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 exploration potential [2][4]. Group 1: Strategic Partnership and Acreage Expansion - The partnership with PTTEP, the largest oil and gas operator in Thailand, enhances Valeura's strategic position in the region [4][5]. - The agreement increases Valeura's gross acreage in Thailand from 2,623 km² to 22,757 km², marking a substantial expansion [4][6]. Group 2: Existing Discoveries and Infrastructure - The Blocks contain 15 oil and gas discoveries supported by 27 wells that have encountered oil and gas pay, indicating significant existing resources [4][6]. - The Blocks are strategically located next to major gas fields and Valeura's own oil fields, facilitating potential infrastructure-led growth [4][6]. Group 3: Work Program and Financial Commitment - The 2025 work program includes drilling four exploration wells and acquiring over 1,200 km² of new 3D seismic data, with Valeura responsible for 40% of the actual back costs, amounting to approximately US$14.7 million as of June 30, 2025 [7][8]. - Valeura will also carry PTTEP for an additional seismic acquisition of about 165 km², capped at US$3.7 million [7]. Group 4: Exploration Period and Fiscal Terms - The Production Sharing Contracts (PSCs) stipulate a six-year exploration period requiring the drilling of eight wells and the acquisition of 800 km² of 3D seismic data by May 2029 [9][8]. - The fiscal terms include a 10% royalty on gross revenue, cost recovery provisions up to 50%, and a corporate income tax rate of 20% on net profit [8]. Group 5: Future Development Plans - Valeura plans to focus on both near-term development opportunities and higher-risk, higher-reward prospects to ensure long-term growth [6][7]. - The company anticipates immediate exploration and appraisal activities, with 3D seismic acquisition set to commence in the coming months [4][6].