VLE - VALEURA ENERGY INC

[Kostolanys Erbe]

Hallo Leute,

hier startet jetzt der Thread für VLE zum nachlesen.

Anbei der link der bisher gesammelten News und Infos zu VLE: http://peketec.de/trading/viewtopic.php?p=1704533#1704533


Viele Grüße
Euer Kosto

Kostolanys Erbe schrieb am 14.08.2016, 23:08 Uhr[/url]"]Valeura loses $642,000 in Q2
2016-08-11 19:18 ET - News Release

Mr. Jim McFarland reports

VALEURA ANNOUNCES SECOND QUARTER 2016 FINANCIAL AND OPERATING RESULTS

Valeura Energy Inc. has released highlights of its unaudited financial and operating results for the three- and six-month periods ended June 30, 2016, and has provided an update on subsequent developments, including progress toward closing the Statoil farm-in transaction on Valeura's two 100-per-cent-owned and operated Banarli licences in the Thrace basin of northwest Turkey. The complete quarterly reporting package for the corporation, including the unaudited financial statements and associated management's discussion and analysis, has been filed on SEDAR and posted on the corporation's website.

"We expect that the Statoil farm-in at Banarli will be a game changer for Valeura, and we look forward to completing the definitive agreements later this month," said Jim McFarland, president and chief executive officer. "Valeura and Statoil have continued to diligently pursue completion of the farm-in transaction. Following execution of the definitive agreements, the necessary licence interest transfer applications will be submitted to the GDPA for approval, which is a key condition to close the transaction. In parallel, we have continued our operational activities in the shallow formations at Banarli. Progress on the farm-in transaction and operational activities have not been negatively impacted by the recent political developments in Turkey," added Mr. McFarland.[...] http://www.newswire.ca/news-releases/valeura-announces-second-quarter-2016-financial-and-operating-results-589928071.html

Kostolanys Erbe schrieb am 02.08.2016, 21:42 Uhr[/url]"]Valeura Energy extends Statoil agreement to Aug. 19



2016-08-02 15:30 ET - News Release



Mr. Jim McFarland reports

VALEURA ANNOUNCES EXTENSION OF TIMELINE UNDER BINDING LETTER AGREEMENT WITH STATOIL FOR FARM-IN ON BANARLI LICENCES IN TURKEY

Valeura Energy Inc.'s wholly owned affiliate, Corporate Resources BV (CRBV), has executed an extension to the binding letter agreement executed on May 15, 2016, with Statoil Holding Netherlands BV, a wholly owned affiliate of Statoil ASA, for a farm-out agreement for the exploration of the deeper formations on Valeura's two 100-per-cent-owned-and-operated Banarli exploration licences in the Thrace basin of northwest Turkey. As a result, the exclusivity period and timeline to complete the definitive transaction agreements have been extended from July 29, 2016, to Aug. 19, 2016. The definitive agreements are extensive, including a farm-in agreement, a joint operating agreement to apply postearning and a number of ancillary agreements.

Zum Verkleinern anklicken...

Kostolanys Erbe schrieb am 02.08.2016, 21:42 Uhr[/url]"]Valeura Energy extends Statoil agreement to Aug. 19



2016-08-02 15:30 ET - News Release



Mr. Jim McFarland reports

VALEURA ANNOUNCES EXTENSION OF TIMELINE UNDER BINDING LETTER AGREEMENT WITH STATOIL FOR FARM-IN ON BANARLI LICENCES IN TURKEY

Valeura Energy Inc.'s wholly owned affiliate, Corporate Resources BV (CRBV), has executed an extension to the binding letter agreement executed on May 15, 2016, with Statoil Holding Netherlands BV, a wholly owned affiliate of Statoil ASA, for a farm-out agreement for the exploration of the deeper formations on Valeura's two 100-per-cent-owned-and-operated Banarli exploration licences in the Thrace basin of northwest Turkey. As a result, the exclusivity period and timeline to complete the definitive transaction agreements have been extended from July 29, 2016, to Aug. 19, 2016. The definitive agreements are extensive, including a farm-in agreement, a joint operating agreement to apply postearning and a number of ancillary agreements.

Following the anticipated completion of the definitive agreements, the parties will jointly submit applications to the General Directorate of Petroleum Affairs (GDPA) of the Republic of Turkey for the associated licence interest transfers, whereby Statoil will hold a 50-per-cent participating interest in the deep formations below approximately 2,500 metres and Valeura will retain a 100-per-cent interest in the shallow formations on the Banarli licences.

Completion of the definitive agreements and government approval for the licence interest transfers are key conditions to close the transaction. There is no certainty that the parties will be able to complete the definitive agreements or that the GDPA will approve the licence interest transfers.

http://www.stockwatch.com/News/Item.aspx?bid=Z-C:VLE-2394141&symbol=VLE®ion=C

Kostolanys Erbe schrieb am 18.07.2016, 23:57 Uhr[/url]"]Valeura says no impact from attempted Turkish coup



2016-07-18 07:34 ET - News Release



Mr. Jim McFarland reports

VALEURA CONFIRMS NO IMPACT TO DATE ON PERSONNEL OR OPERATIONS FROM ATTEMPTED COUP IN TURKEY AND PROVIDES OPERATIONAL UPDATE

Valeura Energy Inc. has provided the following update.

"We would like to confirm that our operations in the Thrace basin have not been directly affected to date by the attempted coup in Turkey on July 15, 2016, which appears to have been put down by the government," said Jim McFarland, president and chief executive officer. "All of our Turkish employees and expatriate contractors in Turkey are safe. We will continue to monitor conditions in the aftermath of this event, including the safety of our personnel and operations, the security situation generally, impact on the Turkish lira and banking facilities, the functioning of the General Directorate of Petroleum Affairs (GDPA), impact on our joint venture partners, and any changes in offtakes by our natural gas customers.

"We are pleased to advise that good progress is being made to complete the definitive transaction documents under the binding letter agreement with Statoil for the farm-out on the Banarli licences.

"We would also like to report that preliminary second quarter 2016 net petroleum and natural gas sales in Turkey averaged 945 barrels of oil equivalent per day (boe/d), up 19 per cent from the first quarter of 2016, at an estimated average price realization of $9.43 per 1,000 cubic feet. Final quarterly results are expected to be released after markets close on Aug. 11, 2016."

Statoil binding letter agreement for farm-out at Banarli

Good progress is being made to complete definitive transaction documents by the July 29, 2016, target date under the binding letter agreement with Statoil Holding Netherlands BV, a wholly owned affiliate of Statoil ASA, for a farm-out agreement for the exploration of the deeper formations below approximately 2,500 metres on Valeura's 100-per-cent-owned-and-operated Banarli exploration licences.

Preliminary second quarter 2016 operational results

Preliminary petroleum and natural gas sales in Turkey in the second quarter of 2016 of 945 boe/d (net) included 5.6 million cubic feet per day of natural gas and 18 barrels per day (bbl/d) of oil and condensate. Sales in the second quarter of 2016 were up 19 per cent from the first quarter of 2016 reflecting a full quarter of sales from Banarli, where sales commenced on March 12, 2016. Banarli sales in the second quarter of 2016 accounted for approximately 43 per cent of total sales. Compared with the same period in 2015, second quarter 2016 sales were down 10 per cent due to natural declines and reduced drilling and other capital expenditures on the joint venture lands acquired from Thrace Basin Natural Gas (Turkiye) Corp. (TBNG) and Pinnacle Turkey Inc. (PTI), partially offset by new sales from Banarli.

The preliminary average natural gas price realization in the second quarter of 2016 was approximately $9.43 per 1,000 cubic feet, down 6 per cent from the first quarter of 2016 and down 5 per cent from the second quarter of 2015 due to the impact of new sales from Banarli, which are priced at a small net discount to TBNG JV sales, and some fluctuations in the Turkish lira exchange rate. The BOTAS reference price for domestic gas sales in Turkey (priced in Turkish lira) has remained unchanged since Oct. 1, 2014.

Banarli drilling and completion interim results

Bati Gurgen-2

The Bati Gurgen-2 well, the third well drilled by Valeura at Banarli, was spudded on June 19 and is currently drilling in a sidetrack operation in the Osmancik formation at a depth of approximately 1,800 metres. The original targeted depth of the well was 2,200 metres to appraise both Danismen and Osmancik sandstone reservoirs discovered in the Bati Gurgen-1 well located 530 metres to the northwest. The initial well bore at Bati Gurgen-2 was drilled to a true vertical depth of 2,226 metres and penetrated well-developed sands in both the Danismen and Osmancik formations but these formations were 25 to 29 metres deeper than expected and the sands appeared to be wet on logs.

As a result, a sidetrack drilling operation is under way targeting sands in the Osmancik formation in a higher structural position and at a bottom-hole location that is approximately 420 metres west of the initial bottom-hole location. The target Osmancik sands are also expected to be at a higher elevation than in the Bati Gurgen-1 well with good potential for additional natural gas trapping. The Danismen formation is not expected to be prospective at this new bottom-hole location. The planned true vertical depth of the sidetrack is 2,000 metres.

Yayli-1

As previously announced, the Yayli-1 well was drilled to depth of 2,914 metres, penetrating overpressured tight sands in the Teslimkoy formation below approximately 2,500 metres. Two fracture stimulations were carried out in the Teslimkoy which produced natural gas. Confirmation of overpressure below 2,500 metres and evidence of producible gas from the overpressured Teslimkoy sands were important data points in assessing the potential of a basin-centred gas play on Banarli and progressing farm-out negotiations.

Following the signing of the letter agreement with Statoil, the corporation plugged off the Teslimkoy and moved uphole to complete and test 13 metres of indicated net pay in shallower conventional sands in the Osmancik formation at a depth of 1,800 metres. Five intervals in the Osmancik formation were perforated and simultaneously tested yielding initial short-term production rates of more than one million cubic feet per day but with high associated water production. Production logging indicated that the water production appeared to be sourced from one of the lower perforated intervals and attempts to isolate this zone and achieve a viable gas flow rate at low water production levels were not successful. Preparations are therefore under way to plug off the bottom four perforated intervals and to reperforate and test the top interval which showed good gas shows during drilling.

http://www.stockwatch.com/News/Item.aspx?bid=Z-C%3aVLE-2390142&symbol=VLE®ion=C

Kostolanys Erbe schrieb am 15.06.2016, 22:35 Uhr[/url]"]

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Kostolanys Erbe schrieb am 26.05.2016, 22:44 Uhr[/url]"]

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Kostolanys Erbe schrieb am 16.05.2016, 21:43 Uhr[/url]"]Heute ein kleiner Ritterschlag für VLE !


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Valeura farms out Banarli interest to Statoil



2016-05-16 00:51 ET - News Release



Mr. Jim McFarland reports

VALEURA ANNOUNCES BINDING LETTER AGREEMENT WITH STATOIL FOR FARM-OUT ON BANARLI LICENCES IN TURKEY

Valeura Energy Inc.'s wholly owned affiliate, Corporate Resources BV, has entered a binding letter agreement with Statoil Holding Netherlands BV, a wholly owned affiliate of Statoil ASA, for a farm-out agreement for the exploration of the deeper formations below approximately 2,500 metres where overpressure is expected on Valeura's two 100-per-cent-owned-and-operated Banarli exploration licences in the Thrace basin of Turkey. The Banarli licences encompass an area of 540 square kilometres or 133,840 gross acres near the centre of the basin. The letter agreement is subject to satisfaction of certain conditions precedent including the execution of definitive agreements and the approval of the General Directorate of Petroleum Affairs (GDPA) of the Republic of Turkey for the associated licence interest transfers, which is expected to occur before the end of September, 2016.

Under terms of the agreement, Statoil will have the option to earn 50 per cent in the deep formations on the Banarli licences by investing in an exploration program that includes payments and carried costs of at least $36-million (U.S.) for Statoil to earn its interest. The actual amount invested to earn its 50-per-cent interest may be higher based on the actual agreed work program under the three phases to satisfy the commitments described below. Valeura will operate the deep exploration program during the earning phase under the letter agreement. Valeura will retain a 100-per-cent interest in the shallow formations in the Banarli licences.

"We are excited and honoured to have Statoil as a joint venture partner," said Jim McFarland, president and chief executive officer of Valeura. "Statoil is a highly regarded, major international energy company with the technical and financial resources, and unconventional experience to make a decisive contribution to the evaluation of the basin-centred gas play potential in the Thrace basin. Partnering with a global leader like Statoil validates the potential of our assets and the progress we have made to understand the basin and to develop its tight gas resources. By virtue of our retained 100-per-cent interest in the shallow formations under the agreement, our planned shallow gas drilling program on the Banarli licences is expected to proceed as planned."

Terms of the letter agreement

Under the terms of the letter agreement, Statoil will finance the exploration program in the deep formations on the Banarli licences as follows.

Phase 1 commitment (2016 and 2017):

Statoil will pay Valeura $6.0-million (U.S.) as a contribution to back costs incurred on the Banarli licences upon the approval by the GDPA of the transfer of a 50-per-cent interest in the licences to Statoil. At the same time, Valeura will seek GDPA approval to register its 100-per-cent interest in the shallow formations.
Statoil will pay no less than $10-million (U.S.) for the Phase 1 commitment directed to the drilling, evaluating, completing, fracking and testing of a phase 1 well to be drilled to the greater of 4,000 metres or a depth that intersects the upper 450 metres of the Teslimkoy formation, with a target spud date by year-end 2016. The actual agreed work program and investment by Statoil for this phase may exceed the minimum amount.


Phase 2 commitment (2017):

If Statoil elects to proceed to phase 2, it will pay no less than $10-million (U.S.) for the phase 2 commitment directed to acquiring 3-D seismic over the Banarli licences at a minimum equivalent cost. The actual agreed work program and investment by Statoil for this phase may exceed the minimum amount.
If Statoil elects to exit after phase 1, it will pay a penalty of $10-million (U.S.) and relinquish its interest in the Banarli licences back to Valeura. At that point, Statoil would have invested a minimum of $26-million (U.S.).


Phase 3 commitment (2018):

If Statoil elects to proceed to phase 3, it will pay no less than $10-million (U.S.) for the phase 3 commitment directed to drilling a phase 3 well based on the same parameters as the phase 1 well. The actual agreed work program and investment by Statoil for this phase may exceed the minimum amount.
If Statoil elects to exit after phase 2, it will pay a penalty of $5-million (U.S.) and relinquish its interest in the Banarli licences back to Valeura. At that point, Statoil would have invested a minimum of $31-million (U.S.).


At the completion of the phase 3 commitment, Statoil would have invested at least $36-million (U.S.) to complete the earning of its 50-per-cent interest in the Banarli licences. Following the earning phase, Statoil will have the option to assume operatorship of the joint venture.

The parties have an exclusive arrangement until July 29, 2016, to negotiate and enter into definitive agreements, including the farm-out agreement and joint operating agreement. Both parties have received necessary executive and board approvals. There is no certainty that the parties will be able to reach definitive agreements or that the GDPA will approve the licence transfers.

http://www.stockwatch.com/News/Item.aspx?bid=Z-C%3aVLE-2373567&symbol=VLE®ion=C

Kostolanys Erbe schrieb am 14.05.2016, 22:35 Uhr[/url]"]Aktuelle Präsentation:


http://www.valeuraenergy.com/uploa...erations-update-presentation-may-12-2016.pdf

Kostolanys Erbe schrieb am 12.05.2016, 10:36 Uhr[/url]"]
Valeura Energy loses $992,000 in Q1



2016-05-11 20:59 ET - News Release


Mr. Jim McFarland reports

VALEURA ANNOUNCES FIRST QUARTER 2016 FINANCIAL AND OPERATING RESULTS AND YAYLI-1 WELL COMPLETION UPDATE AT BANARLI

Valeura Energy Inc. is releasing highlights of its unaudited financial and operating results for the three-month period ended March 31, 2016, and an update on subsequent developments. The complete quarterly reporting package for the corporation, including the unaudited financial statements, and associated management's discussion and analysis (MD&A), has been filed on SEDAR and posted on the corporation's website.

"Valeura recorded solid results in the first quarter of 2016, realizing continued strong natural gas sales price realizations and operating netbacks in Turkey averaging $10.05 per thousand cubic feet and $45.85 per barrel of oil equivalent, respectively, and delivering $2.0-million in funds flow from operations," said Jim McFarland, president and chief executive officer. "Net sales in the first quarter were down slightly from the fourth quarter of 2015, due to natural declines on the joint venture lands, partially offset by production from the Bati Gurgen-1 well on our 100-per-cent Banarli licences, which achieved first gas on March 12. Sales were up in April to approximately 1,000 barrels of oil equivalent per day, reflecting a full month of production from Banarli. Bati Gurgen-1 is currently producing conventional natural gas from the Osmancik formation at a restricted rate of 2.6 million cubic feet per day.

"We have carried out an extensive fracture stimulation and evaluation program in the Yayli-1 well at Banarli in overpressured, tight gas sands in the Teslimkoy formation to provide important calibration data aimed at facilitating the deep farm-in process. We completed two fracs with encouraging results that have been shared with potential farm-in partners. We plan to move uphole to complete indicated conventional gas pay in the shallower Osmancik formation.

"Efforts are continuing to seek a joint venture partner to farm in on the deeper horizons at Banarli. Active discussions have been under way with a number of parties that have accessed the data room under confidentiality agreements. We are pleased that our Banarli well results have sparked additional interest and accelerated the pace of these discussions."

First quarter 2016 results at a glance:

Strategic shift to Banarli (Valeura, 100-per-cent working interest) yielding positive results:
Bati Gurgen-1 on stream at a restricted IP30 rate of 3.4 million cubic feet per day from the Osmancik;
Yayli-1 frac program in the Teslimkoy yielded encouraging results;
Net sales of 792 barrels of oil equivalent per day (April, 2016, sales averaged approximately 1,000 barrels of oil equivalent per day, of which 45 per cent was from Banarli);
Funds flow from operations of $2.0-million;
Working capital surplus of $6.5-million;
Natural gas price realization of $10.05 per thousand cubic feet;
Operating costs $6.20 per barrel of oil equivalent;
Operating netback $45.85 per barrel of oil equivalent;
Net capital expenditures of $2.7-million.
Operational highlights

Net petroleum and natural gas sales in Turkey in the first quarter of 2016 averaged 792 barrels of oil equivalent per day, which was down 2 per cent from the fourth quarter of 2015, and down 35 per cent from the first quarter of 2015. Net sales in the first quarter of 2016 included 4.7 million cubic feet per day of natural gas and 9.0 barrels of oil per day.

