1. INTRODUCTION
The Board of Directors of Velesto Energy Berhad ("VEB") is pleased to announce that its subsidiary, Velesto Sumber Sdn. Bhd. ("VSSB"), (collectively referred to as "VEB Group"), has received a Letter of Award from Northern Gulf Petroleum Pte Ltd (hereinafter referred to as "NGP") for the Provision of a Jack-Up Drilling Rig (Naga-6) and Associated Services ("Contract").
2. DETAILS
The Contract provides for the Provision of a Jack-Up Drilling Rig (Naga-6) and Associated Services, whereby VEB Group will assign its NAGA 6 through VSSB for this Contract. The Contract is for four (4) infill wells and three (3) exploration wells, with optional one (1) + one (1) exploration wells. Operations are expected to commence in the third (3rd) quarter of 2026.
NAGA 6 is a premium independent leg jack-up drilling rig with drilling depth capability of 30,000 feet and has a rated operating water depth of 375 feet.
3. INFORMATION ON PARTIES
3.1 Information on VSSB
VSSB was incorporated in Malaysia under the Companies Act, 2016 on 21 February 2019. VSSB is principally involved in the offshore drilling business and operations and other engineering services for oil and gas exploration, development, and production overseas.
3.2 Information on NGP
NGP is Thailand's first and only privately-owned oil and gas exploration and production company. Established in 2004, NGP principally involved in acquisition, development, operation and management of upstream oil and gas assets.
4. FINANCIAL EFFECTS
The provision of the above-mentioned services to be provided by VSSB is expected to contribute positively towards the earnings and net assets of VEB Group during the Contract duration.
5. RISK ASSOCIATED WITH THE CONTRACT
The risks associated with the execution of the Contract are operational and execution risks, which will be mitigated and/or managed by VSSB, through its project management processes and capabilities in undertaking drilling operations and related services.
6. CONFIDENTIALITY
The contents for this announcement are in accordance with the terms of the Contract, which the VEB has received the approval from NGP for the release of Announcement today.
7. DIRECTORS AND SUBSTANTIAL SHAREHOLDERS INTEREST
None of the Directors and/or the substantial shareholders of VEB Group and VSSB and/or persons connected with the Directors and/or substantial shareholders have any interest, direct or indirect in the above Contract.
8. STATEMENT BY DIRECTORS
The Board of Directors of VEB is of the opinion that the award of the Contract through VSSB is in the best interests of VEB Group.
This announcement is dated 4 June 2026.