Under the terms of the Farm-in, Valeura is entitled to earn a 40% working interest in the Blocks, with PTTEP holding the remaining 60% and continuing to operate. The parties have agreed to a work programme for 2025 that includes drilling four exploration wells (all recently completed) and acquiring just over 1,200 km2 of new 3D seismic data. To earn its interest, Valeura will pay 40% of actual back costs (US$14.7 million to June 30, 2025). These costs include the recently completed four-well 2025 drilling programme, geological and geophysical studies, PSCs signature bonuses, and general and administrative costs incurred since the Blocks were awarded in March 2023. Valeura will also carry PTTEP on an additional seismic acquisition (requested by Valeura) of approximately 165 km2 on Block G3/65, located to the northeast of the Nong Yao field – capped at US$3.7 million (gross). For costs thereafter, each of PTTEP and Valeura will pay their respective pro rata share.
The Blocks are governed by the terms of Production Sharing Contracts (“PSCs”) granted by the Thailand Government through the Ministry of Energy which set out fiscal terms including a royalty payable to the Thailand Government at 10% of gross revenue, provisions for cost recovery up to 50% of gross revenue, and profits thereafter shared 50% government / 50% contractor. The corporate income tax rate on contractor net profit is 20%.
The PSCs provide for a six-year exploration period, during which a total of eight wells must be drilled (five on G1/65 and three on G3/65), and 800 km2 of 3D seismic must be acquired (500 km2 in G1/65 and 300 km2 in G3/65) before the end of the exploration period in May 2029. A three-year extension to the exploration period may be provided thereafter. Fields developed under the PSC regime are given a 20-year production period, with a potential 10-year extension thereafter.
Closing of the Farm-in is subject to the approval of the Government of Thailand.
Block G1/65
Block G1/65 comprises a gross area of 8,487 km2 immediately south of Valeura’s B5/27 block (Jasmine/Ban Yen fields, 100% Valeura interest) and west of PTTEP-operated large gas fields (Erawan, Platong, and Benchamas, currently producing 900 mmcf/d, 27 mbbls/d condensate, and 23 mbbls/d oil, respectively, based on May 2025 production data disclosed by Thailand’s Department of Mineral Fuels). The block is approximately 240 km long covering the north-western flank of the Pattani basin, the most prolific basin in the Gulf of Thailand, and encircles the Rossukon oil field (2% Valeura gross royalty interest). The block includes eight oil and gas discoveries, supported by 12 wells which encountered oil and gas pay, as well as several undrilled prospective trends.
Block G3/65
Block G3/65 comprises a gross area of 11,647 km2, bounding Valeura’s G11/48 block in the north (Nong Yao field, 90% Valeura working interest) and is immediately west of the large PTTEP-operated Bongkot gas field, which currently produces 850 mmcf/d gas and 24 mbbls/d condensate, based on May 2025 production data disclosed by Thailand’s Department of Mineral Fuels. The block is approximately 200 km long covering the northwest flank of the North Malay basin, and has seven identified oil and gas discoveries, supported by 15 wells with oil and gas pay.