 1 Top Growing Company, based on three-year revenue growth of 20,064%.
Recent Achievements
- Entered into a joint venture agreement with a subsidiary of Transatlantic Petroleum LLC (“Transatlantic”) to explore and develop the deep rights formations of the Thrace basin of northwest Türkiye; and
- Recent drilling on the Jasmine field has resulted in production for the month of November to date of 24.5 mbbls/d(1,6).
- Working interest share production, before royalties.
- Non-IFRS financial measure or non-IFRS ratio – see “Non-IFRS Financial Measures and Ratios” section below.
- Includes restricted cash of US$23.8 million.
- Seven-day average to September 30, 2025.
- Subject to government of Thailand approval.
- Average from November 1 through November 12, 2025.
Dr. Sean Guest, Valeura Energy President and CEO commented:
“Our Q3 2025 results illustrate our ongoing focus on both top tier execution and setting up our business to drive value generation in the future. All of our financial and operating results are improved relative to 12 months ago, and also relative to Q2 2025.
On the operational front, we safely executed a large-scale drilling campaign at our Nong Yao field which has delivered the trifecta of immediate oil production, new targets for future development, and the expectation of reserve additions when evaluated at year-end. Across all our producing assets, we are relentless in our push to drive value by extending economic field life.
We also took meaningful strides to build out a longer-term line of sight for our business. In particular, our agreement to farm in to the G1/65 and G3/65 blocks in the Gulf of Thailand creates running room to transform our portfolio through multiple gas and oil developments within the coming years. At the same time, redevelopment of our Wassana field will provide a new lease of life for this important asset. Construction of the new Wassana central processing platform is progressing ahead of plan, and the project remains on track for first oil in Q2 2027.
Our investments across the portfolio are well-supported by the strong margins we continue to deliver. This quarter illustrates how deliberate actions like reducing adjusted opex(1) and setting up a more efficient tax structure can enhance cash flow. On an after-tax basis, cashflow from operations(1) has increased by 46% when compared to the same quarter last year.
The net effect is a stronger balance sheet than ever before. With increased cash and no debt, our working capital surplus has surged to a new record of US$275 million. Our financial position sets the scene for both ongoing investment into our portfolio and also for inorganic growth. With this position of strength, against a backdrop of an industry that struggles for access to capital, we now have our sights set on larger inorganic opportunities, which have the potential to be truly transformational in nature.”
- Non-IFRS financial measure or non-IFRS ratio – see “Non-IFRS Financial Measures and Ratios” section below.
Financial and Operating Results Summary
| Three months endedSep 30, 2025 | Three months endedJun 30, 2025 | Delta (%) | Three months endedSep 30, 2024 | Delta (%) | ||||
| Oil Production(1) | (‘000 bbls) | 2,114 | 1,949 | +8% | 2,043 | +3% | ||
| Average Daily Oil Production(1) | (bbls/d) | 22,976 | 21,412 | +7% | 22,210 | +3% | ||
| Average Realised Price | (US$/bbl) | 72.1 | 67.9 | +6% | 78.9 | -9% | ||
| Oil Volumes Sold | (‘000 bbls) | 2,160 | 1,902 | +14% | 1,765 | +22% | ||
| Oil Revenue | (US$’000) | 155,651 | 129,264 | +20% | 139,278 | +12% | ||
| Net Income | (US$’000) | 15,813 | 5,449 | +190% | (3,913) | +504% | ||
| Adjusted EBITDAX(2) | (US$’000) | 80,710 | 62,380 | +29% | 70,551 | +14% | ||
| Adjusted Pre-Tax Cashflow from Operations(2) | (US$’000) | 77,278 | 51,555 | +50% | 63,810 | +21% | ||
| Adjusted Cashflow from Operations(2) | (US$’000) | 73,227 | 50,534 | +45% | 50,138 | +46% | ||
| Operating Expenses | (US$’000) | 49,093 | 43,796 | +12% | 47,318 | +4% | ||
| Adjusted Opex(2) | (US$’000) | 52,525 | 54,621 | -4% | 53,788 | -2% | ||
| Operating Expenses per bbl | (US$/bbl) | 23.2 | 22.5 | +3% | 23.2 | 0% | ||
| Adjusted Opex per bbl(2) | (US$/bbl) | 24.8 | 28.0 | -11% | 26.3 | -6% | ||
| Adjusted Capex(2) | (US$’000) | 52,355 | 48,935 | +7% | 35,490 | +48% | ||
| Weighted average shares outstanding – basic | (‘000 shares) | 106,219 | 106,258 | 0% | 106,982 | -1% | ||
| As atSep 30, 2025 | As atJun 30, 2025 | Delta (%) | As atSep 30, 2024 | Delta (%) | ||||
| Cash & Cash equivalents(3) | (US$’000) | 248,389 | 241,984 | +3% | 155,943 | +59% | ||
| Adjusted Net Working Capital(2) | (US$’000) | 275,190 | 261,575 | +5% | 166,261 | +66% | ||
| Shareholder’s Equity | (US$’000) | 558,072 | 542,693 | +3% | 314,423 | +77% |
- Working interest share production before royalties.
