Earnings release
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Second Quarter 2025 Results Singapore, August 7 , 2025: Valeura Energy Inc. (TSX:VLE , OTCQX:VLERF) ( “Valeura” or the “Company”) reports its unaudited financial and operating results for the three and six month periods ended June 30, 2025. Q2 Highlights • Oil production of 21.4 mbbls/d(2) and oil sales of 1.9 million bbls; • Average realised price of US$67.9/bbl, generating revenue of US$129.3 million; • Adjusted EBITDAX of US$62.4 million (1) and adjusted after tax cashflow from operations of US$50.5 million(1); • Cash and net cash balance as of June 30, 2025 of US$242.0 million(1),(3), with no debt; • Adjusted Working Capital as of June 30, 2025 of US$261.6 million; • Final investment decision (“FID”) taken on the Wassana field redevelopment, and • No change to the updated guidance disclosed post the Wassana field redevelopment FID. Recent Achievements • Recent production averaged 23, 150 bbls/d(2),(5), an increase of approximately 8% over the Q2 average; • Strategic farm-in agreement with a subsidiary of PTT Exploration and Production Plc (“PTTEP”)(4); o 40% working interest in blocks G1/65 and G3/65, offshore Gulf of Thailand; o Earning by payment of US$14.7 million in back costs and carried US$3.7 million seismic acquisition; o Substantial acreage expansion in Thailand from 2,623 km2 to 22,757 km2; o Infrastructure-led growth potential, with existing discoveries in tie -back range of infrastructure; o Immediate activity with four wells already drilled in 2025 and 3D seismic acquisition commencing this quarter; and. • 2024 Sustainability Report published, highlighting a 20% reduction in greenhouse gas emissions intensity, compared to the previous year. (1) Non-IFRS financial measure or non-IFRS ratio - see "Non-IFRS Financial Measures and Ratios" section below. (2) Working interest share production, before royalties. (3) Includes restricted cash of US$23.2 million. (4) Subject to government of Thailand approval. (5) August production ending August 5, 2025. Dr. Sean Guest, President and CEO commented: “We are taking bold steps to evolve our business and to assure value creation through growth in the long- term. During Q2 we took a positive final investment decision on the Wassana field redevelopment project and have now started the construction phase. W ith a new central processing platform, designed to
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accommodate future tie -in of satellite developments, we envisage a production start in Q2 2027 and thereafter, a future for the asset spanning at least the next two decades. More recently, our strategic farm-in with PTTEP will add a new level of depth and diversity to our portfolio. We see opportunities for infrastructure -led gas developments, promising oil opportunities, and an exploration set that entails a nearly ten -fold expansion in gross acreage. All of this within our core Gulf of Thailand jurisdiction, and immediately adjacent to our operated facilities and large gas-producing fields. As a result, the future of our business is taking shape, and our team is excited to pursue these ambitions with vigour. As we begin to invest into these longer -term opportunities, we are vigilant about maintaining a strong financial position to support our endeavours. We believe our Q2 2025 performance illustrates the strength of our underlying asset base, which serves as the engine to fund growth. Even against the backdrop of lower global oil prices and lower liftings, we generated over US$50 million Adjusted Cashflow from Operations(1), on an after-tax basis. Our business remains fundamentally healthy and capable of supporting our investment plans. Ultimately, we have ended the quarter with Adjusted Net Working Capital (1) of US$261.6 million, and no debt. At the same time, we continue to prioritise safety and sustainability in everything we do. We have recently published our 2024 Sustainability Report, which demonstrates the positive steps we are taking on the important dimensions of environmental stewardship, social respo nsibility, and corporate governance. In particular, we are pleased to highlight a 20% reduction in greenhouse gas emissions intensity in Valeura’s first full year of operating these assets . These guiding principles govern our actions both as we look to continue value generation from our existing portfolio, and also as we seek further inorganic growth.” (1) Non-IFRS financial measure or non-IFRS ratio – see “Non-IFRS Financial Measures and Ratios” section below. Financial and Operating Results Summary Three months ended Jun 30, 2025 Three months ended Mar 31, 2025 Delta (%) Three months ended Jun 30, 2024 Delta (%) Oil Production(1) (‘000 bbls) 1,949 2,147 -9% 1,917 2% Average Daily Oil Production(1) (bbls/d) 