..........

http://www.stockwatch.com/News/Item.aspx?bid=Z-C%3aVLE-2372358&symbol=VLE®ion=C

Kostolanys Erbe schrieb am 22.03.2016, 08:59 Uhr[/url]"]Valeura Energy's Bati Gurgen-1 well flows at 3 MMcf/d



2016-03-21 06:13 ET - News Release


Mr. Jim McFarland reports

VALEURA ACHIEVES FIRST GAS FROM BANARLI

Valeura Energy Inc. has achieved first natural gas sales from its first exploration well Bati Gurgen-1 on the 100-per-cent-owned-and-operated Banarli licences in the Thrace basin of Turkey. The well has been on stream for nine days and over this period has produced conventional natural gas from the Osmancik formation at an average restricted rate of approximately three million cubic feet per day on a 20/64th-inch choke at a current flowing tubing pressure of 1,570 pounds per square inch. At this time, only 12 metres of net pay has been perforated in the well compared with the total aggregate net pay of 32 metres measured in the Osmancik and Danismen formations.

"We are delighted to reach the important milestone of first gas from Banarli, which has boosted our current sales in Turkey by more than 60 per cent," said Jim McFarland, president and chief executive officer. "We plan to produce the well at restricted rates in the near term and perforate additional pay as pressure and deliverability decline naturally.

"Natural gas prices continue to be strong in Turkey, and we expect Banarli to attract sales price realizations of approximately $8.85 per thousand cubic feet and an operating netback of more than $40 per barrel of oil equivalent at current reference prices and exchange rates."

As previously announced on March 8, 2016, the Bati Gurgen-1 well was tied in through a new eight-inch, 3.2-kilometre pipeline to an existing dehydration facility at the Gurgen-1 well (Valeura 40-per-cent working interest) on the adjacent joint venture lands acquired from Thrace Basin Natural Gas (Turkiye) Corp. (TBNG) and Pinnacle Turkey Inc. (PTI) (the TBNG-PTI JV). The pipeline has been sized to provide capacity for follow-up wells that could be drilled in the area.

Gas sales commenced from the Bati Gurgen-1 well on March 12, 2016. The gas is being sold to the TBNG-PTI JV, net of a transportation and marketing fee, and is being distributed to existing TBNG-PTI JV customers located north of Banarli. Valeura receives some benefit from this fee arrangement and the associated proceeds by virtue of its 40-per-cent working interest in the TBNG-PTI JV facilities.

We seek Safe Harbor.

© 2016 Canjex Publishing Ltd. All rights reserved.

http://www.stockwatch.com/News/Item.aspx?bid=Z-C%3aVLE-2355682&symbol=VLE®ion=C

Kostolanys Erbe schrieb am 10.03.2016, 00:16 Uhr[/url]"]Valeura Energy loses $562,000 in 2015



2016-03-09 06:42 ET - News Release



Mr. Jim McFarland reports

VALEURA ANNOUNCES FOURTH QUARTER 2015 FINANCIAL AND OPERATING RESULTS AND YEAR-END 2015 RESERVES

Valeura Energy Inc. has released its unaudited financial and operating results for the three-month period ended Dec. 31, 2015, audited results for the year ended Dec. 31, 2015, year-end 2015 reserves and is providing an update on subsequent developments. The complete quarterly reporting package for the corporation, including the audited annual financial statements and associated management's discussion and analysis, and the 2015 annual information form, have been filed on SEDAR and posted on the corporation's website.

"Valeura recorded solid results in the fourth quarter, realizing strong natural gas sales prices and operating netbacks in Turkey averaging $9.93 per thousand cubic feet and $44.56 per barrel of oil equivalent, respectively, and delivering $1.6-million in funds flow from operations," said Jim McFarland, president and chief executive officer. "These standout operating netbacks in Turkey reflect strong natural gas pricing, a competitive 12.5-per-cent government royalty regime and low operating costs. Net sales in the fourth quarter, all non-operated, were up slightly from the third quarter despite nominal capital expenditures on the joint venture lands in the Thrace basin.

"We are encouraged that the first two exploration wells drilled on our 100-per-cent-owned-and-operated Banarli licences have confirmed overpressure in the Teslimkoy formation below 2,500 metres. Bati Gurgen-1 is expected to be on stream shortly and producing conventional gas from the Osmancik formation. Yayli-1 is undergoing completion and fracking operations in the overpressured tight gas sands in the Teslimkoy formation. Both wells represent important steps in our strategic shift to our operated assets.

"We also successfully replaced 125 per cent of 2015 production with proved reserves additions, increasing proved reserves by 5 per cent to 1.8 million boe at year-end 2015 with a value of 71 cents per share. Proved plus probable reserves at year-end 2015 were down 6 per cent to 5.5 million boe due to production and technical revisions associated with a more conservative development program for the normally pressured tight gas sands on the joint venture lands, partially offset by the Bati Gurgen-1 discovery at Banarli, which added proved plus probable reserves of 4.9 billion cubic feet or 800,000 boe. However, the proved plus probable reserves value was up 8 per cent to $2.02 per share due to a weaker Canadian dollar."

Fourth quarter 2015 results at a glance:

Drilled first two Banarli exploration wells (Valeura 100-per-cent working interest): Bati Gurgen-1 (first gas expected imminently);
Yayli-1 (completion and fracking operations under way);

Net sales: 809 barrels of oil equivalent per day;
Funds flow from operations: $1.6-million;
Working capital surplus: $7.3-million;
Natural gas price realization: $9.93/thousand cubic feet;
Operating costs: $6.85/boe;
Operating netback: $44.56/boe;
Net capital expenditures: $6.1-million.


Operational highlights:

Net petroleum and natural gas sales in Turkey in Q4 2015 averaged 809 barrels of oil equivalent per day, which were up 2 per cent from third quarter 2015 and down 31 per cent from Q4 2014. Net sales in Q4 2015 included 4.8 million cubic feet per day of natural gas and eight barrels of oil per day.
Net corporate petroleum and natural gas sales in 2015 averaged 966 boe/d, which were down 15 per cent from 2014. Lower volumes in 2015 reflect the impact of reduced drilling and fracking operations on the joint venture lands acquired from Thrace Basin Natural Gas (Turkiye) Corp. (TBNG) and Pinnacle Turkey Inc. (PTI) (the TBNG-PTI JV). Valeura shifted approximately 83 per cent of its capital expenditures in 2015 to the 100-per-cent-owned-and-operated Banarli licences in 2015, including $10.9-million for 3-D seismic and drilling.


Thrace basin -- Banarli exploration licences (Valeura 100-per-cent working interest)

Bati Gurgen-1 well:

Spudded the first exploration well Bati Gurgen-1 on the Banarli licences on Nov. 10, 2015, and drilled the well to a measured depth of 2,735 metres into the Teslimkoy member of the Mezardere formation. Wireline log analysis indicated 32 metres of aggregate net pay in the Danismen and Osmancik formations, and thinner net pay in tight sands in the Teslimkoy;
Carried out a diagnostic fracture injection test in a short interval in the Teslimkoy at a depth of 2,560 metres, which confirmed that the formation is overpressured, consistent with Valeura's geological model of a potential basin-centred gas play below 2,500 metres on the Banarli licences;
Completed a 13-metre interval in the Osmancik formation at a depth of 1,480 metres, which flowed natural gas at an initial restricted rate of 3.4 million cubic feet per day on a 24-hour production test. The shallower Danismen formation is also prospective for conventional gas and may also be completed within one or two months following initial on stream monitoring of the Osmancik formation alone;
Completed the tie-in of the well through a new eight-inch, 3.2-kilometre pipeline to an existing dehydration facility at the Gurgen-1 well on the adjacent TBNG-PTI JV lands (Valeura 40-per-cent working interest);
First gas from Bati Gurgen-1 expected in the next few days and an operational update will be provided once on stream operations have stabilized;
The final cost to drill, complete, test and tie in the Bati Gurgen-1 well was $3.3-million, as budgeted.


Yayli-1 well:

Spudded the second Banarli exploration well Yayli-1 on Dec. 1, 2015, and drilled the well to a measured depth of 2,914 metres in the Teslimkoy. Wireline log analysis indicated 14 metres of net pay in the Osmancik and 128 metres of net pay in tight sands in the Teslimkoy;
Carried out a diagnostic fracture injection test in a 13-metre interval in the Teslimkoy at a depth of 2,865 metres, which confirmed the formation is overpressured to the same extent as measured at the Bati Gurgen-1;
Commenced a multistage Teslimkoy frac program to be carried out and evaluated on a sequential basis working upward from the bottom of the well. A small frac was carried out at 2,865 m to stimulate a relatively thin 13-metre net pay interval as an initial calibration point, which yielded producible gas with small amounts of condensate. However, only 55 per cent of the frack fluids has been recovered to date due to equipment limitations in unloading fluid from the well, which could be limiting gas flow rates. Therefore, further frac operations are on hold until late March when a larger coiled tubing unit is expected to be available to facilitate faster and more complete frac fluid recovery. A more comprehensive operational update will follow once the fracking and testing program is completed;
The final estimated total cost to drill, frac, complete, test and tie in the Yayli-1 well is $4.5-million to $5.0-million, depending on the final extent of the frac operations.


Other:

Applied for two new exploration licences contiguous with the Banarli licences. The bids remain under review by the General Directorate of Petroleum Affairs of the Republic of Turkey (GDPA);
Continued the process to seek a joint venture partner to participate in financing an exploration drilling program in the deeper horizons at Banarli, targeting a potential basin-centred gas play.


Thrace basin -- TBNG-PTI JV (Valeura 40-per-cent working interest)

The GDPA has approved a TBNG-PTI JV application for two production leases G18-b1-1 and G18-b2-1 which were carved out from expired exploration licence 3931 in the Tekirdag area. The new leases cover an area of 42,077 acres (gross). Two other production lease applications (F19-d3-1 and F19-c3-1) have been submitted to the GDPA in the Tekirdag area as carve-outs from expired exploration licences 3934 and 4126.
The TBNG-PTI JV has continued its parallel process to seek a farm-in partner to explore the deeper horizons on certain TBNG-PTI JV lands. All discussions with currently interested parties are at the preliminary stage. There is no certainty that a deep farm-in transaction will be completed with respect to the TBNG-PTI JV lands or at Banarli, or the timing of final terms thereof.


Financial highlights:

The average natural gas price realization in Turkey of $9.93 per thousand cubic feet in Q4 2015 was up marginally from Q3 2015 and down 6 per cent from Q4 2014 due to fluctuations in the Turkish lira exchange rate. The average natural gas price realization of $10.20 per thousand cubic feet in 2015 was up marginally from 2014 due to a 9-per-cent increase in the reference price for domestic sales in Turkey, effective Oct. 1, 2014, partially offset by a weaker Turkish lira.
The average operating netback of $44.56 per boe in Q4 2015 was essentially unchanged from Q3 2015 and down 4 per cent from Q4 2014 due to lower natural gas price realizations, partially offset by lower unit operating costs, and up marginally from Q3 2014 due to higher natural gas price realizations, partially offset by higher unit operating costs. The average operating netback of $46.48 in 2015 was marginally higher than 2014 due to higher natural gas price realizations and lower unit operating costs.
Working capital surplus at Dec. 31, 2015, was $7.3-million, including cash of $7.0-million.
Funds flow from operations of $1.6-million in Q4 2015 was down 18 per cent and 56 per cent from Q3 2015 and Q4 2014, respectively, reflecting lower sales volumes, higher business development expenses and higher realized foreign exchange losses. Funds flow from operations in 2015 of $10.2-million was 25 per cent lower than 2014 due to lower sales volumes, higher business development expenses and higher realized foreign exchange losses.
Net capital expenditures of $6.1-million in Q4 2015 were up 723 per cent and 116 per cent from Q3 2015 and Q4 2014, respectively, due to higher drilling and completion expenditures on the Banarli licences, partially offset by lower drilling expenditures on the TBNG-PTI JV lands. Net capital expenditures of $13.2-million in 2015 were up 22 per cent from 2014 due to higher seismic, drilling and completion expenditures on the Banarli licences, partially offset by lower drilling and fracking expenditures on the TBNG-PTI JV lands.
Additional financial and operating results are summarized in the table.


FINANCIAL AND OPERATING RESULTS SUMMARY
(In thousands, except per share)

Three months Year ended Three months Year ended
ended Dec. 31, Dec. 31, ended Dec. 31, Dec. 31,
2015 2015 2014 2014

Petroleum and natural gas revenues $4,425 $21,543 $6,921 $24,998
Funds flow from continuing operations 1,600 10,185 3,654 13,586
Net income (loss) from continuing
operations 287 (562) 697 1,090
Capital expenditures (net of asset
dispositions) 6,100 13,192 2,822 10,846
Net working capital surplus 7,253 7,253 10,044 10,044
Cash and cash equivalents 6,973 6,973 5,928 5,928
Operations
Production
Crude oil (bbl/d) 8 8 10 8
Natural gas (Mcf/d) 4,805 5,745 7,022 6,812
boe/d (@ 6:1) 809 966 1,180 1,143
Average reference price
Brent ($/bbl) 58.16 66.88 86.83 109.29
BOTAS reference ($/Mcf) 10.07 10.32 11.02 10.39
Average realized price
Crude oil ($ per bbl) 44.51 50.35 62.66 78.64
Natural gas -- Turkey ($/Mcf) 9.93 10.20 10.62 9.96
Average operating netback
($ per boe @ 6:1) 44.56 46.48 46.22 45.01

(1) The table includes figures from continuing operations in Turkey. Prior-period figures have been
reclassified to remove discontinued operations in Canada, see the MD&A for further discussion on
discontinued operations.


Outlook

The corporation is continuing to execute its strategy to shift emphasis from its non-operated 40-per-cent working interest in the TBNG-PTI JV to its 100-per-cent-owned-and-operated Banarli licences in the Thrace basin.

The corporation expects to provide further guidance on anticipated capital expenditures and production volumes in 2016 once the fracking program is completed on the Yayli-1 well, and production performance is available from the Bati Gurgen-1 and Yayli-1 wells at Banarli.

The corporation will continue to seek farm-in partner(s) to accelerate delineation of the potential basin-centred gas play on the Banarli licences and certain TBNG-PTI JV lands.

Year-end 2015 corporate reserves report

The corporation has completed its independent reserves evaluation as at Dec. 31, 2015. This evaluation was conducted by DeGolyer and MacNaughton (D&M) of Dallas, Tex., for the corporation's properties in Turkey in its report dated March 8, 2016. This evaluation was prepared using guidelines outlined in the Canadian Oil and Gas Evaluation Handbook (COGE Handbook) and is in accordance with National Instrument 51-101. Additional reserves information as required under NI 51-101 is included in the 2015 annual information form filed on SEDAR. All of the corporation's reserves are located in Turkey.

Highlights:

Replaced 125 per cent of production with 1P (proved) reserves additions (including revisions);
1P reserves up 5 per cent to 1.8 million boe and 2P (proved plus probable) reserves down 6 per cent to 5.5 million boe (company gross);
1P reserves value of $41-million (71 cents per share) and 2P reserves value of $117-million ($2.02 per share) (net present value at a 10-per-cent discount (NPV10) before tax);
2P reserves life index (RLI) of 18.5 years (based on annualized Q4 2015 production) requiring future development capital of $95-million.


..............


http://www.stockwatch.com/News/Item.aspx?bid=Z-C%3aVLE-2352772&symbol=VLE®ion=C

Kostolanys Erbe schrieb am 06.01.2016, 23:56 Uhr[/url]"]Volumen bei VLE !!!

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Kostolanys Erbe schrieb am 05.01.2016, 23:12 Uhr[/url]"]VLE mit news:


Valeura Energy tests Bati well at 3.4 mmcf/d



2016-01-04 16:20 ET - News Release



Mr. Jim McFarland reports

VALEURA CONFIRMS NATURAL GAS DISCOVERY IN ITS FIRST BANARLI EXPLORATION WELL AND PROVIDES OPERATIONAL UPDATE

Valeura Energy Inc. has confirmed a natural gas discovery in its first exploration well Bati Gurgen-1 on its 100-per-cent-owned and operated Banarli licences in the Thrace basin of Turkey, which flowed at an initial restricted rate of 3.4 million cubic feet per day on a 24-hour production test.

Preliminary fourth quarter 2015 net petroleum and natural gas sales in Turkey averaged 806 barrels of oil equivalent per day, which was in line with annual guidance and included 4.8 million cubic feet per day of natural gas at an average price realization of approximately $9.90 per thousand cubic feet, and 7.0 barrels per day of oil and condensate.

Banarli exploration results (Valeura operated, 100-per-cent working interest)

As previously announced on Dec. 17, 2015, the corporation drilled its first two exploration wells on the 100-per-cent-owned and operated Banarli licences in November and December, 2015, with encouraging results. Since that time, completion and testing of the first well Bati Gurgen-1 and construction of tie-in facilities have been under way targeting first gas at the end of January, 2016.

Bati Gurgen-1 well

The Bati Gurgen-1 exploration well (Valeura 100-per-cent working interest) was drilled to a measured depth of 2,735 metres into the top of the Teslimkoy member of the Mezardere formation, and was cased to a measured depth of 2,729 metres. Log analysis indicated 32 metres of aggregate net gas pay at an average porosity of 19.6 per cent in multiple stacked sands in the Danismen and Osmancik formations. The well also penetrated several overpressured, thinner and tighter stacked sands in the Mezardere formation.

The main completion program consisted of perforating approximately 13 metres of conventional stacked sands in the Osmancik formation below 1,480 metres and carrying out a 24-hour production test. Over this period, 3,448,000 cubic feet of natural gas, 15 barrels of condensate and minimal water were produced at a stable restricted rate of approximately 3.4 million cubic feet per day through a 36/64ths-inch choke and a final flowing wellhead pressure of 1,307 pounds per square inch. It is expected that the Danismen formation will be completed within one or two months after the well is on production to permit further performance monitoring of the Osmancik formation alone.

Prior to completing the Osmancik formation, a diagnostic fracture injection test was carried out in a short interval in the Teslimkoy at a depth of approximately 2,560 metres to measure formation pressure, permeability and fracture properties to support future exploration and frac design. The test confirmed that the formation is significantly overpressured at this depth with a pressure gradient of 0.69 pound per square inch per foot, compared with a normal gradient of 0.43 pound per square inch per foot. This result is generally consistent with Valeura's interpretation of a potential pressure seal at a depth of approximately 2,500 metres across the Banarli licences, below which elevated pressures are to be expected with potential for a basin-centred gas play.

