Valeura Energy (VLE) EnerCom Denver – The Energy Investment Conference summary

Strategic focus and growth pillars

• Emphasizes both organic and inorganic growth, maximizing cash flow from existing assets and pursuing value-accretive M&A in Southeast Asia.

• Maintains operational excellence, prioritizing asset integrity, safety, and strong community and government relations.

• Portfolio includes four operated oil fields in the Gulf of Thailand, with mature fields exceeding production expectations and newer fields in growth phases.

• Recent expansion includes a third facility at Nong Yao and major redevelopment at Wassana, targeting increased production.

• Farming into large G1 and G3 blocks to diversify into gas, with first gas development FID expected later this year.

Financial performance and capital allocation

• Achieved $150 million cash flow and over $100 million free cash flow in Q2, with realized oil price at $106/bbl.

• Maintains over $300 million in cash, no debt, and strong liquidity; recently established a $75 million revolving credit line expandable to $325 million.

• Capital allocation prioritizes organic investment, transformational M&A, and, if opportunities wane, potential shareholder returns.

• Not currently paying dividends or aggressively buying back shares, but open to pivoting if M&A slows.

• Margins remain strong, with Q2 netback at $77/bbl and OpEx at $29/bbl.

Operational highlights and technical details

• Average annual reserves replacement ratio of 218% over the last three years, doubling reserves from 29 to 58 million barrels by 2025.

• Added at least five years to asset life, extending future cash flow and deferring abandonment.

• Royalties are contractually fixed (average 14%), providing fiscal stability; OpEx influenced by diesel prices.

• Drilling costs for oil wells range CAD 4.5–5 million, with batch drilling for efficiency; typical horizontal:vertical well ratio is 2:1.

• Longest-ever horizontal lateral in Thailand drilled (5,000 ft); experimenting with multilateral drilling.