21,412 23,853 -10% 21,068 2% Average Realised Price (US$/bbl) 67.9 78.7 -14% 87.7 -23% Oil Volumes Sold (‘000 bbls) 1,902 1,881 1% 1,870 2% Oil Revenue (US$’000) 129,264 148,081 -13% 163,960 -21% Net Income (US$’000) 5,449 14,073 -61% 11,309 -52% Adjusted EBITDAX(2) (US$’000) 62,380 87,216 -28% 99,594 -37% Adjusted Pre-Tax Cashflow from Operations(2) (US$’000) 51,555 74,384 -31% 87,117 -41% Adjusted Cashflow from Operations(2) (US$’000) 50,534 73,954 -32% 65,686 -23% Operating Expenses (US$’000) 43,796 38,852 13% 41,694 5% Adjusted Opex(2) (US$’000) 54,621 51,684 6% 54,171 1% Operating Expenses per bbl (US$/bbl) 22.5 18.1 24% 21.7 4% Adjusted Opex per bbl(2) (US$/bbl) 28.0 24.1 16% 28.3 -1% Adjusted Capex(2) (US$’000) 48,935 32,899 49% 30,641 60% Weighted average shares outstanding – basic (‘000 shares) 106,258 106,532 0% 105,919 0% As at Jun 30, 2025 As at Mar 31, 2025 Delta (%) As at Jun 30, 2024 Delta (%) Cash & Cash equivalents(3) (US$’000) 241,984 238,871 1% 148,819 63%
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Adjusted Net Working Capital(2) (US$’000) 261,575 253,511 3% 144,224 81% Shareholder's Equity (US$’000) 542,693 538,137 1% 317,431 71% (1) Working interest share production before royalties. (2) Non-IFRS financial measure or non-IFRS ratio – see “Non-IFRS Financial Measures and Ratios” section below. (3) Includes restricted cash of US$23.2 million. Financial Update The Company’s Q2 2025 financial performance reflects ongoing production operations at all four of its fields in the offshore Gulf of Thailand. Valeura’s working interest share production before royalties totalled 1.95 million bbls during Q2 2025, an incre ase of 2% from Q2 2024, reflecting the addition of production from the Nong Yao C facility in Q3 2024, offset by natural declines across the portfolio. Oil sales totalled 1.90 million bbls during Q2 2025, which was less than the volume produced, and therefore contributed to an oil inventory increase to 0.93 million bbls at June 30, 2025. As all of the Company’s oil production is stored in floating offsho re vessels before being sold in parcels of approximately 0.2 – 0.3 million bbls, at any given time the Company maintains some quantity of oil held in inventory. A 0.24 million bbls parcel of crude oil was sold just after the end of the Q2 2025 period on July 1, 2025 for US$19.2 million. Price realisations averaged US$67.9/bbl, which was 23% lower than the same period in 2024, reflecting lower global benchmark oil prices. Oil sales prices reflect a US$ 0.7/bbl premium to the Brent crude oil price in Q2 2025, which is consistent with the Company’s general expectation of approximate parity to this benchmark. Operating expenses during Q2 2025 were US$43.8 million, an increase of 5% compared to Q2 2024. Along with operating expenses, the Company includes the price of leases for its floating offshore infrastructure (being US$10.8 million) to derive an Adjusted Opex(1) of US$54.6 million in Q2 2025, which equates to a per-unit rate of US$28.0/bbl. Adjusted Opex and the per bbl unit rate for Q2 2025 were essentially unchanged from Q2 2024, but the increase in unit rate relative to Q1 2025 is largely due to the lower production, as expected, in the second quarter. Valeura generated Adjusted Pre -Tax Cashflow from Operations (1) of US$51.6 million, which was 41% lower than Q2 2024, primarily reflecting lower benchmark oil prices. On a n after -tax basis, Adjusted Cashflow from Operations was US$50.6 million in Q2 2025, 23% lower than Q2 2024. The relatively smaller difference between pre-tax and post-tax Adjusted Cashflow from Operations reflects the more tax- efficient corporate structure, implemented in Q4 2024, which has enabled a more optimised application of tax loss carry-forwards. Cash tax payments during Q2 2025 were US$15.8 million, relating primarily to tax obligations arising from the 2024 production from the Jasmine field. Taxable income accrued relating to the Nong Yao, Wassana, and Manora fields was fully offset by the application of tax loss carry -forwards. No further cash tax payments are anticipated in 2025. Valeura made cash outlays in respect of its operating costs and capex of US$48.9 million. As a result, Valeura’s cash position at June 30, 2025 was US$242.0 million, inclusive of restricted cash of US$23.2 million. In addition, cash from a June 25, 2025 lifting was not received until early in the following quarter. As a result, the Company has recorded a net crude(2) receivable in the amount of US$19.6 million to reflect the timing of payment happening in Q3 rather than Q2 2025. Valeura’s net working capital surplus increased to US$261.6 million at June 30, 2025, 81% higher than at June 30, 2024. (1) Non-IFRS financial measure or non-IFRS ratio – see “Non-IFRS Financial Measures and Ratios” section below.
