Valeura Energy Inc.

Hi, everyone, and thanks for joining this Veloura Energy webcast, where we'll talk about our Q3 2025 results. We're recording the event today, November 17th, 2025, and we'll make a replay available on our website and on our YouTube channel within the next day or so. My name is Robin Martin. I'm the Vice President of Investor Relations and Communications for Veloura. Joining me on this call are Dr. Sean Guest, our CEO, Yassine Ben Mariam, our CFO, and Dr. Greg Kolowski, our COO. Running order for today's event, we will start with some prepared remarks tied to slides that you should see on your screen now. They're also available on our website. And then we'll proceed into a Q&A session. I'll guide us through that part of the call. The Q&A offers two options for you. You can either press the Q&A button in Teams and type in a question for us, in which case I'll voice that for the team to address. Or you can press the raise your hand button, which will be a cue to me saying you'd like to ask a live question and I will unmute your microphone to do so in due course. Before we get going, I will just draw your attention to our disclaimers and advisories slide and ask that you pay in particular attention to the forward looking statements disclaimers here. So with that, I will hand the floor over to Sean. Go ahead, please.

Hi, Robin, thank you very much. And thank you for joining us here today. If you just go to the next slide. So, I'll start to kind of give you a bit of an intro on how we look back the previous quarter and really actually what's gone on in the past couple of years and then also looking forward. Greg will then talk to you about the WASANA project and some of our recent execution, and then Yassine will summarize some of the financial highlights before I kind of bring it back and really talk about what we've seen recently in performance, share price, and what we kind of see going forward in the company. So, starting with it, if we look at growth, now, one of the things we announced this year was we did a large scale farming with PTTEP, the national oil company. In addition to that, what we've seen is we kicked off earlier this year, the Wasana oil field, full field development. And those are 2 projects that are really focused on the sustainability and the long term growth of the company in Thailand. And we're very excited about both of those. And I'll go into a little more detail on them. Financially, the good news is you would have seen in the press release that actually compared to a year ago, or compared to last quarter, really all of our operating financial metrics are up, which is very pleasing to us, especially with strong margins, even at the current oil prices. And that's allowed that balance sheet to also continue to strengthen, which improves really our ability to fund opportunities and to look at other M&A opportunities. Now, when you look at execution within the company, we reiterated a couple of months ago, our guidance is intact. You know, we did point at that time too, that we expected to production to be at the lower end of guidance. However, if you've seen in the current release at the current production with the drilling that we've done is actually increase that a lot. So that production so far in November is actually higher than any of the quarterly averages we've had in 2025 to date. And importantly, a lot of this is coming from our non-yield field, which is most profitable. Now, we've also seen that is heading towards the lower end of our guidance, which therefore we're really delivering on that cost per barrel basis. And the final thing just emphasizes as we've taken over these assets, we've actually been able to year on year, reduce the emissions intensity from the assets and that's continuing this year. You know, we could be targeting as much as a 30% decrease in emission intensity since we took over from a year ago. Just before I hit the last two points, I really want to point out that those first bits really point to what we see as an extremely successful country entry into Thailand. We managed to get a couple of good deals, but then we built on that with execution of assets, delivering on the production, delivering on the reserve growth. And finally, as we pointed to there, the longer term growth opportunities that we're seeing with the farm in and the redevelopment of PTT that aren't just looking at 5 years, but are looking at 5, 10, 15 years or more. And then, as we look forward, well, we did sign 2 deals in Q3, the PTT deal that I'll talk about in more detail. But also we signed a deal to farm someone in at our Turkish acreage, which, while it is not a focus for us now, is still a very high value opportunity. And I'll talk just a bit about that at the end. But what I can tell you, and we talk about this quite a bit, but we remain very focused on transformational opportunities. There's a good suite of them that we now see coming to market and we're actually very involved in those now. And then finally, the last 1 on value. Well, while we've come up a lot since a year ago, the recent kind of downturn with oil price and then the decrease that we've seen actually, we see it is a very good time to look to buy into the company because even though it's been coming share price been coming down the business has been delivering. Okay, next slide please Robin. So I'm just going to talk about the PTT e-farming before I hand over to Greg. We announced this back in July where we'd actually farmed in with PTTEP, who are the national oil company and the largest oil and gas producer in Thailand. Now, this has significantly increased our acreage position and set us up very well for the future. But one of the questions we've got since really doing this deal was, why did PTTEP want Veloura to farm in? They obviously are a very large company, significant production, cash flow, and have a capital budget going forward in kind of the tens of billions. But what really their CEO has said, and what we're seeing continually being reiterated is they believe they're the natural gas operator in Thailand. and with the work that they've seen us do and our operations they believe we're the natural oil operator here and they see that that combination together is a way of maximizing the value and the way forward on these blocks so we'll earn a 40 percent interest in there and what we like is it's bringing diversity it's bringing gas opportunities to us But it's also bringing this opportunity to have medium and longer term growth through these blocks that can really step us out into the future. The other important thing to note is that these blocks really abut right up against the major producing gas fields in Thailand as well as some of our oil assets. And these type of tiebacks are really the highest economic returns you can look at in our industry. All of the main producing facilities, the pipelines, those are all in place and you're just tying back into those. So, your, your topics per barrel, your optics per barrel tends to be extremely good and very high returns. Again, on the entry cost, we really came in for pretty well at ground floor. But the important thing I want to note too is that while the deal is not closed and we do expect it to close immediately or in the near term, I did meet with PTTEP and the regulator last week and all the paperwork, everything is progressing. But while we're still waiting for that to close, both teams are already working together, both commercially and technically on driving forward the work in this block. so that in 2025 we've already seen all of the committed seismic data acquired, approximately 1200 square kilometers, as well as we've seen four exploration wells drilled with discoveries in those. And the important thing with that is there's existing discoveries already here, and the team is already working on the development planning to try and look for some FIDs in 2026 to take these forward. Next slide, Robin. And I really wanted to zoom in a bit on the G3 block and the more southern block, because this is 1 that really emphasizes those immediate development opportunities, particularly in the gas. But I'll also speak to the oil opportunities that we see that can be tied back to our field. So, when you look at the block immediately to the east of our block is actually the Boncott gas field, and it runs all along the boundary there. And that field's producing just under a BCF a day. So extremely large, a lot of gas coming out of there. Now, in the middle, there is an existing 3D seismic area with a number of discoveries. And this is where a new discovery has already actually happened this year. And that's where the team are starting to work on progressing this towards an FID in 26, whether it's for one new gas platform or two. But there's that opportunity here of proven gas immediately next to a producing gas field. So the team have put in place that they actually filed the production area application and work is going ahead on the technical work and commercial work to progress this in 2026. and we really hope to have much more technical details on this as we head into early next year. But that's really the immediate work that can come and therefore we can see an expiration block going from expiration to cash flow within a few years. There is new seismic being acquired in the south over more gas discoveries down there, which could follow at a later date. But then when you look up around our Nong Yao field, which is in the north, our most profitable oil field, We've identified an oil fairway that we think exists from the Nong Yao field up to an undeveloped field called Ubon in the north. Now, while new seismic has now been acquired over that, and we expect to next year process that, work that into a suite of drilling prospects, the team already have 3D seismic from our block that extends in there, and we have a suite of opportunities immediately to the east of the Nong Yao field. First, there's a number of prospects that actually are drillable from the platform could be immediately tied in once you drill those. And then the other 1, that's even very interesting is we have just to the north of that. We have identified on the 3 D, a very good exploration prospect that could be tied back to the platform to even increase production. So it's just reiterating with this block that. What we see is immediate tie back opportunities of very high value, but then you can continue to explore and develop these add in more platforms and really get what we might call a string of pearls here. And that exists for both the oil and the gas. So, again, very exciting opportunity for us and we really hope to be able to speak more on this quantitatively once you get this closed and progress to FID in 2026. So at that time, I'll hand over to Greg to talk a bit about the Wasana development.

