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Valeura Energy Inc. T.VLE

Alternate Symbol(s):  VLERF

Valeura Energy Inc. is an upstream oil and gas company engaged in the production, development, and exploration of petroleum and natural gas in the Gulf of Thailand and the Thrace Basin of Turkiye. The Company holds an operating working interest in four shallow water offshore licenses in the Gulf of Thailand, which include G10/48 (Wassana field), B5/27 (Jasmine and Ban Yen fields), G1/48 (Manora field) and G11/48 (Nong Yao field). It holds a 100% operating interest in license B5/27 containing the producing Jasmine and Ban Yen oil fields. It holds an operated 70% working interest in license G1/48 containing the Manora oil field, which produces approximately 2,935 barrels per day (bbls/d) of medium-weight sweet crude oil. The Company holds interests ranging from 63% through 100% in various leases and licenses in the Thrace basin. The Company also operates Floating Storage and Offloading (FSO) vessel Aurora, location at Nong Yao field, offshore Gulf of Thailand.


TSX:VLE - Post by User

Bullboard Posts
Comment by theSwede99on Jan 21, 2018 7:46pm
311 Views
Post# 27405158

RE:Where in the world can you get a return like this

RE:Where in the world can you get a return like this
Investor2233 wrote: From CEO.ca

"In development mode, tight gas does have steep decline rates, but once you have multiple pads going, your flush production just blends into your overall production profile. And what does it cost to build the pad and drill those wells? At $8 million a well in full development (remember that we’re not even talking about horizontal wells here in this example), that’s $64 million per pad. Now, what if you had 5 or even 10 pads going like that? Even with declines you’re talking about 0.5-1.0 BCF/d of production (100% basis) that’s throwing off at least $4/mcf in cash flow (again, never mind the condensate). That’s $2-4 million a day, or $700 million to $1.4 billion a year… and what’s the capex for that? $320 million for a 5-pad case and $640 million for a 10-pad case. Then you have to add in capex for pipeline tie-ins and some processing facilities… let’s just throw $300-500 million at that. Seem fair? All-in, in very, very rough numbers let’s just say that initial development costs a cool billion dollars and then you’re up and running for 20-30 years or so (365 BCF/year at 7-10 TCF recoverable). Payback is maybe a year-and-a-half or two in the above example once you’re operationally and logistically prepared. Where else in the world could you spend a billion dollars and have it come back to you that quickly? And how about the next year when your facilities capex is out of the way and you’re just doing maintenance drilling? Two words. Gravy train. That’s how I think a supermajor (Statoil 100% or Statoil+1) could turn one billion dollars into billions here. It’s embarrassing to actually put numbers like this out there at this stage because it’s so early, but unless I run some kind of hypothetical economic case, how am I to know when I think Valeura is under- or overvalued based on the data that I have to work with?"


-Malcom Shaw blog
Bullboard Posts