Valeura Energy (TSX:VLE, OTCQX:VLERF) has completed drilling at its Nong Yao field in the Gulf of Thailand, with the rig now on location at the Wassana field.
The rig drilled four wells at the Nong Yao A wellhead processing platform, of which three production wells are now up and running. The fourth, an appraisal well, has “exceeded expectations” with around 50 feet of new net oil pay over several intervals.
Valeura said this should provide two to four more development targets, which it could pursue through a future infill drilling campaign.
“I am pleased to see continuing success at the Nong Yao field,” said Valeura CEO Sean Guest. “This campaign focused on the area first developed at Nong Yao, and illustrates our team’s ability to add volumes through infill drilling and to extend the economic life of our legacy producing assets.”
The rig is now ready to begin drilling three more production wells at Wassana. Once it has completed this work, it will return to Nong Yao in the first quarter of next year. There, it will begin the Nong Yao C development.
Guest said this was part of the company’s growth plan. He said infrastructure installation and drilling would begin early next year.
Wassana rising
Valeura restarted production at Wassana on December 8. At the time, the company said its infill drilling plan would focus on deeper reservoir intervals at the field. Guest said the work should increase production capacity at Wassana to more than 4,000 barrels per day.
The company is also working to follow up two appraisals drilled on Wassana in the third quarter this year. “Concept selection work is progressing with excitement as we begin to re-frame the Wassana asset as a meaningful source of organic growth within our portfolio. We anticipate taking a final decision on the expansion in 2024,” said the CEO.
Valeura ran into some challenges on the Wassana field, with shortcomings from the contractor. Buana Lintas Lautan Group continues to own the MT Jaka Tarub, the FSO on Wassana. However, Valeura has appointed Three60 Energy Group to operate.
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