Dr. Sean Guest reports

VALEURA ENERGY INC. ANNOUNCES Q3 2024 OPERATIONS AND FINANCIAL UPDATE

Valeura Energy Inc. has provided an update on third quarter 2024 operations.

Highlights for Q3 2024:

• Oil production averaged 22,200 barrels per day (1) for Q3 2024 and 26,400 bbl/d during September, 2024 (1).
• Nong Yao C development was commissioned and put on production, which resulted in a 66-per-cent increase in Nong Yao production (1, 2).
• Production resumed at Wassana after confirming the safe operating condition of its production facility.
• Oil volumes sold were 1.8 million barrels with increased oil inventory at quarter-end of 1.2 million bbl.
• Revenue was $139-million (U.S.) with an average price realization of approximately $79 (U.S.) per bbl.
• Cash was $156-million (U.S.), after having paid $30.1-million (U.S.) in petroleum taxes related to first half 2024.
• Valeura remains debt-free.
• Valeura is recognised as one of Canada's top-growing companies by The Globe and Mail, ranking No. 8 of over 400 companies evaluated.

(1) Working interest share production, before royalties.

(2) 11,600 bbl/d (past seven days of Q3), compared with 7,000 bbl/d (the week just prior to starting Nong Yao C).

Dr. Sean Guest, president and chief executive officer, commented: "I am pleased to share preliminary details of our Q3 2024 performance, which illustrates both the financial resilience and the organic growth potential of our portfolio.

"Our financial performance has been strong. We recorded gross revenue of $139-million (U.S.) during the quarter on the back of 1.8 million bbl of oil sold. We closed out the quarter with a cash balance of $156-million (U.S.) and no debt, and 1.2 million bbl of oil inventory. Two liftings totalling 510,000 bbl occurred just after the end of the quarter, and will be recorded as revenue in [fourth quarter].

"From an operations perspective, our Q3 performance demonstrates the value of pursuing organic developments within our portfolio, underscored by our Nong Yao C development, which began bolstering production rates from mid-August onward. The average working interest share oil production for the month of September was 26,400 bbl/d (before royalties), an increase of 23 per cent over [second quarter] 2024 average production. With continued smooth production operations across the portfolio, we forecast rates remaining in the 25,000 bbl/d range for the remainder of 2024, in keeping with our full-year guidance expectations.

"Valeura's portfolio is uniquely predisposed to generating strong cash flow, and I see this as a critical differentiating factor within our industry. We are driving toward an even stronger balance sheet, which remains wholly unlevered, thereby providing a distinct competitive advantage in an increasingly distressed market, precipitated by benchmark oil prices, which have fallen more than 20 per cent over the course of Q3. While we see volatility in commodity prices as a constant within our industry, we feel the current environment makes it prudent to maximize optionality by preserving a best-in-class financial position, setting ourselves up with an advantaged position when it comes to transacting on future growth opportunities."

Financial update

Oil production averaged 22,200 bbl/d during Q3 2024 (Valeura's working interest share, before royalties), an increase of 5 per cent from the prior quarter. Q3 2024 production rates were affected by a precautionary suspension of production operations at the company's Wassana field throughout July, 2024, which was subsequently offset by an increase in output later in the quarter as a result of the Nong Yao C development coming on-line. The average working interest share oil production rate before royalties over the month of September was 26,400 bbl/d.

Oil sales/liftings totalled 1.8 million bbl during Q3 2024, 6 per cent below the prior quarter. At the end of the quarter, Valeura held crude oil inventory of 1.2 million bbl, which was approximately 30 per cent higher than the inventory at the start of the quarter; however, 510,000 bbl were lifted on Oct. 1, 2024, and will be recorded as revenue in Q4.

