- Valeura Energy Inc.’s (VLE) subsidiary has signed a $10.4 million sale and purchase agreement to acquire the Thailand oil-producing portfolio of Busrakham Oil and Gas Ltd.
- The purchase price for the acquisition may include up to an additional US$50 million
- The acquisition included interests in three offshore licences: Nong Yao, Jasmine/Ban Yen, and Manora oil fields
- Altogether these fields produce roughly 21,200 billion barrels of oil per day
- Valeura Energy Inc. (VLE) is up 90.77 per cent trading at $1.24 per share as of 12:22 p.m. EST
Valeura Energy Inc.’s (VLE) subsidiary has signed a $10.4 million sale and purchase agreement with Mubadala Petroleum Holdings Limited.
Under the agreement, Valeura’s subsidiary will acquire the Thailand oil-producing portfolio of Busrakham Oil and Gas Ltd.
The purchase price for the acquisition may include an additional US$50 million, depending on certain upside benchmark oil price scenarios in 2022, 2023, or 2024.
The acquisition included interests in three offshore licences in the Gulf of Thailand that include the Nong Yao, Jasmine/Ban Yen, and Manora oil fields, which altogether produce roughly 21,200 billion barrels of oil per day (bbls/d).
Sean Guest, President and CEO of Valeura, commented,
“By adding 21,200bbls/d net to the SPV, we expect to immediately generate pre-tax cash flows of approximately $30 million per month, and this amount is expected to grow in the very near term as we increase production to 25,000 bbls/d and beyond with the addition of production from our pre-existing portfolio.”
The company’s subsidiary, Valeura Energy Asia Pte. Ltd will purchase all of the shares of Busrakham under the terms of the agreement. After the transaction has closed, the subsidiary will become the operator and the owner of working interests in the three offshore licences being acquired, as well as all related production infrastructure and onshore support facilities, including supply bases, offices, and warehouses.
The acquisition is subject to customary closing conditions, and Valeura will pay the seller a deposit of US$6 million. The transaction is expected to close during the first financial quarter of 2023.
Valeura Energy Inc. (VLE) is up 90.77 per cent trading at $1.24 per share as of 12:22 p.m. EST.