Valeura Energy Q3 2025 Earnings Report

Valeura Energy EPS Results

• Actual EPS: C$0.14
• Consensus EPS: N/A
• Beat/Miss: N/A
• One Year Ago EPS: N/A

Valeura Energy Revenue Results

• Actual Revenue: $221.45 million
• Expected Revenue: N/A
• Beat/Miss: N/A
• YoY Revenue Growth: N/A

Valeura Energy Announcement Details

• Quarter: Q3 2025
• Date: 11/14/2025
• Time: Before Market Opens
• Conference Call Date: Monday, November 17, 2025
• Conference Call Time: 10:00AM ET

Valeura Energy (TSE:VLE) is an upstream oil & gas company, with a clear strategy to add value for shareholders through growth. The Company is expanding operations organically and through acquisitions in Southeast Asia, focussing on assets with immediate or substantial near-term cash flow, with imbedded reinvestment opportunities.

Valeura Energy Q3 2025 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: Valeura agreed a **PTTEP farm‑in (40% earn‑in)** on G1/G3 that adds gas exposure and immediate tie‑back potential — ~1,200 sq km of seismic and four exploration wells (with discoveries) already completed and teams targeting FID activity in 2026.
• Positive Sentiment: The Wassana redevelopment is at **post‑FID 20.5 million barrels** reserves, is ~35% complete, on a fixed‑price EPC schedule for first oil in Q2 2027, and management expects delivery on or below budget.
• Positive Sentiment: Operational and financial momentum — Q3 production ~23,000 boe/d (up 3% YoY, 7% QoQ) with November production ~24.5k boe/d, OPEX ~US$24.8/boe, realized price US$72.1, and adjusted cash‑flow margins approaching ~50%, which has materially strengthened cash and working capital.
• Neutral Sentiment: Capital allocation: the company has invested ~US$52M this quarter (including ~US$16M into Wassana), has run a mild NCIB, and says priority remains **accretive M&A** (so large cash returns to shareholders are unlikely near‑term).
• Neutral Sentiment: Turkey position is described as a **high‑upside, high‑risk** opportunity — a well‑funded partner will retest unconventional gas but Valeura is not committing capital now and commercial flow remains unproven.

Presentation

[Robin Martin, VP of Investor Relations and Communications at Valeura Energy]

Hi everyone, and thanks for joining this Valeura Energy webcast where we'll talk about our Q3 2025 results. We're recording the event today, November 17, 2025, and we'll make a replay available on our website and on our YouTube channel within the next day or so. My name is Robin Martin. I'm the Vice President of Investor Relations and Communications for Valeura. Joining me on this call are Dr. Sean Guest, our CEO, Yacine Ben-Meriem, our CFO, and Dr. Greg Kulawski, our COO. Running order for today's event, we will start with some prepared remarks tied to slides that you should see on your screen now. They're also available on our website. We will proceed into a Q&A session. I'll guide us through that part of the call. The Q&A offers two options for you.

[Robin Martin, VP of Investor Relations and Communications at Valeura Energy]

You can either press the Q&A button in Teams and type in a question for us, in which case I'll voice that for the team to address. Or you can press the raise your hand button, which will be a cue to me saying you'd like to ask a live question, and I will unmute your microphone to do so in due course. Before we get going, I will just draw your attention to our disclaimers and advisory slide and ask that you pay in particular attention to the forward-looking statements disclaimers here. With that, I will hand the floor over to Sean. Go ahead, please.

[Sean Guest, CEO at Valeura Energy]

Hi Robin, thank you very much, and thank you everyone for joining us here today. If you could just go to the next slide, Robin.

[Sean Guest, CEO at Valeura Energy]

I'll start to kind of give you a bit of an intro on how we look back at the previous quarter and really actually what's gone on in the past couple of years, and then also looking forward. Greg will then talk to you about the Wassana project and some of our recent execution, and then Yacine will summarize some of the financial highlights before I kind of bring it back and really talk about what we've seen recently in performance, share price, and what we kind of see going forward in the company. Starting with it, if we look at growth, now one of the things we announced this year was we did a large-scale farm-in with PTTEP, the National Oil Company of Thailand. In addition to that, what we've seen is we kicked off earlier this year the Wassana oil field full field development.

