Valeura Energy Inc.: Strong 2025 Delivery
SINGAPORE, March 18, 2026 (GLOBE NEWSWIRE) -- Valeura Energy Inc. (TSX:VLE, OTCQX:VLERF) (“Valeura” or the “Company”) reports its financial and operating results for the three month period and year ended 31 December 2025.
The complete reporting package including audited financial statements, management’s discussion and analysis (“MD&A”), and the 2025 annual information form (“AIF”), will be filed on SEDAR+ at www.sedarplus.ca and posted to the Company’s website at www.valeuraenergy.com.
Operations Highlights
- Oil production of 23.2 mbbls/d(1) and oil sales of 8.5 million bbls for full year 2025;
- Successful development and appraisal drilling across the portfolio on the Jasmine/Ban Yen, Manora, and Nong Yao fields;
- Proved plus probable (“2P”) reserves replacement ratio of 192%;
- Reserves life index increased to a new Company record of 7.5 years, on a 2P basis; and
- Greenhouse gas (“GHG”) intensity reduced by 12% for full year 2025, yielding approximately a 30% reduction since Valeura originally acquired its Thailand portfolio in 2023.
Strategic Highlights
- Final investment decision taken on the Wassana field redevelopment, which will entail deployment of a new-build central processing platform (“CPP”) facility on the field;
- Strategic farm-in agreement with a subsidiary of PTT Exploration and Production Plc (“PTTEP”) to pursue exploration and infrastructure-led development opportunities on Blocks G1/65 and G3/65, offshore Gulf of Thailand(2) (the “PTTEP Farm-In Agreement”); and
- Joint venture with a subsidiary of Transatlantic Petroleum LLC (“Transatlantic”) to explore and develop the deep rights formations of the Thrace basin of northwest Türkiye (the “Transatlantic JVA”).
Financial Highlights
- Revenue of US$594.4 million based on average full year realised price of US$70.2/bbl;
- Adjusted after tax cashflow from operations of US$247.4 million(3);
- Adjusted Opex of US$222.7 million, equating to US$26.3/bbl(3); and
- Cash and net cash balance as of 31 December 2025 of US$305.7 million(3,4), with no debt.
(1) Working interest share production, before royalties.
(2) Subject to approval from the Government of Thailand.
(3) Non-IFRS financial measure or non-IFRS ratio - see “Non-IFRS Financial Measures and Ratios” section.
(4) Includes restricted cash of US$23.0 million.
Dr. Sean Guest, President and CEO commented:
“Valeura delivered an exceptional 2025, one that demonstrates the power of our strategy in action. We strive to add value through disciplined organic investment and targeted inorganic transactions, all underpinned by a commitment to operational excellence.
Our decision to re-invest into our portfolio by way of the Wassana field redevelopment project is a compelling example. It has not only strengthened our core business for the long run, but has immediately grown our reserves by unlocking the Wassana field’s potential for significantly longer field life. Combined with other life-extending works across the portfolio, the result is yet another significant increase in reserves. For the third consecutive year, we have achieved approximately 200% reserves replacement ratio on a 2P basis.
Strategic transactions like our farm-in to PTTEP’s Blocks G1/65 and G3/65 demonstrate that by building the right relationships, we can meaningfully expand our portfolio. This opportunity brings both exploration opportunities and discovered resources that are expected to convert quickly into production and cash flow. We have set the scene for significant further growth. With US$306 million in cash and zero debt, we are exceptionally well-positioned to pursue larger, transformational opportunities through M&A.
Our operational performance in 2025 was equally strong. We held Adjusted Opex(1) to approximately US$26/bbl, the product of countless continuous improvement initiatives and smart structural decisions such as owning, rather than leasing, key facilities across our operations. Critically, operational excellence goes beyond costs. Despite growing our production, we reduced our absolute greenhouse gas emissions, meaning our emissions intensity was reduced for the third year in a row.
