-- Valeura Energy reported Q1 production in line with expectations, while a lack of March cargo liftings led to a build-up in inventory, which is projected to support stronger revenues in the current quarter.
The Canadian energy firm reported average production of 22,300 barrels per day in the three months up to March. Sales totaled 1.39 million barrels, all of which were lifted in January and February, at an average realized price of $66.20 per barrel, generating revenue of $92.3 million.
However, with no cargoes lifted in March, crude oil inventories rose to 1.23 mmbbls at the end of the quarter, up from 620,000 barrels at year-end 2025.
Valeura said over half of this inventory has already been sold since Mar. 31, including three cargoes totaling 678,000 bbls, which were lifted in early April and will be priced at current market levels.
"Much of that production contributed to an increase in oil held in inventory, meaning sales are deferred into Q2 2026, for which we stand to benefit from stronger oil prices," Sean Guest, Valeura CEO, said, adding that the timing of sales would allow the company to benefit from firmer oil prices in Q2.
Valeura also highlighted continued investment across its portfolio, including ongoing drilling activity and progress on the Wassana field redevelopment. Capital spending in 2026 is forecast to be weighted toward the first half of the year.
The company purchased the Manora Princess floating storage and offloading vessel for $15.5 million in Q1, and ended March with cash of $261.6 million, including restricted cash, and no debt.
Going forward, Valeura said it is assessing options to accelerate development projects amid stronger oil prices.
The energy firm has approved a $7 million expansion of the Nong Yao A platform to add four well slots, with drilling readiness targeted for Q4.