[Sean Guest, CEO at Valeura Energy]

Those are two projects that are really focused on the sustainability and the long-term growth of the company in Thailand. We are very excited about both of those, and I'll go into a little more detail on them. Financially, the good news is you would have seen in the press release that actually compared to a year ago or compared to last quarter, really all of our operating financial metrics are up, which is very pleasing to us, especially with strong margins even at the current oil prices. That has allowed that balance sheet to also continue to strengthen, which improves really our ability to fund opportunities and to look at other M&A opportunities. Now, when you look at execution within the company, we reiterated a couple of months ago, our guidance is intact.

[Sean Guest, CEO at Valeura Energy]

We did point at that time too that we expected production to be at the lower end of guidance. However, if you've seen in the current release that the current production with the drilling that we've done has actually increased that a lot. That production so far in November is actually higher than any of the quarterly averages we've had in 2025 to date. Importantly, a lot of this is coming from our Nong Yao field, which is most profitable. We've also seen that OPEX is heading towards the lower end of our guidance, which therefore we're really delivering on that cost per barrel basis. A final thing just to emphasize is, as we've taken over these assets, we've actually been able to year on year reduce the emissions intensity from the assets, and that's continuing this year.

[Sean Guest, CEO at Valeura Energy]

We could be targeting as much as a 30% decrease in emission intensity since we took over from a year ago. Now, just before I hit the last two points, I really want to point out that those first bits really point to what we see as an extremely successful country entry into Thailand. We managed to get a couple of good deals, but then we built on that with execution of assets, delivering on the production, delivering on the reserve growth, and finally, as we pointed to there, the longer-term growth opportunities that we're seeing with the farm-in and the redevelopment of PTT that are not just looking at five years, but are looking at five, 10, 15 years or more.

[Sean Guest, CEO at Valeura Energy]

As we look forward, we did sign two deals in Q3, the PTTEP deal that I'll talk about in more detail, but also we signed a deal to farm someone in at our Turkish acreage, which, while it is not a focus for us now, is still a very high-value opportunity, and I'll talk just a bit about that at the end. What I can tell you, and we talk about this quite a bit, is we remain very focused on transformational opportunities. There's a good suite that we now see coming to market, and we're actually very involved in those now. Finally, a last one on value.

[Sean Guest, CEO at Valeura Energy]

While we've come up a lot since a year ago, the recent kind of downturn with oil price and then the decrease that we've seen, actually we see it as a very good time to look to buy into the company because even though share price has been coming down, the business has been delivering. Okay, next slide please, Robin. I'm just going to talk about the PTTEP farm-in before I hand over to Greg. We announced this back in July where we'd actually farmed in with PTTEP, who are the National Oil Company and the largest oil and gas producer in Thailand. This has significantly increased our acreage position and set us up very well for the future. One of the questions we've got since really doing this deal was, why did PTTEP want Valeura to farm in?

[Sean Guest, CEO at Valeura Energy]

They obviously are a very large company, significant production cash flow, and have a capital budget going forward in kind of the tens of billions. What really their CEO has said and what we're seeing continually being reiterated is they believe they're the natural gas operator in Thailand. With the work that they've seen us do and our operations, they believe we're the natural oil operator here. They see that that combination together is a way of maximizing the value and the way forward on these blocks. We'll earn a 40% interest in there. What we like is it's bringing diversity. It's bringing gas opportunities to us, but it's also bringing this opportunity to have medium and longer-term growth through these blocks that can really step us out into the future.

[Sean Guest, CEO at Valeura Energy]

The other important thing to note is that these blocks really abut right up against the major producing gas fields in Thailand, as well as some of our oil assets. These type of tiebacks are really the highest economic returns you can look at in our industry. All of the main producing facilities, the pipelines, those are all in place, and you're just tying back into those. Your CapEx per barrel, your OPEX per barrel tends to be extremely good and very high returns. Again, on the entry cost, we really came in for pretty well at ground floor. The important thing I want to note too is that while the deal is not closed and we do expect it to close immediately or in the near term, I did meet with PTTEP and the regulator last week and all the paperwork, everything is progressing.

[Sean Guest, CEO at Valeura Energy]

While we're still waiting for that to close, both teams are already working together, both commercially and technically on driving forward the work in this block. In 2025, we've already seen all of the committed seismic data acquired, approximately 1,200 sq km, as well as we've seen four exploration wells drilled with discoveries in those. The important thing with that is there's existing discoveries already here, and the team is already working on the development planning to try and look for some FIDs in 2026 to take these forward. Next slide, Robin. I really wanted to just zoom in a bit on the G3 block and the more southern block because this is one that really emphasizes those immediate development opportunities, particularly in the gas, but I'll also speak to the oil opportunities that we see that can be tied back to our field.