Although measured porosity and permeability in the Teslimkoy were encouraging, net pay was insufficient to warrant fracking and the Bati Gurgen-1 well was therefore plugged back to a depth of 2,540 metres before completing the Osmancik. However, these Teslimkoy evaluation results have provided encouragement to do similar diagnostic fracture injection testing in advance of a planned frack program in the Yayli-1 well, which was drilled 179 metres deeper than the Bati Gurgen-1 well and encountered much thicker aggregate net pay in the Teslimkoy.

The Bati Gurgen-1 well is currently shut in awaiting completion of the pipeline tie-in to the dehydration facility at the Gurgen-1 well (Valeura 40-per-cent working interest) located approximately 3.0 kilometres to the southeast on the joint venture lands acquired from Thrace Basin Natural Gas (Turkiye) Corp. and Pinnacle Turkey Inc.

Yayli-1 well

The Yayli-1 exploration well (Valeura 100-per-cent working interest) was drilled to a measured depth of 2,914 metres into the Teslimkoy member of the Mezardere formation and was cased to a measured depth of 2,910 metres. Log analysis indicated 14 metres of aggregate net gas pay at an average porosity of 15 per cent in several stacked sands in the Osmancik formation. More significantly, the well also penetrated multiple overpressured, tighter stacked sands in a series of interpreted coalesced basin floor fans in the Teslimkoy.

The planned testing and completion program on the Yayli-1 well will initially include a diagnostic fracture injection test in a section of the Teslimkoy containing several sand intervals at a depth of approximately 2,850 to 2,875 metres. One of these sand intervals yielded very strong gas shows during drilling and appears to be rubblized/fractured based on interpretation of the formation micro-imaging log. It is expected that this injection test will confirm a level of overpressure similar to the Bati Gurgen-1 well and provide additional reservoir information to support proceeding with fracture stimulations on one or more intervals in the Teslimkoy. However, before the Yayli-1 well can be fracked, the wellhead will need to be retrofitted to increase its pressure rating from 5,000 pounds per square inch to 10,000 pounds per square inch, which is expected to be completed by late January.

Tie-in activities

Trenching and laying of the eight-inch pipeline to tie in the Bati Gurgen-1 well to the TBNG JV facilities at the Gurgen-1 well are under way. Provisions are being made to tie in the Yayli-1 well to a junction at the Bati Gurgen-1 well. First gas from Banarli continues to be targeted for the end of January.

Preliminary Q4 2015 operational results

Preliminary petroleum and natural gas sales in Turkey in Q4 2015 averaged approximately 806 boe/d (net), which was in line with annual guidance and included 4.8 million cubic feet of natural gas and 7.0 bbl/d of oil and condensate. Preliminary net sales were up approximately 1.5 per cent from third quarter 2015 reflecting workover activity and higher customer demand, and down 32 per cent from Q4 2014 due to natural declines and reduced drilling and other capital expenditures on the TBNG JV lands.

The preliminary estimate of the average natural gas price realization in Q4 2015 is approximately $9.90 per thousand cubic feet, essentially unchanged from Q3 2015 and down approximately 7 per cent from Q4 2014 due to further weakening of the Turkish lira. The reference price for domestic gas sales in Turkey (priced in Turkish lira) has remained unchanged since Oct. 1, 2014. At that time a 9-per-cent increase was implemented to partially offset the impact of the weakening Turkish lira in 2014.

Preliminary petroleum and natural gas sales in Turkey for the full year 2015 averaged approximately 965 boe/d (net), which slightly exceeded the annual guidance range of 900 to 950 boe/d (net) provided in August, 2015. Annual net sales were down 16 per cent from 2014 due to natural declines and reduced drilling and other capital expenditures.


http://www.stockwatch.com/News/Item.aspx?bid=Z-C%3aVLE-2338004&symbol=VLE®ion=C


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Kostolanys Erbe schrieb am 04.01.2016, 19:32 Uhr[/url]"]:D

Seit Empfehlung Anfang Dezember 2015 hat VLE ein paar Prozente gemacht...




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Kostolanys Erbe schrieb am 18.12.2015, 00:25 Uhr[/url]"]Valeura drills Bati well to 2,735 m, starts completion



2015-12-17 09:26 ET - News Release



Mr. Jim McFarland reports

VALEURA ANNOUNCES ENCOURAGING DRILLING RESULTS AND COMMENCEMENT OF COMPLETION & TESTING OPERATIONS ON THE INITIAL TWO BANARLI EXPLORATION WELLS

Valeura Energy Inc. has released encouraging drilling results and commenced completion and testing operations on its initial two exploration wells Bati Gurgen-1 and Yayli-1 on its 100-per-cent-owned-and-operated Banarli licences in the Thrace basin of Turkey. In anticipation of further positive results, equipment procurement, pipeline right-of-way agreements and the finalization of gas marketing arrangements have continued to advance targeting first gas sales from Banarli by the end of January, 2016. The Energy Market Regulatory Authority in Turkey has also granted the corporation's Turkish affiliate a natural gas wholesale marketing licence to facilitate sales from Banarli.

"We are encouraged by the initial exploration drilling results, which are supported by extensive wireline logging analysis, and we are expecting positive confirmatory flow testing results in the coming weeks," said Jim McFarland, president and chief executive officer. "A further operational update will be provided in early January. Banarli has the potential to provide a significant boost to our net sales volumes in the first quarter of 2016, given the leverage of our 100-per-cent ownership position at Banarli.

"The estimated final cost of $5.5-million (U.S.) for this initial two-well exploration drilling, completion, testing and tie-in program at Banarli is being fully funded from cash on hand and operating cash flow, leaving our balance sheet debt free."

Banarli drilling results (Valeura operated, 100-per-cent working interest)

Bati Gurgen-1 well

The Bati Gurgen-1 exploration well (Valeura 100-per-cent working interest) was spudded on Nov. 10, 2015, with the Viking I-27 rig to test the Osmancik and Mezardere formations in a separate structural closure along the same fault trend as the Gurgen-1 discovery well (Valeura 40-per-cent working interest) located approximately three kilometres to the southeast on the joint venture lands acquired from Thrace Basin Natural Gas (Turkiye) Corp. and Pinnacle Turkey Inc. The Bati Gurgen-1 well was drilled in 11 days to a measured depth of 2,735 metres into the top of the Teslimkoy member of the Mezardere formation. Based on positive log evaluation results, including formation pressure and fluid mobility testing, the Bati Gurgen-1 well was cased to a measured depth of 2,729 metres and the drilling rig was released on Nov. 26. The completion and flow testing program for the well commenced on Dec. 9 and will initially include further cased-hole evaluation of the tight gas potential in the Mezardere formation followed by the main completion of shallower, conventional stacked sands in the Osmancik formation.

Yayli-1 well

The Yayli-1 exploration well (Valeura 100-per-cent working interest) was spudded on Dec. 1, 2015, with the Viking I-27 rig to test the Osmancik and Mezardere formations in a separate structural closure located 2.2 kilometres northwest of and along the same fault trend as the Bati Gurgen-1 well. The Yayli-1 well was drilled in 11 days to a measured depth of 2,914 metres to evaluate a thicker section of the Teslimkoy member. Mud weights and log results indicate that the Mezardere formation is overpressured below approximately 2,500 metres in both the Bati Gurgen-1 and Yayli-1 wells. Based on positive log evaluation results, the Yayli-1 well was cased to total depth. Rig release is expected on Dec. 18. Completion and testing of the well is expected to commence in early January following release of the service rig from the Bati Gurgen-1 well.

http://www.stockwatch.com/News/Item.aspx?bid=Z-C%3aVLE-2335072&symbol=VLE®ion=C




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Kostolanys Erbe schrieb am 11.12.2015, 21:56 Uhr[/url]"]Gegen den Trend heute nach oben !


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Kostolanys Erbe schrieb am 07.12.2015, 22:58 Uhr[/url]"]Ölpreis tief = Stimmung mies !

Zeit auf dem Ölpreisniveau eine kleine Firma vorzustellen, die aus meiner Sicht
Potential bei Öl und Gas hat, besonders nach dem heutigen Abverkauf!

Bei mir Strong WL !



Valeura Energy Inc. ("Valeura" or the "Company") is a Canada-based public company engaged in the exploration, development, and production of petroleum and natural gas in Turkey. The Company's shares are traded on the Toronto Stock Exchange in Canada under the trading symbol VLE.

Valeura is focused on continuing to grow internationally, in Turkey and other selected countries in the Mediterranean Basin, Central Europe, and Middle East and North Africa ("MENA") region.

Valeura is a coined word developed to brand the new company formed by the merger of two predecessor Canadian companies in early 2010. The root word of the first syllable is "value" in English and French. The first letter "V" evokes the heritage of several members of the management team and directors who had a hand in creating significant shareholder value in previous roles with Verenex Energy Inc., Vermilion Energy Trust, and Aventura Energy Inc.

http://www.valeuraenergy.com/



Präsentation:

http://www.valeuraenergy.com/upload/news_release/133/02/valeura-november-2015-corporate-presentation-v2-november-16-2015-final.pdf

Größter Aktionär ist Scott Lamacraft!!!! Cormark...



» zur Grafik


Hier erwarte ich in nächster Zeit News....

Auszug aus dem letzten Quartalsbericht:

http://www.valeuraenergy.com/upload/news_release/132/01/valeura-q3-2015-quarterly-press-release-november-12-2015-final.pdf
...

"We are excited that drilling is underway on the first exploration well on our Banarli licences at Bati Gurgen-1 (Valeura 100% working interest)", said Jim McFarland, President and Chief Executive Officer. "Drilling on this planned 2,700 metre test should be completed by the end of November. Wellsite preparations are also underway for a second exploration well on a separate prospect Yayli-1 northwest of Bati Gurgen-1, which is expected to spud before mid-December. With drilling success, we are targeting first gas by the end of January 2016.
....


Oct 28/15 Oct 27/15 Martinson, Lyle Allen Direct Ownership Common Shares 10 - Acquisition in the public market 19,000 $0.530

Oct 22/15 Oct 20/15 Shepherd, Donald William Indirect Ownership Common Shares 10 - Acquisition in the public market 6,500 $0.510

Oct 20/15 Oct 16/15 Shepherd, Donald William Indirect Ownership Common Shares 10 - Acquisition in the public market 12,000 $0.500

Oct 16/15 Oct 13/15 Shepherd, Donald William Indirect Ownership Common Shares 10 - Acquisition in the public market 2,000 $0.470

Oct 19/15 Oct 8/15 McFarland, James D. Indirect Ownership Common Shares 90 - Change in the nature of ownership 288,133 Oct 19/15 Oct 8/15 McFarland, James D. Direct Ownership Common Shares 90 - Change in the nature of ownership -288,133

Oct 9/15 Oct 7/15 Shepherd, Donald William Indirect Ownership Common Shares 10 - Acquisition in the public market 4,000 $0.510

Oct 5/15 Oct 5/15 McFarland, James D. Control or Direction Common Shares 10 - Acquisition in the public market 50,000 $0.445

Sep 29/15 Sep 28/15 Marchant, Timothy Direct Ownership Common Shares 10 - Acquisition in the public market 46,000 $0.390

Sep 28/15 Sep 24/15 Marchant, Timothy Direct Ownership Common Shares 10 - Acquisition in the public market 50,000 $0.400


https://www.canadianinsider.com/company?menu_tickersearch=vle

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[Kostolanys Erbe]

Aktuelle Präsentation Stand August 2016:

http://www.valeuraenergy.com/upload/news_release/133/16/valeura-august-2016-corporate-presentation-v1-august-11-2016-final.pdf

 

[Kostolanys Erbe]

Valeura, Statoil sign farm-in deal for Banarli licences



2016-08-19 12:21 ET - News Release



Mr. Jim McFarland reports

VALEURA ANNOUNCES EXECUTION OF DEFINITIVE AGREEMENTS FOR STATOIL FARM-IN ON BANARLI LICENCES IN TURKEY

Valeura Energy Inc.'s wholly owned affiliate, Corporate Resources BV (CRBV), has executed the definitive transaction documents with Statoil Holding Netherlands BV, a wholly owned affiliate of Statoil ASA, for a farm-in agreement for the exploration of the deeper formations on Valeura's two 100-per-cent-owned-and-operated Banarli exploration licences in the Thrace basin of northwest Turkey. The definitive agreements include a farm-in agreement, a joint operating agreement to apply postearning and a number of ancillary agreements.

"Completion of the definitive agreements is a key milestone and we now look forward to obtaining the necessary Turkish government approvals to close the farm-in transaction," said Jim McFarland, president and chief executive officer of Valeura. "Valeura and Statoil have worked diligently to negotiate the definitive agreements and in parallel have collaborated to advance the preparatory work to expeditiously launch the farm-in work program, to be operated by Valeura, pending receipt of Turkish government approvals," added Mr. McFarland.

Banarli farm-in

Under the terms of the definitive agreements, Statoil has the option to earn a 50-per-cent participating interest in the deep formations on the Banarli licences by investing in an exploration program that includes payments and carried costs of at least $36-million (U.S.). The actual amount invested by Statoil to earn its 50-per-cent interest may be higher based on the actual agreed costs of the three-phase work program to satisfy the commitments as described more fully in Valeura's May 15, 2016, press release. The earning work program includes two deep exploration wells and additional 3-D seismic.

The next step in the transaction requires the parties to jointly submit applications to the General Directorate of Petroleum Affairs (GDPA) of the Republic of Turkey for approval of the associated licence interest transfers, whereby Statoil would hold a 50-per-cent participating interest in the deep formations below approximately 2,500 metres and Valeura would retain a 100-per-cent interest in the shallow formations on the Banarli licences. These applications are expected to be submitted by the end of August, 2016. GDPA approval of the licence interest transfers is a key condition to close the transaction and Valeura will receive $6-million (U.S.) at closing as a contribution to past exploration costs incurred on the Banarli licences.

In the meantime, preparatory work has continued to position the possible commencement of drilling by year-end 2016 or early 2017, contingent on the timing of government approvals to close the transaction.

Other business development and operational highlights

The Statoil farm-in on the Banarli licences has set the stage for the corporation to more actively pursue a joint venture partner to explore the deeper horizons below approximately 2,500 metres on certain joint venture lands acquired from Thrace Basin Natural Gas (Turkiye) Corp. (TBNG) and Pinnacle Turkey Inc. (PTI), which also have potential for a potential basin-centred gas play.

In concert, the corporation is actively pursuing strategic acquisitions and exploring its options to ramp up exploration and development activities in the shallow formations on its 40-per-cent non-operated interest in the TBNG joint venture. A resumption of activity on the TBNG joint venture would expand the drilling and fracing opportunity portfolio, balance risk and complement the 100-per-cent-controlled shallow program on the Banarli licences, which is in the early exploration phase. The objective of this strategy is to grow a more robust, premium-priced, high-netback conventional shallow gas and unconventional tight gas business in Turkey, while retaining meaningful exposure to a potentially high-impact, deep-basin-centred gas play in the Thrace basin financed in the early stages by joint venture partners.

Bati Gurgen-2 well

The Bati Gurgen-2 sidetrack well on the Banarli licences has now been completed as a natural gas producer from the Osmancik formation and is in the process of being tied in with a very short flow line to the existing gathering system from the Bati Gurgen-1 well. The well is expected to be on stream by early September, 2016. Approximately eight metres of conventional stacked sands were perforated in the Osmancik below a true vertical depth of 1,640 metres. A short 12-hour well test was carried out at a restricted rate of approximately one million cubic feet per day. The gas will be sold to the TNBG joint venture under the same sales contract currently in place for Banarli sales sourced from the Bati Gurgen-1 well.

http://www.stockwatch.com/News/Item.aspx?bid=Z-C%3aVLE-2399778&symbol=VLE&region=C

 

[Kostolanys Erbe]

Valeura enters definitive Turkish deals



2016-10-13 16:47 ET - News Release



Mr. Jim McFarland reports

VALEURA ANNOUNCES EXECUTION OF TRANSFORMATIONAL TRANSACTION AGREEMENTS IN TURKEY AND UNDERWRITTEN PRIVATE PLACEMENT OF SUBSCRIPTION RECEIPTS

Valeura Energy Inc. has executed definitive agreements for three concurrent transactions, which advance the corporation's strategy to expand its high-netback natural gas business in the Thrace basin of northwest Turkey. These transactions, upon completion, are expected to be transformational for Valeura in terms of increased business scale, operational control, financial capability, drilling activity and production, and include:

Acquisition of its joint venture partner, Thrace Basin Natural Gas (Turkiye) Corp. (TBNG), for $22-million (U.S.) in cash, effective March 31, 2016, which after closing adjustments are expected to be reduced to approximately $18.5-million (U.S.) at closing;
Sale of deep rights on certain joint venture lands to Statoil Banarli Turkey BV for $15-million (U.S.) in two tranches of $12-million (U.S.) and $3-million (U.S.);
Underwritten $7.5-million private placement financing of subscription receipts of the corporation, to be issued at a price of 75 cents per subscription receipt (see financing of the TBNG acquisition section herein).


The closing of the acquisition of TBNG and of the sale of deep rights on certain joint venture lands to Statoil is subject to customary closing conditions, including obtaining customary Turkish government approvals with respect to the change of control of TBNG and the various licence interest transfers.

"The acquisition of TBNG has been a long-standing strategic objective of Valeura, which provides operational control and doubles our participating interest to 81.5 per cent in a core producing asset in the Thrace basin," said Jim McFarland, president and chief executive officer of Valeura. "The combination of the acquisition of Valeura's joint venture partner, the sale of the deep rights to Statoil and the financing is expected to be highly accretive to Valeura shareholders, with pro forma cash flow per share accretion of 62 per cent based on Q2 2016 actual results.

"The funds flow from Statoil and concurrent financing provide the opportunity to ramp up exploration and development drilling activity in the shallow conventional gas and tight gas formations on the TBNG JV lands to complement the 100-per-cent-controlled shallow program on the Banarli licences, which together will be the main focus of Valeura's near-term business plan. We look forward to working with TransAtlantic Petroleum to ensure a smooth transition of operatorship of the TBNG JV and welcoming the TBNG operational team in Turkey to the Valeura group.

"We are also delighted with the opportunity to expand the joint venture activities with Statoil under the sale of a portion of the West Thrace deep rights, which will build on the recently executed Banarli farm-in. Not only is this sale a crucial source of non-dilutive financing for the TBNG acquisition, but it is also an important measure of Statoil's level of interest and commitment to testing the basin-centred gas play concept in the Thrace basin and the potential option value of Valeura's position in the play," added Mr. McFarland.