Continued execution across our business has established Valeura as one of the top-performing companies in our sector, delivering year-on-year share price growth. That delivery is amplified by the dramatically different oil price environment we find ourselves facing today, which is in stark contrast to the relatively low prices we saw through much of 2025. Our industry is no stranger to volatility, and we maintain a suite of strategic plans for how best to respond to such changes.
We have today opted to accelerate some projects, which will see us immediately invest more into our largest and most profitable producing field to facilitate more infill drilling. The US$7 million project entails adding four additional well slots to the Nong Yao A facility, which will allow us to more aggressively pursue development drilling targets at the Nong Yao field later this year. At the same time, we are reviewing various exploration and development opportunities across the portfolio to potentially accelerate as well, while remaining committed as always to our strict investment criteria.
Our strategy is working and we have laid a compelling foundation for what promises to be an even more exciting 2026 and beyond.”
(1) Non-IFRS financial measure or non-IFRS ratio – see “Non-IFRS Financial Measures and Ratios” section below.
Financial and Operating Results Summary
| Three months ended | Year ended | ||||||||
| 31 December 2025 | 31 December 2024 | Delta (%) | 31 December 2025 | 31 December 2024 | Delta (%) | ||||
| Oil Production(1) | (‘000 bbls) | 2,274 | 2,402 | -5 | % | 8,483 | 8,354 | +2 | % |
| Average Daily Oil Production(1) | (bbls/d) | 24,721 | 26,109 | -5 | % | 23,242 | 22,825 | +2 | % |
| Average Realised Price | (US$/bbl) | 64.0 | 76.7 | -17 | % | 70.2 | 81.3 | -14 | % |
| Oil Volumes Sold | (‘000 bbls) | 2,523 | 2,948 | -14 | % | 8,466 | 8,349 | +1 | % |
| Oil Revenue | (US$’000) | 161,376 | 226,148 | -29 | % | 594,372 | 678,794 | -12 | % |
| Profit (loss) before income taxes | (US$’000) | (14,642) | 55,344 | -126 | % | 62,038 | 131,851 | -53 | % |
| Net (loss) Income | (US$’000) | (12,563) | 213,983 | -106 | % | 22,771 | 240,797 | -91 | % |
| Adjusted EBITDAX(2) | (US$’000) | 70,114 | 132,247 | -47 | % | 300,420 | 377,830 | -20 | % |
| Adjusted Pre-Tax Cashflow from Operations(2) | (US$’000) | 66,096 | 133,980 | -51 | % | 269,596 | 358,171 | -25 | % |
| Adjusted Cashflow from Operations(2) | (US$’000) | 49,427 | 107,502 | -54 | % | 247,425 | 274,185 | -10 | % |
| Operating Costs | (US$’000) | 59,967 | 55,607 | +8 | % | 191,708 | 186,407 | +3 | % |
| Adjusted Opex(2) | (US$’000) | 63,900 | 54,668 | +17 | % | 222,730 | 214,891 | +4 | % |
| Operating Costs per bbl | (US$/bbl) | 26.4 | 23.2 | +14 | % | 22.6 | 22.3 | +1 | % |
| Adjusted Opex per bbl(2) | (US$/bbl) | 28.1 | 22.8 | +23 | % | 26.3 | 25.7 | +2 | % |
| Adjusted Capex(2) | (US$’000) | 54,503 | 38,870 | +40 | % | 188,692 | 134,258 | +41 | % |
| Weighted average shares outstanding – basic | (‘000 shares) | 105,731 | 106,955 | -1 | % | 106,189 | 105,778 | +0 | % |
| Year ended | |||||
| 31 December 2025 | 31 December 2024 | Delta (%) | |||
| Cash and Cash equivalents(3) | (US$’000) | 305,738 | 259,354 | +18 | % |
| Adjusted Net Working Capital(2) | (US$’000) | 261,498 | 205,735 | +27 | % |
| Shareholder's Equity | (US$’000) | 542,796 | 528,283 | +3 | % |
(1) Working interest share production before royalties.