[Sean Guest, CEO at Valeura Energy]

When you look at the block, immediately to the east of our block is actually the Bongkot gas field, and it runs all along the boundary there. That field's producing just under a BCF a day. Extremely large, a lot of gas coming out of there. In the middle, there is an existing 3D seismic area with a number of discoveries, and this is where a new discovery has already actually happened this year. That's where the team are starting to work on progressing this towards an FID in 2026, whether it's for one new gas platform or two. There's that opportunity here of proving gas immediately next to a producing gas field. The team have put in place, they've actually filed the production area application, and work is going ahead on the technical work and commercial work to progress this in 2026.

[Sean Guest, CEO at Valeura Energy]

We really hope to have much more technical details on this as we head into early next year. That is really the immediate work that can come, and therefore we can see an exploration block going from exploration to cash flow within a few years. There is new seismic being acquired in the south over more gas discoveries down there, which could follow at a later date. When you look up around our Nong Yao field, which is in the north, our most profitable oil field, we have identified an oil fairway that we think exists from the Nong Yao field up to an undeveloped field called Ubon in the north.

[Sean Guest, CEO at Valeura Energy]

Now, while new seismic has now been acquired over that, and we expect to next year process that, work that into a suite of drilling prospects, the team already have 3D seismic from our block that extends in there, and we have a suite of opportunities immediately to the east of the Nong Yao field. First, there is a number of prospects that actually are drillable from the Nong Yao A platform, could be immediately tied in once you drill those. The other one that is even very interesting is we have just to the north of that, we have identified on the 3D a very good exploration prospect that could be tied back to the platform to even increase production.

[Sean Guest, CEO at Valeura Energy]

It is just reiterating with this block that what we see is immediate tieback opportunities of very high value, but then you can continue to explore and develop these, add in more platforms, and really get what we might call a string of pearls here. That exists for both the oil and the gas. Again, very exciting opportunity for us, and we really hope to be able to speak more on this quantitatively once you get this closed and progress to FID in 2026. At that time, I'll hand over to Greg to talk a bit about the Wassana development.

[Greg Kulawski, COO at Valeura Energy]

Thank you, Sean, and hello everyone. Let me continue with the growth updates. I want to talk a little bit more about the Wassana field, which is our key organic growth opportunity in the operated assets. This is a project where we have taken an FID in May of this year on redevelopment, which involves installing a new central processing facility over the main part of the field, which you see marked in that red circle on the right. This central project has got very strong economics, as we have shared before, and we will see production out into 2043. This production just from the main field is reflected in the reserves in the Wassana field, which now stand at post-FID at 20.5 million barrels to be.

[Greg Kulawski, COO at Valeura Energy]

The development concept also envisages satellite tines, and we already have provisions in the design to be able to do so with risers in the main facility. We have these two areas with resources in the north and in the south of the Slicens. In the north, we already have sufficient volume of resources and sufficient level of appraisal to really start a satellite development. In the south, we have some contingent resources already discovered, but we also see further upside potential with prospective resources, and that is why we are planning some exploration drilling to capture those upsides in the south.

[Greg Kulawski, COO at Valeura Energy]

I guess what's important is that because this is a field which is operated by us and 100% owned by Valeura, it means that we've got quite a lot of optionality on driving the optimum timing for FID and then bringing those north and south satellites on stream. If we go then to the next one, Robin, please. Just a brief update then on project delivery, which is going very well. We are well on track for first oil in Q2 of 2027. We've got now very high confidence on being able to deliver this project on or below budget. The main EPC contract is fixed price and is proceeding very well without any variations. All of the main equipment orders have now also been issued, and there is a relatively small amount of scope that can give rise to any cost variation.

[Greg Kulawski, COO at Valeura Energy]

Again, very, very high confidence on delivering on budget. Overall, we are in aggregate about 35% complete on this project. Going really well. If we then switch to the next slide, Robin, and moving on to the ongoing well delivery and production delivery, the most notable area of rig activity in Q3 has been our drilling campaign in Nong Yao field, which has gone really well. We have finished the quarter at just under 12,000 barrels per day equity production, having brought successfully a number of wells in the campaign. We drilled 10 wells in total on Nong Yao in the quarter. Since then, the rig has moved across to the Jasmine field where we are drilling now, and we have actually already brought some wells on stream in Jasmine.