Oil revenue during Q3 2024 was $139-million (U.S.), down 17 per cent from Q2 2024 due to lower volumes lifted (a decrease of approximately $9-million (U.S.)) and lower oil prices (which resulted in a decrease of approximately $15-million (U.S.)). One of the company's crude oil liftings (180,000 bbl) occurred just prior to the end of Q3 2024, and as a result of the timing delay between the lifting of crude oil (that is, recorded as sales) and receipt of the proceeds, the approximately $14-million (U.S.) value of this lifting/sale (Valeura's working interest share, before royalties) is expected to be received during October, 2024. As at Sept. 30, 2024, the expected proceeds have been recorded as a receivable. Price realizations averaged approximately $79 (U.S.) per bbl during Q3 2024, equating to an approximate $1.40-(U.S.)-per-barrel discount from the daily average Brent crude oil benchmark during the period. This reflects the fact that much of the company's sales occurred at the tail end of the quarter, under the relatively lower commodity price environment at the time, as compared with the average over the full period. The company continues to anticipate full-year price realizations approximately on par with the Brent benchmark, in keeping with its guidance estimates.

During Q3 2024, the company paid petroleum taxes of $30.1-million (U.S.), reflecting the first half-year instalment of petroleum income taxes due in respect of its Nong Yao and Manora fields. After accounting for the impact of continuing capital spending and operating expenses (which includes certain one-off items relating to underwater inspection work at Wassana), as at Sept. 30, 2024, the company had a cash position of $156-million (U.S.), which includes $22.5-million (U.S.) held as restricted cash. Valeura remains debt-free.

Operations update

Nong Yao

In early August, 2024, the company completed drilling operations on the Nong Yao C extension, at its 90-per-cent-working-interest Nong Yao field. The drilling operations at the Nong Yao C extension included six planned horizontal development wells, a water injection well and an additional successful appraisal well. The first wells were brought on stream on Aug. 15, 2024, with the remaining wells following shortly thereafter. The additional seventh well was also completed as a producer and is on stream.

The Nong Yao C development has yielded a 66-per-cent increase in output from Nong Yao, with recent production rates averaging 11,600 bbl/d during the past seven days of Q3, as compared with 7,000 bbl/d during the week just prior to starting Nong Yao C (Valeura working interest share before royalties). From an operational perspective, the Nong Yao C drilling program exceeded expectations, with total costs coming in approximately 25 per cent below budget, owing largely to faster drilling execution, while still adhering to the company's strict standards for safe operations.

Wassana

Just prior to the start of Q3 2024, the company implemented a precautionary suspension of production operations at its 100-per-cent-owned Wassana field to ensure a safe situation while the company investigated a potential risk to the production facility's structural integrity. The inspection and analysis confirmed that the production facility remains in a safe operating condition, and production resumed in the first week of August, 2024.

Jasmine

Starting in late August, 2024, Valeura drilled two horizontal infill development wells on the Jasmine A facility of its 100-per-cent-owned Jasmine field, with both wells achieving their planned objectives. The 41H well encountered 1,982 feet of net oil pay within a reservoir compartment full to base with no apparent bottom aquifer. The 42H well encountered 1,555 feet of net mixed-phase/oil pay. Both wells were completed and brought on-line as producers, together delivering oil at an initial (three-day average) rate of 1,050 bbl/d (before royalties). Drilling operations have continued to progress efficiently and with no deviations to the company's safe operating practices.

Following the drilling of the two Jasmine infill wells, the company's contracted drilling rig was demobilized to conduct scheduled inspection and maintenance work in dry dock. The rig has just returned to the Jasmine field to resume infill development drilling, with three infill wells currently planned.

Manora

As a result of faster-than-planned drilling operations throughout 2024 to date, the company has revised its work program to include more drilling than originally envisaged, with no addition to its capital budget. Valeura expects to mobilize the drilling rig to its 70-per-cent-owned Manora field before the end of 2024, where it will begin a planned five-well infill drilling and appraisal program. In the meantime, production operations utilizing the existing wellstock at Manora are progressing on plan.

Results timing

Valeura intends to release its full unaudited financial and operating results for Q3 2024 on Nov. 13, 2024, and will discuss the results in more detail through a management webcast, with details to be announced at that time.

About Valeura Energy Inc.

Valeura 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.