Details of the transactions are outlined herein.

Thrace Basin Natural Gas (Turkiye) acquisition

Valeura's wholly owned affiliate, Valeura Energy Netherlands BV, has entered into a share purchase agreement with TransAtlantic Worldwide Ltd. to acquire 100 per cent of the shares of its wholly owned affiliate, TBNG, for cash consideration at closing of approximately $18.5-million (U.S.) (estimate after closing adjustments). TBNG currently holds a 41.5-per-cent participating interest in the joint venture lands acquired from TBNG and Pinnacle Turkey Inc. (PTI) in 2011. Upon the closing of the TBNG acquisition, Valeura's participating interest in the shallow rights on the TBNG JV will increase to 81.5 per cent, and Valeura will become the operator. Certain consents for the TBNG acquisition have been received from PTI, which holds an 18.5-per-cent participating interest in the TBNG JV and will remain a joint venture partner.

Cormark Securities Inc. acted as financial adviser to Valeura with respect to the TBNG acquisition.

Key transaction highlights and benefits

Management of Valeura believes the following to be the key transaction highlights and benefits of the TBNG acquisition:

Per-share accretion metrics for the TBNG acquisition, based on a 17-per-cent increase in the shares outstanding at completion of the financing, are expected to be strong given the significant non-dilutive financing from Statoil:


Per-share accretion (1):


Cash flow (2): 62 per cent

Production (3): 35 per cent

Proven plus probable reserves (4): 58 per cent


Increases Valeura's participating interest in the shallow rights on the TBNG JV from 40 per cent to 81.5 per cent and establishes Valeura as the operator;
Increases Valeura's corporate production by 59 per cent (3) and 2P reserves by 85 per cent (4);
Provides control of key upstream and marketing infrastructure and a retail marketing licence held by TBNG;
Capitalizes on Valeura's five-year experience with the assets and proven operational capabilities;
Acquiring operatorship allows Valeura to accelerate the early ramp-up of exploration and development activities on the TBNG JV lands, with the initial priority on spudding four shallow commitment wells on the West Thrace lands by late June, 2017;
Expands Valeura's interest in a robust portfolio of exploratory prospects and leads and development opportunities identified by Valeura on the TBNG JV lands in both conventional shallow gas formations and normally pressured tight gas formations and complements the 100-per-cent-controlled shallow program on the Banarli licences, which are in the early exploration phase;
Acquiring key infrastructure provides significant operational synergies for the development of the adjacent Banarli licences and producing wells, which are tied into the TBNG JV facilities, with the related production currently being sold to TBNG and marketed to TBNG's local customer base;
Acquisition metrics, based on the adjusted cash purchase price of approximately $18.5-million (U.S.) (estimate after closing adjustments), are expected to be as follows: Three-point-two cash flow multiple (2);
$43,360 per producing barrels of oil equivalent per day (3);
$15.08 per boe (proven reserves); $5.08 per boe (proven plus probable reserves) (4).



Notes:

(1) Based on 58.5 million shares prefinancing and 68.5 million shares postfinancing.

(2) Based on annualized second quarter 2016 cash flow. Cash flow herein is defined as revenue less royalties, operating costs, and general and administrative expenses, including an allocation of existing Valeura corporate G&A to the TBNG JV and an estimated incremental G&A burden of $1.0-million associated with the TBNG acquisition.

(3) Based on annualized second quarter 2016 sales from TBNG's 41.5-per-cent working interest in TBNG JV.

(4) Based on allocation of DeGolyer and MacNaughton's estimate of Valeura's reserves for the TBNG JV lands at Dec. 31, 2015, in its report prepared for Valeura dated March 8, 2016.

Deep rights sale to Statoil

Valeura's wholly owned affiliate, Corporate Resources BV (CRBV), has entered into a sale and purchase agreement with Statoil, a wholly owned affiliate of Statoil ASA, to sell Valeura's current 40-per-cent participating interest in the deep formations below an approximately 2,500-metre depth on certain TBNG JV lands, including two exploration licences and three production leases (the West Thrace lands), for cash consideration of $12-million (U.S.) (the West Thrace deep rights sale). The deep rights sale agreement also provides that upon the closing of the West Thrace deep rights sale and the TBNG acquisition, CRBV will cause TBNG to enter into a sale and purchase agreement with Statoil to sell an additional 10-per-cent participating interest in the deep formations below an approximately 2,500-metre depth on the West Thrace lands, for cash consideration of $3-million (U.S.) (the subsequent West Thrace deep rights sale).

Upon the closing of the West Thrace deep rights sale and the subsequent West Thrace deep rights sale, Valeura retains a 31.5-per-cent participating interest, and Statoil acquires a 50-per-cent participating interest in the deep formations on the West Thrace lands. Valeura will retain an 81.5-per-cent participating interest in the shallow formations and an 81.5-per-cent participating interest in all formations on other TBNG JV lands.

Key transaction highlights and benefits

Management of Valeura believes the following to be the key transaction highlights and benefits of the West Thrace deep rights sale and the subsequent West Thrace deep rights sale:

Proceeds from the sale provide a key source of non-dilutive financing for the TBNG acquisition.
Valeura retains all existing production and reserves on the TBNG JV lands, given the current undeveloped nature of the deep formations.
They further validate the potential of Valeura's assets with respect to the potential for a basin-centred gas play.
Valeura retains a meaningful 31.5-per-cent participating interest in the deep formations on the West Thrace lands to complement its retained 50-per-cent participating interest in the deep formations on the Banarli licences, thereby preserving significant option value, should the basin-centred gas play be successful.
Valeura retains operatorship and an 81.5-per-cent participating interest in shallow formations in all TBNG JV lands and all formations outside the West Thrace lands.
Valeura retains its 81.5-per-cent ownership of all existing facilities and wells on the TBNG JV lands, with the exception of deep rights that would accrue to the existing suspended deep wells Hayrabolu-10 and Kazanci-5.
Valeura will also initially operate the deep rights program, subject to Statoil having a one-time right to become operator of the deep rights, provided it has first earned its 50-per-cent participating interest in the Banarli exploration licences under the Banarli farm-in announced on May 16, 2016.
Any deep drilling on the West Thrace lands prior to Statoil completing the earning under the Banarli farm-in would require the unanimous approval of the parties holding participating interests in the deep formations.
They align Statoil's 50-per-cent participating interest in the deep formations on the West Thrace lands with its potential after-earning 50-per-cent participating interest in the deep formations under the Banarli farm-in.


Closing of the TBNG acquisition and of the West Thrace deep rights sale is expected to occur before year-end 2016 and is subject to customary closing conditions, including obtaining customary Turkish government approvals with respect to the change of control of TBNG and the various licence interest transfers. Furthermore, closing of the TBNG acquisition is conditional on the closing of the West Thrace deep rights sale, and the deep rights sale agreement provides for the return of the initial proceeds of $12-million (U.S.) to Statoil in the event the acquisition agreement is terminated or the TBNG acquisition fails to close. Closing of the subsequent West Thrace deep rights sale is expected to occur in early 2017, subject to obtaining customary Turkish government approvals.

Financing of the TBNG acquisition

Consideration for the TBNG acquisition will consist of a cash payment at closing of approximately $18.5-million (U.S.), after estimated closing adjustments. Valeura has developed a robust financing mechanism to ensure the timely closing of the TBNG acquisition having regard to the flow of funds from Statoil to affiliates of Valeura, the Turkish government approvals required and the expected timing thereof.

Valeura expects to partially finance the TBNG acquisition with the initial proceeds of $12-million (U.S.) from Statoil under the West Thrace deep rights sale and the expected proceeds from the concurrent $7.5-million ($5.7-million (U.S.)) underwritten private placement financing.

Other expected payments from Statoil, which are not directly linked to the TBNG acquisition, but which can provide additional financing for the TBNG acquisition and/or working capital to finance the 2017 shallow drilling program, include the following: the $6-million (U.S.) payment to be received by Valeura at the closing of the Banarli farm-in, which could occur in advance of the closing of the TBNG acquisition and thereby also partially finance the TBNG acquisition; and the second payment of $3-million (U.S.) to be received at the closing of the subsequent West Thrace deep rights sale expected in early 2017.

Underwritten private placement offering

The corporation has entered into an agreement with Cormark Securities as lead underwriter, and on behalf of a syndicate of underwriters, in respect of the offering, pursuant to which the corporation will sell and the underwriters will purchase, on an underwritten private placement basis, 10 million subscription receipts of the corporation at a price of 75 cents per subscription receipt for total gross proceeds of $7.5-million.

Each subscription receipt will represent the right to receive one common share of the corporation without the payment of any additional consideration or further action, upon satisfaction of certain conditions, including that all conditions to the completion of the TBNG acquisition have been satisfied (but for the payment of the purchase price). The gross proceeds of the offering will be deposited in escrow pending the closing of the TBNG acquisition.

The corporation will use the net proceeds of the offering to partially finance the TBNG acquisition.

If: (i) the TBNG acquisition is not completed on or before the date that is 120 days following the closing date of the offering, (ii) the acquisition agreement is terminated in accordance with its terms at an earlier time, or (iii) Valeura advises the underwriters or the public that it does not intend to proceed with the TBNG acquisition, holders of subscription receipts will receive, for each subscription receipt held, a cash payment equal to the offering price per subscription receipt and any interest earned thereon during the term of the escrow.

The subscription receipts will be offered by way of private placement exemptions to accredited investors in all provinces of Canada, and in the United States on a private placement basis, pursuant to exemptions from the registration requirements of the U.S. Securities Act of 1933, as amended, and in such other jurisdictions as the corporation and the underwriters may determine. The subscription receipts (and the underlying common shares) will be subject to a four-month hold period, under applicable securities laws in Canada. The offering is expected to close on or about Nov. 3, 2016. Completion of the offering is subject to certain conditions, including, without limitation, the receipt of all necessary regulatory approvals, including the approval of the Toronto Stock Exchange.

Preliminary 2017 outlook

The corporation is targeting to close the Banarli farm-in, the TBNG acquisition and the West Thrace deep rights sale by year-end 2016 and the subsequent West Thrace deep rights sale by early 2017. Based on the funds flow associated with these transactions, the corporation expects to be in a position, on a preliminary basis, to execute a capital expenditure program of approximately $30-million (net) in 2017 focused on ramping up drilling and production in the shallow formations on the TBNG JV lands and Banarli licences. The corporation also expects that the Banarli farm-in program, fully financed by Statoil and operated by Valeura, will commence by early 2017.

The preliminary 2017 work program and spending outlook aims to achieve the following key objectives in 2017:

Shallow gas business:

Execute a one-rig drilling program to drill 12 to 14 shallow wells on the TBNG JV lands (Valeura 81.5-per-cent working interest) and Banarli licences (Valeura 100-per-cent WI);
Achieve corporate average sales volumes in the range of 2,000 to 2,200 barrels of oil equivalent per day (net);
Target annual average operating netbacks of approximately $35 per boe, reflecting the recently announced 10-per-cent reduction in the Botas reference price in Turkey, effective Oct. 1, 2016 (priced in Turkish lire), which is equivalent to approximately $8.48 per thousand cubic feet at current exchange rates;
Seek resolution of outstanding exploration licence and production lease applications submitted by Valeura and the TBNG JV to the General Directorate of Petroleum Affairs (GDPA) of the Republic of Turkey in 2015.


Statoil Banarli farm-in:

Work closely with Statoil to design and execute the Banarli farm-in program in a safe, environmentally responsible, cost-effective and timely way;
Spud the first deep well (4,000 metres) under phase 1 of the Banarli farm-in by early 2017;
Commence the 3-D seismic program under phase 2 of the Banarli farm-in in May, 2017.

http://www.stockwatch.com/News/Item.aspx?bid=Z-C%3aVLE-2412710&symbol=VLE&region=C

 

[Kostolanys Erbe]

Valeura Energy increases financing to $11-million



2016-10-14 09:58 ET - News Release



Mr. Jim McFarland reports

VALEURA ANNOUNCES INCREASE TO UNDERWRITTEN PRIVATE PLACEMENT

In connection with its previously announced private placement financing, Valeura Energy Inc. and the syndicate of underwriters led by Cormark Securities Inc., and including GMP FirstEnergy have agreed to increase the size of the private-placement financing. Valeura will now issue 14,629,000 subscription receipts of the corporation at a price of 75 cents per subscription receipt for total gross proceeds of approximately $11-million.

The subscription receipts (and the underlying common shares of the corporation issuable pursuant thereto) will be subject to a four-month hold period, under applicable securities laws in Canada. The offering is expected to close on or about Nov. 3, 2016. Completion of the offering is subject to certain conditions, including, without limitation, the receipt of all necessary regulatory approvals, including the approval of the Toronto Stock Exchange.


http://www.stockwatch.com/News/Item.aspx?bid=Z-C%3aVLE-2412879&symbol=VLE&region=C

 

[Kostolanys Erbe]

Valeura loses $1.26-million in Q3



2016-11-10 20:01 ET - News Release



Mr. Jim McFarland reports

VALEURA ANNOUNCES THIRD QUARTER 2016 FINANCIAL AND OPERATING RESULTS AND PROGRESS ON RECENT TRANSFORMATIONAL TRANSACTIONS

Valeura Energy Inc. has released highlights of its unaudited financial and operating results for the three- and nine-month periods ended Sept. 30, 2016, and has provided an update on subsequent developments, including progress toward closing a number of recently announced transactions, including the Banarli farm-in, the TBNG acquisition, West Thrace deep rights sale and private placement financing. The complete quarterly reporting package for the corporation, including the unaudited financial statements and associated management's discussion and analysis, has been filed on SEDAR and posted on the corporation's website.

"We believe that the series of transactions announced by Valeura in the past few months will be transformational for the corporation and highly attractive for shareholders. They pave the way for us to ramp up drilling and put the shallow gas business back on a growth path with a program that, for the first time, will be under our control," said Jim McFarland, president and chief executive officer of Valeura. "We have a robust inventory of drillable prospects and exploration leads in the conventional shallow gas formations and normally pressured tight gas formations on the TBNG JV lands and Banarli licences, which could support a one-rig drilling program of up to 12 to 14 exploration development wells in 2017. Our standout operational netbacks and competitive cost structure in Turkey are expected to generate strong economic returns for this capital program.

"We are also thrilled that the two transactions completed with Statoil, with an expected total value of $51-million (U.S.), have validated the potential of a basin-centred gas play concept in the deep formations below 2,500 metres in parts of the Thrace basin, which we had conceived and advanced with new 3-D seismic and targeted deep drilling and testing programs in the past few years. By retaining a 50-per-cent and 31.5-per-cent participating interest in the deep formations on the Banarli licences and West Thrace lands, respectively, we have preserved significant option value for Valeura should the deep play prove successful.

"Average net sales of 680 boe/d in Q3 2016 and 801 boe/d in the first nine months of 2016 are at the low end of the range of previous guidance of 800 to 900 boe/d for annual average sales. The low production level in Q3 reflects the deferral of new drilling pending the closing of the transactions and delays in first gas from the Bati Gurgen-2 well at Banarli. In contrast, and dependent on completing the transactions, we are targeting to achieve average net sales of 2,000 to 2,200 boe/d in 2017 with a more aggressive, operated capital expenditure program in the higher-working-interest shallow gas business we will own at the closing of the TBNG acquisition," added Mr. McFarland.

Third quarter 2016 results at a glance:

Executed definitive agreements for the Banarli farm-in, TBNG acquisition and West Thrace deep rights sale transactions, and closed an underwritten private placement financing;
Net sales 680 barrels of oil equivalent per day (42 per cent from Banarli);
Funds flow from operations of $1.1-million;
Working capital surplus of $3.70-million;
Natural gas price realization of $9.35 per thousand cubic feet;
Operating netback of $38.69 per boe;
Net capital expenditures of $3.1-million.


Transaction highlights and update

Farm-in with Statoil:

As announced on Aug. 19, 2016, an affiliate of Valeura executed definitive agreements with Statoil Holding Netherlands, a wholly owned affiliate of Statoil ASA, for a farm-in agreement for the exploration of the deeper formations below approximately 2,500 metres on the Banarli licences targeting a potential basin-centred gas accumulation (BCGA) play.
Under the terms of the Banarli farm-in, Statoil has the option to earn a 50-per-cent participating interest in the deep formations on the Banarli licences by investing in an exploration program that includes payments and carried costs of at least $36-million (U.S.), including two deep exploration wells and 3-D seismic.
Closing of the Banarli farm-in is subject to the Turkish government approvals for the associated transfer of the licence interests. At closing, which is expected by year-end 2016, Statoil will pay Valeura $6.0-million (U.S.) as a contribution to back costs incurred on the Banarli licences. Applications for the licence interest transfers were submitted to General Directorate of Petroleum Affairs of the Republic of Turkey (GDPA) for its review on Sept. 8, 2016, and were subsequently presented to the Ministry of Energy of Natural Resources on Nov. 1, 2016, for approval.
A drilling location for the first deep exploration well has been chosen on the existing 3-D seismic area approximately three kilometres northwest of the Yayli-1 well. A preliminary AFE for the drilling, coring and log evaluation phase has been agreed and will be finalized once bids are selected for the drilling rig and associated equipment and services.
The target spud date for the first well is year-end 2016 or early 2017, depending on the progress of government approvals to close the Banarli farm-in. Valeura will operate the deep exploration program during the earning phase.


TBNG acquisition:

As announced on Oct. 13, 2016, an affiliate of Valeura executed a share purchase agreement with an affiliate of TransAtlantic Petroleum to acquire 100 per cent of the shares of Thrace Basin Natural Gas (Turkiye) (TBNG) for $22-million (U.S.), effective March 31, 2016, which after closing adjustments is expected to be reduced to approximately $18.5-million (U.S.) at the targeted closing of year-end 2016.
TBNG holds a 41.5-per-cent participating interest in the TBNG joint venture and will increase Valeura's participating interest in the TBNG JV to 81.5 per cent (subject to the West Thrace deep rights sale) and establishes Valeura as the operator.
Acquiring operatorship allows Valeura to accelerate the early ramp-up of exploration and development activities on the TBNG JV lands, with the initial priority on spudding four shallow commitment wells on the West Thrace lands by late June, 2017.
The TBNG acquisition requires various Turkish government approvals. Applications were submitted to the various government agencies in October, 2016.



