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Stockchase Insights Valeura Energy Inc. VLE-T PARTIAL BUY Sep 05, 2025

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

VLE is now $809M market cap, up 5% for the year and trading at 6.5X earnings. In the Q2, EPS of 5c missed estimates of 11.4c; revenue of $129.2M beat estimates of $116.9M. EBITDA of $62.4M beat estimates by 5%. Oil production was averaged 21,400 b/d. Cash is $242M with no debt. Current production is 23,150 b/d up 8%. It has made a 'go' decision on the Wassana field and has started construction. There are risks here, but with the very strong balance sheet and very low valuation, we would be comfortable continuing to hold a small position.
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$7.360

Stock price when the opinion was issued

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TOP PICK

They are in partnership with Stat Oil. The first well was to find the edge of the basin. They are cashed up 2 to 4 years. It could be one of the largest gas discoveries. (Analysts' target: $9.88).

WATCH

Not for the faint of heart. He still likes it, but does not hold it. A new discovery in a new country makes for enormous volatility and the latest report was disappointing. As more drilling comes to prove out the discovery, having Statoil as a partner will assist going forward.

BUY ON WEAKNESS

He owns this and likes the build out of their assets in Turkey. This will continue to take time and the stock will move up and down with the news. This recent discovery could be truly company building. He likes that Statoil has stepped in as a partner to help delineate the property. A long term hold that he continues to add to on pullbacks.

BUY

He has owned it and it will be a Top Pick in the next couple of months. They have a massive discovery in gas. Some of their recent drilling results were not headline results but they are moving in the right direction. As they delineate the discovery, the share price will go higher until it is taken out by the partner.

BUY ON WEAKNESS

They have a drilling project is massive, and will take up to a year to find what they have in production. They have a huge partner that will probably taken over the company if there is a big discovery. A volatile stock, so try to trade around the rallies and falls.

PAST TOP PICK

(A Top Pick Oct 04/18, Down 30%) It's starting to recover. They're discovering good drilling results and some bad, and the stock reflects that. He still likes it and is adding to it on pullbacks. Sell when it moves up.

DON'T BUY

Bankruptcy soon? The sell off since 2018 near $6 has not held support at $2.10. It now brings in question the whole rally from under $1.00 into question. It could result in a drop to $0.75-$1.30.

COMMENT

If you have shorted it he would cover off because it is hard to short stocks below $5.

BUY

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research.

VLE announced guidance and reserves on April 18.
While we would not say the news was bad, keep in mind the stock is up 482% in the past year and 26% YTD.
Many investors like to 'sell on news'. It remains quite a small company in a sector that has shown some weakness in 2023.
But it is cheap, and has potential.
We would consider it a buy but only for higher risk small cap investors.
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