CALGARY, Sept. 16, 2018 /CNW/ - Valeura Energy Inc.
(TSX:VLE) ("Valeura" or the "Company") is pleased to announce
successful recompletion of the Yamalik-1 well and initial
production rates.
The well was successfully recompleted by drilling out the plugs
and installing production tubing to allow for a long-term
production test on a comingled basis. The well began producing gas
and condensate on September 12, 2018.
At the end of 24 hours of continuous production, the flow rate was
2.53 mmcf/d through a 20/64" choke with a wellhead pressure of
2,535 psi.
Four days into the production test the well was beginning to
show signs of stabilized flow, with gas rates currently at 1.40
mmcf/d. The well is still in clean up with an average frac water
return rate of 870 bbls/day and the amount of frac water recovered
is estimated to be 33%. Initial analysis on the composition of the
water indicates that this is primarily frac fluid. The average
condensate rate over the first 4 days of production is 49
bbl/mmcf.
In the coming days, Valeura expects to begin producing the well
through its infrastructure. Long-term production data from this
well is an important part of the ongoing appraisal program of the
Basin Centered Gas Accumulation ("BCGA").
"I am delighted to once again be able to announce flow rates
from the Yamalik-1 well, and to confirm the presence of a
significant amount of condensate," commented Sean Guest, President and CEO, "We are all
pleased with the initial flow rate given that this is our first
real fracing program in this play, albeit a relatively
modestly-sized 8-stage frac to test selected sands comprising less
than half of the interpreted net pay in Yamalik. Long-term
production data will help us to better determine the flow potential
of this reservoir, and the production of gas and condensate will
provide an immediate increase to our revenues."
The Company is preparing to spud Inanli-1, the first of three
appraisal wells, in the next month with well results expected in
late Q4 2018. Key equipment, including a drilling rig, is being
mobilized to the drilling location, which is approximately 6 km to
the north-east of the Yamalik-1 discovery well.
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
The short production test rates disclosed in this news release
are preliminary in nature and may not be indicative of stabilized
on-stream production rates. Initial on-stream production rates are
typically disclosed with reference to the number of days in which
production is measured. Initial on-stream production rates are not
necessarily indicative of long-term performance or ultimate
recovery. To date, shallow gas conventional wells and fraced
unconventional tight gas wells have exhibited relatively high
decline rates at more than 50% and 75%, respectively, in their
first year of production. All natural gas rates and volumes are
presented net of any load fluids.
A pressure transient analysis or well-test interpretation has
not been carried out in respect of the production tests on the
Yamalik-1 well.
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: the
Yamalik-1 well producing though the Company's infrastructure, the
use of the Yamalik-1 long-term production data, expectations with
respect to an increase to the Company's revenue; and the timing of
spudding of the Inanli-1 well. 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.
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.