West Thrace deep rights sale:

As announced on Oct. 13, 2016, an affiliate of Valeura executed a sale and purchase agreement with Statoil, to initially sell Valeura's current 40-per-cent participating interest in deep formations below approximately 2,500 metres on certain TBNG JV lands for cash consideration of $12-million (U.S.), and upon closing of the TBNG acquisition, to sell an additional 10-per-cent participating interest in the same deep rights for $3-million (U.S.).
Upon the closing of the West Thrace deep rights sale and subsequent West Thrace deep rights sale, Valeura will retain a 31.5-per-cent participating interest, and Statoil acquires a 50-per-cent participating interest in the deep formations on the West Thrace lands. Valeura will retain an 81.5-per-cent participating interest in the shallow formations on the West Thrace lands and an 81.5-per-cent participating interest in all formations on other TBNG JV lands.
Any deep drilling on the West Thrace lands prior to Statoil completing the earning under the Banarli farm-in would require the unanimous approval of the parties holding participating interests in the deep formations.
The West Thrace deep rights sale provides a crucial source of non-dilutive funding for the TBNG acquisition and further validates the potential for a deep BCGA play on Valeura's lands.
Closing of the West Thrace deep rights sale is subject to the Turkish government approvals for the associated transfer of the licence interests and is expected before year-end 2016. Furthermore, closing of the TBNG acquisition is conditional on the closing of the West Thrace deep rights sale. Applications for the licence interest transfers were submitted to the GDPA on Oct. 26, 2016.


Underwritten private placement offering:

As announced on Oct. 13 and 14, 2016, Valeura entered into an agreement with Cormark Securities Inc. as lead underwriter, and on behalf of a syndicate of underwriters, including GMP FirstEnergy, pursuant to which the corporation will sell and the underwriters will purchase, on an underwritten private placement basis, 14,629,000 subscription receipts of the corporation at a price of 75 cents per subscription receipt for total gross proceeds of approximately $11-million. The subscription receipts (and the underlying common shares of the corporation issuable pursuant thereto) will be subject to a four-month hold period.
Valeura will use the net proceeds to partially finance the TBNG acquisition and to ramp up the planned shallow gas drilling program on the TBNG JV lands and Banarli licences in 2017.
The offering closed Nov. 3, 2016.
Each subscription receipt represents the right to receive one common share of the corporation, without the payment of any additional consideration or further action, upon satisfaction of certain conditions, including that all conditions to the completion of the TBNG acquisition (but for the payment of the purchase price). If: (i) the TBNG acquisition is not completed on or before March 3, 2017; (ii) the acquisition agreement is terminated in accordance with its terms at an earlier time; or (iii) Valeura advises the underwriters or the public that it does not intend to proceed with the TBNG acquisition, holders of subscription receipts will receive, for each subscription receipt held, a return of the cash payment equal to the offering price per subscription receipt and any interest earned thereon during the term of the escrow.


Operational highlights:

Net petroleum and natural gas sales in Turkey in third quarter 2016 averaged 680 barrels of oil equivalent per day, which were down 27 per cent from second quarter 2016 and down 14 per cent from third quarter 2015. Net sales in third quarter 2016 included 4.0 million cubic feet per day of natural gas and 10 barrels of oil per day.
Lower sales in third quarter 2016 reflect natural declines, a delay in first gas from the Bati Gurgen-2 well on the Banarli licences and minimal capital expenditures on the joint venture lands acquired from Thrace Basin Natural Gas (Turkiye) and Pinnacle Turkey.


Banarli licences (Valeura 100-per-cent working interest):

The Bati Gurgen-2 well was placed on stream on Sept. 26, 2016 as a producer from approximately 8.0 metres of conventional stacked sands in the Osmancik formation at a depth of 1,640 metres. Over the initial 30 days of on-stream operations, the well was produced at an average restricted rate of 1.1 million cubic feet per day (IP30). The well is currently producing at a restricted rate of approximately 1.1 million cubic feet per day.
The Bati Gurgen-1 well is currently producing from the Osmancik formation at a restricted rate of approximately 1.6 million cubic feet per day. A recompletion program to perforate additional pay in the shallower Danismen formation is under review for possible implementation in early 2017.
The Yayli-1 well remains shut in due to high water production. It is currently planned to swab the well for an extended period to unload water from the wellbore and determine whether stabilized gas flows can be achieved prior to any decision to equip the well with a pump.


TBNG JV lands (Valeura 40-per-cent working interest currently):

Plans are under way to spud a 1,300-metre conventional shallow gas well at Dogu Atakoy-3 in early 2017, contingent on closing the transactions. This well would be the first of four licence commitment wells on the West Thrace lands in the TBNG JV that must commence drilling by the end of June, 2017. under the TBNG acquisition agreement, Valeura can proceed with this well as an independent operation at an 81.5-per-cent working interest (PTI 18.5-per-cent working interest) in anticipation of closing the TBNG acquisition. If the transaction does not close, TBNG will be required to finance its 41.5-per-cent share of the cost.
The corporation is also seeking TBNG JV partner support to perforate additional Osmancik formation pay in the Gurgen-1 and Gurgen-2 wells prior to year-end 2016.


Financial highlights:

The average natural gas price realization in Turkey of $9.35 per thousand cubic feet in third quarter 2016 was down 1 per cent and 5 per cent from second quarter 2016 and third quarter 2015, respectively, due primarily to fluctuations in the Turkish lira exchange rate and a higher proportion of sales from Banarli.
The average operating netback of $38.69 per boe in third quarter 2016 was down 10 per cent and 13 per cent from second quarter 2016 and third quarter 2015, respectively, due to lower natural gas price realizations and higher unit operating costs.
The working capital surplus at Sept. 30, 2016, was $3.7-million, including cash of $2.3-million.
Funds flow from operations of $1.1-million in third quarter 2016 was down 49 per cent from second quarter 2016 due to lower volumes, higher unit operating costs reflecting employee termination costs in TBNG and higher realized foreign exchange losses, partially offset by lower general and administrative expenses, and was down 45 per cent from third quarter 2015 due to lower sales volumes, lower natural gas price realizations and higher unit operating costs, partially offset by lower general and administrative expenses and lower realized foreign exchange losses.
Net capital expenditures of $3.1-million in third quarter 2016 were essentially unchanged from second quarter 2016 and were up 315 per cent from third quarter 2015 due to higher drilling expenditures on the Banarli licences. Expenditures on the TBNG JV lands were nominal in third quarter 2016 and the same period in 2015.
Additional financial and operating results are summarized in the attached table.
In a subsequent development, the Turkish government reduced the BOTAS reference price (in Turkish lira) by 10 per cent, effective Oct. 1, 2016, which is expected to reduce Valeura's average price realizations to approximately $8.12 per thousand cubic feet at current exchange rates. This reduction is reportedly linked to negotiated price reductions in some natural gas imports. Turkey imports approximately 99 per cent of its natural gas supply. The last change in the BOTAS reference price was in Oct. 1, 2014, when the price was increased by 9 per cent, reportedly to offset the the impact of the weakening of the Turkish lira against the U.S. dollar in 2014 and the resulting higher cost of imported gas typically priced in U.S. dollars.



FINANCIAL AND OPERATING RESULTS SUMMARY (1)
(thousands of dollars, except per-share amounts, and as otherwise stated)

Three months ended Nine months ended Three months ended Nine months ended
Sept. 30, 2016 June 30, 2016 Sept. 30, 2016 Sept. 30, 2015 Sept. 30, 2015
Financial
Petroleum and
natural gas revenues $3,510 $4,809 $12,647 $4,309 $17,118
Funds flow from operations (1) 1,066 2,098 5,133 1,949 8,585
Net (loss) from operations (1,263) (642) (2,897) (169) (849)

Operations
Production
Crude oil (bbl/d) 10 7 8 7 8
Natural Gas (Mcf/d) 4,020 5,560 4,756 4,723 6,062
Boe/d (at 6:1) 680 933 801 794 1,019

Average reference price
Brent ($ per bbl) 59.75 57.81 55.31 65.91 69.91
BOTAS reference ($ per Mcf) (2) 9.67 9.78 9.90 10.07 10.40
Average realized price
Crude oil ($ per bbl) 56.24 54.41 52.15 48.79 52.25
Natural gas -- Turkey ($ per Mcf) 9.35 9.44 9.61 9.85 10.27
Average operating netback
($ per boe at 6:1) (1) 38.69 43.02 42.72 44.50 46.99

Notes:
(1) The table includes non-international financial reporting standard measures, which may not be
comparable with other companies. Funds flow from operations is calculated as net income (loss)
for the period adjusted for non-cash items in the statement of cash flows. Operating netback is
calculated as petroleum and natural gas sales less royalties, production expenses and
transportation costs. See management's discussion and analysis for further discussion.
(2) Boru Hatlari ile Petrol Tasima Anonim Sirketi (BOTAS) owns and operates the national crude
oil and natural gas pipeline grids in Turkey and purchases the majority of Turkey's natural gas
imports. BOTAS regularly posts prices, and its Level 2 wholesale tariff is shown herein as a
reference price. See the 2015 annual information form for further discussion.



Outlook

The corporation currently expects to complete a capital expenditure program of approximately $10-million in 2016 focused primarily on the Banarli licences. Capital expenditures in fourth quarter 2016 are expected to include several recompletions on the TBNG JV lands. The current outlook for annual average net sales in 2016 is approximately 800 barrels of oil equivalent per day, which is at the low end of the most recent guidance range of 800 to 900 boe per day provided on Aug. 11, 2016. The current net sales outlook for 2016 reflects delays in achieving first gas from the Bati Gurgen-2 well and deferral of new drilling pending the closing of the transactions and the funds flow therefrom.

The corporation is targeting to close the Banarli farm-in, the TBNG acquisition and the West Thrace deep rights sale, and to complete the offering, by year-end 2016. Applications have been submitted to the Turkish government for the various approvals required to close the Banarli farm-in, the TBNG acquisition and the West Thrace deep rights sale. Closing of the subsequent West Thrace deep rights sale is expected in early 2017, which first requires Turkish government approval of the TBNG acquisition and the subsequent licence interest transfer.

Based on completing the Banarli farm-in, TBNG acquisition, the West Thrace deep rights sale and the offering by year-end 2016, the corporation is planning a capital expenditure program of up to $30-million to 33-million (net) in 2017 focused entirely on the shallow gas business. This program is expected to include a significant ramp-up in drilling in the shallow formations (less than 2,500 metres) on the TBNG JV lands and Banarli licences targeting corporate average sales volumes in the range of 2,000 to 2,200 boe per day. The 2017 work program and expenditures, and the timing thereof, are dependent on closing of the transactions and receipt of the funds flow therefrom.

The corporation also expects that the Banarli farm-in program, fully financed by Statoil and operated by Valeura, will commence by early 2017 with the spudding of a deep exploration well.

http://www.stockwatch.com/News/Item.aspx?bid=Z-C%3aVLE-2420738&symbol=VLE&region=C

 

[Kostolanys Erbe]

Valeura loses $1.26-million in Q3



2016-11-10 20:01 ET - News Release



Mr. Jim McFarland reports

VALEURA ANNOUNCES THIRD QUARTER 2016 FINANCIAL AND OPERATING RESULTS AND PROGRESS ON RECENT TRANSFORMATIONAL TRANSACTIONS

Valeura Energy Inc. has released highlights of its unaudited financial and operating results for the three- and nine-month periods ended Sept. 30, 2016, and has provided an update on subsequent developments, including progress toward closing a number of recently announced transactions, including the Banarli farm-in, the TBNG acquisition, West Thrace deep rights sale and private placement financing. The complete quarterly reporting package for the corporation, including the unaudited financial statements and associated management's discussion and analysis, has been filed on SEDAR and posted on the corporation's website.

"We believe that the series of transactions announced by Valeura in the past few months will be transformational for the corporation and highly attractive for shareholders. They pave the way for us to ramp up drilling and put the shallow gas business back on a growth path with a program that, for the first time, will be under our control," said Jim McFarland, president and chief executive officer of Valeura. "We have a robust inventory of drillable prospects and exploration leads in the conventional shallow gas formations and normally pressured tight gas formations on the TBNG JV lands and Banarli licences, which could support a one-rig drilling program of up to 12 to 14 exploration development wells in 2017. Our standout operational netbacks and competitive cost structure in Turkey are expected to generate strong economic returns for this capital program.

"We are also thrilled that the two transactions completed with Statoil, with an expected total value of $51-million (U.S.), have validated the potential of a basin-centred gas play concept in the deep formations below 2,500 metres in parts of the Thrace basin, which we had conceived and advanced with new 3-D seismic and targeted deep drilling and testing programs in the past few years. By retaining a 50-per-cent and 31.5-per-cent participating interest in the deep formations on the Banarli licences and West Thrace lands, respectively, we have preserved significant option value for Valeura should the deep play prove successful.

"Average net sales of 680 boe/d in Q3 2016 and 801 boe/d in the first nine months of 2016 are at the low end of the range of previous guidance of 800 to 900 boe/d for annual average sales. The low production level in Q3 reflects the deferral of new drilling pending the closing of the transactions and delays in first gas from the Bati Gurgen-2 well at Banarli. In contrast, and dependent on completing the transactions, we are targeting to achieve average net sales of 2,000 to 2,200 boe/d in 2017 with a more aggressive, operated capital expenditure program in the higher-working-interest shallow gas business we will own at the closing of the TBNG acquisition," added Mr. McFarland.

Third quarter 2016 results at a glance:

Executed definitive agreements for the Banarli farm-in, TBNG acquisition and West Thrace deep rights sale transactions, and closed an underwritten private placement financing;
Net sales 680 barrels of oil equivalent per day (42 per cent from Banarli);
Funds flow from operations of $1.1-million;
Working capital surplus of $3.70-million;
Natural gas price realization of $9.35 per thousand cubic feet;
Operating netback of $38.69 per boe;
Net capital expenditures of $3.1-million.


Transaction highlights and update

Farm-in with Statoil:

As announced on Aug. 19, 2016, an affiliate of Valeura executed definitive agreements with Statoil Holding Netherlands, a wholly owned affiliate of Statoil ASA, for a farm-in agreement for the exploration of the deeper formations below approximately 2,500 metres on the Banarli licences targeting a potential basin-centred gas accumulation (BCGA) play.
Under the terms of the Banarli farm-in, Statoil has the option to earn a 50-per-cent participating interest in the deep formations on the Banarli licences by investing in an exploration program that includes payments and carried costs of at least $36-million (U.S.), including two deep exploration wells and 3-D seismic.
Closing of the Banarli farm-in is subject to the Turkish government approvals for the associated transfer of the licence interests. At closing, which is expected by year-end 2016, Statoil will pay Valeura $6.0-million (U.S.) as a contribution to back costs incurred on the Banarli licences. Applications for the licence interest transfers were submitted to General Directorate of Petroleum Affairs of the Republic of Turkey (GDPA) for its review on Sept. 8, 2016, and were subsequently presented to the Ministry of Energy of Natural Resources on Nov. 1, 2016, for approval.
A drilling location for the first deep exploration well has been chosen on the existing 3-D seismic area approximately three kilometres northwest of the Yayli-1 well. A preliminary AFE for the drilling, coring and log evaluation phase has been agreed and will be finalized once bids are selected for the drilling rig and associated equipment and services.
The target spud date for the first well is year-end 2016 or early 2017, depending on the progress of government approvals to close the Banarli farm-in. Valeura will operate the deep exploration program during the earning phase.


TBNG acquisition:

As announced on Oct. 13, 2016, an affiliate of Valeura executed a share purchase agreement with an affiliate of TransAtlantic Petroleum to acquire 100 per cent of the shares of Thrace Basin Natural Gas (Turkiye) (TBNG) for $22-million (U.S.), effective March 31, 2016, which after closing adjustments is expected to be reduced to approximately $18.5-million (U.S.) at the targeted closing of year-end 2016.
TBNG holds a 41.5-per-cent participating interest in the TBNG joint venture and will increase Valeura's participating interest in the TBNG JV to 81.5 per cent (subject to the West Thrace deep rights sale) and establishes Valeura as the operator.
Acquiring operatorship allows Valeura to accelerate the early ramp-up of exploration and development activities on the TBNG JV lands, with the initial priority on spudding four shallow commitment wells on the West Thrace lands by late June, 2017.
The TBNG acquisition requires various Turkish government approvals. Applications were submitted to the various government agencies in October, 2016.



West Thrace deep rights sale:

As announced on Oct. 13, 2016, an affiliate of Valeura executed a sale and purchase agreement with Statoil, to initially sell Valeura's current 40-per-cent participating interest in deep formations below approximately 2,500 metres on certain TBNG JV lands for cash consideration of $12-million (U.S.), and upon closing of the TBNG acquisition, to sell an additional 10-per-cent participating interest in the same deep rights for $3-million (U.S.).
Upon the closing of the West Thrace deep rights sale and subsequent West Thrace deep rights sale, Valeura will retain a 31.5-per-cent participating interest, and Statoil acquires a 50-per-cent participating interest in the deep formations on the West Thrace lands. Valeura will retain an 81.5-per-cent participating interest in the shallow formations on the West Thrace lands and an 81.5-per-cent participating interest in all formations on other TBNG JV lands.
Any deep drilling on the West Thrace lands prior to Statoil completing the earning under the Banarli farm-in would require the unanimous approval of the parties holding participating interests in the deep formations.
The West Thrace deep rights sale provides a crucial source of non-dilutive funding for the TBNG acquisition and further validates the potential for a deep BCGA play on Valeura's lands.
Closing of the West Thrace deep rights sale is subject to the Turkish government approvals for the associated transfer of the licence interests and is expected before year-end 2016. Furthermore, closing of the TBNG acquisition is conditional on the closing of the West Thrace deep rights sale. Applications for the licence interest transfers were submitted to the GDPA on Oct. 26, 2016.


Underwritten private placement offering:

As announced on Oct. 13 and 14, 2016, Valeura entered into an agreement with Cormark Securities Inc. as lead underwriter, and on behalf of a syndicate of underwriters, including GMP FirstEnergy, pursuant to which the corporation will sell and the underwriters will purchase, on an underwritten private placement basis, 14,629,000 subscription receipts of the corporation at a price of 75 cents per subscription receipt for total gross proceeds of approximately $11-million. The subscription receipts (and the underlying common shares of the corporation issuable pursuant thereto) will be subject to a four-month hold period.
Valeura will use the net proceeds to partially finance the TBNG acquisition and to ramp up the planned shallow gas drilling program on the TBNG JV lands and Banarli licences in 2017.
The offering closed Nov. 3, 2016.
Each subscription receipt represents the right to receive one common share of the corporation, without the payment of any additional consideration or further action, upon satisfaction of certain conditions, including that all conditions to the completion of the TBNG acquisition (but for the payment of the purchase price). If: (i) the TBNG acquisition is not completed on or before March 3, 2017; (ii) the acquisition agreement is terminated in accordance with its terms at an earlier time; or (iii) Valeura advises the underwriters or the public that it does not intend to proceed with the TBNG acquisition, holders of subscription receipts will receive, for each subscription receipt held, a return of the cash payment equal to the offering price per subscription receipt and any interest earned thereon during the term of the escrow.


