SINGAPORE, July 09, 2026 (GLOBE NEWSWIRE) -- Valeura Energy Inc. (TSX:VLE, OTCQX:VLERF) (“Valeura” or the “Company”) provides an operations and financial update for Q2 2026.
Highlights
- Oil production averaged 22.3 mbbls/d(1);
- Sales of 2.454 million bbls;
- Price realisations averaged US$105.8/bbl, resulting in revenue of US$259.8 million;
- Drilled the longest horizontal lateral ever recorded in the Gulf of Thailand and also the first ever complex multi-lateral development well in Thailand, both on the Company's Nong Yao field(2);
- Secured a formal reduction of the Manora field's decommissioning liability, resulting in a partial release of bank guarantees, and therefore a 31% reduction in restricted cash;
- Cash position of US$316.5 million at 30 June 2026(3) and a receivable of US$42.7 million in respect of oil sold just prior to end of the quarter. No debt; and
- Based on preliminary unaudited estimates, anticipated record quarterly free cash flow of approximately US$100 million(4).
| (1) | Working interest share production, before royalties. |
| (2) | Block G11/48, 90% operated working interest. |
| (3) | Includes restricted cash of US$15.8 million. |
| (4) | Adjusted free cash flow is a non-IFRS financial measure that does not have a standardised meaning under IFRS — see “Non-IFRS Financial Measures” in the Company's Management's Discussion and Analysis dated 14 May 2026. |
Dr. Sean Guest, President and CEO commented:
“During Q2 2026, we once again delivered production in line with our plan and executed an ambitious development and appraisal drilling programme on our Nong Yao field which met or exceeded all pre-drill expectations. We are focused always on driving deeper efficiency into our business to enhance cash flow margins, and this quarter our efforts have delivered two new Gulf of Thailand records – the longest horizontal interval ever drilled and the first ever complex multi-lateral development well.
In a single quarter, we generated record high revenue of US$259.8 million, driven by quarterly oil sales of 2.454 million bbls and high realised oil prices of US$105.8/bbl. This has strengthened our balance sheet to a 30 June 2026 cash position of US$316.5 million (including US$15.8 million recorded as restricted cash), and no debt. This increase is after having paid the 2025 taxes during the quarter of US$19.2 million, and will be boosted further by the fact that we recorded a receivable of US$42.7 million in respect of oil that was sold just prior to the end of the quarter. Based on preliminary estimates for Q2 2026, we anticipate that our free cash flow generation in the quarter will be in the order of US$100 million, a record for the Company(1).
With an increasingly strong financial position, we believe we are well positioned to pursue our growth-oriented strategy. Our asset portfolio continues to yield what we consider to be attractive organic investment opportunities, and we continue to monitor potential inorganic growth prospects which are currently on market or which we anticipate may become available in the near term.”
| (1) | Adjusted free cash flow is a non-IFRS financial measure that does not have a standardised meaning under IFRS — see “Non-IFRS Financial Measures” in the Company's Management's Discussion and Analysis dated 14 May 2026. |
Q2 2026 Update
Valeura's working interest share production before royalties was on plan for Q2 2026, averaging 22.3 mbbls/d. The Company sold a total of 2.454 million bbls of oil during the quarter. Realised prices averaged US$105.8/bbl and revenue was US$259.8 million in Q2 2026, both new quarterly records for the Company.
Oil sold during Q2 2026 included a substantial contribution from volumes held as inventory at the end of Q1, totalling 1.225 million bbls. As a result, the Company's inventory of crude oil held in its floating storage vessels has since reduced to more typical levels, being 0.793 million bbls at 30 June 2026.
On the back of sales volumes in excess of quarterly production and high realised prices, the Company anticipates Q2 2026 free cash flow of approximately US$100 million(1), the Company's highest quarterly result to date.
During the quarter the Company paid taxes of US$19.2 million, related mostly to the 2025 financial year Special Remuneratory Benefit (“SRB”).
At 30 June 2026, Valeura had US$316.5 million in cash and no debt. This quarter-end cash position does not fully reflect Q2 sales, as US$42.7 million in proceeds from two parcels of oil sold just prior to the end of the quarter, is expected to be received in early Q3 2026.
| (1) | Adjusted free cash flow is a non-IFRS financial measure that does not have a standardised meaning under IFRS — see “Non-IFRS Financial Measures” in the Company's Management's Discussion and Analysis dated 14 May 2026. |
Manora Decommissioning Reduction
During Q2 2026, Valeura and Thailand's upstream regulator agreed to a reduction in the anticipated future decommissioning cost of its Manora field. As a result, the amount of security required to be lodged with the Government of Thailand to support this future spending was reduced, thereby reducing the Company's restricted cash by 31% while increasing its (unrestricted) cash. At 30 June 2026, Valeura's restricted cash totalled US$15.8 million.
Results Timing
Valeura intends to release its full unaudited financial and operating results for Q2 2026 on 06 August 2026 and will discuss the results in more detail through a management webcast.
