Valeura Energy has bought the Nong Yao field’s FSO Aurora for $19 million, and expanded the drilling program at its Wassana field in light of favorable initial results.
In a February 13 update shared by the company, Valeura said it had exercised its purchase option to acquire the Nong Yao field’s FSO Aurora, which it had previously leased from the seller, a member of the Omni Offshore Terminals group.
Purchase price for the vessel is $19 million, and will be funded with the company’s cash resources upon completion of the transaction, anticipated in June 2024.
Given the pending expansion of the field and potential future developments, Valeura anticipates that owning, as opposed to leasing the FSO will provide operational flexibility and allow the company to optimize operating expenses.
Also, the MOPU TSeven Shirley, recently unveiled by Malaysian energy industry services provider T7 Global, is being mobilized to the Nong Yao field, where Valeura holds 90% working interest, ahead of development of the Nong Yao C accumulation.
Upon arrival, the MOPU will be connected to the pipeline that has been already installed from the existing Nong Yao field infrastructure, and will serve as the wellhead production platform for the Nong Yao C field development.
Following hook-up and commissioning work, Valeura intends to conduct an initial drilling program of up to nine development wells (six producers and three water injectors).
First production from the Nong Yao C extension is expected in late second quarter of 2024, according to Valeura.
When fully on stream in the months thereafter, the company is targeting peak production rates from the greater Nong Yao field totalling approximately 11,000 bbls/d.
Wassana Drilling Program Increased to Five Wells
Valeura is currently conuducting a development drilling program on its Wassana field, where it holds 100% working interest.
In light of favorable initial results, the Canadian company has opted to expand the scope of the program from three horizontal wells to five.
All three wells drilled so far have encountered their targets in line with expectations. The first two wells have been tested and, in their first seven days of production, resulted in total field output increasing to more than 4,000 bbls/d.
The third well will be brought online in the coming days, Valeura said.
The Company intends to continue drilling on the Wassana field, to a total of five wells, after which the rig – Borr Drilling’s Mist jack-up – will mobilize to the Nong Yao field to begin Nong Yao C development drilling.
“The Wassana field continues to surprise to the upside. When we first acquired the asset, we envisaged that it would take five additional wells to develop the deeper reservoir intervals and to achieve rates of 4,500 bbls/d. With having demonstrated over 4,000 bbl/d with just the first two horizontal wells, and a third to be brought onstream shortly, we are raising our expectations for the potential of the field in the near term.
“Notably, this success is in advance of the larger-scale redevelopment we are now considering for the Wassana field. The concept select phase of the Wassana re-development project is progressing well, and we anticipate taking an investment decision later this year,” said Sean Guest, President and CEO of Valeura.