Operational highlights:

Net petroleum and natural gas sales in Turkey in third quarter 2016 averaged 680 barrels of oil equivalent per day, which were down 27 per cent from second quarter 2016 and down 14 per cent from third quarter 2015. Net sales in third quarter 2016 included 4.0 million cubic feet per day of natural gas and 10 barrels of oil per day.
Lower sales in third quarter 2016 reflect natural declines, a delay in first gas from the Bati Gurgen-2 well on the Banarli licences and minimal capital expenditures on the joint venture lands acquired from Thrace Basin Natural Gas (Turkiye) and Pinnacle Turkey.


Banarli licences (Valeura 100-per-cent working interest):

The Bati Gurgen-2 well was placed on stream on Sept. 26, 2016 as a producer from approximately 8.0 metres of conventional stacked sands in the Osmancik formation at a depth of 1,640 metres. Over the initial 30 days of on-stream operations, the well was produced at an average restricted rate of 1.1 million cubic feet per day (IP30). The well is currently producing at a restricted rate of approximately 1.1 million cubic feet per day.
The Bati Gurgen-1 well is currently producing from the Osmancik formation at a restricted rate of approximately 1.6 million cubic feet per day. A recompletion program to perforate additional pay in the shallower Danismen formation is under review for possible implementation in early 2017.
The Yayli-1 well remains shut in due to high water production. It is currently planned to swab the well for an extended period to unload water from the wellbore and determine whether stabilized gas flows can be achieved prior to any decision to equip the well with a pump.


TBNG JV lands (Valeura 40-per-cent working interest currently):

Plans are under way to spud a 1,300-metre conventional shallow gas well at Dogu Atakoy-3 in early 2017, contingent on closing the transactions. This well would be the first of four licence commitment wells on the West Thrace lands in the TBNG JV that must commence drilling by the end of June, 2017. under the TBNG acquisition agreement, Valeura can proceed with this well as an independent operation at an 81.5-per-cent working interest (PTI 18.5-per-cent working interest) in anticipation of closing the TBNG acquisition. If the transaction does not close, TBNG will be required to finance its 41.5-per-cent share of the cost.
The corporation is also seeking TBNG JV partner support to perforate additional Osmancik formation pay in the Gurgen-1 and Gurgen-2 wells prior to year-end 2016.


Financial highlights:

The average natural gas price realization in Turkey of $9.35 per thousand cubic feet in third quarter 2016 was down 1 per cent and 5 per cent from second quarter 2016 and third quarter 2015, respectively, due primarily to fluctuations in the Turkish lira exchange rate and a higher proportion of sales from Banarli.
The average operating netback of $38.69 per boe in third quarter 2016 was down 10 per cent and 13 per cent from second quarter 2016 and third quarter 2015, respectively, due to lower natural gas price realizations and higher unit operating costs.
The working capital surplus at Sept. 30, 2016, was $3.7-million, including cash of $2.3-million.
Funds flow from operations of $1.1-million in third quarter 2016 was down 49 per cent from second quarter 2016 due to lower volumes, higher unit operating costs reflecting employee termination costs in TBNG and higher realized foreign exchange losses, partially offset by lower general and administrative expenses, and was down 45 per cent from third quarter 2015 due to lower sales volumes, lower natural gas price realizations and higher unit operating costs, partially offset by lower general and administrative expenses and lower realized foreign exchange losses.
Net capital expenditures of $3.1-million in third quarter 2016 were essentially unchanged from second quarter 2016 and were up 315 per cent from third quarter 2015 due to higher drilling expenditures on the Banarli licences. Expenditures on the TBNG JV lands were nominal in third quarter 2016 and the same period in 2015.
Additional financial and operating results are summarized in the attached table.
In a subsequent development, the Turkish government reduced the BOTAS reference price (in Turkish lira) by 10 per cent, effective Oct. 1, 2016, which is expected to reduce Valeura's average price realizations to approximately $8.12 per thousand cubic feet at current exchange rates. This reduction is reportedly linked to negotiated price reductions in some natural gas imports. Turkey imports approximately 99 per cent of its natural gas supply. The last change in the BOTAS reference price was in Oct. 1, 2014, when the price was increased by 9 per cent, reportedly to offset the the impact of the weakening of the Turkish lira against the U.S. dollar in 2014 and the resulting higher cost of imported gas typically priced in U.S. dollars.



FINANCIAL AND OPERATING RESULTS SUMMARY (1)
(thousands of dollars, except per-share amounts, and as otherwise stated)

Three months ended Nine months ended Three months ended Nine months ended
Sept. 30, 2016 June 30, 2016 Sept. 30, 2016 Sept. 30, 2015 Sept. 30, 2015
Financial
Petroleum and
natural gas revenues $3,510 $4,809 $12,647 $4,309 $17,118
Funds flow from operations (1) 1,066 2,098 5,133 1,949 8,585
Net (loss) from operations (1,263) (642) (2,897) (169) (849)

Operations
Production
Crude oil (bbl/d) 10 7 8 7 8
Natural Gas (Mcf/d) 4,020 5,560 4,756 4,723 6,062
Boe/d (at 6:1) 680 933 801 794 1,019

Average reference price
Brent ($ per bbl) 59.75 57.81 55.31 65.91 69.91
BOTAS reference ($ per Mcf) (2) 9.67 9.78 9.90 10.07 10.40
Average realized price
Crude oil ($ per bbl) 56.24 54.41 52.15 48.79 52.25
Natural gas -- Turkey ($ per Mcf) 9.35 9.44 9.61 9.85 10.27
Average operating netback
($ per boe at 6:1) (1) 38.69 43.02 42.72 44.50 46.99

Notes:
(1) The table includes non-international financial reporting standard measures, which may not be
comparable with other companies. Funds flow from operations is calculated as net income (loss)
for the period adjusted for non-cash items in the statement of cash flows. Operating netback is
calculated as petroleum and natural gas sales less royalties, production expenses and
transportation costs. See management's discussion and analysis for further discussion.
(2) Boru Hatlari ile Petrol Tasima Anonim Sirketi (BOTAS) owns and operates the national crude
oil and natural gas pipeline grids in Turkey and purchases the majority of Turkey's natural gas
imports. BOTAS regularly posts prices, and its Level 2 wholesale tariff is shown herein as a
reference price. See the 2015 annual information form for further discussion.



Outlook

The corporation currently expects to complete a capital expenditure program of approximately $10-million in 2016 focused primarily on the Banarli licences. Capital expenditures in fourth quarter 2016 are expected to include several recompletions on the TBNG JV lands. The current outlook for annual average net sales in 2016 is approximately 800 barrels of oil equivalent per day, which is at the low end of the most recent guidance range of 800 to 900 boe per day provided on Aug. 11, 2016. The current net sales outlook for 2016 reflects delays in achieving first gas from the Bati Gurgen-2 well and deferral of new drilling pending the closing of the transactions and the funds flow therefrom.

The corporation is targeting to close the Banarli farm-in, the TBNG acquisition and the West Thrace deep rights sale, and to complete the offering, by year-end 2016. Applications have been submitted to the Turkish government for the various approvals required to close the Banarli farm-in, the TBNG acquisition and the West Thrace deep rights sale. Closing of the subsequent West Thrace deep rights sale is expected in early 2017, which first requires Turkish government approval of the TBNG acquisition and the subsequent licence interest transfer.

Based on completing the Banarli farm-in, TBNG acquisition, the West Thrace deep rights sale and the offering by year-end 2016, the corporation is planning a capital expenditure program of up to $30-million to 33-million (net) in 2017 focused entirely on the shallow gas business. This program is expected to include a significant ramp-up in drilling in the shallow formations (less than 2,500 metres) on the TBNG JV lands and Banarli licences targeting corporate average sales volumes in the range of 2,000 to 2,200 boe per day. The 2017 work program and expenditures, and the timing thereof, are dependent on closing of the transactions and receipt of the funds flow therefrom.

The corporation also expects that the Banarli farm-in program, fully financed by Statoil and operated by Valeura, will commence by early 2017 with the spudding of a deep exploration well.

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[Kostolanys Erbe]

Valeura receives gov't approval for Turkish deals



2016-12-30 09:18 ET - News Release



Mr. Jim McFarland reports

VALEURA ANNOUNCES TURKISH GOVERNMENT APPROVAL OF TRANSFORMATIONAL TRANSACTIONS

The Ministry of Energy and Natural Resources of the Republic of Turkey has approved a number of recently announced transformational transactions (each as defined below), including Valeura Energy Inc.'s Banarli farm-in, the West Thrace deep rights sale and the TBNG (Thrace Basin Natural Gas (Turkiye) Corp.) acquisition.

Next steps

Turkish government approvals of the Banarli farm-in and West Thrace deep rights sale satisfy certain condition precedents to close these transactions, which will trigger respective payments of $6-million (U.S.) and $12-million (U.S.) from Statoil to Valeura promptly upon completion of all necessary consents for closing expected by mid-January, 2017.

The Turkish government approval of the TBNG acquisition and the receipt of the above payments from Statoil will pave the way to releasing gross proceeds of approximately $11-million raised under the corporation's underwritten private placement offering of subscription receipts.

Closing of the TBNG acquisition will require a payment of approximately $18.5-million (U.S.), after closing adjustments. This payment will be made from a combination of funds flow from the Statoil transactions and the offering. Closing is currently expected in February, 2017.

Following the closing of the TBNG acquisition, TBNG will proceed with the subsequent West Thrace deep rights sale (defined below), contingent on Turkish government approval for the associated licence interest transfers. Closing of this transaction is expected early in the second quarter of 2017 and will provide an additional $3-million (U.S.) in proceeds to Valeura.

Operational update

Banarli deep program

The work program under the Banarli farm-in consists of several phases, where the first includes the drilling of an exploration well to at least a depth of 4,000 metres. Financing has been secured from Statoil to purchase long lead equipment, including a high-pressure wellhead, casing and other drilling related equipment for this first deep well, which is expected to spud in the first quarter of 2017.

TBNG JV (joint venture) and Banarli shallow program

Valeura's preliminary 2017 capital expenditure program on the shallow gas business as disclosed on Nov. 10, 2016, was based on a year-end 2016 closing of the transactions and the availability of the associated funds flow to Valeura. Closing of the transactions has now been delayed to various times in the first quarter of 2017 due to longer than expected timelines to secure Turkish government approvals. As a result, start-up of the 2017 program will be delayed, but the plan remains to execute a one drilling rig program in 2017 focussed entirely on the shallow gas business on the TBNG JV and Banarli licences (less than 2,500 metres depth). The corporation will confirm the program later in the first quarter of 2017 when the transactions have closed and, in the meantime, will continue with all the necessary preparations for an expeditious ramp-up in shallow drilling.

The current outlook for annual average net sales in 2016 remains at approximately 800 barrels of oil equivalent per day as advised on Nov. 10, 2016.

Organization

Closing of the transactions will result in a significant transformation of the corporation. Not only will Valeura become the operator of the TBNG JV, and the shallow gas program on the TBNG JV lands and Banarli licences, but it will also be the operator of the deep farm-in program on the Banarli licences during the earning phase financed by Statoil.

In acquiring TBNG, Valeura will take onboard an operating organization of 52 full-time employees located in the Tekirdag area of the Thrace basin. TBNG operates the wells and extensive gathering system, central dehydration and compression facilities, two sales gas lines and connections to 55 individual customers in the area, and manages the associated marketing licence.

Valeura has developed a near-term transition plan for TBNG that involves deploying existing management resources to provide in-country operational leadership. Valeura also plans to hire a high-potential individual as chief operating officer to be based initially in Turkey post the near-term transition period, and, at the same time, review its management structure and overall go-forward staffing plan for the business.

Background on the transactions and offering

Farm-in with Statoil

As announced on Aug. 19, 2016, Valeura's wholly owned affiliate, Corporate Resources BV, executed definitive agreements with Statoil Banarli Turkey BV, a wholly owned affiliate of Statoil ASA, for a farm-in agreement for the exploration of the deeper formations below approximately 2,500 metres on Valeura's 100-per-cent-owned-and-operated Banarli licences targeting a potential basin-centred gas accumulation play.

Under the terms of the Banarli farm-in, Statoil has the option to earn a 50-per-cent participating interest in the deep formations on the Banarli licences by investing in an exploration program that includes payments and carried costs of at least $36-million (U.S.), including a payment of $6-million (U.S.) at closing of the transaction as a contribution to back costs incurred on the Banarli licences, and two deep exploration wells and 3-D seismic over the next two to three years. Valeura retains a 100-per-cent participating interest in the shallow rights and a 50-per-cent participating interest in the deeper formations, post Statoil earning, thereby preserving a significant position in the potential upside.

West Thrace deep rights sale

As announced on Oct. 13, 2016, CRBV executed a sale and purchase agreement with Statoil to initially sell CRBV's current 40-per-cent participating interest in the deep formations below approximately 2,500 metres on certain TBNG JV lands for a cash payment (covering a portion of past exploration costs and asset acquisition) of $12-million (U.S.) and, upon closing of the TBNG acquisition, to cause TBNG to sell an additional 10-per-cent participating interest to Statoil in the same deep rights for $3-million (U.S.).

Upon the closing of the West Thrace deep rights sale and subsequent West Thrace deep rights sale, Valeura will retain a 31.5-per-cent participating interest, and Statoil will have a 50-per-cent participating interest in the deep formations on the West Thrace lands. Valeura will retain an 81.5-per-cent participating interest in the shallow formations on the West Thrace lands and an 81.5-per-cent participating interest in all formations on other TBNG JV lands.

Any deep drilling on the West Thrace lands prior to Statoil completing the earning under the Banarli farm-in would require the unanimous approval of the parties holding participating interests in the deep formations.

TBNG acquisition

As announced on Oct. 13, 2016, Valeura Energy Netherlands BV executed a share purchase agreement with TransAtlantic Worldwide Ltd. to acquire 100 per cent of the shares of TWL's wholly owned affiliate, Thrace Basin Natural Gas (Turkiye), for $22-million (U.S.), effective on March 31, 2016, which, after closing adjustments, is expected to be reduced to approximately $18.5-million (U.S.) at the targeted closing in February, 2017.

TBNG is party to a joint venture with CRBV and Pinnacle Turkey Inc. whereby TBNG is the operator and holds a 41.5-per-cent participating interest in the TBNG JV lands, with CRBV and PTI holding the remaining 40-per-cent and 18.5-per-cent participating interests, respectively. Valeura (through CRBV) acquired its 40-per-cent interest in the TBNG JV in 2011, and the TBNG acquisition will increase Valeura's participating interest in the TBNG JV to 81.5 per cent (subject to the West Thrace deep rights sale) and establish Valeura as the operator. PTI has provided its consent to the TBNG acquisition and will retain its 18.5-per-cent participating interest in the TBNG JV.

Underwritten private placement offering

As announced on Oct. 13 and Oct. 14, 2016, Valeura entered into an agreement with Cormark Securities Inc. as lead underwriter, and on behalf of a syndicate of underwriters including GMP FirstEnergy, pursuant to which the corporation sold and the underwriters purchased, on an underwritten private placement basis, 14,629,000 subscription receipts of the corporation at a price of 75 cents per subscription receipt for total gross proceeds of approximately $11-million. The offering closed on Nov. 3, 2016, and the gross proceeds are currently being held in escrow pending satisfaction of the escrow release conditions (defined below).

Each subscription receipt represents the right to receive one common share of the corporation, without the payment of any additional consideration or further action, upon satisfaction of certain conditions, including that all conditions to the completion of the TBNG acquisition have been satisfied (but for the payment of the purchase price). If: (i) the TBNG acquisition is not completed on or before March 3, 2017, (ii) the TBNG acquisition agreement is terminated in accordance with its terms at an earlier time, or (iii) valeura advises the underwriters or the public that it does not intend to proceed with the TBNG acquisition, holders of subscription receipts will receive, for each subscription receipt held, a return of the cash payment equal to the offering price per subscription receipt and any interest earned thereon during the term of the escrow.

Valeura will use the net proceeds, once released from escrow, to partially finance the TBNG acquisition, and to ramp up the planned shallow gas drilling program on the TBNG JV lands and Banarli licences in 2017.

About the corporation

Valeura Energy is a Canada-based public company currently engaged in the exploration, development and production of petroleum and natural gas in Turkey.


http://www.stockwatch.com/News/Item.aspx?bid=Z-C:VLE-2433804&symbol=VLE&region=C

 

[Kostolanys Erbe]

Valeura closes Banarli farm-in, West Thrace rights sale



2017-01-06 11:03 ET - News Release


Mr. Jim McFarland reports

VALEURA ANNOUNCES CLOSING OF THE BANARLI FARM-IN AND THE WEST THRACE DEEP RIGHTS SALE

Valeura Energy Inc. has closed the following transformational transactions:

The farm-in for the exploration of the deep formations below approximately 2,500 metres on Valeura's 100-per-cent-owned-and-operated Banarli licences in accordance with the farm-in agreement between Corporate Resources BV, a wholly owned affiliate of Valeura, and Statoil Banarli Turkey BV, whereby Statoil can earn a 50-per-cent interest in the deep rights by investing $36-million (U.S.), of which $6-million (U.S.) is an upfront payment as a contribution to back costs incurred on the Banarli licences;
The sale of CRBV's current 40-per-cent participating interest for $12-million (U.S.) in the deep formations below approximately 2,500 metres on certain lands in an existing joint venture (JV) with Thrace Basin Natural Gas (Turkiye) Corp. and Pinnacle Turkey Inc., in accordance with the sale and purchase agreement between CRBV and Statoil.
Valeura has now received the cash payments from Statoil of $6-million (U.S.) and $12-million (U.S.) with respect to the Banarli farm-in and the West Thrace deep rights sale, respectively.