[Greg Kulawski, COO at Valeura Energy]

As a result of all of that activity, November to date, we are at 24.5 or maybe even a bit higher, 1,000 barrels per day production. Going very well, and that is why we have reconfirmed our overall production guidance for the year, which will be coming within the guidance, albeit slightly towards the lower end. I think with that, let me hand over Yacine to you.

[Yacine Ben-Meriem, CFO at Valeura Energy]

Thank you very much. Hi everyone. Thank you for joining us today. As Sean mentioned early on in his opening, this is one quarter where effectively from a financial and operational matrix or perspective, everything seems to be on the green side. Allow me first to walk you through some of the key highlights. As usual, we'll start from an operational perspective where we are seeing quite a good momentum, be it on a production side or even the cost side. Starting with the production, as you can see on the screen in front of you, we recorded around just shy of 23,000 barrels a day equivalent in Q3. That's up 3% versus the same quarter in 2024 and 7% versus the last quarter. This uplift in production is predominantly driven by Nong Yao, the infill campaign drilling that we did this quarter in Nong Yao.

[Yacine Ben-Meriem, CFO at Valeura Energy]

As a reminder for everyone, Nong Yao is our biggest and most profitable field. Not only did we see improvement as well in the production, but also importantly in the lifting, as you can see, it is up 14% and 22% double digit versus last quarter and the same quarter last year. This is just a reflection of better optimization and scheduling really of the lifting. It allows us as well to kind of eat into some of the inventory, which is something that we keep track on. Although, as a reminder, production and lifting do tend to move, sometimes there is a gap between the two.

[Yacine Ben-Meriem, CFO at Valeura Energy]

Now, moving on to the real in terms of pricing environment, obviously we are in a price environment that is quite different from the same period last year where oil price brent and our realized price were really hovering around the $80. For this quarter, we had a realized price of $72.1, which is significantly, which is up compared to the last quarter of $67.9. I think what I'd like to draw your attention really here is the premium that we get for our crude compared to historical numbers. And what we've been really pleased this quarter is that really that expansion in our premium versus brent. Whereas in the last quarter, we recorded just shy of a dollar. In this quarter, we've recorded $2.5.

[Yacine Ben-Meriem, CFO at Valeura Energy]

Now, talking now moving on to the cost, and I think this is one of those graphs that we really like to look at internally, and it just gives you an indication as to how our cost control kind of translates into financials ultimately. This quarter, as Sean mentioned, I think earlier on, our OPEX per barrel have come down quite significantly, not just from last quarter, but the same quarter last year. Now we are just at $24.8. This is really a reflection of an ongoing effort throughout the organization in terms of trying to chip at cost at any moment, and be it on a temporary basis or more structural in nature. It is an ongoing exercise that we keep doing across the organization. How does this translate in terms of financials? Robin, next slide please.

[Yacine Ben-Meriem, CFO at Valeura Energy]

With higher production, improvement in prices, and better control, as you can see, we've seen a significant improvement in terms of our financials, be it on the EBITDAX level or most importantly for us, I guess, and adjusted cash flow from operations. I think notwithstanding the increase itself, I think what we're really quite pleased with is really the margins, the improvement in margins. Looking at the EBITDAX, that's more than 400 basis points increase and more than 100 basis points increase compared to the last periods. On adjusted cash flow from operations, I think this is really where the numbers come into play, where you see an improvement in margins from 35%, and it's a continuous improvement quarter to quarter, where we go from a 36% last year to 39% this year, and now we are just shy of that 50%.

[Yacine Ben-Meriem, CFO at Valeura Energy]

For every dollar that we received, effectively we are generating half a dollar from our cash flow from operations, which we then can spend on CapEx and importantly strengthen the balance sheet and effectively for M&A ultimately. How does this translate in terms of cash? As you can see, our cash position and adjusted net working capital have almost doubled compared to last year's. That is a 60% and it is almost a 70% improvement from last year. As we continue with generating cash from the business, considering it is highly cash generative, we can see this balance increasing and giving us that solid fortress balance sheet that enables us to not only invest in our business, but also to seek highly accretive and transformational deals, as Sean mentioned earlier on. Next slide please, Robin.

