Valeura Energy Inc.: Strategic Farm-in Agreement with PTTEP

Core Viewpoint - Valeura Energy Inc. has entered into a Farm-in Agreement with PTT Exploration and Production Plc to acquire a 40% interest in offshore Blocks G1/65 and G3/65 in the Gulf of Thailand, significantly expanding its acreage and growth potential in the region [1][4][5] Group 1: Strategic Partnership and Acreage Expansion - The partnership with PTTEP, the largest oil and gas operator in Thailand, enhances Valeura's gross acreage in Thailand from 2,623 km² to 22,757 km² [4] - The Blocks are strategically located near major gas fields and Valeura's existing oil fields, providing immediate access to infrastructure [4][6] - The Blocks contain 15 oil and gas discoveries supported by 27 wells, indicating substantial existing resources [4] Group 2: Exploration and Development Plans - A work program for 2025 includes drilling four exploration wells and acquiring over 1,200 km of new 3D seismic data [7] - Valeura will pay 40% of actual back costs, estimated at US$14.7 million as of June 30, 2025, to earn its interest [7] - The exploration period under the Production Sharing Contracts (PSCs) lasts six years, requiring the drilling of eight wells and the acquisition of 800 km of 3D seismic data [9] Group 3: Financial and Operational Insights - The PSCs stipulate a 10% royalty on gross revenue, with cost recovery provisions up to 50% of gross revenue and a corporate income tax rate of 20% on net profit [8] - Valeura aims to leverage existing discoveries and exploration prospects for immediate growth while also pursuing higher-risk, higher-reward opportunities for long-term expansion [6][7] - The company plans to release its unaudited financial results for the first half of 2025 on August 7, 2025 [14]