- Non-IFRS financial measure or non-IFRS ratio – see “Non-IFRS Financial Measures and Ratios” section below.
- Includes restricted cash of US$23.8 million.
Financial Update
The Company’s Q3 2025 financial performance reflects ongoing production operations at all four of its fields in the offshore Gulf of Thailand. As noted in the table above, substantially all key operational and financial metrics have increased relative to Q3 2024 and Q2 2025. Valeura’s working interest share production before royalties totalled 2.11 million bbls during Q3 2025, an increase of 3% from Q3 2024, led by increased production from the Nong Yao field in light of its recently completed ten-well drilling programme.
Oil sales totalled 2.16 million bbls during Q3 2025, just slightly higher than the volume produced. As all of the Company’s oil production is stored in floating offshore vessels before being sold, at any given time the Company maintains some quantity of oil held in inventory. At September 30, 2025, the Company had a total of 0.88 million bbls of crude oil in inventory.
Price realisations averaged US$72.1/bbl, which was only 9% lower than the same period in 2024. Oil sales prices reflect a US$2.5/bbl premium to the Brent crude oil price in Q3 2025. With the combined effect of higher oil sales volumes offsetting lower price realisations, revenue increased to US$156 million, an increase of 12% compared to Q3 2024.
Operating expenses during Q3 2025 were US$49.1 million, an increase of 4% compared to Q3 2024. Along with operating expenses, the Company includes the price of leases for its floating offshore infrastructure (being US$8.2 million) to derive an adjusted opex(1) of US$52.5 million in Q3 2025, which equates to a per-bbl rate of US$24.8/bbl. Adjusted opex and its per bbl unit rate for Q3 2025 were lower than the comparable period a year earlier, reflecting reduced leasing costs for certain floating vessels used in the Company’s production operations.
Valeura generated adjusted pre-tax cashflow from operations(1) of US$77.3 million, which was 21% higher than Q3 2024, primarily reflecting higher oil revenue, as increased oil sales more than offset the effect of lower realised prices. On an after-tax basis, adjusted cashflow from operations was US$73.2 million in Q3 2025, 46% higher than Q3 2024. The substantial increase in after-tax adjusted cashflow from operations reflects the more tax-efficient corporate structure implemented in Q4 2024, which has enabled a more optimised application of tax loss carry-forwards.
No cash tax payments related to Petroleum Income Tax were required in Q3 2025, nor are any anticipated for the remainder of 2025.
Valeura made cash outlays in respect of its operating costs, as noted above, and capex of US$52.4 million in Q3 2025. Capex was higher primarily due to the Wassana field redevelopment project, reflecting the start of construction activities.
Valeura’s cash position at September 30, 2025 was US$248.4 million, inclusive of restricted cash of US$23.8 million. In addition, cash from three crude oil liftings in September 2025, amounting to US$36.7 million net to the Company, was received in mid-October. As a result, the Company has recorded a net crude(2) receivable to that amount, to reflect the timing of payment happening in Q4 rather than Q3 2025.
Valeura Energy’s net working capital surplus increased to US$275.2 million at September 30, 2025, 34% higher than at September 30, 2024.
- Non-IFRS financial measure or non-IFRS ratio – see “Non-IFRS Financial Measures and Ratios” section below.
- Excludes VAT.
Operations Update
During Q3 2025, Valeura had ongoing production operations at all of its Gulf of Thailand fields, including Jasmine, Manora, Nong Yao, and Wassana. Total working interest share oil production before royalties averaged 22,976 bbls/d. As anticipated by management, 2025 production is weighted toward the second half of the year, and accordingly, working interest share oil production before royalties in Q3 was 7% higher than Q2 2025. Subsequent to the end of the quarter, the drilling programme, focused on the Jasmine field, has yielded aggregate average working interest share oil production before royalties of 24,537 bbls/d for the month of November 2025 to date.
