Valeura Energy Inc. (TSX:VLE, OTCQX:VLERF) (锟絍aleura锟� or the 锟紺ompany锟�) reports its financial and operating results for the three month period and year ended 31 December 2025.
The complete reporting package including audited financial statements, management锟絪 discussion and analysis (锟組D&A锟�), and the 2025 annual information form (锟紸IF锟�), will be filed on SEDAR+ at www.sedarplus.ca and posted to the Company锟絪 website at www.valeuraenergy.com.
Operations Highlights
Oil production of 23.2 mbbls/d(1) and oil sales of 8.5 million bbls for full year 2025;
Successful development and appraisal drilling across the portfolio on the Jasmine/Ban Yen, Manora, and Nong Yao fields;
Proved plus probable (锟�2P锟�) reserves replacement ratio of 192%;
Reserves life index increased to a new Company record of 7.5 years, on a 2P basis; and
Greenhouse gas (锟紾HG锟�) intensity reduced by 12% for full year 2025, yielding approximately a 30% reduction since Valeura originally acquired its Thailand portfolio in 2023.
Strategic Highlights
Final investment decision taken on the Wassana field redevelopment, which will entail deployment of a new-build central processing platform (锟紺PP锟�) facility on the field;
Strategic farm-in agreement with a subsidiary of PTT Exploration and Production Plc (锟絇TTEP锟�) to pursue exploration and infrastructure-led development opportunities on Blocks G1/65 and G3/65, offshore Gulf of Thailand(2) (the 锟絇TTEP Farm-In Agreement锟�); and
Joint venture with a subsidiary of Transatlantic Petroleum LLC (锟絋ransatlantic锟�) to explore and develop the deep rights formations of the Thrace basin of northwest T锟絩kiye (the 锟絋ransatlantic JVA锟�).
Financial Highlights
Revenue of US$594.4 million based on average full year realised price of US$70.2/bbl;
Adjusted after tax cashflow from operations of US$247.4 million(3);
Adjusted Opex of US$222.7 million, equating to US$26.3/bbl(3); and
Cash and net cash balance as of 31 December 2025 of US$305.7 million(3,4), with no debt.
Working interest share production, before royalties.
Subject to approval from the Government of Thailand.
Non-IFRS financial measure or non-IFRS ratio 锟� see 锟絅on-IFRS Financial Measures and Ratios锟� section.
Includes restricted cash of US$23.0 million.
Dr. Sean Guest, President and CEO commented:
锟絍aleura delivered an exceptional 2025, one that demonstrates the power of our strategy in action. We strive to add value through disciplined organic investment and targeted inorganic transactions, all underpinned by a commitment to operational excellence.
Our decision to re-invest into our portfolio by way of the Wassana field redevelopment project is a compelling example. It has not only strengthened our core business for the long run, but has immediately grown our reserves by unlocking the Wassana field锟絪 potential for significantly longer field life. Combined with other life-extending works across the portfolio, the result is yet another significant increase in reserves. For the third consecutive year, we have achieved approximately 200% reserves replacement ratio on a 2P basis.
Strategic transactions like our farm-in to PTTEP锟絪 Blocks G1/65 and G3/65 demonstrate that by building the right relationships, we can meaningfully expand our portfolio. This opportunity brings both exploration opportunities and discovered resources that are expected to convert quickly into production and cash flow. We have set the scene for significant further growth. With US$306 million in cash and zero debt, we are exceptionally well-positioned to pursue larger, transformational opportunities through M&A.
Our operational performance in 2025 was equally strong. We held Adjusted Opex(1) to approximately US$26/bbl, the product of countless continuous improvement initiatives and smart structural decisions such as owning, rather than leasing, key facilities across our operations. Critically, operational excellence goes beyond costs. Despite growing our production, we reduced our absolute greenhouse gas emissions, meaning our emissions intensity was reduced for the third year in a row.
Continued execution across our business has established Valeura as one of the top-performing companies in our sector, delivering year-on-year share price growth. That delivery is amplified by the dramatically different oil price environment we find ourselves facing today, which is in stark contrast to the relatively low prices we saw through much of 2025. Our industry is no stranger to volatility, and we maintain a suite of strategic plans for how best to respond to such changes.
We have today opted to accelerate some projects, which will see us immediately invest more into our largest and most profitable producing field to facilitate more infill drilling. The US$7 million project entails adding four additional well slots to the Nong Yao A facility, which will allow us to more aggressively pursue development drilling targets at the Nong Yao field later this year. At the same time, we are reviewing various exploration and development opportunities across the portfolio to potentially accelerate as well, while remaining committed as always to our strict investment criteria.
Our strategy is working and we have laid a compelling foundation for what promises to be an even more exciting 2026 and beyond.锟�
Financial Update
Valeura锟絪 2025 financial performance was characterised by the combined effect of a relatively heavy investment phase, coupled with low benchmark oil prices. Full year Adjusted Capex(1) was US$188.7 million, which was within the Company锟絪 spending guidance for the year, but 41% higher than 2024. Adjusted Capex(1) was largely driven by a full year of drilling operations as well as the start of the Wassana redevelopment project. While the business has remained robust and generated meaningful Adjusted Cashflow from Operations of US$247.4 million, the impact of lower benchmark oil prices is apparent in comparison to 2024 on various metrics.
