CALGARY, Feb. 20, 2019 /CNW/ - Valeura Energy Inc.
(TSX:VLE) ("Valeura" or the "Company"), the upstream
natural gas producer focused on appraising and developing an
unconventional gas accumulation in the Thrace Basin of Turkey, is pleased to announce the
commencement of drilling operations at the Devepinar-1 appraisal
well and an update on the completion programme for the Inanli-1
well.
Devepinar-1 drilling
Valeura spudded the Devepinar-1 appraisal well on February 19, 2019, approximately 20 km to the
west of the Inanli-1 appraisal well. The location was selected by
Valeura and its partners Equinor Turkey B.V. ("Equinor"), and
Pinnacle Turkey International ("Pinnacle") as a substantial
step-out, intended to test the lateral extent of the Basin Centered
Gas Accumulation ("BCGA") play to the western side of the
basin. In continuing with its strategy to fully appraise its
Thrace BCGA, the drilling programme includes an extensive
data-gathering plan. Given the success of Inanli-1 in
demonstrating the presence of overpressured gas down to
approximately 4,900 metres, Devepinar-1 is currently planned to
focus on the most promising intervals, which are shallower.
The well is planned to be drilled to 4,300 metres, and will take
approximately 80 days, but the design will allow for the well to be
deepened further if required.
The drilling, evaluation and casing of the well is expected to
have a gross cost of approximately C$25
million. Valeura is operator with a working interest of
31.5% in the deep rights of the West Thrace exploration license,
with Equinor holding 50% and Pinnacle the remaining
18.5%.
Inanli-1 completion programme
Multi-stage reservoir
stimulation and flow testing operations on Inanli-1 will target at
least four intervals of interest identified in the well's 1,615
metre gross objective section.
Valeura will return to well operations in the next few weeks to
conduct a diagnostic fracture integrity test ("DFIT") at the bottom
of the well to confirm the maximum pressure. This is required to
select equipment that will be used for the stimulation and testing
operations. Details of the stimulation programme and associated
costs, to be funded by Equinor, are being developed based on flow
simulation modelling and the Company plans to employ production
logging techniques to determine fluid composition and flow
potential from each discrete interval. Where warranted, flow-back
times may be extended to several weeks for individual
intervals.
The Company has procured long-lead items and consumables in
relation to the completion programme, and equipment is expected to
be mobilised to the well site over the coming weeks, as it becomes
available from prior operations. Stimulation and testing operations
are expected to commence in April, 2019.
Sean Guest, President and CEO
commented:
"Devepinar-1 is an important appraisal well for the play and
will help to indicate the lateral extent of the BCGA by stepping
out a full 20 km from Inanli-1. Success here would validate
our thesis that the BCGA is pervasive across the majority of our
acreage."
"Meanwhile, we are eager to learn more about the individual
zones of interest in Inanli-1, and continue to define a completion
programme that will maximise our understanding of the flow
potential from each relevant interval."
Additional information relating to Valeura is also available on
SEDAR at www.sedar.com and on the Company's corporate website at
www.valeuraenergy.com.
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.
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
cost and time to drill the Devepinar-1 well, the depth of any
potential sweet spots or promising zones, Valeura's intent to frack
and production test the Inanli-1 well, timing to commence fracking
and testing operations, the assessment of the resources in
the test formations, and the potential that the BCGA play is
pervasive across the basin. 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:
continued political stability of the areas in which the Company is
operating; continued safety of operations; continued timeliness of
approvals forthcoming from the Turkish government and regulators in
a manner consistent with past conduct; future drilling activity on
the expected timelines; 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; 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 programmes
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,
fracking and other specialised 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 and costs for the deep evaluation; 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; the
uncertainty regarding government and other approvals; counterparty
risk; potential changes in laws and regulations; and risks
associated with weather delays and natural disasters. 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.
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.