Dr. Sean Guest reports

VALEURA ENERGY INC. ANNOUNCES Q2 2025 OPERATIONS AND FINANCIAL UPDATE

Valeura Energy Inc. has provided an update on Q2 2025 operations.

Highlights:

• Safe continuing operations, with oil production averaging 21,400 barrels per day -- maintaining full-year production guidance of 23,000 to 25,500 barrels per day;
• Revenue of $129.3-million (U.S.);
• Taxes of $15.8-million (U.S.) paid, primarily in respect of the Jasmine asset; no further cash tax payments anticipated for the remainder of 2025;
• Cash position of $241.9-million (U.S.) and no debt;
• Final investment decision on the Wassana field redevelopment and construction phase commenced.

Dr. Sean Guest, president and chief executive officer, commented:

"During Q2 2025, we demonstrated another safe quarter of ongoing production and drilling operations and took a positive final investment decision on our major redevelopment project at the Wassana field, which is now moving to the construction phase.

"While production volumes are down quarter on quarter, our plan had always assumed that production would be weighted to the second half of the year and we are therefore maintaining our full-year production guidance range of 23,000 to 25,500 barrels per day.

"From a financial perspective, we continue to prioritize balance sheet strength and firmly believe this will serve our stakeholders well as we pursue opportunities to add value. While the headwinds of lower global oil prices during the quarter are apparent in our revenue of $129.3-million (U.S.), we are continuing to invest while maintaining a strong cash position."

Q2 2025 update

Working-interest-share production before royalties averaged 21,400 barrels per day during Q2 2025, a decrease of 10.2 per cent from Q1 2025. Rates reflect the impact of planned downtime and natural declines at Valeura's larger producing assets, which is consistent with the company's business plan. Q2 was anticipated to be the lowest production quarter of the year, and, with rates weighted to the second half of 2025, the company is maintaining its full-year production guidance range of 23,000 to 25,500 barrels per day.

Oil sales totalled 1.90 million barrels during Q2 2025. The company recorded a net increase in oil inventory, as measured at the end of the quarter, to a total of 930,000 barrels at June 30, 2025. In addition, a parcel of 240,000 barrels of oil was sold just after the end of the quarter, on July 1, 2025.

Price realizations averaged $67.95 (U.S.) per barrel during Q2 2025, a 67-U.S.-cent-per-barrel premium over the weighted average Brent crude oil benchmark. Realized price was down 14 per cent from Q1 2025 given the significant drop in global oil prices.

Taxes for the company's Thai I concession (Jasmine) are due in May of each year for the prior full year, and $15.8-million (U.S.) was duly paid during the quarter primarily in respect of this asset. Taxes for the company's Thai III concessions (Nong Yao, Manora and Wassana) are due in May and August of each year; however, taxable income for the current tax period (second half of 2024) was fully offset by tax loss carryforwards. Given the above, no further tax payments are expected in 2025.

Despite a relatively low oil price, a full quarter of spending on drilling operations and scheduled Thai tax payments, Valeura's cash position at June 30, 2025, was $241.9-million (U.S.) (with no debt), up slightly from the previous quarter-end. In addition, $19.6-million (U.S.) in revenue, relating to a lifting on June 25, 2025, was not received until early in July, 2025. As a result, this $19.6-million (U.S.) is not included in the revenue or the company's cash balance at June 30, 2025, but will be correctly accounted in the Q2 financials.

Operations update

Production operations are continuing safely on Valeura's four Gulf of Thailand fields, with no lost-time injuries.

During the quarter, Valeura mobilized its contracted drilling rig to Block G11/48 (Nong Yao, 90-per-cent working interest). The drilling campaign is progressing as planned toward its objective of approximately 10 new development wells and is expected to be complete in Q4 2025. The campaign will entail new development wells drilled from each of the three Nong Yao wellhead facilities and will therefore include the first-ever infill development wells on the Nong Yao C platform, which the company installed in 2024.

In May, 2025, Valeura took a final investment decision on redevelopment the Wassana field in Licence G10/48 (100-per-cent interest). The project will entail deployment of a new central processing platform facility on the field, intended to increase production, reduce costs and create a hub for eventual tie-in of potential additional satellite wellhead platforms. The project is on plan and moving into its construction phase now. First production is planned for Q2 2027.

Results timing

Valeura intends to release its full unaudited financial and operating results for Q2 2025 on Aug. 7, 2025, and will discuss the results in more detail through a management webcast hosted later that day.

About Valeura Energy Inc.

Valeura Energy is a Canadian public company engaged in the exploration, development and production of petroleum and natural gas in Thailand and in Turkey. The company is pursuing a growth-oriented strategy and intends to reinvest into its producing asset portfolio and to deploy resources toward further organic and inorganic growth in Southeast Asia. Valeura aspires toward value-accretive growth for stakeholders while adhering to high standards of environmental, social and governance responsibility.

We seek Safe Harbor.