The Company锟絪 Q4 2025 oil production averaged 24,721 bbls/d (working interest share before royalties), down 5% from Q4 2024. The modest quarter-over-quarter reduction reflects the timing of the active drilling campaign, with new wells coming on production toward the end of the year and the benefit becoming visible in early 2026. For the full year, production averaged 23,242 bbls/d, broadly in line with the prior year, with output gains at the Jasmine/Ban Yen and Nong Yao fields offsetting natural declines at the Manora and Wassana fields. Full year oil sales were 8.5 million bbls, essentially flat versus 8.4 million bbls in 2024.
The Company generated Q4 2025 revenue of US$161.4 million, down 29% from Q4 2024, reflecting a weaker oil price environment. Full year 2025 revenue was US$594.4 million, also reflecting the impact of lower prices versus the prior year锟絪 revenue of US$678.8 million. Valeura锟絪 oil continues to attract a premium to the Brent benchmark: Q4 2025 realisations averaged US$64.0/bbl, representing a US$0.4/bbl premium, while the full year average of US$70.2/bbl reflected a US$1.6/bbl premium to Brent.
The Company锟絪 Adjusted Opex per barrel(1) has remained well below rates at the time of Valeura锟絪 acquisition of its Thailand portfolio, demonstrating the Company锟絪 focus on efficiency. Q4 2025 Adjusted Opex was modestly elevated at US$28.1/bbl, primarily due to a planned underwater inspection work at the Wassana mobile offshore producing unit (锟組OPU锟�). For the full year 2025, Adjusted Opex per barrel(1) was US$26.3/bbl, in line with US$25.7/bbl in 2024. On a year-over-year basis, Adjusted Opex(1) reflects increased maintenance expenses of the Nong Yao MOPU, for which the lease commenced in July 2024 and therefore contributed only partially to the 2024 cost base, plus expenses associated with extending the life of the Jasmine field锟絪 Floating production storage and offloading system. These increases were largely offset by lower operating expenses in various other areas of the portfolio.
Valeura incurred total corporate and petroleum income taxes of US$2.4 million and special remuneratory benefit (锟絊RB锟�) tax of US$19.8 million, during the full year 2025. This compares favourably to US$68.3 million and US$29.2 million in the previous year. The substantial reduction in petroleum income taxes is a direct result of the Company锟絪 more optimised tax structure, implemented through its internal restructuring of subsidiaries effective 01 November 2024. Under the new structure, Valeura is using income tax loss carry-forwards originating from its acquisition of the Wassana field to offset taxable income from all of its Thai III petroleum concessions, being Wassana, Nong Yao, and Manora. As at 31 December 2025, Valeura had cumulative tax loss carry-forwards of US$282.8 million. The decrease in SRB was driven by reduced selling prices, resulting in lower taxable income for SRB purposes.
Valeura closed 2025 with a cash position of US$305.7 million, including US$23.0 million in restricted cash, an 18% increase year-on-year. The Company remains entirely debt-free and is optimally positioned to pursue both organic portfolio investment and value-accretive strategic acquisitions.
Operations Update and Outlook
During 2025, Valeura had ongoing production operations at all of its Gulf of Thailand fields including Jasmine, Manora, Nong Yao, and Wassana. Total working interest share oil production before royalties averaged 24,721 bbls/d during Q4 2025 and 23,242 bbls/d for the full year (all production figures are working interest share before royalties). One drilling rig was under contract for the full year.
Jasmine/Ban Yen
Oil production before royalties from the Jasmine/Ban Yen field, in Licence B5/27 (100% operated interest) averaged 8,711 bbls/d during Q4 2025. The Company drilled one deviated and eight horizontal wells on the Jasmine and Ban Yen fields, targeting unswept oil accumulations within producing reservoirs. All nine wells were successful and have been completed as producers. Production rates increased from approximately 7,300 bbls/d over the seven-day period prior to the drilling programme to approximately 8,600 bbls/d over the seven-day period immediately after, and have since continued to climb, reaching an average of approximately 9,000 bbls/d over the first 10 days of March 2026.
Licence B5/27 continues to deliver strong production performance, despite being the most mature asset in the Company锟絪 portfolio. In addition to driving higher production rates, ongoing drilling efforts are identifying further oil accumulations that create opportunities for potential development. This incremental resource growth enhances the Jasmine/Ban Yen field锟絪 ultimate recovery potential and supports an extended economic life for the field.
In addition, Valeura is assessing additional exploration prospects within other parts of the concession area to be incorporated into a future drilling campaign.
Nong Yao
The Company锟絪 Q4 2025 working interest share oil production before royalties from the Nong Yao field, in Licence G11/48 (90% operated working interest), averaged 11,009 bbls/d. Although no wells were drilled during Q4 2025, oil production rates continue to demonstrate the impact of the successful ten-well drilling programme completed in Q3 2025.
