CALGARY, Sept. 5, 2018 /CNW/ - Valeura Energy Inc.
(TSX:VLE) ("Valeura" or the "Company") is pleased to announce
increased gas prices and provide an update on appraisal
operations.
Gas Price Increase
Effective September 1, 2018, Boru Hatlari ile Petrol Tasima
Anonim Sirketi ("BOTAS"), who own and operate Turkey's crude oil and natural gas pipeline
grid, has announced a further increase in Turkey's natural gas reference price by 14%
for industrial and commercial customers.
This is the fourth price increase in calendar 2018, resulting in
local prices having increased by 63% so far this year, on a
compounded basis. While gas prices are denominated in Turkish Lira,
these frequent and ongoing adjustments to the reference price
result in exchange rate-adjusted prices broadly in line with
prevailing European gas prices, and Valeura continues to realize
stable prices in the C$7/mcf
range.
"This ongoing trend of gas price corrections helps to ensure the
long-term value of our Basin Centered Gas Accumulation (or
"BCGA")." commented Sean Guest,
President and CEO, "Our net 10.1 Tcf of mean unrisked prospective
resources remain just as valuable as when we first announced it in
February 2018, and we are expecting
material data points in the coming months as our appraisal
operations start to de-risk the play."
Operations Update
Valeura has achieved a milestone in its recompletion operations on
the Yamalik-1 well. As of today, the Company has safely
drilled through all the plugs that were set during the initial
frac'ing and cleaned out the well to bottom. The wellbore will now
be fitted with production tubing for clean-up and testing and then
the well will be put on long-term test through the Company's owned
gathering infrastructure.
Site construction at the Inanli-1 location is progressing on
plan. The KCA Deutag drilling rig has arrived in Turkey and will be mobilized to the location
in the coming weeks. Equipment and operations remain on track for a
spud around the end of Q3, with initial results expected in late
Q4. The Inanli-1 well is designed to be drilled to a depth of
5,000 m, approximately 800 m deeper than Yamalik-1. The costs for
Inanli-1 will be carried by Equinor, while Valeura will fund its
working interest share for the two additional appraisal wells,
which will be drilled immediately after Inanli-1.
About the Company
Valeura Energy Inc. is a Canada-based public company currently engaged
in the exploration, development and production of petroleum and
natural gas in Turkey.
Oil and Gas Advisories and Resource Definitions
The prospective resources estimates provided herein are
estimates only and there is no guarantee that the estimated
prospective resources will be recovered. There is no certainty that
any portion of the unconventional prospective resources estimated
herein will be discovered. If discovered, there is no certainty
that it will be commercially viable to produce any portion of the
unconventional prospective resources evaluated. Please see the
Company's Annual Information Form for the year ended December 31, 2017 (the "AIF"), which is available
under Valeura's issuer profile on SEDAR at www.sedar.com, for more
information with respect to the Company's prospective
resources.
"natural gas" is defined as Conventional Natural Gas product
type as per National Instrument 51-101, Standards of Disclosure
for Oil and Gas Activities.
"prospective resources" are those quantities of petroleum
estimated, as of a given date, to be potentially recoverable from
undiscovered accumulations by application of future development
projects. Prospective resources have both an associated change of
discovery and a change of development.
Forward-Looking Statements and Cautionary Statements
This news release contains certain forward-looking statements
and information (collectively referred to herein as
"forward-looking information") including, but not limited to:
management's expectations regarding BOTAS' adjustments to the
natural gas reference price; the long-term value and de-risking of
the BCGA play; the timing of disclosure with respect to the
Company's appraisal operations; the fitting of production tubing in
the wellbore; conducting a long term production test from the
Yamalik-1 well; the timing of rig mobilization and spudding of the
Inanli-1 well; the drilling and targeted depth of the Inanli-1 well
and the timing thereof; and the drilling of two additional wells as
part of the BCGA appraisal program and the timing thereof.
Forward-looking information typically contains statements with
words such as "anticipate", estimate", "expect", "target",
"potential", "could", "should", "would" or similar words suggesting
future outcomes. The Company cautions readers and prospective
investors in the Company's securities to not place undue reliance
on forward-looking information, as by its nature, it is based on
current expectations regarding future events that involve a number
of assumptions, inherent risks and uncertainties, which could cause
actual results to differ materially from those anticipated by the
Company.
Statements related to "prospective resources" are deemed
forward-looking statements as they involve the implied assessment,
based on certain estimates and assumptions, that the prospective
resources can be profitably produced in the future. Specifically,
forward-looking information contained herein regarding "prospective
resources" may include estimated volumes of prospective resources
and the ability to finance future development.
Forward-looking information is based on management's current
expectations and assumptions regarding, among other things:
political stability of the areas in which the Company is operating
and completing transactions, and in particular the aftermath of the
July 2016 failed coup attempt in
Turkey and the April 2017 constitutional referendum; continued
safety of operations and ability to proceed in a timely manner;
continued operations of and approvals forthcoming from the Turkish
government in a manner consistent with past conduct; future seismic
and drilling activity on the expected timelines; the prospectivity
of the deep BCGA and shallow gas plays on the TBNG joint venture
lands and Banarli licences; the continued favourable pricing and
operating netbacks in Turkey;
future production rates and associated operating netbacks and cash
flow; future sources of funding; future economic conditions; future
currency exchange rates; the ability to meet drilling deadlines and
other requirements under licences and leases; and the Company's
continued ability to obtain and retain qualified staff and
equipment in a timely and cost efficient manner. In addition, the
Company's work programs and budgets are in part based upon expected
agreement among joint venture partners and associated exploration,
development and marketing plans and anticipated costs and sales
prices, which are subject to change based on, among other things,
the actual results of drilling and related activity, availability
of drilling, fracing and other specialized oilfield equipment and
service providers, changes in partners' plans and unexpected delays
and changes in market conditions. Although the Company believes the
expectations and assumptions reflected in such forward-looking
information are reasonable, they may prove to be incorrect.
Forward-looking information involves significant known and
unknown risks and uncertainties. A number of factors could cause
actual results to differ materially from those anticipated by the
Company including, but not limited to: the risks of currency
fluctuations; changes in gas prices and netbacks in Turkey; uncertainty regarding the contemplated
timelines for the timelines and costs for the deep evaluation in
2018 and 2019; the risks of disruption to operations and access to
worksites, threats to security and safety of personnel and
potential property damage related to political issues, terrorist
attacks, insurgencies or civil unrest in Turkey; political stability in Turkey, including potential changes in
Turkey's constitution, political
leaders or parties or a resurgence of a coup or other political
turmoil; the uncertainty regarding government and other approvals;
counterparty risk; potential changes in laws and regulations; risks
associated with weather delays and natural disasters; the risk
associated with international activity; and, the uncertainty
regarding the ability to fulfil the drilling commitment on the West
Thrace lands. The forward-looking information included in this news
release is expressly qualified in its entirety by this cautionary
statement. The forward-looking information included herein is made
as of the date hereof and Valeura assumes no obligation to update
or revise any forward-looking information to reflect new events or
circumstances, except as required by law. See the AIF for a
detailed discussion of the risk factors.
Additional information relating to Valeura is also available on
SEDAR at www.sedar.com
Neither the Toronto Stock Exchange nor its Regulation
Services Provider (as that term is defined in the policies of the
Toronto Stock Exchange) accepts responsibility for the adequacy or
accuracy of this news release.
SOURCE Valeura Energy Inc.