Valeura Energy Inc. (TSX:VLE, OTCQX:VLERF) has announced an exploration discovery near its Manora(1) oil field and completion of a successful development and appraisal drilling campaign on its Jasmine field(2), in the Gulf of Thailand.
- Block G1/48, 70% operated working interest
- Block B5/27, 100% operated interest
Dr. Sean Guest, President and CEO commented:
“Our discovery of a new accumulation of oil very nearby our Manora field is a game-changer for Block G1/48. The results for net pay encountered exceed our pre-drill estimates and is likely to justify a new satellite facility development on the block. We are now moving into a development planning phase which will also include appraising the proximal Malida oil field. Additionally, the discovery of new and thicker reservoir sands in this structure points to other exploration upside in the vicinity. We expect that the development of this new field, which will be named ‘Suraphi’ will create a new lease on life for the greater Manora field area, by utilising the existing Manora-A processing facility for more oil than the Manora field alone.
Separately, we have also completed a successful development and appraisal programme on our Jasmine field, where we continue to add producible volumes and identify new opportunities for further organic development.
I am very pleased to see our drilling programme continue delivering value through all facets of operations – development, appraisal, and exploration. With these successes, we are facing an expanded set of organic investment opportunities, while at the same time continuing to pursue aggressively, our inorganic growth ambitions.”
Suraphi Oil Discovery
Valeura discovered the Suraphi field by drilling the Manora-9 open water exploration well and associated sidetracks, approximately 4.5 km to the northeast of its Manora A platform. Several prospects were targeted in the operation, each within a distinct fault block. The E prospect identified several oil-bearing sandstone intervals within the 600-series lacustrine sands, and intersected oil over a gross column measuring 626 ft (162 ft net oil pay). The D prospect encountered a similar oil-bearing reservoir section in the adjacent fault block, within a gross column measuring 849 ft (172 ft net oil pay). A third sidetrack tested a shallower and riskier play which was not hydrocarbon-bearing. However, success in the D and E fault blocks has effectively de-risked a third adjacent fault block (F), which is well-imaged on 3D seismic.
Based on the Company’s mapping, as calibrated by pressure data collected during drilling, there is evidence to suggest that all three fault blocks could be filled to their spill point, thereby constituting a ‘best case scenario’ discovery within these prospects. The Company estimates that even when measured more conservatively, by only considering the deepest oil demonstrated in the wells, the discovery would likely still justify a satellite facility development on the block.
Valeura believes an additional satellite platform to develop the Suraphi field also creates an opportunity to develop the otherwise-stranded Malida field, 3.5 km to the east. In addition, as this oil discovery has encountered a thicker than expected reservoir interval and has demonstrated oil migration into the area, it derisks a number of nearby exploration prospects, thereby adding to the total potential magnitude of this discovery.
This theme is consistent with the characteristics of the Company’s other fields in the Gulf of Thailand, all which have exceeded their original oil recovery expectations through ongoing exploration, appraisal, and development. In addition, by creating a satellite facility tied in to the Manora wellhead and processing platform, Valeura anticipates an extension to the productive life of the Manora field, thereby adding tail oil production which would otherwise be considered uneconomic and not produced.
Valeura is moving immediately into a development planning phase, to establish a plan to maximise the value of the discovery, and to provide scope for future development in the vicinity. Concurrently, the Company will conduct studies to plan for appraisal of the Malida field and to re-evaluate the nearby exploration prospects for inclusion in future drilling campaigns.
Jasmine Development and Appraisal Drilling Success
Prior to the Manora-9 well, Valeura completed a successful development and appraisal drilling campaign on its Jasmine field. A total of four successful wellbores were completed, two on the Jasmine-C platform and two on Jasmine-D. This includes two horizontal development wells and two dual-objective deviated wells drilled for both development and appraisal targets. Both of the multi-objective wells successfully appraised several new zones, which will now be studied as potential future development candidates.
As a result of this drilling campaign, the Company has recorded a net increase in the amount of organic investment opportunities at Jasmine. In addition, the immediate impact has been an up-tick in oil production, offsetting the near-term impact of natural production declines. Oil production rates have increased from approximately 7,570 bbls/d (before royalties) in the seven-day period before the new wells were brought onstream, to rates in the seven-day period after bringing all wells onstream of approximately 8,250 bbls/d (before royalties).
