Mr. Sean Guest reports

VALEURA ENERGY INC ANNOUNCES FIRST QUARTER 2024 RESULTS

Valeura Energy Inc. has released its unaudited financial and operating results for the three month period ended March 31, 2024.

The complete quarterly reporting package for the company, including the unaudited financial statements and associated management's discussion and analysis ("MD&A"), are being filed on SEDAR+ at www.sedarplus.ca and posted to the company's website at www.valeuraenergy.com.

Q1 2024 Highlights

• Oil production of 21.9 mbbls/d(1), up 14% from the previous quarter;
• Oil sales of 1.8 million bbls, at an average realised price of US$84.6/bbl, generating revenue of US$149.4 million;
• Adjusted EBITDAX of US$89.0 million(2) and adjusted cashflow from operations of US$47.8 million(2);
• Cash and net cash balance as of March 31, 2024 of US$193.7 million(3), with no debt; and
• Adjusted net working capital surplus of US$141.9 million(2).

Year to Date Achievements

• Five horizontal development wells successfully drilled on the Wassana field (block G10/48, 100% interest) resulting in Q1 2024 average oil production of 3,979 bbls/d, and 4,900 bbls/d for the first six days of May 2024;
• Three oil discoveries announced from one exploration well in the Nong Yao concession (block G11/48, 90% working interest) and two exploration wells north of Wassana field;
• Scheduled shutdowns for maintenance on the Manora and Jasmine field production facilities conducted safely and under planned time and budget; and
• Installed the Nong Yao C mobile offshore production unit ("MOPU") T7 Shirley on the Nong Yao field in preparation for development drilling.

Sean Guest, President and CEO commented:

"I am pleased to share details of our strong Q1 2024 performance, led by oil production of 21.9 mbbls/d, up 14% from Q4 2023. We expanded the scope of our Wassana field drilling programme, with output increasing to new highs more than 50% above our exit rate for 2023. All of our assets are fully in production and trending on plan, with operations progressing safely throughout the quarter.

Our crude oil inventory position increased somewhat during the quarter. While that resulted in slightly less oil sales this quarter, it means the inventory was ultimately sold into the relatively higher price environment we saw early in Q2. We are continuing to see price realisations above of our guidance outlook, averaging US$1.6/bbl above the Brent benchmark.

Our operational efficiency has been strong, with adjusted opex(1) at just over US$26/bbl. We continue to find new opportunities to optimise operations, including through our planned acquisition of the Nong Yao field's oil storage vessel, as announced during the quarter, which will provide more operational flexibility, and the potential to reduce costs further.

It was also an exciting quarter from a growth standpoint. We mobilised our new MOPU to the Nong Yao field and are now working to commission the facility in preparation for development drilling on Nong Yao C. We are targeting a 50% increase in production rates from the field to 11,000 bbls/d, later this year. We also began exploration drilling during the quarter, which ultimately resulted in three oil discoveries. These successes further bolster our investment thesis, that these assets offer meaningful opportunities to push the fields' economic lives further into the future, expanding the time horizon for us to generate cash flow.

Our business is highly cash generative, as demonstrated by our adjusted cash flow(1) of US$47.8 million in Q1, resulting in a quarter-end cash balance of US$194 million and adjusted net working capital(1) surplus of US$142 million. With our continually strengthening financial position, we are better prepared than ever to grow our business, adhering as always to our strict screening criteria to ensure value add for all stakeholders."

Financial Update

The company's Q1 2024 financial performance was influenced by maintenance activity, well workovers, and drilling operations across the portfolio, and benefited from strong overall production and an ongoing price realisation premium to the Brent oil benchmark. All activity was planned and had been included in the company's guidance outlook for the year 2024. Accordingly, Valeura's management re-iterates its full year 2024 guidance outlook on all metrics, unchanged.

Oil production averaged 21.9 mbbls/d during Q1 2024 (Valeura's working interest share, before royalties), an increase of 14% over Q4 2023. Q1 2024 was the company's first full quarter of production operations at the Wassana field, with its addition to the portfolio more than offsetting reduced rates from the other assets, which were affected by planned maintenance downtime. By quarter end, all fields were in operation with aggregate rates of approximately 23.0 mbbls/d, in line with management's plan.

