Conference Call Today As SG said on the call today, they are confident in the producing asset base which has performed as expected with positive results from infill drills/pool extensions and operational optimization resulting in increased reserves. They have extended all field lives with infills, reduced OPEX and reduced expected future abandonment costs by 30% (at least that much because Chevron et al have been exiting other fields in Thailand and doing many abandonments with superior cost efficiency for VLE to utilize).
VLE has significant cash in the bank (perhaps as much as C$240M est. now depending on recent spends), is implementing a development 2024 drill program to hold prod flat by YE (currently 23000 bopd), plus plan to drill two new plays in 2024 for growth (one moderate risk with offsets, the other more risky but new pool potential of up to 20Mbbls).
With a solid bank account, recent purchase deals which are attention grabbers, solid production, top drawer cash flows and great earnings to top it off.
In the driver's seat to be a consolidator in the Thailand Basin. The future for VLE on M&A is very dependent on oil price view going forward. Buyers and sellers need to agree on future price decks otherwise deals don't get done. Mubadala deal is great evidence though of a willing seller trying to offset ab costs of "mature assets and "get green". I think in the Mubadala deal, both parties got what they wanted.
Do another like the last few...