Valeura anticipates using the above payments from Statoil, together with the $11-million raised under its underwritten private placement offering of subscription receipts, if and when released from escrow, to finance the acquisition of TBNG by Valeura Energy Netherlands BV, a wholly owned affiliate of Valeura, and to ramp up shallow gas drilling. Closing of the TBNG acquisition will require a payment of approximately $18.5-million (U.S.), after closing adjustments, and is currently expected to occur in February, 2017. This transaction will increase Valeura's participating interest in the TBNG JV to 81.5 per cent (subject to the West Thrace deep rights sale) and establishes Valeura as the operator.

The Ministry of Energy and Natural Resources of the Republic of Turkey approved the Banarli farm-in, the West Thrace deep rights sale and the TBNG acquisition on Dec. 30, 2016.

"Closing of these transformational transactions with Statoil is an exciting milestone for Valeura, which paves the way to spud the first 4,000-metre exploration well in Q1 2017 under the Banarli farm-in, funded by Statoil, targeting a deep, overpressured, basin-centred gas play that has the potential to be another game changer for Valeura," said Jim McFarland, president and chief executive officer of Valeura. "In addition, we now have the financial capacity to proceed with our planned 2017 shallow gas drilling program in the Thrace basin, which is expected to commence in February on the TBNG JV lands at the Dogu Atakoy-3 location where approvals and site preparation are already complete," adds Mr. McFarland.

About the corporation

Valeura Energy is a Canadian-based public company currently engaged in the exploration, development and production of petroleum and natural gas in Turkey.

We seek Safe Harbor.

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[Kostolanys Erbe]

Valeura closes TBNG acquisition, issues 14.62 M shares



2017-02-24 14:13 ET - News Release



Mr. Jim McFarland reports

VALEURA ANNOUNCES CLOSING OF TBNG ACQUISITION AND ISSUANCE OF COMMON SHARES PURSUANT TO SUBSCRIPTION RECEIPTS FINANCING

Valeura Energy Inc. has completed the following transactions, which form part of a chain of recent transactions that transform Valeura in terms of business scale, operational control, financial capability, drilling activity and production:

1. The acquisition of its joint venture partner, Thrace Basin Natural Gas (Turkiye) Corp. (TBNG) for $22-million (U.S.) in cash, effective March 31, 2016, which after closing adjustments, was reduced to a cash payment of $20.9-million (U.S.) (which includes $3.1-million (U.S.) held in escrow pending a final reconciliation of the closing statement of adjustments);
2. The issuance of 14,629,000 common shares of the corporation pursuant to 14,629,000 subscription receipts previously issued by the corporation in connection with the underwritten private placement offering of subscription receipts, which closed on Nov. 3, 2016, and the release from escrow of approximately $11-million in gross proceeds.


Valeura financed the acquisition of 100 per cent of the shares of TBNG by Valeura Energy Netherlands BV, a wholly owned affiliate of Valeura, with a combination of funds from the offering and earlier payments of $18-million (U.S.) received from Statoil Banarli Turkey BV under the previously announced Banarli farm-in and West Thrace deep rights sale transactions.

As the final link in the chain of transactions, the corporation will now proceed with the sale of an additional 10-per-cent participating interest to Statoil in the deep rights below 2,500 metres on the West Thrace lands for $3-million (U.S.).

Upon the closing of the subsequent West Thrace deep rights sale, expected in the second quarter of 2017, Valeura will retain a 31.5-per-cent participating interest and Statoil will have a 50-per-cent participating interest in the deep formations on the West Thrace lands. Valeura will retain an 81.5-per-cent participating interest in the shallow formations on the West Thrace lands and an 81.5-per-cent participating interest in all formations on other TBNG joint venture lands.

"Closing of these strategic transactions is the culmination of many months of transactional work to transform Valeura to the operator of its core shallow gas business, increase its working interest in that business, and bring on board a large and well-respected partner to help fund the exploration for a deep, basin-centred gas play in the Thrace basin, an exciting, high-impact concept we have championed for several years", said Jim McFarland, president and chief executive officer of Valeura. "We are very pleased with this reset for our business in Turkey. As our efforts now turn to operations to build on this new foundation, we are funded, organized and poised to ramp up the shallow gas drilling program, grow production and expect to spud the first deep exploration well at Banarli in [the second quarter of] 2017.

"I would also like to welcome more than 50 TBNG employees to the Valeura group who will have a key role to play in executing our new business plan in Turkey," added Mr. McFarland.

About Valeura Energy Inc.

Valeura Energy is currently engaged in the exploration, development and production of petroleum and natural gas in the Thrace basin of northwest Turkey.


http://www.stockwatch.com/News/Item.aspx?bid=Z-C%3aVLE-2446621&symbol=VLE&region=C

 

[Kostolanys Erbe]

Valeura loses $6.08-million in 2016



2017-03-14 21:51 ET - News Release



Mr. Jim McFarland reports

VALEURA ANNOUNCES FOURTH QUARTER 2016 FINANCIAL AND OPERATING RESULTS AND YEAR-END 2016 RESERVES

Valeura Energy Inc. has provided highlights of its unaudited financial and operating results for the three-month period ended Dec. 31, 2016, audited results for the year ended Dec. 31, 2016, year-end 2016 reserves and an update on subsequent developments. The complete quarterly reporting package for the corporation, including the audited financial statements, associated management's discussion and analysis, and the 2016 annual information form, has been filed on SEDAR and posted on the corporation's website.

Business reset complete

In the fourth quarter of 2016, the corporation focused its efforts on transactional activity to reset the business and was successful in subsequently closing four interlinked transactions in early 2017. These transactions have transformed the corporation in terms of scaling up the business, providing operational control and boosting financial capacity, which are expected to enable the corporation to ramp up drilling and increase production. The corporation anticipates that these benefits will be evident through the course of 2017.

As a measure of this transformation, through the acquisition of the corporation's joint venture partner Thrace Basin Natural Gas (Turkiye) Corp. (TBNG), effective Feb. 24, 2017, the corporation doubled its participating interest in the TBNG JV lands, a core shallow-gas-producing asset, and took over operatorship of the TBNG JV. The corporation's patience in pursuing this long-standing acquisition target was rewarded by the successful negotiation of a series of concurrent transactions with Statoil Banarli Turkey BV, which provided cash to effectively finance the TBNG acquisition in a non-dilutive way.

The pro forma accretion metrics include the impact of an increase of 25 per cent in the shares outstanding associated with the completion of the offering, which provided gross proceeds of approximately $11-million, concurrent with the close of the TBNG acquisition. These funds from the offering and Statoil have boosted working capital to support a ramp-up of drilling in 2017.

"As our attention now turns from this complex transactional work to a focus on safe, efficient and effective operations in 2017, we have brought on board a capable TBNG operating organization of more than 50 people and have hired a select number of new employees in Turkey as part of a comprehensive transition management plan, including the handover of support functions previously provided by TransAtlantic," said Jim McFarland, president and chief executive officer. "This business reset puts us in the best position in our history in terms of operational control. We had a good start to the year with a drilling success at the Dogu Atakoy-3 well and are excited about the catalysts in front of us. We are ready to move forward in the second quarter with an operated multiwell shallow gas drilling program and to spud the first deep 4,000-metre exploration well at Banarli, funded by Statoil, and also operated by Valeura," Mr. McFarland added.

Fourth quarter 2016 results at a glance:

Net sales of 795 barrels of oil equivalent per day;
Funds flow from operations of $900,000;
Working capital surplus of $3.8-million;
Natural gas price realization of $7.96 per thousand cubic feet;
Operating netback of $33.43 per boe;
Net capital expenditures of $500,000;
Executed definitive agreements for three transformational transactions;
TBNG acquisition, West Thrace deep rights sale and offering;
Subsequently closed the above transactions and the earlier Banarli farm-in in January and February, 2017, following Turkish government approvals.


Transactional highlights

TBNG acquisition:

As announced on Feb. 24, 2017, an affiliate of Valeura closed a transaction with an affiliate of TransAtlantic Petroleum to acquire 100 per cent of the shares of Thrace Basin Natural Gas (Turkiye) for $22-million (U.S.), effective March 31, 2016, which, after closing adjustments, was reduced to a cash payment of $20.9-million (U.S.) (which includes $3.1-million (U.S.) held in escrow pending a final reconciliation of the closing statement of adjustments).
TBNG holds a 41.5-per-cent participating interest in the TBNG JV, and its acquisition increases Valeura's participating interest in the TBNG JV to 81.5 per cent (subject to the West Thrace deep rights sale) and establishes Valeura as the operator.


Offering:

As announced on Feb. 24, 2017, Valeura issued 14,629,000 common shares of the corporation, coincident with closing the TBNG acquisition, pursuant to 14,629,000 subscription receipts previously issued by the corporation at 75 cents per subscription receipt in connection with the underwritten private placement offering of subscription receipts.
Valeura received $11.0-million in gross proceeds, which were released from escrow on Feb. 24, 2017.


Statoil transactions

Banarli farm-in:

As announced on Jan. 6, 2017, an affiliate of Valeura closed a transaction with Statoil Banarli Turkey, a wholly owned affiliate of Statoil ASA, for a farm-in agreement for the exploration of the deeper formations below approximately 2,500 metres on the Banarli licences targeting a potential basin-centred gas play, following receipt of Turkish government approvals.
Statoil has the option to earn a 50-per-cent participating interest in the deep formations on the Banarli licences by investing in an exploration program that includes payments and carried costs of at least $36-million (U.S.), including two deep exploration wells and 3-D seismic.
At closing of the Banarli farm-in, Statoil paid Valeura $6.0-million (U.S.) as a contribution to back costs incurred on the Banarli licences.


West Thrace deep rights sale:

As announced on Jan. 6, 2017, an affiliate of Valeura closed a second transaction with Statoil, to initially sell Valeura's current 40-per-cent participating interest in deep formations below approximately 2,500 metres on certain TBNG JV lands for cash consideration of $12-million (U.S.), following receipt of Turkish government approvals.
At closing of the West Thrace deep rights sale, Statoil paid Valeura $12.0-million (U.S.).
The West Thrace deep rights sale provided a crucial source of non-dilutive financing for the TBNG acquisition and further validates the potential for a deep-basin-centred gas play on Valeura's lands.


Subsequent West Thrace deep rights sale:

An affiliate of Valeura executed a sale and purchase agreement with Statoil on March 10, 2017, to sell an additional 10-per-cent participating interest in the deep rights on the West Thrace lands for $3-million (U.S.), as contemplated under terms of the West Thrace deep rights sale agreement and contingent on closing the TBNG acquisition.
Closing of the subsequent West Thrace deep rights sale is subject to the Turkish government approvals for the associated transfer of the licence interests.
Upon the closing of the West Thrace deep rights sale, Valeura will retain a 31.5-per-cent participating interest, and Statoil acquires a 50-per-cent participating interest in the deep formations on the West Thrace lands. Valeura will retain an 81.5-per-cent participating interest in the shallow formations on the West Thrace lands and an 81.5-per-cent participating interest in all formations on other TBNG JV lands. Pinnacle Turkey Inc. (PTI) will continue to hold an 18.5-per-cent interest in all of the TBNG JV lands and all formations.


Operational highlights:

Net petroleum and natural gas sales in Turkey in fourth quarter 2016 averaged 795 barrels of oil equivalent per day, which were up 17 per cent from third quarter 2016 and down marginally from fourth quarter 2015. Net sales in fourth quarter 2016 included 4.7 million cubic feet per day of natural gas and 12 barrels of oil per day.
Higher sales in fourth quarter 2016 reflect a full quarter of production from the Bati Gurgen-2 well at Banarli and several workovers on the TBNG JV lands, partially offset by natural declines.
Current net sales in Turkey are approximately 1,150 boe per day reflecting the acquisition of TBNG.


TBNG JV and Banarli shallow gas program:

The Dogu Atakoy-3 well on the TBNG JV lands (Valeura has a 81.5-per-cent working interest) was spudded on Jan. 24, 2017, and was drilled and cased to a depth of 1,303 metres. Based on the log interpretation, the well penetrated 40 metres of stacked Osmancik sands at an average porosity of 21 per cent. The well has been on stream for seven days and is currently producing at a restricted rate of approximately 1.0 million cubic feet per day (gross). The Dogu Atakoy-3 well satisfies the first of up to four commitment wells in 2017 under the licence terms on the West Thrace lands.
Valeura is finalizing negotiations of a multiwell drilling rig contract for the planned 2017 shallow gas drilling program on the TBNG JV lands and Banarli licences, which is expected to commence in second quarter 2017. A new slim-hole well design has been adopted for this program to reduce drilling times and costs.
The General Directorate of Petroleum Affairs (GDPA) has awarded two new production leases to the TBNG JV, F19-d3-1 and F19-c3-1 (Valeura has an 81.5-per-cent working interest). These leases comprise a gross area of 51,111 acres (41,655 net acres) and are part of the South Thrace lands.
The TBNG JV has also relinquished two non-producing exploration licences, N39-a1,a4 and N39-d1,d2 (Valeura has a 26-per-cent working interest), in the Gaziantep area of southeast Turkey due to limited prospectivity and a drilling commitment to hold the licences, and is a step consistent with the corporation's strategy to focus on the Thrace basin. These licences comprised a gross area of 152,111 acres (39,549 net acres). The corporation does not hold any other licences or leases in southeast Turkey.
Valeura currently holds interests in 528,504 gross acres in the Thrace basin of northwest Turkey. Giving effect to the sale of a 50-per-cent participating interest to Statoil in the deep rights on the West Thrace lands, the corporation would hold 432,295 net acres of shallow rights and 345,272 net acres of deep rights in the Thrace basin.


Banarli deep exploration program:

The Valeura/Statoil Banarli deep project team has selected, after a thorough bid process, a deep capacity rig to drill the first 4,000-metre exploration well under the phase 1 commitment of the Banarli farm-in. Negotiation of the drilling rig contract is nearing completion. The selected drilling rig is currently located in Europe and will be transported to Turkey for a planned spud of the Yamalik-1 well in second quarter 2017. A final AFE for the drilling and evaluation stages is being prepared, which will set Statoil's financing level for this particular stage of the well program. Under the Banarli farm-in, Statoil will pay no less than $10-million (U.S.) as a phase 1 commitment to drill, evaluate, complete, frack and test the well. The actual amount financed for the well may be higher based on the actual agreed work program for the various stages.
Bids are under review for the planned 3-D seismic program under the phase 2 commitment of the Banarli farm-in. The acquisition stage is expected to commence in third quarter 2017 and be completed before the end of 2017. Under the Banarli farm-in, Statoil will pay no less than $10-million (U.S.) for the acquisition and processing of the seismic.
Valeura is the operator of the deep exploration program during the earning phase of the Banarli farm-in.


Financial highlights:

The Turkish lira has continued to weaken in 2016, declining by 24 per cent compared with the Canadian dollar over the course of 2016. This decline has negatively impacted Valeura's natural gas revenues, which are priced in Turkish lira, with some offset in reduced operating costs denominated in Turkish lira. The corporation is in the process of specifically assessing its exposure to the Turkish lira and possibilities that may exist to mitigate this exposure.
The average natural gas price realization in Turkey of $7.96 per thousand cubic feet in fourth quarter 2016 was down 15 per cent and 20 per cent from third quarter 2016 and fourth quarter 2015, respectively, due to a 10-per-cent reduction in the Botas reference price (in Turkish lira), effective Oct. 1, 2016 (as previously disclosed on Nov. 10, 2016), and a further decline in the value of the Turkish lira. The average operating netback of $33.43 per boe in fourth quarter 2016 was down 14 per cent from third quarter 2016 due to lower natural gas price realizations, partially offset by lower unit operating costs, and down 25 per cent from fourth quarter 2015 due to lower natural gas price realizations and higher unit operating costs.
The working capital surplus at Dec. 31, 2016, was $3.8-million, including cash of $2.0-million.
Funds flow from operations of $900,000 in fourth quarter 2016 was down 14 per cent from third quarter 2016 due to lower natural gas price realizations and higher general and administrative expenses, partially offset by higher sales volumes, lower unit operating costs, and lower realized foreign exchange losses, and was down 43 per cent from fourth quarter 2015 due to lower sales volumes, lower natural gas price realizations and higher unit operating costs, partially offset by lower general and administrative expenses and lower realized foreign exchange losses.
Net capital expenditures of $500,000 in fourth quarter 2016 were down 83 per cent and 91 per cent from third quarter 2016 and fourth quarter 2015, respectively, due to lower drilling expenditures.
Additional financial and operating results are summarized in the attached financial and operating results summary table.


FINANCIAL AND OPERATING RESULTS SUMMARY (1)
(thousands of dollars, except per-share amounts and as otherwise stated)

Three months ended Three months ended Year ended Three months ended Year ended
Dec. 31, Sept. 30, Dec. 31, Dec. 31, Dec. 31,
2016 2016 2016 2015 2015
Financial
Petroleum and natural
gas revenues $3,508 $3,510 $16,155 $4,425 $21,543
------ ------ ------ ------ ------
Funds flow from operations (1) 915 1,066 6,048 1,600 10,185
------ ------ ------ ------ ------
Net (loss) from operations (3,189) (1,263) (6,086) 287 (562)
------ ------ ------ ------ ------
Capital expenditures 536 3,080 9,535 6,100 13,192
------ ------ ------ ------ ------
Net working capital surplus 3,786 3,697 3,786 7,253 7,253
------ ------ ------ ------ ------
Cash 1,987 2,336 1,987 6,973 6,973
------ ------ ------ ------ ------
Operations
Production
Crude oil (bbl/d) 12 10 9 8 8
------ ------ ------ ------ ------
Natural gas (Mcf/d) 4,699 4,020 4,742 4,805 5,745
------ ------ ------ ------ ------
Boe/d (at 6:1) 795 680 799 809 966
------ ------ ------ ------ ------
Average reference price
Brent ($ per bbl) $65.17 $59.75 $57.67 $58.16 $66.88
Botas reference ($ per Mcf) (2) 8.09 9.67 9.41 10.07 10.32
------ ------ ------ ------ ------
Average realized price
Crude oil ($ per bbl) 63.67 56.24 55.88 44.51 50.35
Natural gas -- Turkey ($ per Mcf) 7.96 9.35 9.20 9.93 10.20
------ ------ ------ ------ ------
Average operating netback
($ per boe at 6:1) (1) 33.43 38.69 40.41 44.56 46.48
------ ------ ------ ------ ------
Notes:
(1) The table includes non-international financial reporting standard measures, which may not
be comparable with other companies. Funds flow from operations is calculated as net income
(loss) for the period adjusted for non-cash items. Operating netback is calculated as
petroleum and natural gas sales less royalties, production expenses and transportation costs.
See management's discussion and analysis for further discussion.
(2) Boru Hatlari ile Petrol Tasima Anonim Sirketi (Botas) owns and operates the national
crude oil and natural gas pipeline grids in Turkey and purchases the majority of Turkey's
natural gas imports. Botas regularly posts prices, and its Level 2 wholesale tariff is shown
herein as a reference price. See the 2016 annual information form for further discussion.



