Report
Stephane Foucaud

Valeura Energy (TSX: VLE): Another impressive acquisition in Thailand

• 2Q25 production of 23.15 mbbl/d and net cash of US$242 mm at the end of June have been previously disclosed.
• Valeura’s average production over the first five days of August has increased to 23,150 bbl/d. The company has re-iterated its FY25 guidance including 23-25.5 mbbl/d for production.
• With no further corporate tax payable in Thailand for the remainder of 2025, we forecast YE25 net cash to rise to US$310 mm—equivalent to ~45% of the current market cap. The shares continue to offer deep value. Excluding spending on (1) exploration and appraisal of existing assets and (2) capex on assets acquired from PTTEP, our net cash forecast exceeds the current market cap by mid-2028.
• Pending further visibility on Blocks G1/65 and G3/65—where Valeura is acquiring a 40% working interest through its strategic farm-in with PTTEP—we maintain our target price of C$12.70 per share.

Chevron divesting interests in the Malaysia-Thailand JDA
Chevron is divesting a 50% interest in Block A-18 within the Malaysia-Thailand Joint Development Area to PTTEP for US$450 mm. The block currently produces 600 mmcf/d. This transaction is relevant to Valeura for two key reasons:
• Potential Acquisition Opportunity: Chevron’s move signals a broader intent to reduce its footprint in Thailand, where it holds multiple assets. Given Valeura’s operational presence, strong balance sheet, proven execution capabilities, and established relationship with PTTEP, we view the company as a leading candidate to acquire Chevron’s remaining Thai assets.
• Strategic Proximity to G3/65: Block A-18 lies directly adjacent to G3/65, one of the blocks where Valeura is acquiring a 40% working interest through its farm-in with PTTEP. With PTTEP now holding 100% of Block A-18, this could unlock further collaboration opportunities to explore or develop G3/65.

Valuation
Excluding any contribution from G1/65 and G3/65 our Core NAV and ReNAV for Valeura are C$10.51 per share and C$12.58 per share respectively.
Underlying
Valeura Energy Inc.

Valeura Energy is engaged in the exploration, development and production of petroleum and natural gas in Turkey and Western Canada. As of Dec 31 2010, proven gross reserves for light and medium oil was 116 thousand barrels (net reserves of 104 thousand barrels); proven gross reserves for heavy oil was 10 thousand barrels (net reserves of 9 thousand barrels); proven gross reserves for natural gas was 1,047 million cubic feet (net reserves of 938 million cubic feet); and proven gross reserves for natural gas liquids was 26 thousand barrels (net reserves of 19 thousand barrels).

Provider
Auctus Advisors
Auctus Advisors

Auctus Advisors is a specialist Equity Capital Markets and Advisory business with a focus in the Energy Sector.

The partners have complementary skill sets, with decades of experience across Equity Capital Markets, Investment Banking and the Energy industry. We have worked at Société Générale, Canaccord Capital, BMO Capital Markets and Schlumberger. Most recently we have worked together for many years at GMP FirstEnergy.

Auctus has been set up at the beginning of a new decade in which we see significant opportunities in the Energy space. Globally, demand for energy is at record levels and continues to grow. Conversely, investment in traditional energy sources has been severely constrained. We believe this imbalance creates opportunities for both companies and investors.

Auctus provides Corporate Broking, Equity Research and Investment Banking services. 

Analysts
Stephane Foucaud

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