(2) Non-IFRS financial measure or non-IFRS ratio – see “Non-IFRS Financial Measures and Ratios” section below.
(3) Includes restricted cash
Financial Update
Valeura’s 2025 financial performance was characterised by the combined effect of a relatively heavy investment phase, coupled with low benchmark oil prices. Full year Adjusted Capex(1) was US$188.7 million, which was within the Company’s spending guidance for the year, but 41% higher than 2024. Adjusted Capex(1) was largely driven by a full year of drilling operations as well as the start of the Wassana redevelopment project. While the business has remained robust and generated meaningful Adjusted Cashflow from Operations of US$247.4 million, the impact of lower benchmark oil prices is apparent in comparison to 2024 on various metrics.
The Company’s Q4 2025 oil production averaged 24,721 bbls/d (working interest share before royalties), down 5% from Q4 2024. The modest quarter-over-quarter reduction reflects the timing of the active drilling campaign, with new wells coming on production toward the end of the year and the benefit becoming visible in early 2026. For the full year, production averaged 23,242 bbls/d, broadly in line with the prior year, with output gains at the Jasmine/Ban Yen and Nong Yao fields offsetting natural declines at the Manora and Wassana fields. Full year oil sales were 8.5 million bbls, essentially flat versus 8.4 million bbls in 2024.
The Company generated Q4 2025 revenue of US$161.4 million, down 29% from Q4 2024, reflecting a weaker oil price environment. Full year 2025 revenue was US$594.4 million, also reflecting the impact of lower prices versus the prior year’s revenue of US$678.8 million. Valeura’s oil continues to attract a premium to the Brent benchmark: Q4 2025 realisations averaged US$64.0/bbl, representing a US$0.4/bbl premium, while the full year average of US$70.2/bbl reflected a US$1.6/bbl premium to Brent.
The Company’s Adjusted Opex per barrel(1) has remained well below rates at the time of Valeura’s acquisition of its Thailand portfolio, demonstrating the Company’s focus on efficiency. Q4 2025 Adjusted Opex was modestly elevated at US$28.1/bbl, primarily due to a planned underwater inspection work at the Wassana mobile offshore producing unit (“MOPU”). For the full year 2025, Adjusted Opex per barrel(1) was US$26.3/bbl, in line with US$25.7/bbl in 2024. On a year-over-year basis, Adjusted Opex(1) reflects increased maintenance expenses of the Nong Yao MOPU, for which the lease commenced in July 2024 and therefore contributed only partially to the 2024 cost base, plus expenses associated with extending the life of the Jasmine field’s Floating production storage and offloading system. These increases were largely offset by lower operating expenses in various other areas of the portfolio.
Valeura incurred total corporate and petroleum income taxes of US$2.4 million and special remuneratory benefit (“SRB”) tax of US$19.8 million, during the full year 2025. This compares favourably to US$68.3 million and US$29.2 million in the previous year. The substantial reduction in petroleum income taxes is a direct result of the Company’s more optimised tax structure, implemented through its internal restructuring of subsidiaries effective 01 November 2024. Under the new structure, Valeura is using income tax loss carry-forwards originating from its acquisition of the Wassana field to offset taxable income from all of its Thai III petroleum concessions, being Wassana, Nong Yao, and Manora. As at 31 December 2025, Valeura had cumulative tax loss carry-forwards of US$282.8 million. The decrease in SRB was driven by reduced selling prices, resulting in lower taxable income for SRB purposes.
Valeura closed 2025 with a cash position of US$305.7 million, including US$23.0 million in restricted cash, an 18% increase year-on-year. The Company remains entirely debt-free and is optimally positioned to pursue both organic portfolio investment and value-accretive strategic acquisitions.
Operations Update and Outlook
During 2025, Valeura had ongoing production operations at all of its Gulf of Thailand fields including Jasmine, Manora, Nong Yao, and Wassana. Total working interest share oil production before royalties averaged 24,721 bbls/d during Q4 2025 and 23,242 bbls/d for the full year (all production figures are working interest share before royalties). One drilling rig was under contract for the full year.
