Valeura Energy Inc. has approved a Final Investment Decision to proceed with an initial gas development at the Bussabong gas field in the offshore Gulf of Thailand, marking the Canadian company's first organic gas development in its Thailand portfolio and its first step into gas production in the country.

The decision, announced on September 22, 2026, was taken alongside partner PTTEP Energy Development Company Limited, a subsidiary of PTT Exploration and Production Public Company Limited, which operates the block. Valeura holds a 40% non-operated working interest in Block G3/65, where the Bussabong field is located.

A First Gas Milestone for Valeura in Thailand

The approval comes 14 months after Valeura entered into its farm-in arrangement with PTTEP, a timeline that President and CEO Dr. Sean Guest described as rapid.

In a statement accompanying the announcement, Guest said the decision sets the company on a course to broaden and diversify its business in the Gulf of Thailand.

"Phase 1 is set to unfold quickly, with first gas planned for approximately the end of 2028," Guest said. "This quick action reflects PTTEP's customary streamlined approach and underscores the importance of establishing this strategic relationship."

Bussabong is a gas field in the eastern portion of Block G3/65, characterized by geological similarities to many other gas fields in the offshore Gulf of Thailand.

The field's reservoirs are divided into multiple fault-block compartments, a structure that Valeura says lends itself to a phased, repeatable development model. An exploration well drilled in 2025 was successful, prompting PTTEP and Valeura to immediately engage in development planning.

Phase 1 Infrastructure Design

The initial development phase involves the deployment of two wellhead platforms, each equipped with 24 well slots, to be installed toward the northern end of the Bussabong field in water depths ranging from 75 to 90 meters.

The platforms will be tied into existing processing infrastructure at the Bongkot gas field, located nine kilometres to the east in the neighbouring Block G2/61, via a 12-inch seabed pipeline.

Bongkot is also operated by PTTEP, and the company has indicated that no new processing capacity will be required to accommodate production from Bussabong. Valeura noted that both construction and ongoing maintenance are expected to benefit from PTTEP's optimised supply chain, given the operator's position as the dominant gas producer in Thailand.

Thailand's upstream regulator has already approved a defined production area for the Bussabong field. Valeura said it envisages further final investment decisions in the coming years, subject to the outcome of step-out exploration and appraisal drilling.

Capital Expenditure Spread Across Two Years

Net to Valeura's 40% working interest, capital spending associated with facilities, installation, and pipelines is expected to total approximately USD 35 million, to be deployed across 2027 and 2028. No material spending in connection with the development is planned for 2026.

In addition to the facilities capex, the company anticipates drilling expenditure for the currently planned 25 development wells in the range of USD 20 million to USD 25 million, also representing Valeura's 40% share. The combined capital program therefore represents a net investment to Valeura of between USD 55 million and USD 60 million over the two-year period.

Guest characterised the capital outlay as modest, attributing it partly to the resource synergies available through PTTEP as operator, and partly to the initial nature of the development phase.

Production Targets and Gas Characteristics

According to guidance provided by the operator, the facilities and wells planned under Phase 1 are intended to deliver sales gas production of approximately 30 million cubic feet per day on a gross basis in 2029, representing 12 million cubic feet per day attributable to Valeura's working interest share. Production is then expected to increase to approximately 40 million cubic feet per day gross, or 16 million cubic feet per day net to Valeura, in 2030.

Based on samples collected during exploration drilling, the gas at Bussabong is expected to be relatively dry, with approximately 20 barrels of condensate per million cubic feet of gas.

In line with standard practice in Thailand, PTTEP will work with regulators and the gas customer to formalize a gas sales agreement following the FID. The gas sales price is expected to reflect established pricing frameworks in the country.

A Platform for Future Development

Valeura has framed Phase 1 explicitly as a development template intended to be repeated across further phases of the field's commercialisation. The Bussabong production area is described as offering significant appraisal and exploration upside already identified through pre-existing 3D seismic data, with further phased development possible in the future.

The field was covered by 3D seismic data and contained several historic gas discoveries before Valeura entered the farm-in agreement with PTTEP. Guest described Phase 1 as the first step in a methodical approach to build production materiality and longevity, both from Bussabong and from other oil and gas focus areas identified on Block G3/65.

Valeura Energy trades on the Toronto Stock Exchange under the ticker VLE and on the OTCQX under the ticker VLERF.

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