Canadian operator Valeura Energy has agreed to make an entry in Southeast Asia's offshore oil and gas sector with the acquisition of Thailand assets from the bankrupt operator KrisEnergy.

The acquisition covers two shallow-water blocks in the Gulf of Thailand - an 89% operated interest in the G10/48 licence which contains the suspended Wassana oilfield, and a 43% operated interest in G6/48 which hosts the undeveloped and fully appraised Rossukon oil discovery.

Valeura will make a total initial cash payment of US$3.1 million, followed by contingent payments of up to US$7 million based on development milestones.

In addition, Valeura has agreed to buy the mobile offshore production unit Ingenium - also out of receivership - for US$9.2 million over 14 months.

Valeura said total proved and probable reserves are 4 million barrels of oil, plus best estimate contingent unrisked resources of 13.3 million barrels of oil equivalent incuding the Rossukon opportunity of 5 million barrels of oil.

Re-activation of the Wassana oilfield is targeted in the fourth quarter this year at an anticipated rate of 3000 barrels per day of oil net.

The Rossukon discovery has a regulator-approved development plan that contemplates peak oil production of 12,000 bpd on a gross basis and has a first-oil requirement of November 2023.

Valeura is contemplating a reduced scope early development plan that could yield production sooner and with lower capex, but with a lower and flatter production profile.

To bring Wassana back on line, a recertification of the MOPU is necessary and bringing on site an FSO under a long-term lease.

Planning for the MOPU recertification is under way and a new FSO has already been identified via tendering, with commercial agreements to be executed once the acquisition closes, said Valeura.

Sean Guest, the company's chief executive, said: "The acquisition will rapidly transform Valeura into a significant licence holder and new oil producer in Thailand, and in doing so will establish a platform for our goal to acquire further high-value cash flowing assets in the region.

"I am pleased to be working again in Southeast Asia and to add a regionally experienced leadership team with decades of experience in addition to a very capable local operating unit in Thailand.

"Once on production, we anticipate near-term cash flows of approximately US$9 million per quarter based on current benchmark prices, which underscores the highly accretive nature of the deal to Valeura's value. In addition, we are eager to re-invigorate the development of the Rossukon oil field, which we believe has the potential to more than double overall production from these assets."

Singapore-based KrisEnergy was a dynamic mid-size Southeast Asian operator but following an extended period of low oil prices filed a winding up petition in June 2021.

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