Jasmine/Ban Yen
Oil production before royalties from the Jasmine/Ban Yen field, in Licence B5/27 (100% operated interest) averaged 8,711 bbls/d during Q4 2025. The Company drilled one deviated and eight horizontal wells on the Jasmine and Ban Yen fields, targeting unswept oil accumulations within producing reservoirs. All nine wells were successful and have been completed as producers. Production rates increased from approximately 7,300 bbls/d over the seven-day period prior to the drilling programme to approximately 8,600 bbls/d over the seven-day period immediately after, and have since continued to climb, reaching an average of approximately 9,000 bbls/d over the first 10 days of March 2026.
Licence B5/27 continues to deliver strong production performance, despite being the most mature asset in the Company’s portfolio. In addition to driving higher production rates, ongoing drilling efforts are identifying further oil accumulations that create opportunities for potential development. This incremental resource growth enhances the Jasmine/Ban Yen field’s ultimate recovery potential and supports an extended economic life for the field.
In addition, Valeura is assessing additional exploration prospects within other parts of the concession area to be incorporated into a future drilling campaign.
Nong Yao
The Company’s Q4 2025 working interest share oil production before royalties from the Nong Yao field, in Licence G11/48 (90% operated working interest), averaged 11,009 bbls/d. Although no wells were drilled during Q4 2025, oil production rates continue to demonstrate the impact of the successful ten-well drilling programme completed in Q3 2025.
The Nong Yao field is the Company’s largest source of oil production and offers several opportunities for further growth. This includes the 2024 discovery of the Nong Yao D accumulation, additional prospects to the south of the field, and the potential to access accumulations on the adjacent Block G3/65, within an oil prone fairway known as Nong Yao Northeast.
In addition, Valeura sees further opportunities to add to production in the vicinity of the Nong Yao A facility. As a result, the Company has decided to pursue a production acceleration strategy which will entail expanding the Nong Yao A facility with four additional well slots and related flow lines. This will enable further infill drilling without requiring existing wells to reach the end of their productive lives before being repurposed as donor slots for new wells. The project is budgeted at approximately US$7 million (Valeura’s working interest share). Engineering work will commence immediately, leading to construction in the second half of 2025 and a slot readiness target of November 2026.
Wassana
During Q4 2025, oil production before royalties from the Wassana field, in Licence G10/48 (100% operated interest) averaged 2,856 bbls/d. No wells were drilled on the licence in Q4 2025. Ongoing work on the production facility (the MOPU Ingenium) consists of routine maintenance and repairs to maintain the facility in good working order prior to the Wassana field redevelopment project coming online.
In May 2025, Valeura took a final investment decision on the Wassana field redevelopment project, which entails building and deploying a CPP facility on the Wassana field. As at 31 December 2025, the project was approximately 45% complete, and has since progressed to approximately 56% completion. The Wassana field redevelopment project is on schedule and on budget for installation of the new CPP facility in late 2026 with first production targeted for Q2 2027. The Wassana redevelopment project is expected to more than double the production from the Wassana field, reduce unit costs, and importantly extend production from the field into the 2040’s. In addition, the new Wassana CPP is expected to serve as a hub for eventual tie-in of potential additional satellite wellhead platforms.
Valeura is evaluating development options for additional oil accumulations on Block G10/48 and is considering additional exploration and appraisal opportunities to be potentially included in its 2026 drilling programme. Valeura is evaluating drilling targets to further appraise the size of potential satellite oil accumulations, subject to its approach of continually optimising the exploration and appraisal drilling programme.
Manora
Valeura’s working interest share production before royalties from the Manora field, in Licence G1/48 (70% operated working interest) averaged 2,145 bbls/d during Q4 2025.
No wells were drilled on Licence G1/48 during Q4 2025, but the Company drilled a three-well campaign on the Block in January and February 2026 comprised of two infill development targets and one appraisal well. On 09 March 2026, Valeura announced that all wells were successful and notably the appraisal well was found to be optimally positioned for use as a production well. As a result, all three wells have been completed as oil producers and are now on stream.
