Valeura Energy's Jasmine Drilling: A Boon for Cash Flow and Asset Longevity
Wednesday, Nov 27, 2024 2:35 am ET
3min read As an investor, I'm always on the lookout for companies that demonstrate strategic growth and sustainable performance. Valeura Energy Inc. (VLE), an upstream oil and gas company with assets in the Gulf of Thailand and the Thrace Basin of Turkey, has recently caught my attention with their Jasmine development drilling update. Let's delve into the implications of this update and explore how it aligns with my investment values of stability, predictability, and consistent growth.
In November 2024, Valeura Energy announced the successful completion of a five-well infill drilling program at the Jasmine field in Licence B5/27, offshore Gulf of Thailand. This campaign comprised two infill development wells on the Jasmine A platform and three on the Jasmine D platform, all of which were brought online as producers. The results? Aggregate oil production from the field surged to 9,801 bbls/d, a 26% increase from pre-drilling levels, leading to a significant boost in cash flow.
But the benefits of this drilling program extend beyond immediate cash flow. By successfully drilling and appraising several additional reservoir intervals, Valeura has discovered multiple new producing reservoirs and oil-bearing intervals. These appraisal successes not only extend the economic life of the Jasmine field but also provide tangible opportunities for further infill development drilling. This aligns perfectly with Valeura's long-term strategy to achieve a reserves replacement ratio of over 100% and extend the economic life of its assets.
As an investor, I appreciate Valeura's targeted investment in drilling and appraisal activities, as it enables the company to maintain and enhance its production capacity. By continually reinvesting in its producing asset portfolio, Valeura aspires to extend the economic life of its assets and generate ongoing cash flow. This strategic approach to organic growth, combined with potential strategic acquisitions, is a testament to Valeura's commitment to enduring business models and robust management.
In conclusion, Valeura Energy's Jasmine development drilling update demonstrates the company's commitment to stability, predictability, and consistent growth—values that I hold dear in my investment portfolio. By successfully boosting production, extending the economic life of its assets, and demonstrating a strategic approach to organic growth, Valeura Energy has proven itself to be a 'boring but lucrative' investment worth considering.
In November 2024, Valeura Energy announced the successful completion of a five-well infill drilling program at the Jasmine field in Licence B5/27, offshore Gulf of Thailand. This campaign comprised two infill development wells on the Jasmine A platform and three on the Jasmine D platform, all of which were brought online as producers. The results? Aggregate oil production from the field surged to 9,801 bbls/d, a 26% increase from pre-drilling levels, leading to a significant boost in cash flow.
But the benefits of this drilling program extend beyond immediate cash flow. By successfully drilling and appraising several additional reservoir intervals, Valeura has discovered multiple new producing reservoirs and oil-bearing intervals. These appraisal successes not only extend the economic life of the Jasmine field but also provide tangible opportunities for further infill development drilling. This aligns perfectly with Valeura's long-term strategy to achieve a reserves replacement ratio of over 100% and extend the economic life of its assets.
VLO
Date | Service Charge Income YoY% | Service Charge Income(USD) |
|---|---|---|
| 2021 Q3 | -- | -- |
| 2021 Q4 | -- | -- |
| 2022 Q1 | -- | -- |
| 2022 Q2 | -- | -- |
| 2022 Q3 | -- | -- |
| 2022 Q4 | -- | -- |
| 2023 Q1 | -- | -- |
| 2023 Q2 | -- | -- |
| 2023 Q3 | -- | -- |
| 2023 Q4 | -- | -- |
| 2024 Q1 | -- | -- |
| 2024 Q2 | -- | -- |
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| Valero EnergyVLO |
| Valero EnergyVLO |
| Valero EnergyVLO |
| Valero EnergyVLO |
| Valero EnergyVLO |
| Valero EnergyVLO |
| Valero EnergyVLO |
| Valero EnergyVLO |
| Valero EnergyVLO |
| Valero EnergyVLO |
| Valero EnergyVLO |
| Valero EnergyVLO |
As an investor, I appreciate Valeura's targeted investment in drilling and appraisal activities, as it enables the company to maintain and enhance its production capacity. By continually reinvesting in its producing asset portfolio, Valeura aspires to extend the economic life of its assets and generate ongoing cash flow. This strategic approach to organic growth, combined with potential strategic acquisitions, is a testament to Valeura's commitment to enduring business models and robust management.
In conclusion, Valeura Energy's Jasmine development drilling update demonstrates the company's commitment to stability, predictability, and consistent growth—values that I hold dear in my investment portfolio. By successfully boosting production, extending the economic life of its assets, and demonstrating a strategic approach to organic growth, Valeura Energy has proven itself to be a 'boring but lucrative' investment worth considering.
