Valeura Energy Inc. Announces Precautionary Suspension of Wassana Production

Rhea-AI Summary

Valeura Energy Inc. has temporarily suspended production operations at the Wassana oil field in the Gulf of Thailand after a floating storage and offloading vessel deviated from its intended position and contacted the field's CALM buoy. No injuries or environmental damage were reported. The field had been producing approximately 2,400 bbls/d of oil, representing 10% of Valeura's net production.

Positive

• Valeura Energy Inc. has temporarily suspended production operations at the Wassana oil field, which had been producing approximately 2,400 bbls/d of oil, representing approximately 10% of Valeura's aggregate net production.

Negative

• None.

Precautionary Suspension of Wassana Production

CALGARY, AB / ACCESSWIRE / July 7, 2023 / Valeura Energy Inc. (TSX:VLE) ("Valeura" or the "Company"), the upstream oil and gas company with assets in the Gulf of Thailand and the Thrace Basin of Turkey, announces that it has temporarily suspended production operations at the Wassana oil field, offshore Gulf of Thailand.

On July 6, 2023 the floating storage and offloading vessel ("FSO") stationed at the Wassana oil field deviated from its intended position and contacted the field's catenary anchor leg mooring ("CALM") buoy. No personnel were injured in the event, no hydrocarbons were discharged, and there was no damage to the vessel or the CALM buoy.

As a precautionary measure, Valeura has opted to temporarily suspend production operations at the field, which had been producing approximately 2,400 bbls/d of oil at the time of the event, representing approximately 10% of Valeura's aggregate net production. The Company is undertaking a thorough review of safety and operating practices on the third-party operated FSO before restarting the production.

Valeura adheres to high environmental, social, and governance standards, and holds its third-party contractors to the same expectations in the work they perform for the Company. Additional details will be provided in due course.

For further information, please contact:

Valeura Energy Inc. (General Corporate Enquiries) +1 403 237 7102
Sean Guest, President and CEO
Yacine Ben-Meriem, CFO
Contact@valeuraenergy.com

Valeura Energy Inc. (Investor Enquiries) +1 403 975 6752 / +44 7392 940495

Robin James Martin, Vice President, Communications and Investor Relations

IR@valeuraenergy.com

Auctus Advisors LLP (Corporate Broker to Valeura) +44 (0) 7711 627 449
Jonathan Wright
Valeura@auctusadvisors.co.uk

CAMARCO (Public Relations, Media Adviser to Valeura) +44 (0) 20 3757 4980
Owen Roberts, Billy Clegg
Valeura@camarco.co.uk

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 Turkey. 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 environmental, social, and governance standards.

Advisory and Caution Regarding Forward-Looking Information

Certain information included in this news release constitutes forward-looking information under applicable securities legislation. Such forward-looking information is for the purpose of explaining management's current expectations and plans relating to the future. Readers are cautioned that reliance on such information may not be appropriate for other purposes, such as making investment decisions. Forward-looking information typically contains statements with words such as "anticipate", "believe", "expect", "plan", "intend", "estimate", "propose", "project", "target" or similar words suggesting future outcomes or statements regarding an outlook. Forward-looking information in this news release includes, but is not limited to the Company's intent to provide additional details in due course.

Forward-looking information is based on management's current expectations and assumptions regarding, among other things: political stability of the areas in which the Company is operating; continued safety of operations and ability to proceed in a timely manner; continued operations of and approvals forthcoming from governments and regulators in a manner consistent with past conduct; the ability of the Company to meet its commitments and financial obligations; the ability of the Company to secure adequate processing, transportation, fractionation and storage capacity on acceptable terms; the capacity and reliability of facilities; and the Company's continued ability to obtain and retain qualified staff and equipment in a timely and cost efficient manner. In addition, the Company's work programmes and budgets are in part based upon expected agreement among joint venture partners and associated exploration, development and marketing plans and anticipated costs and sales prices, which are subject to change based on, among other things, the actual results of drilling and related activity, availability of drilling, offshore storage and offloading facilities and other specialised oilfield equipment and service providers, changes in partners' plans and unexpected delays and changes in market conditions. Although the Company believes the expectations and assumptions reflected in such forward-looking information are reasonable, they may prove to be incorrect.

Forward-looking information involves significant known and unknown risks and uncertainties. Exploration, appraisal, and development of oil and natural gas reserves and resources are speculative activities and involve a degree of risk. A number of factors could cause actual results to differ materially from those anticipated by the Company including, but not limited to: the ability of management to execute its business plan or realise anticipated benefits from acquisitions; the risk of disruptions from public health emergencies and/or pandemics; competition for specialised equipment and human resources; the Company's ability to manage growth; the Company's ability to manage the costs related to inflation; disruption in supply chains; the risk of currency fluctuations; changes in interest rates, oil and gas prices and netbacks; potential changes in joint venture partner strategies and participation in work programmes; uncertainty regarding the contemplated timelines and costs for work programme execution; the risks of disruption to operations and access to worksites; potential changes in laws and regulations, the uncertainty regarding government and other approvals; counterparty risk; the risk that financing may not be available; risks associated with weather delays and natural disasters; and the risk associated with international activity. See the most recent AIF and MD&A for a detailed discussion of the risk factors.

Certain forward-looking information in this news release may also constitute "financial outlook" within the meaning of applicable securities legislation. Financial outlook involves statements about Valeura's prospective financial performance or position and is based on and subject to the assumptions and risk factors described above in respect of forward-looking information generally as well as any other specific assumptions and risk factors in relation to such financial outlook noted in this news release. Such assumptions are based on management's assessment of the relevant information currently available, and any financial outlook included in this news release is made as of the date hereof and provided for the purpose of helping readers understand Valeura's current expectations and plans for the future. Readers are cautioned that reliance on any financial outlook may not be appropriate for other purposes or in other circumstances and that the risk factors described above or other factors may cause actual results to differ materially from any financial outlook.

The forward-looking information contained in this new release is made as of the date hereof and the Company undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, unless required by applicable securities laws. The forward-looking information contained in this new release is expressly qualified by this cautionary statement.

Additional information relating to Valeura is also available on SEDAR at www.sedar.com.

This news release does not constitute an offer to sell or the solicitation of an offer to buy securities in any jurisdiction, including where such offer would be unlawful. This news release is not for distribution or release, directly or indirectly, in or into the United States, Ireland, the Republic of South Africa or Japan or any other jurisdiction in which its publication or distribution would be unlawful.

Neither the Toronto Stock Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Toronto Stock Exchange) accepts responsibility for the adequacy or accuracy of this news release.

This information is provided by Reach, the non-regulatory press release distribution service of RNS, part of the London Stock Exchange. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

SOURCE: Valeura Energy Inc.

View source version on accesswire.com:
https://www.accesswire.com/766153/Valeura-Energy-Inc-Announces-Precautionary-Suspension-of-Wassana-Production

FAQ

What is the reason for the suspension of production operations at the Wassana oil field?

The suspension was caused by a floating storage and offloading vessel deviating from its intended position and contacting the field's CALM buoy.

Was there any damage or injuries as a result of the incident?

No injuries or environmental damage were reported.

How much oil was the Wassana oil field producing before the suspension?

The field was producing approximately 2,400 bbls/d of oil.

What percentage of Valeura's net production does the Wassana oil field represent?

The field represents approximately 10% of Valeura's aggregate net production.