Mr. Sean Guest reports

VALEURA ENERGY INC. ANNOUNCES YEAR-END 2023 RESERVES AND RESOURCES

Valeura Energy Inc. has released the results of its third party independent reserves and resources assessment for its Thailand assets.

Highlights

• Reserves increased across all fields -- 29.9 million barrels (MMbbl) 1P, 37.9 MMbbl 2P and 46.5 MMbbl 3P;
• 1P and 2P reserves replacement more than double the volume of oil produced in 2023 -- 219 per cent;
• 2P net present value before tax of $616-million (U.S.) and $429-million (U.S.) after tax;
• Considering year-end 2023 cash position of $150.9-million (U.S.), 2P net asset value after tax of $579-million (U.S.), equating to $7.56 per share;
• More than threefold increase in best estimate (2C) contingent resources, on a risked basis.

Sean Guest, president and chief executive officer, commented:

"I am very pleased to announce the results of our end 2023 reserves and resources evaluation, which show substantial increases on all fronts, whether expressed as volumes of barrels or dollars of value. Through our work program in 2023 we have replaced more than double the oil we produced, extended the anticipated economic life of our portfolio, and recorded a significant up-tick in NPV [net present value]. This is an additional year of results that supports our thesis that these assets will continue to deliver cash flow well into the future.

"Not only has the value of our assets increased from $261-million (U.S.) at end 2022 to $429-million (U.S.) at end 2023 (on a 2P after-tax NPV (10 per cent) basis), but during the intervening calendar year, cash flow from the assets' 7.5 MMbbl production has enabled us to fully pay down our debt while also accumulating $151-million (U.S.) in cash by Dec. 31, 2023. Together that creates a net asset value of $579-million (U.S.), which, based on our current shares outstanding and foreign exchange rates, equates to approximately $7.56 per share.

"Importantly, our performance in 2023 has resulted in 1P and 2P reserves growth at every one of our assets. For the more mature fields, Manora and Jasmine, our infill drilling programs have increased reserves and extended field life. For the growth fields, Nong Yao and Wassana, these estimates underscore the value potential of pursuing further development opportunities. Two thousand twenty-four will serve as a proving ground for us to increase output from the Nong Yao field, with development of the Nong Yao C accumulation already well under way. At Wassana, largely as a result of our appraisal work in 2023, we have recorded a twofold increase in 2P reserves, thereby validating our view that the field offers substantially more oil to commercialize than initially envisaged when we acquired the asset.

"Our strategy is to continue pursuing value through growth in all its forms. That includes working to unlock contingent resources (which have also increased 3.5-fold, year-on-year on a risked basis) and through an active near-field exploration program this year.

"We take great pride in our asset base in Thailand and are pleased to have such a high-quality portfolio to continue driving further value growth for our stakeholders."

Valeura commissioned Netherland, Sewell & Associates Inc. (NSAI) to assess reserves and resources for all of its Thailand assets as of Dec. 31, 2023. NSAI's evaluation is presented in a report dated Feb. 19, 2024. This follows a previous evaluation whereby NSAI assessed reserves and resources for the same assets as of Dec. 31, 2022, as disclosed in an NSAI report dated April 17, 2023, and announced by the company on April 18, 2023. Note that as the acquisition of a portion of Valeura's Gulf of Thailand assets (Jasmine, Manora and Nong Yao) from Mubadala Energy was only completed on March 22, 2023, the NSAI 2022 report is used as the basis for comparison, thereby comparing with the reserves at year-end 2022 on a pro forma asset basis.

Summary of Valeura's aggregate Thailand reserves and resources as of Dec. 31, 2023:

• Proved (1P) reserves of 29.9 MMbbl;
• 1P NPV (10 per cent) of $301.4-million (U.S.) before tax /$193.9-million (U.S.) after tax;
• Proved and probable (2P) reserves of 37.9 MMbbl;
• 2P NPV (10 per cent) of $616.4-million (U.S.) before tax/$428.5-million (U.S.) after tax;
• Best estimate (2C) aggregate unrisked contingent resources of 19.9 MMbbl, or 8.9 MMbbl on a risked basis.

Net present values of future net revenue based on forecast prices and costs

Net present values of future net revenue from oil reserves are based on cost estimates as of the date of the NSAI 2023 report, and forecast Brent crude oil reference prices of $78 (U.S.), $79.18 (U.S.), $80.36 (U.S.), $81.79 (U.S.) and $83.43 (U.S.) per bbl for the years ending Dec. 31, 2024, 2025, 2026, 2027, and 2028, respectively, with 2-per-cent escalation thereafter. NSAI assumes cost inflation of 2 per cent per annum.

