Valeura Energy Inc. Sets New Reserves and Resources Record at Year-End 2024

Valeura Energy Inc. (TSX:VLE, OTCQX:VLERF) has announced record-high reserves and resources at year-end 2024, marking a significant milestone in the company's strategic growth and development. The company's aggressive work program, combined with successful drilling campaigns and cost reduction initiatives, has contributed to this impressive achievement.

Valeura's record-high year-end reserves include 32 MMbbl proved (1P), 50 MMbbl proved plus probable (2P), and 60 MMbbl proved plus probable plus possible (3P) reserves. This growth can be attributed to several key factors:

1. Aggressive Work Program: Valeura's aggressive work program, which includes development and appraisal drilling, has contributed to the increase in reserves. The company completed a five-well program on the Jasmine asset and drilled a five-well program on the Manora field, both of which added new production and evaluated secondary appraisal targets.
2. Reserves Replacement: Valeura achieved a 2P reserves replacement ratio of 245% even after a 12% annual production increase. This means that the company added more than double the reserves it produced in 2024. In comparison, the industry average reserves replacement ratio is typically around 100%.
3. Extended Field Life: All Thailand fields now have an economic field life lasting beyond 2030, with at least four additional years of production life added to each field since Valeura took over the assets. This extension of field life contributes to the increase in reserves and future cash flow.
4. Inorganic Growth: Valeura is actively evaluating several opportunities for inorganic growth, which could further contribute to the company's reserves and resources.
5. Reduced Decommissioning Costs: Valeura has significantly reduced its decommissioning costs through engineering studies and increased economic field life, which is expected to reduce the Asset Retirement Obligation (ARO) on the company's balance sheet by more than 50% since assuming operatorship of these assets.



Valeura's 2P reserves replacement ratio of 245% is driven by several key factors, including an aggressive work program, infill development and appraisal drilling, field abandonment cost reduction, and potential Wassana field redevelopment. The sustainability of this growth rate in the long term depends on the company's ability to allocate capital efficiently, maintain exploration success, and navigate market conditions.

Valeura Energy's strategy of organic growth and potential mergers and acquisitions (M&A) balances risk and reward for shareholders by pursuing both internal development and external expansion opportunities. This approach allows the company to mitigate risks associated with relying solely on one growth strategy while maximizing potential rewards.

In conclusion, Valeura Energy Inc. has set new records for reserves and resources at year-end 2024, driven by an aggressive work program, successful drilling campaigns, and cost reduction initiatives. The company's balanced approach to organic growth and potential M&A opportunities ensures that it continues to create value for shareholders while mitigating risks. As Valeura looks to the future, investors can expect the company to maintain its focus on efficient capital allocation, exploration success, and navigating market conditions to sustain its impressive growth trajectory.