Valeura Makes Three Oil Discoveries Offshore Thailand

In Wassana, where Calgary City, Canada-based Valeura holds a 100 percent stake, the Niramai 4 well hit over 90 feet of oil payzone across two reservoirs, the company said in a press release. Niramai 4 was drilled to 7,312 feet. Niramai-4 sits about one kilometer (0.6 miles) northeast of the Niramai 1 discovery, according to Valeura.

The second new discovery in the Wassana field, Niramai 4 ST1, is a sidetrack well of Niramai 4. Drilled 12,388 feet to test the separate Wassana North fault block north of the Wassana field, the sidetrack encountered around 40 feet of oil payzone, the public exploration and production company said.

“The deepest oil-bearing zone is of particular interest in that the wellbore intersected the reservoir significantly downdip of the crest and oil is interpreted to be present to the base of the reservoir, with no oil-water contact identified in the well”, Valeura said of Niramai 4 ST1.

“This indicates further potential, both deeper than penetrated, and more laterally expansive in the updip portion of the structure”, it added.

“While reservoir properties and volumetric estimates are still being calculated for both wells, when combined with the pre-existing Niramai volumes, the total recoverable volumes are believed to exceed management’s requirements to support an additional future development on the G10/48 block.

“Such a development expansion is beyond the scope of the Wassana field re-development project currently being evaluated, but has the potential to extend production and the life of the concession beyond its current economic limit in 2032”.

Valeura expects to add the new volumes to its yearend reserves declaration.

Meanwhile in the Nong Yao D area, the Nong Yao 13 well discovered over 30 feet of oil payzone across several intervals after being drilled to 5,399 feet of measured depth (3,342 feet of true vertical depth), Valeura said.

“Importantly, this result confirms that oil has successfully migrated into this area of the block, a factor that was seen to be a risk in the Nong Yao D area”, Valeura said referring to the G11/48 block, where it holds a 90 percent working interest.

“The particular intervals comprising the discovery are relatively shallow new zones which have not been produced elsewhere on the concession.

“These reservoirs are believed to be recurring across the Nong Yao D area and further analysis on the seismic data is warranted. This work will seek out potential locations for follow-up exploration and appraisal drilling in the vicinity, with the ultimate objective of amassing sufficient volumes to justify a future development”.

Current production in the Nong Yao field is approximately 8,900 barrels per day (bpd) net to Valeura, consisting of medium sweet crude from Miocene-age reservoirs, according to the company. The field has been assessed to hold proven and probable reserves of 12.4 million barrels gross.

Valeura has mobilized the contracted rig that drilled the three new discoveries to two infill development wells on the Nong Yao A platform. “Thereafter, and once commissioning work is complete on the Nong Yao C Mobile Offshore Production Unit, the rig will begin development drilling on the Nong Yao C accumulation”, Valeura said. It targets to start production in Nong Yao C in the third quarter.

In the first quarter, Valeura produced 21,900 bpd, according to its quarterly financial results release published April 10.

“The increased production reflects strong performance of the new wells at the Wassana field, but was slightly offset by shutdowns for scheduled maintenance at two of our fields to ensure ongoing world class standards for integrity”, president and chief executive Sean Guest said in a statement at the time. The two fields put offline were the Jasmine and Manora fields in Thailand; Valeura also has assets in Turkiye.

The results announcement said the two fields have been returned to production by the end of the quarter, resulting in an aggregate company output rate of 23,000 bpd.

“Overall production performance has been in line with management’s plan, and accordingly, Valeura is pleased to re-iterate its full year 2024 production guidance outlook of 21.5 – 24.5 mbbls/d”, Valeura said in the April 10 news release.