Jasmine/Ban Yen
Oil production before royalties from the Jasmine/Ban Yen field, in Licence B5/27 (100% operated interest) averaged 7,514 bbls/d during Q3 2025. No wells were drilled in Licence B5/27 during Q3 2025, but during the last week of the quarter, the Company mobilised its contracted drilling rig to the Jasmine field to begin an infill drilling campaign which is planned to continue into early 2026. The drilling campaign will entail approximately nine wells, including both development and appraisal targets.
Nong Yao
The Company’s Q3 2025 working interest share oil production before royalties from the Nong Yao field, in Licence G11/48 (90% operated working interest), averaged 10,563 bbls/d. Oil production increased in Q3 2025 as a result of a ten-well drilling programme which was completed just before the end of the quarter. The Company’s working interest share oil production before royalties increased from approximately 7,996 bbls/d prior to the first new wells coming on stream, to a rate of 11,562 bbls/d over the seven-day period ending September 30, 2025.
The drilling campaign covered all three of the block’s wellhead infrastructure facilities and included both development and appraisal targets. The campaign was executed safely, on time, and within budget. In addition to increasing production rates, the Company anticipates that the reservoirs encountered may add to the ultimate production potential of the Nong Yao field, thereby further extending its economic life.
Wassana
During Q3 2025, oil production before royalties from the Wassana field, in Licence G10/48 (100% operated interest) averaged 3,011 bbls/d. No wells were drilled on the licence in Q3 2025. Ongoing work on the production facility (the mobile offshore production unit (“MOPU”) Ingenium) consists of routine maintenance and repairs to keep the facility in good working order in advance of the Wassana field redevelopment project.
In May 2025, Valeura took a final investment decision on the Wassana field redevelopment project, which entails building and deploying a new central processing platform facility on the Wassana field. The project is on plan for deployment of the new facility in late 2026 and first production in Q2 2027. The Wassana redevelopment project is intended to increase production, reduce unit costs, and create a hub for eventual tie-in of potential additional satellite wellhead platforms. Management estimates that the Wassana field will produce oil at rates of approximately 10,000 bbls/d (before royalties) in the second half of 2027.
In addition, subsequent to the end of the quarter, Valeura completed an extensive scheduled underwater inspection of the MOPU Ingenium’s sub-sea structural components. No anomalies were encountered, thereby reconfirming the structural integrity of the facility. No further inspections are anticipated prior to the start of production from the new Wassana central processing platform.
Manora
Valeura’s working interest share production before royalties from the Manora field, in Licence G1/48 (70% operated working interest) averaged 1,888 bbls/d during Q3 2025.
No wells were drilled on the Manora field during the quarter, and operations focussed on maintaining ongoing safe production operations.
Blocks G1/65 and G3/65
On July 25, 2025 Valeura announced that it had entered into a farm-in agreement with a subsidiary of PTT Exploration and Production Plc (“PTTEP”) to earn a 40% non-operated working interest in blocks G1/65 and G3/65 (the “Blocks”), in the offshore Gulf of Thailand (the “Farm-in”). To earn its interest, Valeura will pay its share of actual back costs related to the Blocks and will carry PTTEP on an additional seismic survey to the northeast of the Nong Yao field. Upon completion (which is subject to the approval of the Government of Thailand), the Farm-in will result in a substantial expansion of Valeura’s gross acreage position in Thailand from 2,623 km2 to 22,757 km2 and will provide access to discoveries and exploration prospects that can be tied back quickly to existing oil and gas infrastructure.
During Q3 2025 and subsequent to the end of the quarter, the operator acquired a total of 1,200 km2 of 3D seismic over three separate areas on the Blocks. Seismic processing is now underway, and results are expected to be delivered in mid-2026. This 3D seismic acquisition has fulfilled the seismic commitments across the Blocks and will shape a new drilling programme, expected to commence in early 2027.
Separately, the operator is commencing development planning in block G3/65 based on the new gas discovery made earlier this year, and the existing historic discoveries. These discoveries are already covered by existing 3D seismic data. More details on development planning and the anticipated timing of a final investment decision on the initial block G3/65 development are expected in the first half of 2026.