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(2) Excludes VAT. Operations Update During Q2 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 21,412 bbls/d. Q2 was anticipated to be the lowest production quarter of 2025, with rates therefore weighted to the second half of 2025. Recently, drilling and facilities operations have increased production. For the first five days of August , Valeura’s working interest share production before royalties averaged 23,150 bbls/d, an increase of approximately 8% over the Q2 average. One drilling rig was under contract throughout the quarter. Jasmine/Ban Yen Oil production before royalties from the Jasmine/Ban Yen field, in Licence B5/27 (100% operated interest) averaged 7,880 bbls/d during Q2 2025. The Company conducted its annual maintenance shutdown in late April, affecting production for approximately five days. During the quarter, Valeura completed a drilling campaign on the block which it had started in February 2025, comprised of eight wells, six of which were development -oriented and are now contributing to production from the asset. Results from the remainin g (exploration and appraisal) wells are being incorporated into further development planning for the block and will form the basis of additional drilling campaigns planned for later in 2025 and 2026. In addition, the Company progressed commissioning of a low-BTU gas generator on the Jasmine B platform which is now online and utilising a waste gas stream for power generation. This is expected to reduce diesel consumption and associated GHG emissions going forward. Nong Yao The Company’s Q2 2025 working interest share oil production before royalties from the Nong Yao field, in Licence G11/48 (90% operated working interest), averaged 8,401 bbls/d. During Q2, the Company mobilised its contracted drilling rig to the Nong Yao field, where it is currently executing a 10-well development drilling campaign, covering all three of the field’s wellhead platforms. The Company anticipates completion of the Nong Yao drilling programme in Q4 2025. Wassana During Q2 2025, oil production before royalties from the Wassana field, in Licence G10/48 (100% operated interest) averaged 3,140 bbls/d. Valeura also conducted a workover to optimise performance of a production well. In May 2025, Valeura took FID on the Wassana redevelopment project, which will entail deployment of a new-build central processing platform facility on the field. Construction activities have commenced and the project is on track. First production is planned for Q2 2027. Given the new redevelopment project, Valeura is not planning to drill any further wells from the field’s existing development facility, the mobile offshore production unit (“MOPU”) Ingenium. As a result the
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Company’s focus has shifted to ensuring facility integrity, uptime, and reliability. Recently the Company completed a workover of the field’s produced water injection well which has resulted in an increase in water-handling and hence also oil production. Manora Valeura’s working interest share production before royalties from the Manora field, in Licence G1/48 (70% operated working interest) averaged 1,991 bbls/d during Q2 2025 . Rates were impacted by planned maintenance shutdown work performed at the end of April 2025. No wells were drilled on the Manora field, but the Company performed two well workovers to optimise production. On May 21, 2025, the Company entered into a sale agreement to purchase the Manora floating storage and offloading (“FSO”) system with an anticipated delivery date of January 30, 2026. The exercised option price is set at US$15.5 million. Valeura anticipates that owning, rather than leasing, the FSO system will give rise to operational synergies and cost savings starting in 2026. Outlook Year-to-date oil production reflects management’s expectation that rates will be more weighted to the second half of the year 2025. As a result, Valeura’s guidance outlook remains unchanged on this front. In addition, the Company re-iterates its guidance outlook assumptions for all other metrics, including Adjusted Opex, Adjusted Capex and Exploration expense (now combined as a single line item), and Free Cash Flow, as updated in May 2025 following its final investment decision on the Wassana redevelopment project. Original 2025 Guidance (Pre-Wassana FID) Updated 2025 Guidance (Re-iterated) Average Daily Oil Production(1) 23.0 – 25.5 mbbls/d 23.0 – 25.5 mbbls/d Adjusted Opex US$215 – 245 million US$215 – 245 million Adjusted Capex and Exploration expense US$136 – 161 million US$175 – 195 million Free Cash Flow US$112 – 227 million(2) US$80 – 195 million (1) Working interest share production before royalties. (2) Illustrative Free Cash Flow guidance based on the Company’s Original 2025 Guidance assumptions. On July 25, 2025, Valeura announced that it had entered into a Farm -in Agreement with a subsidiary of PTTEP to earn a 40% interest in Blocks G1/65 and G3/65, in the Gulf of Thailand (the “Farm-in”). To earn its interest, Valeura will pay 40% of actual back costs related to the two blocks (US$14.7 million to June 30, 2025), and will carry PTTEP on an additional seismic acquisition, capped at US$3.7 million (gross). As the Farm-in Agreement is subject to the approval of the Government of Thailand, these amo unts have not been added to the Company’s guidance outlook at this time. Given the increased focus on exploration by way of the Farm -in, Valeura may opt to re -allocate spending between development -oriented and exploration-oriented work within its existing portfolio, and accordingly has combined Adjusted Capex and Exploration expense in its guidance outlook, as set out above. Webcast
