Valeura Energy (TSX: VLE): Positive drilling update
• Valeura has drilled three development wells and one appraisal well at Nong Yao A.• The three development wells were in line with expectations and are now in production.
• The appraisal well has exceeded expectations confirming 50 feet of new net oil pay over several intervals that were not producing. The net oil pay was almost double the predicted amount (pre drill).
• Valeura anticipates this will give rise to between two and four additional development targets, which will form the basis of a future infill drilling campaign.
• This is expected to add reserves and to contribute towards replacing the reserves produced during 2023. A typical Nong Yao well recovers ~0.25 mmbbl.
• The drilling results showcase Valeura’s business model of extending the life of producing assets in the Gulf of Thailand and delaying decommissioning.
• The drilling rig has been moved to Wassana.
• Pending details on the FY24 guidance expected mid-January, we re-iterate our target price of C$6.40 per share.
Valuation
Our ReNAV is unchanged at ~C$6.10 per share. YE24 estimated net cash (>US$460 mm) represents ~1.65x the current market cap of the company.
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).
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.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.