SINGAPORE, Aug 15 (Reuters) - Valeura Energy ( VLERF )

said on Thursday it has started producing oil at the Nong Yao C

development in the Gulf of Thailand and plans to ramp up output

in the coming weeks.

Production began on Aug. 15 from three of the seven planned

development wells, it said in a statement.

The company expects to ramp up output to approximately

11,000 barrels per day (bpd) in the coming weeks and to maintain

this production rate for the rest of the year. The Nong Yao

development holds nearly 10 million barrels in proved crude oil

reserves, according to estimates on Valeura's website.

"Our drilling programme has successfully appraised several

upside targets, which we expect will both contribute to reserves

and resources when evaluated at year end, and may form the basis

of future infill drilling to sustain volumes further into the

future," said Sean Guest, president and CEO of Valeura Energy ( VLERF ).

Valeura Energy ( VLERF ), a Canadian company, focuses on the

exploration, development and production of petroleum and natural

gas in Southeast Asia and Turkey.