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Valeura’s management team will host an investor and analyst webcast today, Thursday, August 7, 2025 at 08:30 Calgary / 15:30 London / 21:30 Bangkok / 22:30 Singapore to discuss this announcement. The live audio and video feed can be accessed via the link below. Written questions may be submitted through the webcast system or by email to IR@valeuraenergy.com Webcast link: https://events.teams.microsoft.com/event/16d71f0c-8db1-49e6-a5a0- 6bc77405be08@a196a1a0-4579-4a0c-b3a3-855f4db8f64b An audio only feed of the event is available by phone using the Conference ID and dial-in numbers below. Conference ID: 305 706 998# Dial-in numbers: Canada: 833-845-9589 Singapore: +65 6450 6302 Thailand: +66 2 026 9035 Turkey: 00800142034779 UK: 0800 640 3933 USA: 833-846-5630 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 / +44 7392 940495 Robin James Martin, Vice President, Communications and Investor Relations IR@valeuraenergy.com Contact details for the Company’s advisors, covering research analysts and joint brokers, including Auctus Advisors LLP, Canaccord Genuity Ltd (UK), Cormark Securities Inc., Research Capital Corporation, 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 in Türkiye. The Company is pursuing a growth -oriented strategy and intends to re -invest into its producing asset portfolio and to deploy resources toward further organic and inorganic growth in Southeast Asia. Valeura aspires toward value accretive growth for stakeholders while adhering to high standards of environmental, social and governance responsibility. Additional information relating to Valeura is also available on SEDAR+ at www.sedarplus.ca. Non-IFRS Financial Measures and Ratios
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This news release includes references to financial measures commonly used in the oil and gas industry such as adjusted EBITDAX, net working capital, adjusted net working capital, adjusted cashflow from operations, adjusted opex, adjusted capex, net cash and outstanding debt which are not generally accepted accounting measures under International Financial Reporting Standards (“IFRS Accounting Standards”) which are not generally accepted accounting measures under IFRS Accounting Standards as issued by International Accounting Standards Board (“IASB”) and do 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 adjusted EBITDAX, net working capital, adjusted net working capital, adjusted cashflow from operations, adjusted opex, adjusted capex, net cash and outstanding debt are useful supplemental measures 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. Adjusted EBITDAX: is a non -IFRS financial measure which does not have a standardised meaning prescribed by IFRS Accounting Standards. This non -IFRS financial measure is included because management uses the information to analyse the financial performance of the Company. Adj usted EBITDAX is a non-IFRS and non-standardised variant of EBITDAX, adjusted to remove non-cash items as well as certain non-recurring costs including severance payments and other one-off items in relation to the Company’s recent acquisi tions. Adjusted EBITDAX is calculated by adjusting profit for the year before other items as reported under IFRS Accounting Standards to exclude the effects of other income, exploration, SRB, finance income and expense, depletion, depreciation & amortisation (“DD&A”), other costs, and certain non -cash items (such as impairments, foreign exchange, unrealised risk management contracts, reassessment of contingent consideration and gains or losses arising from the disposal of capital assets). In addition, other unusual or non-recurring items are excluded from Adjusted EBITDAX, as they are not indicative of the underlying financial performance of the Company. Three months ended Unaudited Unaudited June 30, June 30, $'000 2025 2024 Profit for the period before other items 14,951 38,841 Other income (8,768) (1,945) Exploration 3,216 269 SRB 173 48 Finance costs 5,457 6,775 DD&A 44,288 52,899 Other non-recurring G&A costs (1)(2) 3,063 2,707 Adjusted EBITDAX 62,380 99,594 (1) Items are not shown in the Interim Financial Statements. (2) Represents non-recurring costs associated with share-based compensation, actual severance incurred - See “General and Administrative ("G&A") Expenses” for more details. Adjusted opex and adjusted opex per bbl: are a non-IFRS financial measure and a non-IFRS financial ratio, respectively, which do not have standardised meanings prescribed by IFRS Accounting Standards. This non-IFRS financial measure and ratio are included because management uses the information t o analyse cash generation and financial performance of the Company. Operating cost represents the operating cash expenses incurred by the Company during the period including the leases that are associated with opera tions, such as bareboat contracts for key operating equipment, such as FSOs, floating production storage and offloading (“FPSO”) vessels, MOPUs, and warehouses. Adjusted opex is calculated by effectively adjusting non-cash items from the operating cost and adding lease costs.