For further information, please contact:
| Valeura Energy Inc. (General Corporate Enquiries) | +65 6373 6940 |
| Sean Guest, President and CEO | |
| Yacine Ben-Meriem, CFO | |
| Contact@valeuraenergy.com | |
| Valeura Energy Inc. (Investor and Media Enquiries) | +1 403 975 6752 |
| Robin James Martin, SVP, Communications and Investor Relations | |
| IR@valeuraenergy.com | |
Contact details for the Company's advisors, covering research analysts and joint brokers, including Auctus Advisors LLP, Beacon Securities Limited, Canaccord Genuity Ltd (UK), Cormark Securities Inc., Research Capital Corporation, Roth Canada Inc., and Stifel Nicolaus Europe Limited, are listed on the Company's website at www.valeuraenergy.com/investor-information/analysts/.
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 Türkiye. The Company is executing a growth-oriented strategy, reinvesting into its producing asset portfolio while deploying capital toward further organic and inorganic growth across Southeast Asia. Valeura is committed to delivering value-accretive growth for all stakeholders, underpinned by high standards of environmental, social and governance responsibility.
Additional information relating to Valeura is also available on SEDAR+ at www.sedarplus.ca.
Unaudited Financial Information
Certain anticipated financial and operating results for Q2 2026 in this news release, including free cash flow, are preliminary estimates based on unaudited financial information. These preliminary figures have not been audited or reviewed by the Company's auditor and remain subject to change, which changes could be material, upon completion of the Company's unaudited interim financial statements for the three and six months ended 30 June 2026 and management's final review.
Non-IFRS Financial Measures and Ratios
This news release includes references to financial measures commonly used in the oil and gas industry including free cash flow, which is not a generally accepted accounting measure under International Financial Reporting Standards (“IFRS Accounting Standards”) issued by International Accounting Standards Board and does not have any standardised meaning prescribed by IFRS Accounting Standards and, therefore, may not be comparable with similar definitions that may be used by other public companies. Management believes that free cash flow from operations is a useful supplemental measure that may assist shareholders and investors in assessing the financial performance and position of the Company. Non-IFRS financial measures should not be considered in isolation or as a substitute for measures prepared in accordance with IFRS Accounting Standards.
Free cash flow: is a non-IFRS financial measure which does not have a standardised meaning prescribed by IFRS Accounting Standards. This non-IFRS finance measure is included because management uses the information to analyst cash generation and financial performance of the Company. To calculate free cash flow, Valeura starts with adjusted cashflow from operations, subtracts adjusted capex and exploration expenses, adds other income, deducting any impact from foreign exchange gains or losses.
Adjusted cashflow from operations: is a non-IFRS financial measure which does not have a standardised meaning prescribed by IFRS Accounting Standards. This non-IFRS finance measure is included because management uses the information to analyse cash generation and financial performance of the Company. Adjusted cashflow from operations is calculated using two methods which generate the same figures: a) by subtracting from oil revenues, adjusted opex, royalties, general and administrative costs which are adjusted for non-recurring charges (generating the adjusted pre-tax cashflow), and accrued Petroleum Income Tax Act (“PITA”) taxes and special remuneratory benefit (“SRB”) expenses, and b) to enhance and facilitate to the reader a reconciliation of this non-IFRS measure, the Company also presents the adjusted cash flow from operations by calculating from cash generated from (used in) operating activities in the consolidated statement of cash flows, adjusting with non-cash items, adjusted opex, general and administrative costs which are adjusted for non-recurring charges (generating the adjusted pre-tax cashflow), and accrued PITA tax and SRB expenses.
Adjusted capex: is a non-IFRS measure which does not have a standardised meaning prescribed by IFRS Accounting Standards. Adjusted capex is defined as the addition in capital expenditure for capital work in progress, drilling, brownfield, and other PP&E. Management uses this non-IFRS measure to analyse the capital spending of the Company and assess investments in its assets.
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 in this news release includes, but is not limited to: timing for receipt of cash proceeds for oil sold just prior to the end of Q2 2026; anticipated free cash flow generation in Q2 2026; the Company's increasingly strong financial position; the Company's asset portfolio continuing to yield attractive organic investment opportunities; and timing for potential inorganic growth prospects coming to market.
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; future drilling activity on the required/expected timelines; the prospectivity of the Company's lands; the continued favourable pricing and operating netbacks across its business; future production rates and associated operating netbacks and cash flow; decline rates; future sources of funding; future economic conditions; the impact of inflation of future costs; future currency exchange rates; interest rates; the ability to meet drilling deadlines and fulfil commitments under licences and leases; future commodity prices; the impact of the ongoing conflicts between the U.S.-Israel and Iran, and between Russia and Ukraine; royalty rates and taxes; future capital and other expenditures; the success obtained in drilling new wells and working over existing wellbores; the performance of wells and facilities; the availability of the required capital to funds its exploration, development and other operations, and 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; the application of regulatory requirements respecting abandonment and reclamation; the recoverability of the Company's reserves and contingent resources; future growth; the sufficiency of budgeted capital expenditures in carrying out planned activities; the impact of increasing competition; the ability to efficiently integrate assets and employees acquired through acquisitions; global energy policies going forward; future debt levels; 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 Company's most recent annual information form and the 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.
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.
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