Valeura is currently working in partnership with the operator to assess the full resource potential of these Blocks and intends to commission a third-party estimate of oil and gas resources, which Valeura anticipates will be disclosed in the first half of 2026.
Thrace Basin Türkiye
On October 15, 2025, Valeura announced that it had entered into a joint venture agreement with a subsidiary of Transatlantic to explore for and develop hydrocarbons in the deep rights formations of the Thrace basin of northwest Türkiye (the “Joint Venture”). Under the Joint Venture, Transatlantic has an opportunity to earn a 50% working interest in Valeura’s lands in Türkiye through two phases of operations; first, through the re-entry and testing of the Company’s Devepinar-1 exploration well, and second, by an option to drill a new deep appraisal well.
Activity began in the Thrace Basin lands in late October 2025, with re-entry of the Devepinar-1 well to re-test the existing perforated and stimulated interval, between 4,641 and 4,766 metres depth. These initial testing operations will focus on gathering fluid samples and re-testing the Devepinar-1 well in its current state. Hydraulic stimulation and testing of the shallower Kesanformation is in the advanced planning stage, with operations expected to commence in December 2025.
Outlook
Valeura re-affirms its guidance estimates for the full year 2025.
| 2025 Full Year | 2025 Full Year | Nine months ended September 30, 2025 | ||||
| Original 2025 Guidance | Updated 2025 Guidance | Performance | ||||
| Average Daily Oil Production(1) | (mbbls/d) | 23.0 – 25.5 | 23.0 – 25.5 | 22.7 | ||
| Adjusted Opex(2) | (US$ million) | 215 – 245 | 215 – 245 | 159 | ||
| Adjusted Capex(3) and Exploration expense | (US$ million) | 136 – 161 | 175 – 196 | 138 | ||
| Free Cash Flow(4) | (US$ million) | 112 – 227(5) | 80 – 195 | 67 |
- Working interest share production, before royalties.
- Represents adjusted opex which is a non-IFRS financial measure – see “Non-IFRS Financial Measures and Ratios”
- Represents adjusted capex which is a non-IFRS financial measure – see “Non-IFRS Financial Measures and Ratios”
- Represents mid-point of the production, adjusted opex, and adjusted capex with Brent prices within the range of US$65 and US$85/bbl.
- Illustrative free cash flow guidance based on the Company’s original 2025 Guidance assumptions.
With nine months of 2025 production now completed, and an observed up-tick in rates at the end of Q3 2025, the Company anticipates a full year average production outcome within, but at the lower end of, its stated 2025 guidance range.
Adjusted opex has trended lower than initially planned for the year, owing in part to lower fuel costs as a result of both prevailing commodity prices and the Company’s deliberate actions to optimise use of fuel in its operations. The Company anticipates achieving a full year adjusted opex outcome within the lower part of its 2025 guidance range. The combination of lower production and lower costs is expected to yield a per barrel adjusted opex in line with the Company’s mid-case 2025 guidance for the year.
The Company’s adjusted capex and exploration expense was updated following its final investment decision in May 2025 to pursue the Wassana field redevelopment project. With the Company’s largest capital spending projects progressing on plan (including both the Wassana field redevelopment project and the full year drilling programme), the Company re-iterates its guidance range for the year.
The Company’s 2025 guidance assumptions do not include the potential for spending in relation to the Farm-in. Such estimates will be updated upon closing of the Farm-in, which is subject to the approval of the Government of Thailand.
Webcast
Valeura’s management team will host an investor and analyst webcast on Monday, November 17, 2025 at 08:00 Calgary / 15:00 London / 22:00 Bangkok / 23:00 Singapore to discuss this announcement. The live audio and video feed can be accessed via the link below. Written questions may be submitted through the webcast system or by email to IR@valeuraenergy.com.
Webcast link: https://events.teams.microsoft.com/event/cd589988-0ecc-4810-8a2a-fb92c62e0fee@a196a1a0-4579-4a0c-b3a3-855f4db8f64b
An audio only feed of the event is available by phone using the Conference ID and dial-in numbers below.
Conference ID: 195 804 391#
Dial-in numbers:
Canada: 833-845-9589
Singapore: +65 6450 6302
Thailand: +66 2 026 9035
Türkiye: 00800142034779
UK: 0800 640 3933
USA: 833-846-5630