Values estimated by NSAI assume tax loss carry-forwards associated with ownership of the Wassana field are applied only to taxes levied in respect of that asset, resulting in no taxes payable for the Wassana field in the 1P and 2P cases. The remaining assets are assumed by NSAI to carry their full statutory tax burden.

Summary of reserves replacement, value and field life

As compared with the NSAI 2022 report, the NSAI 2023 report indicates an addition of 16.4 MMbbl of proved (1P) reserves and 16.3 MMbbl of proved plus probable (2P) reserves, after having produced 7.5 MMbbl of oil in 2023. On both 1P and 2P reserves, this reflects a reserves replacement ratio of 219 per cent.

Based on the midpoint of the company's 2024 production guidance of 21,500 bbl to 24,500 bbl/d (23,000 bbl/d), on a 2P reserves basis as of Dec. 31, 2023, the company estimates its reserves life index to be approximately 4.5 years. Using the same production estimate and 2P reserves as of Dec. 31, 2022, the reserves life index was approximately 3.5 years.

The net present value of estimated future revenue after income taxes, based on a 10-per-cent discount rate, has increased between the NSAI 2022 report and the NSAI 2023 report from $49.1-million (U.S.) to $193.9-million (U.S.) on a 1P basis, an increase of 295 per cent. On a 2P basis, the net present value of estimated future revenue after income taxes, based on a 10-per-cent discount rate, has increased from $261-million (U.S.) to $428.5-million (U.S.), an increase of 64 per cent.

The company estimates that, based on the 2P net present value of estimated future revenue after income taxes, based on a 10-per-cent discount rate, plus the company's 2023 year-end net cash position of $150.9-million (U.S.), as disclosed on Jan. 16, 2024, the company has a 2P net asset value (NAV) of $579.4-million (U.S.). Using the current count of shares outstanding, being 103.3 million shares and current foreign exchange rates, Valeura's NAV equates to approximately $7.56/share.

The NSAI 2023 report indicates an extension in the anticipated end of field life for all assets in Valeura's Thailand portfolio, whether evaluated on 1P or 2P reserves as compared with the NSAI 2022 report.

Contingent oil resources

NSAI assessed the company's contingent resources for additional reservoir accumulations and reported estimates in both the NSAI 2023 report and the NSAI 2022 report. Contingent resources are heavy crude oil and light/medium crude oil, and are further divided into two subcategories, being development unclarified and development not viable. Each subcategory is assigned a percentage risk, reflecting the estimated chance of development. Aggregate totals are provided herein.

Of the best estimate 2C contingent resources estimated in the NSAI 2023 report, on a risked basis: 59 per cent of the estimated volumes are light/medium crude oil, with the remainder being heavy oil; 83 per cent are categorized as development unclarified, with the remainder being development not viable. Development unclarified resources have been assigned risks ranging from 25 per cent to 63 per cent, while development not viable resources have been assigned risks ranging from 14 per cent to 34 per cent.

Comparing the NSAI 2022 report with the NSAI 2023 report, the company has recorded an increase in the best estimate (2C) risked contingent resources of more than threefold. Valeura's management regards this as a substantial increase in the potential upside within its portfolio.

Further disclosure and webcast

Valeura intends to disclose a summary of the NSAI 2023 report to Thailand's upstream regulator later in February, 2024. Thereafter, the company will publish its estimates of reserves and resources in accordance with the requirements of National Instrument 51-101 -- Standards of Disclosure for Oil and Gas Activities along with its annual information form for the year ended Dec. 31, 2023, on approximately March 13, 2024.

The company last completed an independent assessment of its prospective resources in Turkey, effective Dec. 31, 2018, which is available under Valeura's issuer profile on SEDAR+. Valeura has no reserves or contingent resources associated with its properties in Turkey.

Valeura's management team will host an investor and analyst webcast at 8 a.m. Calgary time/3 p.m. London time/10 p.m. Bangkok time on Wednesday, Feb. 21, 2024, to discuss its reserves and contingent resources. The live audio and video feed can be accessed on-line. Written questions may be submitted through the webcast system or by e-mail to IR@valeuraenergy.com.

An audio only feed of the event is available by phone using the conference ID and dial-in numbers below.

Conference ID: 940 829 683 followed by pound key

Dial-in numbers:

Canada: 833-845-9589

Singapore: 65-6450-6302

Thailand: 66-2-026-9035

Turkey: 00800142034779

United Kingdom: 0800-640-3933

United States: 833-846-5630

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.

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