Thank you, Sean. Hello, everyone. So let me continue with the growth updates. And really, I want to talk a little bit more about the Wasana field, which is our key organic growth opportunity in the operated assets. This is a project where we have taken an FID in May of this year. on redevelopment which involves installing a new central processing facility over the main part of the field which you see marked in that in the red circle on the right and so you know this this central project has got a very strong economics as as we have shared before and it will see production out into 2043. And this production just from the main field is reflected in the reserves in the Wasana field, which now stand at post-FID at 20.5 million barrels to be. But the development concept also envisages satellite times. And we already have provisions in the design to be able to do so with risers in the main facility. So we've got these two areas with resources in the north and in the south of this license. Now, in the north, we already have sufficient volume of resources and sufficient level of appraisal. to really start a satellite development in the south we've got some contingent resources already discovered but we also see further upside potential with prospective resources and that's why we are planning some exploration drilling to capture those upsides in the south and i guess you know what's important is that because this is a field which is operated by us and 100 owned by valora it means that we've got quite a lot of optionality on the driving the optimum timing for fid and then bringing those north and south satellites on stream if we go then to the next one robin please So just a brief update on project delivery, which is going very well. We are well on track for first oil in Q2 of 2027. And we've got now very high confidence on being able to deliver this project on or below budget. The main EPC contract is fixed price and is proceeding very well without any variations. all of the main equipment orders have now also been issued. And so there is relatively small amount of scope that can give rise to any cost variation. So again, very, very high confidence on delivering a budget. And overall, we are in aggregate about 35% complete on this project. So going really well. If we then switch to the next slide, Robin, and moving on to the ongoing world delivery and production delivery, the most notable area of rig activity in PO3 has been our drilling campaign in Nongyao Field, which has gone really well. So we have finished the quarter at just under 12,000 barrels per day equity production, having brought successfully a number of wells in the campaign. So we drew 10 wells in total on Nongiao in the quarter. Since then, the rig has moved across to the Jasmine Fields, where we are drilling now, and we have actually brought some wells on stream in Jasmine. and so as a result of all of that activity uh november to date we are at uh 24 and a half or or maybe even a bit higher uh thousand dollars per day production so so going very well and that's why we have reconfirmed our overall production guidance for the year which which will be coming within the guidance albeit slightly towards the lower end now i think uh With that, let me hand over Yacine to you.