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Energy Co.'s Drilling Success Boosts Oil Production This Year
Research Report

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Wells slated for drilling this summer in the Gulf of Thailand are expected to further increase production, noted a Research Capital Corp. report.

Valeura Energy Inc. (VLE:TSX; PNWRF:OTCMKTS) increased its oil production 16% over the Q1/23 average rate due to two successful drill programs carried out so far this year, reported Research Capital Corp. analyst Bill Newman in a June 13 research note.

"Corporate oil production has increased to about 23,700 barrels per day (23.7 Mbbl/d)" from 20.475 Mbbl/d," Newman wrote.

Possible Return Noteworthy

Accordingly, Research Capital maintained its Buy rating and CA$8.25 per share price target on the Canadian oil and gas explorer-producer, currently trading at about CA$1.89 per share, Newman pointed out.

This price difference implies a significant potential gain for investors in Valeura of about 336%.

Offshore Well Success

The most recently finished drill program consisted of two infill horizontal wells in the Nong Yao oilfield in the Gulf of Thailand, relayed Newman. Valeura owns a 90% working interest in the related license. After being completed ahead of schedule and under budget, the wells were put into production at a combined rate of about 1.35 Mbbl/d, slightly higher than management expected.

Previously this year, nine wells were successfully drilled in the Jasmine oilfield (100% working interest), also in the Gulf.

More Production Expected

Current plans for the rest of 2023 call for two more drill programs in the Gulf of Thailand, which are expected to boost oil production and potentially positively catalyze the company's stock price, wrote Newman.

Given drilling success so far this year, Valeura decided to finish out 2023 using only one rig. It is already at the Manora oilfield (70% working interest), where the drilling of three infill wells will commence soon.

"The program is expected to add production and could extend the life of the [Manora] field beyond 2025," Newman wrote.

Following Manora, five infill wells are slated to be drilled, starting around August, in the Wassana oilfield (100% working interest).

The Wassana program is "expected to increase field production to about 5 Mbbl/d in late Q4/23," added Newman.

Another upcoming catalyst, expected in August, is the release of Valeura's Q2/23 financial and operational results.

Further Cost Savings Likely

In a final comment in his report, Newman purported that while Valeura has not revised its 2023 capital budget of between US$180 million (US$180M) and US$200M, it is likely it could achieve additional cost savings due to further synergies created by the integration of the KrisEnergy and Mubadala Energy assets.

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Important Disclosures:

  1. Doresa Banning wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor.
  2. The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.

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Disclosures for Research Capital Corp., Valeura Energy Inc., June 13, 2023

Analyst Certification I, Bill Newman, CFA, certify the views expressed in this report were formed by my review of relevant company data and industry investigation, and accurately reflect my opinion about the investment merits of the securities mentioned in the report. I also certify that my compensation is not related to specific recommendations or views expressed in this report. Research Capital Corporation publishes research and investment recommendations for the use of its clients. Information regarding our categories of recommendations, quarterly summaries of the percentage of our recommendations which fall into each category and our policies regarding the release of our research reports is available at or may be requested by contacting the analyst. Each analyst of Research Capital Corporation whose name appears in this report hereby certifies that (i) the recommendations and opinions expressed in this research report accurately reflect the analyst’s personal views and (ii) no part of the research analyst’s compensation was or will be directly or indirectly related to the specific conclusions or recommendations expressed in this research report.

Relevant Disclosures Applicable to Companies Under Coverage Relevant disclosures required under IIROC Rule 3400 applicable to companies under coverage discussed in this research report are available on our website at

General Disclosures The opinions, estimates and projections contained in all Research Reports published by Research Capital Corporation ("RCC") are those of RCC as of the date of publication and are subject to change without notice. RCC makes every effort to ensure that the contents have been compiled or derived from sources believed to be reliable and that contain information and opinions that are accurate and complete; RCC makes no representation or warranty, express or implied, in respect thereof, takes no responsibility for any errors and omissions which may be contained therein and accepts no liability whatsoever for any loss arising from any use of or reliance on its Research Reports or its contents. Information may be available to RCC that is not contained therein. Research Reports disseminated by RCC are not a solicitation to buy or sell. All securities not available in all jurisdictions.

Company Specific Disclosures Within the past 12 months, Research Capital has provided investment banking services to the issuer.

Potential Conflicts of Interest All Research Capital Corporation ("RCC") Analysts are compensated based in part on the overall revenues of RCC, a portion of which are generated by investment banking activities. RCC may have had, or seek to have, an investment banking relationship with companies mentioned in this report. RCC and/or its officers, directors and employees may from time to time acquire, hold or sell securities mentioned in our Research Reports as principal or agent. RCC makes every effort possible to avoid conflicts of interest, however readers should assume that a conflict might exist, and therefore not rely solely on this report when evaluating whether or not to buy or sell the securities of subject companies.

RC USA INC. Information about Research Capital Corporation’s Rating System, the distribution of our research to clients and the percentage of recommendations which are in each of our rating categories is available on our website at The information contained in this report has been drawn from sources believed to be reliable but its accuracy or completeness is not guaranteed, nor in providing it does Research Capital Corporation assume any responsibility or liability. Research Capital Corporation, its directors, officers and other employees may, from time to time, have positions in the securities mentioned herein. Contents of this report cannot be reproduced in whole or in part without the express permission of Research Capital Corporation. US Institutional Clients – Research Capital USA Inc., a wholly owned subsidiary of Research Capital Corporation, accepts responsibility for the contents of this report subject to the terms and limitations set out above. US firms or institutions receiving this report should effect transactions in securities discussed in the report through Research Capital USA Inc., a Broker – Dealer registered with the Financial Industry Regulatory Authority (FINRA).

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