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Adjusted opex is divided by production in the period to arrive at adjusted opex per bbl. Valeura calculates adjusted opex per barrel, to provide a more consistent indication of the cost of field operations. Adjusted opex, as opposed to operating expenses, excludes the impacts of non-recurring, non-cash items such as prior period adjustments, and adds back lease costs in relation to FSOs, FPSOs, MOPU, and other facilities. Three months ended Unaudited Unaudited June 30, June 30, $'000 2025 2024 Operating Costs 43,796 41,694 Cost of Goods Sold 43,796 41,694 Adjustment of accounting related to inventory capitalisation(3) 2,731 4,980 Adjusted Opex(1) (excluding Leases) 46,527 46,674 Leases(4) 8,094 7,497 Adjusted Opex(1) 54,621 54,171 Production Volumes during the period (mbbl) 1,949 1,917 Adjusted Opex per Barrel(1) ($/bbl) 28.0 28.3 (1) Represent write down inventory to net realisable value. (2) The item is not shown in the Interim Financial Statements. The cost of crude inventory is capitalised from operating costs. As a result, the Company has excluded the effect of crude inventory capitalization. (3) In accordance with IFRS 16 - Leases, the Company recognised cost related to its operating leases – attributed to FSO and FPSO vessels, MOPU used at its Jasmine/Ban Yen, Nong Yao, Manora and Wassana fields, as well as onshore warehouse facilities costs to i ts balance sheet and finance cost in the profit and loss statement. In order to report a more relevant lifting cost, the Company has included costs associ ated with these leases in the adjusted operating cost calculation. This will be a recurring adjustment . Adjusted cashflow from operations and adjusted cashflow from operations per barrel: are a non- IFRS financial measure and a non-IFRS financial ratio, respectively, which do not have a standardised meaning prescribed by IFRS Accounting Standards. This non -IFRS finance measure and ratio are 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 PITA taxes and SRB expenses, and b) to enhance and facilitate to the reader a reconciliation of this non -IFRS measure, the Company also presented 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 no n-recurring charges (generating the adjusted pre -tax cashflow), and accrued PITA tax and SRB expenses. Adjusted cashflow from operations is divided by production in the period to arrive at adjusted cashflow from operations per bbl. Valeura calculates Adjusted cashflow from operations per barrel, to provide a more consistent indication of cashflow generated from operations by the Company. Three months ended Unaudited Unaudited June 30, June 30, $'000 2025 2024 Oil revenues 129,264 163,960 Royalties Adjusted opex (16,819) (17,947) Adjusted opex (54,621) (54,171) Recurring G&A costs (6,269) (4,725) Adjusted pre-tax cashflow from operations 51,555 87,117 Income tax / PITA tax (848) (21,383)
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SRB (173) (48) Adjusted cashflow from operations 50,534 65,686 Production during the period 1,949 1,917 Adjusted cashflow from operations per barrel ($/bbl) 25.9 34.3 Three months ended Unaudited Unaudited June 30, June 30, $'000 2025 2024 Cash generated from operating activities 52,190 18,095 Change in non-cash working capital (1,154) 6,772 Non-cash items 61,409 121,146 Adjusted opex (54,621) (54,171) Recurring G&A costs (6,269) (4,725) Adjusted pre-tax cashflow from operations 51,555 87,117 Income tax / PITA tax (848) (21,383) SRB (173) (48) Adjusted cashflow from operations 50,534 65,686 Production during the period 1,949 1,917 Adjusted cashflow from operations per barrel ($/bbl) 25.9 34.3 Outstanding debt and net cash: are non-IFRS financial measures which do not have a standardised meaning prescribed by IFRS Accounting Standards. These non -IRFS financial measures are provided because management uses the information to a) analyse financial strength and b) manage the capital structure of the Company. These non-IFRS measures are used to ensure capital is managed effectively in order to support the Company’s ongoing operations and needs. Unaudited June 30, December 31, $'000 2025 2024 Outstanding Debt - - Cash and cash equivalents 218,773 236,543 Restricted cash (Current) 875 1,093 Restricted cash (Non-current) 22,336 21,718 Cash balance 241,984 259,354 Net cash 241,984 259,354 Net working capital and adjusted net working capital: are non-IFRS financial measures which do not have a standardised meaning prescribed by IFRS Accounting Standards. These non-IFRS financial measures are included because management uses the information to analyse liquidity and financial strength of the Company. Net working capital is calculated by deducting current liabilities from current assets. Adjusted net working capital is calculated by adding back the current leases liabilities and including non-current restricted cash in net working capital. The leases are associated with operations, such as bareboat contracts for key operating equipment, such as FSOs, FPSOs, MOPU, and warehouses which are included in the Company’s disclosed adjusted opex (and adjusted opex guidance). Management believes the adjusted net working capital provides a useful data point to the reader to ascertain the business’ next -twelve-months surplus or deficit capital requirement. It is also a data point that management uses for cash management. Unaudited June 30, December 31,
