Mr. Sean Guest reports

VALEURA ENERGY INC. ANNOUNCES WASSANA RE-START AND CHANGE TO WORKING INTERESTS

Valeura Energy Inc. has restarted oil production from the Wassana field and has made changes to its working interest in licences G6/48 and G10/48, offshore Gulf of Thailand.

Wassana production restart

On April 28, 2023, Wassana's production was restarted, introducing crude oil into the field's processing facilities for the first time in nearly three years. With the activation of additional wells shortly thereafter, production rates have begun ramping up. Operations are proceeding as intended, with no deviations to the company's safe operating parameters.

Increase in Wassana (licence G10/48) working interest

Valeura's 11-per-cent partner in licence G10/48, Palang Sophon Ltd. (PSL), has opted to discontinue its participation in the licence. By agreement between PSL and Valeura, PSL will transfer its 11-per-cent working interest to Valeura. Accordingly, Valeura will proceed with further Wassana oil field operations on a 100-per-cent working interest basis, including its planned infill drilling campaign, which is scheduled to begin in Q3 2023. In consideration, Valeura has agreed to discharge PSL of outstanding liabilities owed in connection with joint operations on the licence as well as any future liabilities associated with its past involvement in the licence.

Rossukon (licence G6/48) working interest

Since its acquisition of an interest in licence G6/48 in mid-2022, Valeura has worked diligently to assess the potential for development of the Rossukon oil field. Following consideration of the project's tight schedule requirements and an estimated capital requirement of approximately $100-million (U.S.) (gross), Valeura has opted to divest its working interest in the licence to its partner Northern Gulf Petroleum (NGP) for a contingent cash consideration of $5-million (U.S.), payable at first oil from the Rossukon oil field, and a further 4.65-per-cent overriding royalty associated with the company's 43-per-cent working interest (2 per cent of gross production) from the field thereafter.

Sean Guest, president and chief executive officer, commented:

"I am delighted to announce the restart of production from the Wassana oil field and grateful to our team who oversaw this safe reactivation. This achievement fulfills the vision we set when we completed our acquisition of these assets in mid-2022, and our success is energized by our increased working interest in the project. Raising our sights, we are now looking with excitement toward Wassana's upcoming growth phase as we prepare for infill drilling to start in Q3 2023, with the target of increasing field output toward approximately 5,000 barrels/day (on a 100-per-cent Valeura interest basis).

"Separately, I am pleased to have arrived at an efficient way to realize potential value from licence G6/48. Valeura will bear no risk, and no obligation for any capital costs in relation to the Rossukon oil field development, and the contingent payment due to us upon first oil will effectively offset the contingent payment owed by us to the receiver upon first oil (in connection with our acquisition of the licence interest in 2022). At the same time, the arrangement provides us a long-term potential revenue stream by way of an overriding royalty."

About Valeura Energy Inc.

Valeura Energy is a Canada-based public company engaged in the exploration, development and production of petroleum and natural gas in Thailand and in Turkey, and is pursuing further inorganic growth in Southeast Asia.

We seek Safe Harbor.