[Yacine Ben-Meriem, CFO at Valeura Energy]

How do we end up with that cash flow from operation? I think the key point I'd like to highlight here is that during this quarter, we recorded some SRBs, and that's really related to tier-three regimes. As far as the corporate tax, this is really related to some subsidiaries that are outside of Thailand. Within Thailand, we haven't recorded any PITA, as you might imagine, because of the tax consolidation that we've done. Next slide please, Robin. As I mentioned, with the strong cash flow from operation, we are able to invest in our business first and foremost. As you can see, during this quarter, we invested around $52 million, of which close to $16 million was within the Wassana development that Greg was alluding to earlier on, was talking about earlier on.

[Yacine Ben-Meriem, CFO at Valeura Energy]

On top of that, we did spend a little bit on exploration, but this is really studies, no drilling at all. We also recorded $3 million in other income and interest. Now, with the changing working capital, our format for this quarter would have been $252 million. However, we've also spent money on NCIB and also putting the deposit for G1 and G3 during the year when we signed the deal. We have paid some small corporate tax payment again due to outside subsidiary outside of Thailand and Singapore. We end up with the quarter again with $248 million. Again, it's all about strengthening the balance sheet and allowing us to deploy that capital as we go forward. I guess with that, I'll hand back to Sean.

[Sean Guest, CEO at Valeura Energy]

Okay, thanks, Yacine. I just want to really reiterate and emphasize again how we look at capital allocation in the company. The first thing with the assets that we acquired, the four key assets, we talked about maintaining those net 20-25,000 barrel a day out to the 2030s. You can see the projects like Wassana and that that we have been undertaking that are really pushing that out and extending that. We are also looking at exploration spend. Now, again, we will discuss more as we get into next year on how G1 and G3 funding come in there. It is a good time to really emphasize that the gas developments are significantly less expensive than the oil or the cost for platforms that are much less.

[Sean Guest, CEO at Valeura Energy]

That is really our first real event we are looking for, maintain the production from the assets to deliver that cash flow as we then look to expand into other areas. After that, it really is value accretive M&A. We still see an extremely good environment out here in the region with the number of deals that are starting to come to the market to very few operators, and really there is quite a shallow buyers pool. We have made those points before and we have talked to people about this, but I can honestly say that we are seeing a change now and that we are actually very actively involved in some transformational activities, which we hope we will be able to talk about more as we get into Q1 next year.

[Sean Guest, CEO at Valeura Energy]

The other point to really emphasize is we've said the promise we made in 2024 when it came to returns was if we as a company went through 2024 and we're getting to the latter half of the year and we were building cash and we were not seeing the opportunities in the near term, we would put in place some sort of share buyback or return to shareholders. We've put that in place. We've had that in place during the past year and we've actually reduced the share counts in a mild amount as well as taking out a number of dilutives.

[Sean Guest, CEO at Valeura Energy]

The thing we've said to people, if you asked us this year, is that as we go through 2025, as long as we are still delivering the cash flow and we have a very strong balance sheet capable of M&A, if we got to the latter half of the year, we would also look for ways to return more of that money. With the deals we currently see, we do not expect to see that we would be doing any large return of money to shareholders. There is a line of sight on some good opportunities that we are very actively involved in. That remains our primary focus, delivering growth. Next slide, Robin. I just want to really look back as we come near the end here at the past year.

[Sean Guest, CEO at Valeura Energy]

Now, obviously, when you compare a share price back to a year ago, we're still up over 50% in that time, which is great. The disappointing thing is that we've seen the slide in recent months. We had good strong delivery as we really got up to that PTTEP farm-in, which jumped us up. Since that time, yeah, there's been some pressure on oil price, but in actual fact, our assets have still been delivering. This is a period where we've delivered on the production growth and we've delivered on the free cash flow, as well as we've had other news like being ranked the number one growing company in Canada. I like to keep emphasizing that's not in the energy industry, that's across all industries.

[Sean Guest, CEO at Valeura Energy]

We announced that Turkey Joint Venture Farm and we'll see some activity there to try and realize some of that blue sky upside. To us, this has been a bit of a frustrating time, as I'm sure it has been for some of our shareholders, but we continue to deliver on execution and we hope that in the end, that's the right thing that we continue to see the share price turn there. In many ways, it opens up a good buying opportunity, especially as we start to look at the coming months where we see some catalysts becoming in new business. I think people are really looking for us to be able to close that G1, G3 deal. We see no risk in that at all, but we do appreciate that until those are solidified, the market can sometimes be nervous about them.