Blocks G1/65 and G3/65
On 25 July 2025, Valeura announced that it had entered into the PTTEP Farm-In Agreement to earn a 40% non-operated working interest in Blocks G1/65 and G3/65 (the “Blocks”), in the offshore Gulf of Thailand. To earn its interest, Valeura will pay 40% of actual back costs related to the Blocks and will carry PTTEP on an additional seismic survey to the northeast of the Nong Yao field. Upon completion (which is subject to the approval of the Government of Thailand), the PTTEP Farm-in Agreement will result in a substantial expansion of Valeura’s gross acreage position in Thailand from 2,623 km2 to 22,757 km2 and will provide access to discoveries and exploration prospects that can be tied back quickly to existing oil and gas infrastructure.
During Q4 2025, Valeura and PTTEP progressed development planning pertaining to the gas discovery made on Block G3/65 earlier in 2025 in combination with several historic discoveries, all which are covered by existing 3D seismic data. In addition, newly acquired 3D seismic data covering several other focus areas on the Blocks is being processed and results are expected to be delivered in mid-2026. This new 3D seismic data will inform further discussions about potential exploration, appraisal, and development opportunities on the Blocks.
Valeura is currently working in partnership with PTTEP and independent experts to assess the full resource potential of the Blocks and intends to disclose its findings in the first half of 2026.
Türkiye Deep Gas Play
On 15 October 2025, Valeura announced that it had entered into the Transatlantic JVA to explore for and develop hydrocarbons in the deep gas play in the Thrace basin of northwest Türkiye. Transatlantic was granted an opportunity to earn a 50% working interest in Valeura’s lands in Türkiye through two phases of operations; first, through the re-entry and testing of the Company’s Devepinar-1 exploration well, and second, by an option to drill a new deep appraisal well.
Activity began in the Thrace Basin lands in Q4 2025 including hydraulic stimulation and testing of the Devepinar-1 well. Following gas flowing to surface through the well’s casing, Transatlantic has opted to equip the well with production tubing to conduct a longer-term production test, which is currently underway. As a result of the work performed to date on the Devepinar-1 well, Transatlantic is entitled to a 50% undivided working interest in the western portion of the Company’s lands, as more fully described in Valeura’s 15 October 2025 press release, with the actual assignment of interest to occur in due course.
Reserves and Resources Summary
The results of Valeura’s third-party independent reserves and resources assessment for its Thailand assets as of 31 December 2025 were announced on 13 February 2026. Below are summary tables associated with the reserves.
Summary of Reserves Replacement, Value, and Field Life
| Fields | Gross (Before Royalties) 2P Reserves, Working Interest Share | End of Field Life | 2P NPV10 After Tax (US$ million) | |||||||
| 31 December 2024 (MMbbls) | 2025 Production (MMbbls) | Additions (MMbbls) | 31 December 2025 (MMbbls) | Reserves Replacement Ratio (%) | NSAI 2024 Report | NSAI 2025 Report | 31 December 2024 | 31 December 2025 | ||
| Jasmine | 16.8 | (3.0) | 7.4 | 21.2 | 249 | % | Aug-31 | Oct-34 | 163.9 | 177.2 |
| Manora | 3.4 | (0.8) | 0.4 | 2.9 | 47 | % | Apr-30 | Aug-31 | 45.7 | 17.2 |
| Nong Yao | 16.9 | (3.6) | 0.6 | 13.9 | 16 | % | Dec-33 | Sep-33 | 416.1 | 257.4 |
| Wassana | 12.9 | (1.2) | 7.9 | 19.7 | 686 | % | Dec-35 | Dec-41 | 126.6 | 240.1 |
| Total | 50.0 | (8.5) | 16.3 | 57.8 | 192 | % | 752.2 | 692.0 | ||