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$'000 2025 2024 Current assets 351,767 340,911 Current liabilities 151,890 (185,640) Net working capital 199,877 155,271 Current lease liabilities 39,321 28,746 Restricted cash (Non-current) 22,336 21,718 Adjusted net working capital 261,534 205,735 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. Three months ended Unaudited Unaudited June 30, June 30, $'000 2025 2024 Capital work in progress 10,163 - Drilling 29,939 28,606 Brownfield 6,428 2,806 Other PPE 2,405 (771) Adjusted capex 48,935 30,641 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 typically contains statements with words such as “anticipate”, “believe”, “expect”, “plan”, “intend”, “estimate”, “propose”, “project”, “target” or similar words suggesting future outcomes or statements regarding an outlook. Forward-looking information in this news release includes, but is not limited to, timing for anticipated production start from the Wassana redevelopment project, the future tie- on of satellite developments and future of the assets; the ability of the Company’s strong financial position to support its growth projects and for its business to support investment plans; the expectation of no further cash tax payments in 2025; the timing of drilling on Jasmine/Ban Yen field; the expectation of production rates being weighted to the second half of 2025; the expected reduction in diesel consumption as a result of the Jasmine low -BTU gas generator; timing for completion of the Nong Yao drilling programme; completion of the Company’s purchase of the Manora FSO system; all of the Company’s guidance outlook expectations; and expectations regarding the Farm-in, Including receiving government approval. 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 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 forthc oming from governments and regulators in a manner consistent with past conduct; ability to achieve extensions to licences in Thailand and Türkiye to support attractive development and resource recovery; 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
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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 Russian invasion of Ukraine; the impact of conflicts in the Middle East; royalty rates and taxes; management’s estimate of cumulative tax losses being correct; 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 pr ocessing, 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 an d contingent resources; future growth; the sufficiency of budgeted capital expenditures in carrying out planned activities; the impact of increasing competition; the availability and identification of mergers and acquisition opportunities; the ability to successfully negotiate and complete any mergers and acquisition opportunities; the ability to efficiently integrate assets and employees acquired through acquisitions; global energy policies going forward; international trade policies; 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 c ould 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; the risk that the Company’s tax advisors’ and/or auditors’ assessment of the Company’s cumulative tax losses varies significantly from management’s expectations of the same; potential ch anges 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, including international treaties and trade policies; 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 most recent annual information form and management’s discussion and analysis of the Company 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. S uch 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
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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 s 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 s 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. Neither the Toronto Stock Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Toronto Stock Exchange) accepts responsibility for the adequacy or accuracy of this news release.