[Sean Guest, CEO at Valeura Energy]

As we get into the first half of the year, start to really quantify the bit about going towards an FID on those gas developments. As we have had for the past couple of years, we expect a good reserve number when we actually release those numbers in February. A good suite of opportunities even before you consider that we actually have some activity going on in Turkey at this time. Just before I move off that, maybe just a time to talk a bit about that Turkey Farm. Now, we have really changed our shareholder base. There will be a lot of people actually who are shareholders now who are not really aware of what happened there. To summarize it quite a bit, there is a significant amount of gas deep in Turkey, unconventional gas, very tight.

[Sean Guest, CEO at Valeura Energy]

We've identified through the drilling, through 3D seismic, there's tens of TCF there. During the work we did with our previous partner, we had not demonstrated a commercial flow. Even though we've done 12 separate flows, we've flowed wells for up to three months. The gas will flow from the ground. Recently, now we've had a new partner come in who's going to look at retesting the well. Based on that, we'll actually go forward to look at drill a well. The partner we have is an extremely good partner. We've dealt with them before as a partner. They're an extremely well-funded private company. They are the most active company in fracking and flowing in Turkey. They're also very well connected and have been working in Turkey for years.

[Sean Guest, CEO at Valeura Energy]

What we're trying to say to our shareholders is, look, we are not putting our capital into that at this time. It's not taking the focus of your management team, but we have a blue sky opportunity there that while it still has risk on it, if we're able to prove a commercial flow of gas from that opportunity, it's a very big upside for our shareholders. Still a lot of risk on that, but it's nice to see some work progressing there that could open that up. Finally, just reiterating as we move to the next slide, Robin, we see actually it is a good time to come in based on the recent slide in share price. Again, we trade very well relative to our peers.

[Sean Guest, CEO at Valeura Energy]

Really, we have a lot of upside potential still available to us, both from our NAV as well as our analyst consensus. Again, a good time to buy in. Robin, just the last slide. Just reiterating again, we really see that we've done the country entry into Thailand. We have a solid business unit there that's now delivering not only on the execution of the assets they have, but also looking at growth. We do see other opportunities within Thailand, but I can also tell you that the executive were very much focused now on looking at how we can take what we've done in Thailand, that successful opportunity, that growth that we've got there, and look at where do we apply that next. Where's that next transformational deal? That's what's ongoing at this point in time.

[Sean Guest, CEO at Valeura Energy]

Again, a good quarter, a good growth we've seen relative to last year and to the previous quarter. We look forward to carrying that on to the year end. With that, I'll hand over to Robin for the Q&A period and thank everyone for joining us.

[Robin Martin, VP of Investor Relations and Communications at Valeura Energy]

Thanks very much, Sean. Just a reminder that if you'd like to ask a question, there are two ways to do that. You can either press the Q&A button in Teams and type a question, in which case I'll voice it for the team to answer, or you can press the raise button, which is a cue to me to say you'd like to ask a live question. While we wait for more of those to come in, we do have a couple of typed questions here. First, on reserves, you mentioned we should expect a good reserves report at the end of the year. Can you give us a directional expectation for what that actually means at year end 2025?

[Greg Kulawski, COO at Valeura Energy]

Look, I think we have talked previously about the process by which whenever we drill new development wells, we typically also target appraisal targets within these companies. We've done it this year just as we did in previous years. Some of it has been in Nong Yao, some of it has been in other fields. I mean, again, I would be probably careful with hazarding numbers before we conclude all of the audits, especially given the movement in the prices. I would say that, again, we've had on the operational side some additional volumes. Of course, we've had the significant additions from Wassana FID, which you already are aware of.

[Robin Martin, VP of Investor Relations and Communications at Valeura Energy]

Thanks for that, Greg. We've got a live question now from David Round. I'm going to unmute your microphone here. There you go, David. You should be able to unmute now and ask your question.

[Sean Guest, CEO at Valeura Energy]

Yeah, David, just a reminder that.

[Greg Kulawski, COO at Valeura Energy]

Yeah, there you go. You have to unmute your mic.

Yeah, sorted. Thanks, guys. First question, just you've gone back to drill at Jasmine. I'm just wondering, does that program differ much from the one at the start of the year? Should we be thinking about kind of similar outcomes in terms of things like production? I think in the past, I think you've talked about potential constraints bringing on new wells. Is that a problem at Jasmine at all?