Oil sales totalled 1.8 million bbls, during Q1 2024, slightly below the 2.0 million bbls produced during the quarter due to the timing of liftings. At quarter end, the company held crude oil inventory of 0.9 million bbls, a 31% increase over the end Q4 2023 inventory due to the timing of liftings. This inventory, contained in the company's floating storage vessels, was subsequently sold in early Q2 2024.

Price realisations averaged US$84.6/bbl during Q1 2024, reflecting a US$1.6/bbl premium over the Brent crude oil benchmark average price. Premium prices achieved via tendering for each of the four assets has continued to meet or exceed management's guidance outlook. The company currently has no hedging arrangements in place in respect of its crude oil sales. The resulting oil revenue during Q1 2024 was US$149.4 million, a reduction of 12% from the US$169.9 million in Q4 2023 revenue, largely reflecting the build in crude oil inventory and consequently lower oil sales.

Operating expenses during Q1 2024 were US$41.8 million, a decrease of 16% from US$49.6 million in Q4 2023, reflecting the characteristically higher level of maintenance and well workover activity in Q4 2023. Adjusted opex during Q1 2024 was US$52.3 million, largely unchanged from the US$51.8 recorded in Q4 2023. Q1 2024 adjusted opex per barrel was US$26.2/bbl, a decrease of 11% from US$29.4/bbl in Q4 2023, primarily reflecting the increase in production in Q1 2024 versus the prior quarter. Adjusted opex is a non-IFRS measure which is more fully described in the "Non-IFRS Financial Measures and Ratios" section of this news release.

During Q1 2024, Valeura generated adjusted cashflow from operations of US$47.9 million, a decrease of 15% from the US$56.0 million in Q4 2023, which was primarily driven by lower sales due to inventory build. Adjusted cash flow from operations is a non-IFRS measure which is more fully described in the "Non-IFRS Financial Measures and Ratios" section of this news release.

Valeura generated adjusted EBITDAX of US$88.7 million in Q1 2024, approximately 8% lower than the US$96.7 million in Q4 2023, due to lower oil sales as well as an increase in depletion and depreciation expense. Adjusted EBITDAX is a non-IFRS and non-standardised variant of EBITDAX, as more fully described in the "Non-IFRS Financial Measures and Ratios" section of this news release.

There were no cash taxes paid in Q1 2024, in accordance with Thailand's taxation regime which mandates payment of taxes in May and in August in respect of its Thai III concessions (relating to the Nong Yao, Manora and Wassana fields), and payment of taxes in May in respect of its Thai I concession (relating to the Jasmine field). The company recorded a deferred tax recovery of US$16.3 million and a non-cash tax expense of US$24.2 million.

As of March 31, 2024, Valeura had cash and cash equivalents of US$193.6 million (including restricted cash of US$17.3 million), compared to US$151.2 million at December 31, 2023. This reflects a net inflow of cash due to ongoing oil production operations during Q1 2024.

Valeura had an adjusted net working capital surplus of US$141.9 million at March 31, 2024, versus US$118.1 million at December 31, 2024, an increase of 20%. This reflects the net effect of increased current assets, led by its cash balance, in excess of the increase in current liabilities including future tax obligations. Adjusted net working capital surplus is a non-IFRS measure, and is more fully described in the "Non-IFRS Financial Measures and Ratios" section of this news release.

Operations Update

During Q1 2024, the company had ongoing production operations on all of its Gulf of Thailand fields including the Jasmine, Nong Yao, Manora, and Wassana fields. This was the first full quarter of production operations at the Wassana field, following its re-start in Q4 2023. In aggregate the company's net working interest share production was 21.9 mbbls/d. One drilling rig was under contract throughout the quarter.

Jasmine/Ban Yen

Oil production (before royalties) from the Jasmine/Ban Yen field, in Licence B5/27 (100% interest) averaged 7.7 mbbls/d during Q1 2024. Production during the quarter was impacted by planned downtime to conduct scheduled maintenance activity at the field, which was completed during the quarter.

No wells were drilled and there was no well workover activity on the B5/27 block during the quarter. It is currently planned to mobilise a workover rig to the field in Q2 and the company is planning for a drilling campaign later in 2024, comprising approximately five infill development wells intended to increase production volumes.

Nong Yao

At the Nong Yao field, in Licence G11/48 (90% working interest), Valeura's working interest share of oil production before royalties averaged 7.3 mbbls/d during Q1 2024. Subsequent to quarter end, the drilling rig was mobilised to the Nong Yao A facility to drill two new development wells. Operations on the two new wells are expected to be complete in the coming week; once tied in, the wells are expected to yield increased production from the field.

