Valeura Energy Inc. (TSX:VLE, OTCQX:VLERF) has provided an operations and financial update for Q2 2026.
Highlights
- Oil production averaged 22.3 mbbls/d(1);
- Sales of 2.454 million bbls;
- Price realisations averaged US$105.8/bbl, resulting in revenue of US$259.8 million;
- Drilled the longest horizontal lateral ever recorded in the Gulf of Thailand and also the first ever complex multi-lateral development well in Thailand, both on the Company’s Nong Yao field(2);
- Secured a formal reduction of the Manora field’s decommissioning liability, resulting in a partial release of bank guarantees, and therefore a 31% reduction in restricted cash;
- Cash position of US$316.5 million at 30 June 2026(3) and a receivable of US$42.7 million in respect of oil sold just prior to end of the quarter. No debt; and
- Based on preliminary unaudited estimates, anticipated record quarterly free cash flow of approximately US$100 million(4).
- Working interest share production, before royalties.
- Block G11/48, 90% operated working interest.
- Includes restricted cash of US$15.8 million.
- Adjusted free cash flow is a non-IFRS financial measure that does not have a standardised meaning under IFRS — see “Non-IFRS Financial Measures” in the Company’s Management’s Discussion and Analysis dated 14 May 2026.
Dr. Sean Guest, President and CEO commented:
“During Q2 2026, we once again delivered production in line with our plan and executed an ambitious development and appraisal drilling programme on our Nong Yao field which met or exceeded all pre-drill expectations. We are focused always on driving deeper efficiency into our business to enhance cash flow margins, and this quarter our efforts have delivered two new Gulf of Thailand records – the longest horizontal interval ever drilled and the first ever complex multi-lateral development well.
In a single quarter, we generated record high revenue of US$259.8 million, driven by quarterly oil sales of 2.454 million bbls and high realised oil prices of US$105.8/bbl. This has strengthened our balance sheet to a 30 June 2026 cash position of US$316.5 million (including US$15.8 million recorded as restricted cash), and no debt. This increase is after having paid the 2025 taxes during the quarter of US$19.2 million, and will be boosted further by the fact that we recorded a receivable of US$42.7 million in respect of oil that was sold just prior to the end of the quarter. Based on preliminary estimates for Q2 2026, we anticipate that our free cash flow generation in the quarter will be in the order of US$100 million, a record for the Company(1).
With an increasingly strong financial position, we believe we are well positioned to pursue our growth-oriented strategy. Our asset portfolio continues to yield what we consider to be attractive organic investment opportunities, and we continue to monitor potential inorganic growth prospects which are currently on market or which we anticipate may become available in the near term.”
- Adjusted free cash flow is a non-IFRS financial measure that does not have a standardised meaning under IFRS — see “Non-IFRS Financial Measures” in the Company’s Management’s Discussion and Analysis dated 14 May 2026.
Q2 2026 Update
Valeura’s working interest share production before royalties was on plan for Q2 2026, averaging 22.3 mbbls/d. The Company sold a total of 2.454 million bbls of oil during the quarter. Realised prices averaged US$105.8/bbl and revenue was US$259.8 million in Q2 2026, both new quarterly records for the Company.
Oil sold during Q2 2026 included a substantial contribution from volumes held as inventory at the end of Q1, totalling 1.225 million bbls. As a result, the Company’s inventory of crude oil held in its floating storage vessels has since reduced to more typical levels, being 0.793 million bbls at 30 June 2026.
On the back of sales volumes in excess of quarterly production and high realised prices, the Company anticipates Q2 2026 free cash flow of approximately US$100 million(1), the Company’s highest quarterly result to date.
During the quarter the Company paid taxes of US$19.2 million, related mostly to the 2025 financial year Special Remuneratory Benefit (“SRB”).
At 30 June 2026, Valeura had US$316.5 million in cash and no debt. This quarter-end cash position does not fully reflect Q2 sales, as US$42.7 million in proceeds from two parcels of oil sold just prior to the end of the quarter, is expected to be received in early Q3 2026.
- Adjusted free cash flow is a non-IFRS financial measure that does not have a standardised meaning under IFRS — see “Non-IFRS Financial Measures” in the Company’s Management’s Discussion and Analysis dated 14 May 2026.
Manora Decommissioning Reduction
During Q2 2026, Valeura and Thailand’s upstream regulator agreed to a reduction in the anticipated future decommissioning cost of its Manora field. As a result, the amount of security required to be lodged with the Government of Thailand to support this future spending was reduced, thereby reducing the Company’s restricted cash by 31% while increasing its (unrestricted) cash. At 30 June 2026, Valeura’s restricted cash totalled US$15.8 million.
Results Timing
Valeura intends to release its full unaudited financial and operating results for Q2 2026 on 06 August 2026 and will discuss the results in more detail through a management webcast.