[Greg Kulawski, COO at Valeura Energy]

I think we are planning these companies in a way that optimizes both the capture of the subsurface resource and the targets that we continue to see in the future well inventory, as well as the capacity and slot availability in the production facility to be able to bring them into production. Right? I think, I mean, we've been drilling kind of year-round cycling through all of our fields. We have had that campaign, as you said, early in the year in Jasmine. We are now back. I would say it's actually going very well in Jasmine so far. That's part of the production we've been seeing in November. Yeah, I would say it's so far so good in the Jasmine campaign.

Okay. You talked about cycling there. I suppose, obviously, Nong Yao has been great. As we kind of think about the next sort of set of drilling post-Jasmine, I mean, will you be ready to go back to Nong Yao once the Jasmine program finishes, or would you be willing to go back and drill at Manora, or should we be thinking maybe that's the time for a pause in the program?

[Greg Kulawski, COO at Valeura Energy]

Yeah. For next year, I mean, I guess we will provide a more precise guidance early in the year for the annual plan. In short, yes, we will be looking to go to Manora for probably a shorter campaign after Jasmine, and thereafter, we will be back in Nong Yao again with a significant campaign there.

Okay. Great. I'm sorry, a quick final one just on Wassana while I've got you. Given the softer commodity prices we've seen recently, are you seeing anything positive in terms of reduction in rig rates? I understand you haven't locked those in yet. Correct me if I'm wrong. If you haven't, at what point might you look to lock those costs in?

[Greg Kulawski, COO at Valeura Energy]

Yeah. It is a good observation, David. We have seen softening in the rig market. At the moment, the rig we have is committed through to August of next year. We are actively now going to be looking at the market to try and capture the opportunity associated with these softening rig rates.

Great. Very helpful. Thank you.

[Robin Martin, VP of Investor Relations and Communications at Valeura Energy]

Very good. We'll move over to a typed question now. With PTTEP being the operator of the new licenses, G1 and G3, and their focus being primarily on gas, will Valeura still get a fair opportunity to pursue oil-focused drilling on these blocks, for example, the Nong Yao Northeast extension?

[Sean Guest, CEO at Valeura Energy]

Yes, very much so. The first thing I just emphasize with PTTEP is when it comes to the gas development and expertise, we're extremely happy to have them as the operator. They are installing new platforms and drilling continuously with 11 rigs out there. They really are the lowest-cost operator you have around here. We noticed it when we took the trip out to the Wassana yard, the yard that's building the Wassana platform last week. There is a suite of PTTEP gas platforms sitting there, half-constructed, fully constructed, all ready to go. They are installing these things continually. It's like a conveyor belt that they're doing there. That's really the way that you get the highest efficiency in both your contracting and delivery. Very pleased for them to be our operator in the gas.

[Sean Guest, CEO at Valeura Energy]

Now, on the oil, like we emphasized, they're looking for us to bring the oil opportunities here and work it out. We're kind of sharing the load there on the work. What I can tell you is with the work that we've done even around Nong Yao, there's a lot of enthusiasm for their management as they bring that forward, show us those opportunities, show that we can accelerate it. While the volumes are smaller for them, there's still very good economic opportunities that are development of Thailand's assets, which are very much in line with what PTTEP, as the NOC, is trying to achieve. The other thing is the agreements we have with them also allow that if they look at an oil opportunity and say, "Look, that's too small for us to consider," we still have the ability to move forward on those.

[Robin Martin, VP of Investor Relations and Communications at Valeura Energy]

Thanks for that, Sean. While we're on G1, G3, another couple of questions. What's the typical size of a platform for gas development in that area in production, MBOED?

[Greg Kulawski, COO at Valeura Energy]

Yeah. The average was about 10 million BOE. Yeah. So about the size, 60 million, would be a kind of a discrete additional one of these Thai developers. Yeah. So that's a 10,000 BOE per day equivalent in that range.

[Sean Guest, CEO at Valeura Energy]

Yeah. They will vary depending on also how many wells you have on them, but kind of that range of 30-60, that sort of range where you start lower and work it up. Yeah, that's kind of the size of production that you're looking for. The thing to emphasize to people, and again, I'll bring it back to our visit to the yard last week, is that this is one of the most active areas in the world for the installation of these platforms. We were talking with the yard last week and saying, "Where in the world do you have these facilities being built?" The only thing we could really come up with was around Saudi Arabia and the drilling that they're doing offshore. It's this continual number of platforms being installed.

