Weekly Watchlist - July.26, 2025

It's good to be back after a short hiatus, this week I highlight a stock that has been on my radar since 2023 and continues to present good value.

Weekly Chart - Valeura Energy - Market Cap $740 Million - Breakout Candidate

I’ve been bullish on Valeura Energy (TSX: VLE) for quite some time and was writing about the stock back in late 2023, when it was trading at less than half its current value. On Friday, shares jumped over 25% following the announcement of a strategic farm-in agreement with PTT Exploration and Production (PTTEP)—Thailand’s national oil & gas company. This deal marks a major milestone for Valeura, as it earns a 40% working interest in two large offshore blocks (G1/65 and G3/65) in the Gulf of Thailand, significantly expanding the company’s presence in the region. With this agreement, Valeura’s net acreage increases from 2,600 km² to over 22,800 km²—nearly a ninefold expansion.

More importantly, the deal diversifies Valeura’s portfolio into natural gas, in addition to its core oil production. The blocks are located adjacent to some of PTTEP’s largest producing assets, such as Erawan and Bongkot, which are already connected to extensive infrastructure. This opens the door for potential low-cost, tie-back developments if exploration is successful. The farm-in terms are capital-efficient: Valeura will pay US $14.7 million in back costs and carry PTTEP on a 3D seismic campaign worth up to US $3.7 million—a total upfront exposure of approximately US $18.4 million. Given the scale of acreage and the opportunity to leverage existing infrastructure, this is a highly attractive entry point.

Operationally, Valeura continues to perform well. In Q1 2025, it produced over 2.15 million barrels of oil, and realized a strong average price of over US $78/bbl, with a premium to Brent. The company ended the quarter with a cash position of US $239 million and no debt, giving it the flexibility to fund both organic growth and acquisitions without dilution. Valeura also recently made the Final Investment Decision (FID) to redevelop the Wassana oil field, targeting first production in Q2 2027, which will further enhance long-term value.

In summary, this is a company that’s executing strategically and financially. It has:

• A strong balance sheet,

• Growing production,

• Near-term cash flow visibility,

• And now a material opportunity in gas alongside a strong partner.

I remain very bullish on Valeura and look forward to its upcoming earnings report in the weeks ahead

https://miningcharts.substack.com/p/valeura-energy-re-rate-starting

Weekly Chart - Pampa Metals - Market Cap $27 Million - Breakout

A strong week for Pampa Metals (CSE: PM) as the stock breaks through recent resistance, backed by steadily increasing volume—two signals I always like to see. Momentum has been building for a while, and now we’re starting to see price action confirm growing interest.

Pampa is a copper-focused exploration company with a growing presence across South America’s most prolific porphyry belts. Its flagship project is the Piuquenes Copper-Gold Porphyry in San Juan, Argentina, where early drill results have been very encouraging. Notably, the company intersected over 800 metres at 0.40% copper, including several higher-grade zones—evidence of a potentially large, vertically extensive system.

In addition to its work in Argentina, Pampa recently acquired Rugby Resources, gaining exposure to the Cobrasco project in Colombia. This is another highly prospective porphyry system, with historical drill results including 800+ metres at 0.42% copper—a very strong intercept in the porphyry world. The company believes Cobrasco could host a significant copper system at depth, and new drilling plans are expected to follow soon.

From a strategic standpoint, Pampa has positioned itself well. It completed a C$5 million financing in June 2025 enabling follow-up drilling at both Piuquenes and Cobrasco.

I highly recommend checking out the posts by Jordan 🇦🇺 —he’s done a great job highlighting the value proposition and geological upside of Pampa.

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