11:44 AM EDT, 07/10/2024 (MT Newswires) -- Valeura Energy ( VLERF ) on Wednesday reported second-quarter oil production of 21,100 barrels per day (b/d), a drop of 4% from the prior quarter.

The company, which operates in Turkiye and Thailand, said scond-quarter production was affected by natural declines in line with company expectations. Most drilling activity was focused on either exploration or development wells expected to come online in the third quarter.

Oil sales of 1.9 million barrels in the second quarter topped the previous quarter.

At the end of the second quarter Valeura held crude oil inventory of 0.9-million barrels, approximately the same as the inventory at the start of the quarter.

Second-quarter oil revenue rose 10% from the prior quarter to US$164.0 million due to higher liftings and a higher realized price of US$87.70/barrel on average, a US$2.70/barrel premium over the Brent crude oil benchmark.

Through the Nong Yao C development project, the company is targeting an increase in output from the greater Nong Yao area from around 7,000 b/d to 11,000 b/d. First oil from the Nong Yao C development is planned for the third quarter.

Valeura expects Nong Yao to be the largest source of production growth in 2024 and the largest single source of production in the portfolio.

On June 28, Valeura suspended production as a precaution after a scheduled underwater inspection of the mobile offshore production unit (MOPU) at the Wassana field identified a crack within a weld on one of the facility's three steel legs.

A review of the findings has suggested that the crack may be superficial and may not indicate a risk to the structural integrity of the MOPU. Valeura is preparing to conduct a more advanced underwater inspection, scheduled to be completed around the end of July.

Following a 2023 appraisal drilling program confirming the presence of oil deeper than previously demonstrated in the Wassana field, Valeura has assessed the potential for a redevelopment of the field to yield an increase in production and extension of the field's economic life.

Valeura has awarded a contract for front end engineering and design (FEED) work for the redevelopment to Thai Nippon Steel Engineering & Construction. Following the FEED study, Valeura will consider a final investment decision by the end of 2024.

Valeura will release its second-quarter financial and operating results on Aug. 8.

The company's shares were last seen up $0.25 to $4.55 on the Toronto Stock Exchange.

Price: 4.55, Change: +0.25, Percent Change: +5.81