Growth activities focussed on preparations for the development of the Nong Yao C accumulation. During the quarter the T7 Shirley MOPU arrived on location and subsequent to quarter end the unit has been fixed to the seabed and all of the conductors, which will contain all of the production wells, have been installed from the MOPU, as well as risers for production having been connected to the subsea pipeline. The company anticipates development drilling will result in first oil from the development in Q3 2024. Through this development project, Valeura is targeting an increase in block G11/48 peak oil production to approximately 11 mbbls/d (Valeura's working interest share, before royalties).

The company began an exploration drilling campaign in Q1 2024, starting with the open water well Nong Yao-13, which tested the Nong Yao D prospect. Subsequent to quarter end, Valeura announced that the well was a success, discovering just over 30 feet of new oil pay across several intervals. The company has begun further analysis of seismic data, seeking out potential locations for follow-up exploration and appraisal drilling in the vicinity, with the ultimate objective of amassing sufficient volumes to justify a future development hub.

Also during Q1 2024, the company announced that it had agreed to purchase the Nong Yao field's floating storage and offloading ("FSO") vessel, the Aurora, for US$19 million. Closing of the transaction is expected in June 2024. Valeura anticipates that owning, as opposed to leasing the FSO is value accretive, will provide operational flexibility, and will reduce operating expenses for the field.

Wassana

Oil production at the Wassana field, in Licence G10/48 (100% working interest), averaged 4.0 mbbls/d during Q1 2024 (before royalties). In February 2024, Valeura announced its intent to expand the scope of its in-progress development drilling programme on the Wassana field from three horizontal wells to five, and subsequently completed the campaign during the quarter. All wells encountered their targets in line with expectations and thereafter the field has increased production to an average of 4.9 mbbls/d in the first six days of May 2024, and has demonstrated daily production results above 5.0 mbbls/d.

During Q1 2024, the company continued progressing its work to select a concept for re-development of the Wassana field to commercialise additional volumes encountered through appraisal drilling on the field in 2023. Valeura anticipates finalising its concept-select phase in Q2 2024, leading to a final investment decision on the redevelopment around the end of the year.

At the end of Q1 2024, the company was continuing an exploration drilling campaign, which concluded in Q2 with two oil discoveries on Licence G10/48. The Niramai-4 well and Niramai-4 ST1 well (Wassana North Prospect) discovered over 90 feet, and approximately 40 feet of new oil pay, respectively. Based on preliminary estimates, when combined with the pre-existing Niramai volumes the total recoverable volumes in the north-east portion of the G10/48 block are believed to exceed management's requirements to support an additional future development, beyond the scope of the currently-contemplated redevelopment.

Manora

At the Manora field, in Licence G1/48 (70% working interest), Valeura's working interest share of oil production before royalties averaged 2.9 mbbls/d during Q1 2024. Production rates during the quarter were impacted by scheduled downtime to conduct planned maintenance, which was completed on time and under budget, and by quarter end the field had resumed normal production operations.

Subsequent to quarter end a workover rig was mobilised to the Manora facility where it has since completed two well workovers intended to offset recent natural production declines. The workover unit will be mobilised to the Jasmine field to conduct further planned workovers.

The team have continued to review the drilling results and production data from 2022 and 2023 drilling campaigns and are currently proposing additional development and appraisal drilling. Valeura anticipates that a Manora field drilling campaign will be included in the drill sequence in late 2024 or early 2025.

AGM and Webcast

Valeura's Annual and Special Meeting of Shareholders is scheduled for today, May 9, 2024, at 4:00 P.M. in Calgary. Shareholders may attend in person, as further detailed in the Management's Information Circular which was mailed to shareholders and is available on the company's website and on www.sedarplus.ca. A webcast of the live event is available with the link below. In addition to the meeting, Valeura's management will discuss the Q1 2024 results and will host a question and answer session. Written questions may be submitted through the webcast system or by email 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: 893 125 625#

Dial-in numbers:

Canada: 833-845-9589Singapore: +65 6450 6302Thailand: +66 2 026 9035Turkiye: 00800142034779UK: 0800 640 3933USA: 833-846-5630

About the company

Valeura Energy Inc. is a Canadian public company engaged in the exploration, development and production of petroleum and natural gas in Thailand and in Turkiye. The company is pursuing a growth-oriented strategy and intends to re-invest 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.