Summary of NPV and NAV
| NAV Estimate | 1P(1) NPV10 | 2P NPV10 | 3P(2) NPV10 | |||
| Before Tax | After Tax | Before Tax | After Tax | Before Tax | After Tax | |
| NPV10 (US$ million) | 401.1 | 370.6 | 871.9 | 692.0 | 1,304.6 | 947.9 |
| Cash at 31 December 2025 (US$ million)(3) | 305.7 | 305.7 | 305.7 | 305.7 | 305.7 | 305.7 |
| Net Asset Value (US$ million) | 706.8 | 676.3 | 1,177.6 | 997.7 | 1,610.3 | 1,253.6 |
| Common shares (million)(4) | 105.5 | 105.5 | 105.5 | 105.5 | 105.5 | 105.5 |
| Estimated NAV per basic share (C$ per share)(5) | 9.2 | 8.8 | 15.3 | 13.0 | 20.9 | 16.3 |
(1) Proved reserves (“1P”)
(2) Proved plus probable plus possible reserves (“3P”)
(3) Cash at 31 December 2025 of US$305.7 million
(4) Issued and outstanding common shares of Valeura as at 31 December 2025
(5) US$/C$ exchange rate of 1.3722 at 31 December 2025
Webcast
Valeura’s management team will host an investor and analyst webcast at 08:00 Calgary / 14:00 London / 21:00 Bangkok / 22:00 Singapore on Thursday, 19 March 2026 to discuss today’s announcement. Please register in advance via the link below.
Registration link: https://events.teams.microsoft.com/event/af43254e-4f10-4c6e-b6fa-f6ed38abe3f4@a196a1a0-4579-4a0c-b3a3-855f4db8f64b
As an alternative, an audio only feed of the event is available by phone using the Conference ID and dial-in numbers below.
Thailand: +66 2 026 9035,,922648874#
Singapore: +65 6450 6302,,770 821 822#
Canada: (833) 845-9589,,770 821 822#
Türkiye: 0800 142 034779,,770 821 822#
United States: (833) 846-5630,,770 821 822#
United Kingdom: 0800 640 3933,,770 821 822#
Phone conference ID: 770 821 822#
For further information, please contact:
Valeura Energy Inc. (General Corporate Enquiries) +65 6373 6940
Sean Guest, President and CEO
Yacine Ben-Meriem, CFO
Contact@valeuraenergy.com
Valeura Energy Inc. (Investor and Media Enquiries) +1 403 975 6752 / +44 7392 940495
Robin James Martin, Vice President, Communications and Investor Relations
IR@valeuraenergy.com
Contact details for the Company’s advisors, covering research analysts and joint brokers, including Auctus Advisors LLP, Beacon Securities Limited, Canaccord Genuity Ltd (UK), Cormark Securities Inc., Research Capital Corporation, Roth Canada Inc., and Stifel Nicolaus Europe Limited, are listed on the Company’s website at www.valeuraenergy.com/investor-information/analysts/.
About the Company
Valeura Energy Inc. is a Canadian public company engaged in the exploration, development and production of petroleum and natural gas in Thailand and Türkiye. The Company is executing a growth-oriented strategy, reinvesting into its producing asset portfolio while deploying capital toward further organic and inorganic growth across Southeast Asia. Valeura is committed to delivering value-accretive growth for all stakeholders, underpinned by high standards of environmental, social and governance responsibility.
Additional information relating to Valeura is also available on SEDAR+ at www.sedarplus.ca.
Oil and Gas Advisories
Reserves and contingent resources disclosed in this news release are based on an independent evaluation conducted by the incumbent independent petroleum engineering firm, NSAI with an effective date of 31 December 2025. The NSAI estimates of reserves and resources were prepared using guidelines outlined in the Canadian Oil and Gas Evaluation Handbook and in accordance with National Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities. The reserves and contingent resources estimates disclosed in this news release are estimates only and there is no guarantee that the estimated reserves and contingent resources will be recovered.