[Sean Guest, CEO at Valeura Energy]

I can tell you that PTTEP does not look at it and say, "Well, we're going to install two platforms here." They look at it, "We're going to install two, and then when are the next two, and when are the next two? How do we get these things to easily chain together?" That is how you really build up the volume of production, and you build up that longer-term future for the company.

[Robin Martin, VP of Investor Relations and Communications at Valeura Energy]

Very good. Yacine, you've been resting your voice, so let's move to a tax-related question. Could you please remind us of the origin of the tax consolidation, or I suspect the question means the tax loss carry forwards? Also, what's your expectation for when Valeura will need to start paying taxes?

[Yacine Ben-Meriem, CFO at Valeura Energy]

Certainly. In terms of history, when we did the deal with KrisEnergy, KrisEnergy's piece came with tax losses around $400 million. When we did the acquisitions with Mubadala, which was a cost-generative portfolio, we put them together, and by putting them together, we have access to the $400 million of tax losses. Now, worth highlighting that these tax losses are ring-fenced on the Thai 3 regime. They apply effectively to Wassana, Nong Yao, and Manora. Jasmine is outside this scope. Jasmine, we will pay taxes on it. To your second question, Robin, honestly, it is all a question of what oil price you are assuming. I think at the softer oil price like we see today, we are probably going to be talking, I think what we think is around three years till we consume all of these tax losses.

[Yacine Ben-Meriem, CFO at Valeura Energy]

However, at a higher oil price, obviously, that window will get shorter.

[Robin Martin, VP of Investor Relations and Communications at Valeura Energy]

Okay. Very good. While we're talking about cash payments, just switching back to G1, G3, and the question is, what do you anticipate would be your cash payment for G1, G3 at the time of FID? I'm assuming this question means anticipated 40% of the total spend up to that point. What would that cash outlay look like for us?

[Sean Guest, CEO at Valeura Energy]

Yeah. We do not have the final numbers on that now. We are still working them up. To give an idea, we see the platforms as probably about one-third the cost, one-quarter to one-third the cost of our oil platform on Wassana, and then again, remembering that we are at a 40% level of those. Right? Again, the Wassana redevelopment, whole new field there, that is a central processing platform. Oil development, high power requirements, those are quite expensive. Gas tieback platforms tend to be quite cheap. Yeah, I would work about a quarter to a third of the cost. We will have details on that again once we have the numbers early next year.

[Robin Martin, VP of Investor Relations and Communications at Valeura Energy]

Okay. Very good. I'll just remind the audience that if you'd like to ask a live question, just press that raise button, and we'll allow you to unmute your microphone. Or you can type a question using that Q&A feature. I've got one more question here. On M&A, it appears the majors are returning to Southeast Asia, at least a little bit in Indonesia and Malaysia, perhaps. What does this mean for competition in the region?

[Sean Guest, CEO at Valeura Energy]

Yeah. Very good question because it's a good observation. It is happening. We saw a lot of the retreat companies, particularly someone like TotalEnergies, who had really almost completely left production in Asia. Now they've come back with a vengeance into Malaysia. What I can say is the assets that those guys are looking for are extremely different to the ones that we are. We still see the cases of if you're doing 50,000 barrels a day, that sort of level, it is not material for these guys. They need to be looking at gas, and they need to be looking at big gas. That's what's drawing them back into the region, not modest levels of oil production. You can see when Chevron closed their deal to acquire Hess, almost immediately, they sold some of Hess's acreage in the joint development area.

[Sean Guest, CEO at Valeura Energy]

We continue to watch to see what else will come now that Chevron has that deal closed.

[Robin Martin, VP of Investor Relations and Communications at Valeura Energy]

Okay. Very good. We have no further questions that have come in. I'll remind the audience that if anything does come to mind in the interim, feel free to reach out to us at any time. Our website and contact details are all available on the slide in front of you, pardon me, available on our website. Please do feel free to reach out. We're happy to take questions at any time. With that, I'll hand over to you, Sean, to wrap up.

[Sean Guest, CEO at Valeura Energy]

Yeah. From my side, I'll just say I'd really like to thank everyone for joining us here again today, for following the company and your support as we move forward. We still see going into 2026, it's going to be an exciting time with lots of new catalysts coming. Thank you very much.

[Robin Martin, VP of Investor Relations and Communications at Valeura Energy]

Thanks, everyone. That concludes our call for today.

Participants

Executives

• Greg Kulawski, COO
• Robin Martin, VP of Investor Relations and Communications
• Sean Guest, CEO
• Yacine Ben-Meriem, CFO

Analysts