The Nong Yao field is the Company锟絪 largest source of oil production and offers several opportunities for further growth. This includes the 2024 discovery of the Nong Yao D accumulation, additional prospects to the south of the field, and the potential to access accumulations on the adjacent Block G3/65, within an oil prone fairway known as Nong Yao Northeast.
In addition, Valeura sees further opportunities to add to production in the vicinity of the Nong Yao A facility. As a result, the Company has decided to pursue a production acceleration strategy which will entail expanding the Nong Yao A facility with four additional well slots and related flow lines. This will enable further infill drilling without requiring existing wells to reach the end of their productive lives before being repurposed as donor slots for new wells. The project is budgeted at approximately US$7 million (Valeura锟絪 working interest share). Engineering work will commence immediately, leading to construction in the second half of 2025 and a slot readiness target of November 2026.
Wassana
During Q4 2025, oil production before royalties from the Wassana field, in Licence G10/48 (100% operated interest) averaged 2,856 bbls/d. No wells were drilled on the licence in Q4 2025. Ongoing work on the production facility (the MOPU Ingenium) consists of routine maintenance and repairs to maintain the facility in good working order prior to the Wassana field redevelopment project coming online.
In May 2025, Valeura took a final investment decision on the Wassana field redevelopment project, which entails building and deploying a CPP facility on the Wassana field. As at 31 December 2025, the project was approximately 45% complete, and has since progressed to approximately 56% completion. The Wassana field redevelopment project is on schedule and on budget for installation of the new CPP facility in late 2026 with first production targeted for Q2 2027. The Wassana redevelopment project is expected to more than double the production from the Wassana field, reduce unit costs, and importantly extend production from the field into the 2040锟絪. In addition, the new Wassana CPP is expected to serve as a hub for eventual tie-in of potential additional satellite wellhead platforms.
Valeura is evaluating development options for additional oil accumulations on Block G10/48 and is considering additional exploration and appraisal opportunities to be potentially included in its 2026 drilling programme. Valeura is evaluating drilling targets to further appraise the size of potential satellite oil accumulations, subject to its approach of continually optimising the exploration and appraisal drilling programme.
Manora
Valeura锟絪 working interest share production before royalties from the Manora field, in Licence G1/48 (70% operated working interest) averaged 2,145 bbls/d during Q4 2025.
No wells were drilled on Licence G1/48 during Q4 2025, but the Company drilled a three-well campaign on the Block in January and February 2026 comprised of two infill development targets and one appraisal well. On 09 March 2026, Valeura announced that all wells were successful and notably the appraisal well was found to be optimally positioned for use as a production well. As a result, all three wells have been completed as oil producers and are now on stream.
Blocks G1/65 and G3/65
On 25 July 2025, Valeura announced that it had entered into the PTTEP Farm-In Agreement to earn a 40% non-operated working interest in Blocks G1/65 and G3/65 (the 锟紹locks锟�), in the offshore Gulf of Thailand. To earn its interest, Valeura will pay 40% of actual back costs related to the Blocks and will carry PTTEP on an additional seismic survey to the northeast of the Nong Yao field. Upon completion (which is subject to the approval of the Government of Thailand), the PTTEP Farm-in Agreement will result in a substantial expansion of Valeura锟絪 gross acreage position in Thailand from 2,623 km2 to 22,757 km2 and will provide access to discoveries and exploration prospects that can be tied back quickly to existing oil and gas infrastructure.
During Q4 2025, Valeura and PTTEP progressed development planning pertaining to the gas discovery made on Block G3/65 earlier in 2025 in combination with several historic discoveries, all which are covered by existing 3D seismic data. In addition, newly acquired 3D seismic data covering several other focus areas on the Blocks is being processed and results are expected to be delivered in mid-2026. This new 3D seismic data will inform further discussions about potential exploration, appraisal, and development opportunities on the Blocks.
Valeura is currently working in partnership with PTTEP and independent experts to assess the full resource potential of the Blocks and intends to disclose its findings in the first half of 2026.
T锟絩kiye Deep Gas Play
On 15 October 2025, Valeura announced that it had entered into the Transatlantic JVA to explore for and develop hydrocarbons in the deep gas play in the Thrace basin of northwest T锟絩kiye. Transatlantic was granted an opportunity to earn a 50% working interest in Valeura锟絪 lands in T锟絩kiye through two phases of operations; first, through the re-entry and testing of the Company锟絪 Devepinar-1 exploration well, and second, by an option to drill a new deep appraisal well.
Activity began in the Thrace Basin lands in Q4 2025 including hydraulic stimulation and testing of the Devepinar-1 well. Following gas flowing to surface through the well锟絪 casing, Transatlantic has opted to equip the well with production tubing to conduct a longer-term production test, which is currently underway. As a result of the work performed to date on the Devepinar-1 well, Transatlantic is entitled to a 50% undivided working interest in the western portion of the Company锟絪 lands, as more fully described in Valeura锟絪 15 October 2025 press release, with the actual assignment of interest to occur in due course.