This news release contains a number of oil and gas metrics, including “NAV”, “reserves replacement ratio”, “RLI”, and “end of field life” which do not have standardised meanings or standard methods of calculation and therefore such measures may not be comparable to similar measures used by other companies. Such metrics are commonly used in the oil and gas industry and have been included herein to provide readers with additional measures to evaluate the Company’s performance; however, such measures are not reliable indicators of the future performance of the Company and future performance may not compare to the performance in previous periods.
“NAV” is calculated by adding the estimated future net revenues based on a 10% discount rate to net cash, (which is comprised of cash less debt) as of 31 December 2025. NAV is expressed on a per share basis by dividing the total by basic common shares outstanding. NAV per share is not predictive and may not be reflective of current or future market prices for Valeura.
“Reserves replacement ratio” for 2025 is calculated by dividing the difference in reserves between the NSAI 2025 Report and the previous independent engineering evaluation of the reserves attributable to the Company’s four licences in the offshore Gulf of Thailand prepared by NSAI, plus actual 2025 production, by the assets’ total production before royalties for the calendar year 2025.
“RLI” is calculated by dividing reserves by management’s estimated total production before royalties for 2026.
“End of field life” is calculated by NSAI as the date at which the monthly net revenue generated by the field is equal to or less than the asset’s operating cost.
Reserves
Reserves are estimated remaining quantities of commercially recoverable oil, natural gas, and related substances anticipated to be recoverable from known accumulations, as of a given date, based on the analysis of drilling, geological, geophysical, and engineering data, the use of established technology, and specified economic conditions, which are generally accepted as being reasonable. Reserves are further categorised according to the level of certainty associated with the estimates and may be sub-classified based on development and production status.
Proved reserves are those reserves that can be estimated with a high degree of certainty to be recoverable. It is likely that the actual remaining quantities recovered will exceed the estimated proved reserves.
Developed reserves are those reserves that are expected to be recovered from existing wells and installed facilities or, if facilities have not been installed, that would involve a low expenditure (e.g., when compared to the cost of drilling a well) to put the reserves on production.
Developed producing reserves are those reserves that are expected to be recovered from completion intervals open at the time of the estimate. These reserves may be currently producing or, if shut in, they must have previously been on production, and the date of resumption of production must be known with reasonable certainty.
Developed non-producing reserves are those reserves that either have not been on production, or have previously been on production, but are shut in, and the date of resumption of production is unknown.
Undeveloped reserves are those reserves expected to be recovered from known accumulations where a significant expenditure (e.g., when compared to the cost of drilling a well) is required to render them capable of production. They must fully meet the requirements of the reserves classification (proved, probable, possible) to which they are assigned.
Probable reserves are those additional reserves that are less certain to be recovered than proved reserves. It is equally likely that the actual remaining quantities recovered will be greater or less than the sum of the estimated proved plus probable reserves.
Possible reserves are those additional reserves that are less certain to be recovered than probable reserves. It is unlikely that the actual remaining quantities recovered will exceed the sum of the estimated proved plus probable plus possible reserves. There is a 10% probability that the quantities actually recovered will equal or exceed the sum of the estimated proved plus probable plus possible reserves.
The estimated future net revenues disclosed in this news release do not necessarily represent the fair market value of the reserves associated therewith.
The estimates of reserves and future net revenue for individual properties may not reflect the same confidence level as estimates of reserves and future net revenue for all properties, due to the effects of aggregation.
Contingent Resources
Contingent resources are those quantities of petroleum estimated, as of a given date, to be potentially recoverable from known accumulations using established technology or technology under development, but which are not currently considered to be commercially recoverable due to one or more contingencies. Contingencies are conditions that must be satisfied for a portion of contingent resources to be classified as reserves that are: (a) specific to the project being evaluated; and (b) expected to be resolved within a reasonable timeframe.
Contingent resources are further categorised according to the level of certainty associated with the estimates and may be sub‐classified based on a project maturity and/or characterised by their economic status. There are three classifications of contingent resources: low estimate, best estimate and high estimate. Best estimate is a classif