2017 outlook

The corporation is planning a capital expenditure program of $13-million to 15-million (net) in 2017 focused entirely on the shallow gas business. This level of spending is contingent on closing the subsequent West Thrace deep rights sale and some stabilization of the Turkish lira exchange rate and the BOtas reference price (denominated in Turkish lira). The capital program is expected to include drilling of up to seven wells (gross) in the shallow formations on the TBNG JV lands and Banarli licences, targeting 2017 exit rate sales of approximately 1,500 barrels of oil equivalent per day (net). This outlook is lower than earlier preliminary projections due to delays in completing the interlinked transformational transactions, including the Banarli farm-in, the West Thrace deep rights sale, the TBNG acquisition and the offering, reflecting a longer-than-expected Turkish government approval process.

The corporation also expects that the Banarli farm-in program, fully financed by Statoil and operated by Valeura, will commence with the spudding of a deep exploration well in second quarter 2017 under phase 1 of the Banarli farm-in and the start of the 3-D seismic acquisition in third quarter 2017 under phase 2.

2016 year-end corporate reserves report

The corporation has completed its independent reserves evaluation as at Dec. 31, 2016. This evaluation was conducted by DeGolyer and MacNaughton of Dallas, Tex., for the corporation's properties in Turkey in its report dated March 14, 2017. This evaluation was prepared using guidelines outlined in the Canadian oil and gas evaluation handbook and is in accordance with National Instrument 51-101 (standards of disclosure for oil and gas activities). Additional reserves information as required under National Instrument 51-101 is included in the 2016 annual information form filed on SEDAR. All of the corporation's reserves are located in Turkey.

The D&M reserves report does not give effect to the TBNG acquisition.

TBNG acquisition pro forma

On Feb. 24, 2017, the corporation announced the successful completion of the TBNG acquisition. TBNG holds a 41.5-per-cent participating interest in the TBNG JV. The attached gross reserves volume table 2 sets out pro forma combined reserves information for Valeura and TBNG as at Dec. 31, 2016.

PRO FORMA COMPANY GROSS RESERVES VOLUMES AND VALUES POST-TBNG ACQUISITION (1) (2) (3)

Pro forma reserves and net present value at 10% before tax
year ended Dec. 31, 2016
Valeura (4) TBNG (5) Pro forma
Reserves volumes (Mboe)
Proven reserves 1,567 1,318 2,885
Proven plus probable reserves 4,704 4,198 8,902
Proven plus probable plus possible reserves 7,230 6,315 13,545
Reserves value -- NPV10 before tax ($MM)
Proven reserves $21.0 $14.2 $35.2
Proven plus probable reserves 61.8 47.9 109.7
Proven plus probable plus possible reserves 103.8 80.5 184.3

Notes:
(1) Valeura's reasonable expectation of how the TBNG acquisition, had it occurred on
or before the effective date of the information set out in Valeura's statement of
reserves data and other oil and gas information contained in the 2016 AIF, would
have affected such information.
(2) D&M's valuations for reserves in Turkey are prepared in U.S. dollars and have
been converted for purposes of this illustration to Canadian dollars assuming a
Canadian-dollar/U.S.-dollar exchange rate of 0.74 for the year-end 2016 values.
(3) The forecast prices used in the calculations of the present value of future net
revenue for year-end 2016 are based on the D&M Dec. 31, 2016, forecast prices, which
are contained in the 2016 AIF for the year ended Dec. 31, 2016.
(4) D&M evaluated reserves as at Dec. 31, 2016, on the company's Banarli lands (100-
per-cent working interest) and on the TBNG JV lands (40-per-cent working interest).
(5) TBNG's working interest in the TBNG JV lands is 41.5 per cent. TBNG's reserves
as of Dec. 31, 2016, as presented were prepared internally (non-independent) by
Valeura by making a mathematical adjustment of the company's TBNG JV lands reserves
that represents a 40-per-cent working interest to reflect TBNG's 41.5-per-cent
working interest.



Year-end 2016 company reserves summary

The attached gross reserves volumes table summarizes company reserves in Turkey and associated net present value discounted at 10 per cent before tax at Dec. 31, 2016, and Dec. 31, 2015, using forecast prices.

COMPANY GROSS RESERVES VOLUMES AND VALUES (1) (2) (3) (4)

Reserves (Mboe) Net present value at
10% before tax
($ millions -- $MM)
2016 2015 2016 2015

Proven developed producing 470 509 $9.4 $17.3
Developed non-producing 405 513 6.9 13.4
Undeveloped 692 805 4.7 10.4
Total proven (1P) 1,567 1,827 21.0 41.1
Probable 3,137 3,634 40.8 75.9
Total proven plus probable (2P) 4,704 5,461 61.8 117.0
Possible 2,526 3,121 42.0 71.6
Total proven plus probable plus possible (3P) 7,230 8,582 103.8 188.6

Notes:
(1) Note the oil and gas advisories and reserve and resource definitions.
(2) D&M's valuations for reserves in Turkey are prepared in U.S. dollars and
have been converted for purposes of this illustration to Canadian dollars
assuming a Canadian-dollar/U.S.-dollar exchange rate of 0.74 for the
year-end 2016 values and 0.72 for the year-end 2015 values.
(3) The forecast prices used in the calculations of the present value of
future net revenue for year-end 2016 are based on the D&M Dec. 31, 2016,
forecast prices, which are included in the 2016 AIF filed on SEDAR. The
natural gas forecast prices (in U.S. dollars per thousand cubic feet) are
lower than 2015 reflecting a weaker Turkish lira, reduced costs of imported
gas and resulting lower Botas reference prices.
(4) Due to rounding, summations in the table may not add.



The attached tables on reserves and commentary summarize information contained in the D&M reserves report for Turkey. The D&M reserves report does not give effect to the TBNG acquisition.

D&M evaluated reserves as at Dec. 31, 2016, on the company's Banarli licences (100-per-cent working interest) and TBNG JV lands (40-per-cent working interest). The reserves are primarily natural gas, but small oil volumes are assigned to a number of wells.

The year-end 2016 reserves by principal product type are summarized in the attached by principal product table.

2016 YEAR-END COMPANY GROSS RESERVES VOLUMES BY PRINCIPAL PRODUCT TYPE (1)

Reserves category Light and medium crude oil Conventional natural gas Total oil equivalent
(Mbbl) (Bcf) (Mboe)

Proven 6 9.4 1,567
Probable 3 18.8 3,137
Total proven plus probable 9 28.2 4,704
Possible 5 15.1 2,526
Total proven plus probable plus possible 14 43.3 7,230

Note:
(1) Note the oil and gas advisories and reserve definitions.



The forecast oil and natural gas prices and cost escalation rates used in the D&M reserves report are shown in the attached forecast prices table.

FORECAST PRICES AND COST ESCALATION RATES (1)

Year Conventional natural gas Light and medium crude oil Cost escalation
Banarli (U.S.$/Mcf) TBNG (U.S.$/Mcf) Banarli (U.S.$/bbl) TBNG (U.S.$/bbl) %/year

2017 $5.99 $6.11 $42.15 $42.15 0.0
2018 6.20 6.33 45.27 45.27 2.0
2019 6.43 6.57 48.50 48.50 2.0
2020 6.69 6.83 52.64 52.64 2.0
2021 6.96 7.11 55.31 55.31 2.0
2022 7.28 7.43 56.42 56.42 2.0
2023 7.61 7.77 58.39 58.39 2.0
2024 8.07 8.24 61.28 61.28 2.0
2025 8.55 8.73 64.26 64.26 2.0
2026 8.72 8.90 65.55 65.55 2.0
2027 8.89 9.08 66.86 66.86 2.0
2028 9.07 9.26 68.20 68.20 2.0
2029+ +2.0%/year +2.0%/year +2.0%/year +2.0%/year +2.0%/year
thereafter thereafter thereafter thereafter thereafter

Note:
(1) The forecast prices used in the calculation of the present value of future net
revenue are based on the D&M Dec. 31, 2016, forecast prices, which are included in
the 2016 AIF filed on SEDAR.



The attached reserves reconciliation table sets forth a reconciliation of reserves changes in 2016.

YEAR-END 2016 COMPANY GROSS RESERVES RECONCILIATION

Changes 1P (Mboe) 2P (Mboe)

At Dec. 31, 2015 1,827 5,461
Technical revisions 32 -465
Discoveries 0 0
Economic factors 0 0
Production -292 -292
At Dec. 31, 2016 1,567 4,704



The attached reserve life index table sets forth the RLI for total proven and proven plus probable reserves based on the annualized fourth quarter production rates of 1,180 barrels of oil equivalent per day, 809 boe per day and 795 boe per day for the years 2014, 2015 and 2016, respectively.

RESERVE LIFE INDEX (RLI) (1) (2)

RLI (years) 2016 2015 2014

Total proven 5.4 6.2 4.0
Total proven plus probable 16.2 18.5 13.5

Notes:
(1) Note the oil and gas advisories.
(2) Based on Valeura's assessment.



About Valeura Energy Inc.

Valeura Energy is a Canada-based public company currently engaged in the exploration, development and production of petroleum and natural gas in Turkey.

http://www.stockwatch.com/News/Item.aspx?bid=Z-C%3aVLE-2452116&symbol=VLE&region=C

 

[Kostolanys Erbe]

Valeura Energy loses $2-million in Q1



2017-05-11 00:48 ET - News Release



Mr. Jim McFarland reports

VALEURA ANNOUNCES FIRST QUARTER 2017 FINANCIAL AND OPERATING RESULTS, COMPLETION OF TRANSFORMATIONAL TRANSACTIONS AND IMMINENT START OF DEEP DRILLING OPERATIONS

Valeura Energy Inc. is releasing the highlights of its unaudited financial and operating results for the three-month period ended March 31, 2017. The company also announces the completion of a series of transformational transactions and an imminent start of deep drilling operations. The complete quarterly reporting package for the corporation, including the unaudited financial statements, and associated management's discussion and analysis (MD&A), has been filed on SEDAR and posted on the corporation's website.

"We are very proud of our success in closing a complex series of transactions in the first quarter," said Jim McFarland, president and chief executive officer. "These transactions have reset the business and positioned us with the operational control and financial capacity to move forward with a new growth plan for the corporation focused on our shallow gas base business and exploration for a potential high-impact, basin-centred gas play in the Thrace basin.

"In our shallow gas business, our efforts have now shifted to operational execution. Our target is to maintain a continuous drilling program underpinned by a relentless focus on safe operations, production growth, improved capital efficiency, and reduced unit operating costs and [general and administrative]. We expect to shortly spud the second well in our planned shallow gas drilling program in 2017 before the end of May under a new multiwell drilling contract.

"At Banarli, I am delighted to report that commencement of drilling is imminent at Yamalik-1, the first deep exploration well under the Banarli farm-in with our partner, Statoil," adds Mr. McFarland.

Q1 2017 results and subsequent developments at a glance:

Four transformational transactions closed in Q1: Banarli farm-in; West Thrace Deep rights sale; subscription receipts financing; and TBNG acquisition;
Net sales of 807 barrels of oil equivalent per day (boe/d);
Funds flow used in operations of $2.9-million;
Working capital surplus of $7.5-million;
Natural gas price realization $7.06 per thousand cubic feet (mcf);
Operating netback $28.62 per barrel of oil equivalent (boe);
Exploration and development capital expenditures $1.9-million.


Transactional highlights:

A comprehensive summary of the Banarli farm-in, West Thrace Deep rights sale, subscription receipts financing and TBNG acquisition was included in the March 14, 2017, quarterly press release. More recent developments are outlined below.


TBNG acquisition:

As announced on Feb. 24, 2017, an affiliate of Valeura closed a transaction with an affiliate of TransAtlantic Petroleum Ltd. to acquire 100 per cent of the shares of Thrace Basin Natural Gas (Turkiye) Corp. (TBNG) for $20.7-million (U.S.) ($27.1-million).


Subsequent West Thrace Deep rights sale:

An affiliate of Valeura executed a sale and purchase agreement with Statoil on March 10, 2017, to sell an additional 10-per-cent participating interest in the deep rights on the West Thrace lands for $3-million (U.S.) ($4.2-million).
Closing of the subsequent West Thrace Deep rights sale remains subject to Turkish government approvals for the associated transfer of licence interests. This application is currently before the Ministry of Energy and Natural Resources.


Operational highlights:

Net petroleum and natural gas sales in Turkey in Q1 2017 averaged 807 barrels of oil equivalent per day, marginally higher than Q4 2016 and Q1 2016. Net sales in Q1 2017 included 4.8 million cubic feet per day (mmcf/d) of natural gas, representing more than 99 per cent of net petroleum and natural gas sales.
Q1 2017 sales include the contribution from TBNG effective Feb. 24, 2017. The TBNG sales contributed 1.1 million cubic feet per day to average sales in the quarter, which was offset by natural declines and well downtime during the quarter.
Net sales in April, 2017, were approximately 913 barrels of oil equivalent per day.


TBNG JV (joint venture) and Banarli shallow gas program:

The first well in the 2017 shallow gas program, Dogu Atakoy-3, located on the TBNG JV lands at West Thrace (Valeura, 81.5-per-cent working interest) was spudded on Jan. 24, 2017, and drilled and cased to a depth of 1,303 metres. The well has been on stream since March 8 and has satisfied one of two well commitments in 2017.
The corporation has executed a new multiwell drilling rig contract with a Turkish contractor for six firm wells in the 2017 shallow gas program on the TBNG JV lands and Banarli licences. The contract includes an extension option for several contingent locations.
The corporation expects to spud the next shallow gas well in the 2017 program at Dogu Kilavuzlu-2 on the South Thrace lands by late May with a target depth of 1,250 metres. The well location is close to the gathering system with a tie-in of approximately 550 metres.


Banarli Deep exploration program:

Spudding of the first 4,000-metre well, Yamalik-1, to be drilled under the phase 1 commitment of the Banarli farm-in with its partner Statoil, is imminent. Spud to rig release is expected to be approximately 60 days.
The drilling program is being operated by Valeura under a Valeura/Statoil Banarli Deep project team organizational structure. The well is being drilled with a deep capacity rig, KCA Deutag T-207, which was sourced in Germany and transported overland to the Yamalik-1 well location.
Statoil and Valeura agreed to a final authority for expenditure (AFE) of $12.85-million (U.S.) to drill, core, log and case the Yamalik-1 well, and to mobilize and demobilize the drilling rig. Under the farm-in agreement terms, Statoil finances this program on a 100-per-cent basis up to a cap of 110 per cent of the AFE amount.
It is expected that a separate AFE will be raised in the future to complete and test the Yamalik-1 well following rig release, to be financed on a 100-per-cent basis by Statoil up to a cap of 110 per cent of the AFE amount. The results from the well will be evaluated during the third quarter of 2017. Work will also be done to agree on the scope and design of the completion and testing program, select contractors, firm cost estimates, and mobilize equipment prior to commencement. Execution of such a completion and testing program would be required to satisfy the phase 1 commitment under the farm-in agreement.
The 3-D seismic program under the phase 2 commitment of the Banarli farm-in is expected to commence during the third quarter of 2017. Valeura is the operator of the seismic program.
Statoil and Valeura have agreed to a final AFE of approximately $10-million (U.S.) for seismic acquisition and processing, which is expected to finance up to 500 square kilometres of 3-D seismic covering most of the Banarli licences and part of the West Thrace licences in the TBNG JV.


Financial highlights:

On April 16, 2017, Turkey held a referendum on a proposed new constitution which was endorsed by a narrow margin. The result served to stabilize the Turkish lira value against the Canadian dollar.
Funds flow used in operations was $2.9-million in Q1 2017, compared with funds flow from operations of $900,000 and $2.0-million in Q4 2016 and Q1 2016, respectively. This Q1 2017 result reflects a number of non-recurring expenses associated with the TBNG acquisition, which closed in the quarter.
Exploration and development capital expenditures were $1.9-million in Q1 2017, up significantly from $500,000 in Q4 2016, due to higher drilling and workover expenditures, and down 29 per cent from Q1 2016, due to lower drilling expenditures.
Acquisition expenditures associated with the TBNG acquisition were $21.5-million, net of cash on the balance sheet of TBNG.
Dispositions of $22.3-million reflect the funds received from Statoil for the contribution to back costs on Banarli and the sale of deep rights on the West Thrace lands.
The working capital surplus at March 31, 2017, was $7.5-million, including cash of $5.8-million (excludes restricted cash of $3.4-million).
The average natural gas price realization in Turkey of $7.06 per thousand cubic feet in Q1 2017 was down 11 per cent and 30 per cent from Q4 2016 and Q1 2016, respectively, due to a 10-per-cent reduction in the Botas (Boru Hatlari ile Petrol Tasima Anonim Sirketi) reference price (in Turkish lira) effective Oct. 1, 2016, and a further decline in the value of the Turkish lira.
The average operating netback of $28.62 per barrel of oil equivalent in Q1 2017 was down 14 per cent from Q4 2016, due to lower natural gas price realizations, partially offset by lower unit royalties and slightly lower unit operating costs, and down 38 per cent from Q1 2016, due to lower natural gas price realizations and higher unit operating costs, partially offset by lower unit royalties. (See the discussion below regarding non-IFRS measures.)
Additional financial and operating results are summarized in the attached below.


FINANCIAL AND OPERATING RESULTS SUMMARY (1)
(in thousands of dollars, except per-share amounts and as otherwise stated)

Three months ended Three months ended Three months ended
March 31, 2017 Dec. 31, 2016 March 31, 2016
Financial
Petroleum and natural gas revenues $ 3,088 $ 3,508 $ 4,328
Funds flow from (used in) operations (1) (2,883) 915 1,969
Net income (loss) from operations (2,001) (3,189) (992)
Exploration and development capital expenditures 1,932 536 2,704
Acquisitions 21,450 - -
Dispositions (22,315) - -
Net working capital surplus 8,122 3,786 6,467
Cash 5,760 1,987 3,726
Operations
Production
Crude oil (bbl/d) 3 12 9
Natural gas (mcf/d) 4,825 4,699 4,697
Barrels of oil equivalent per day (at 6:1) 807 795 792
Average reference price
Brent ($/bbl) 71.28 65.17 46.47
Botas reference ($/mcf) (2) 7.12 8.09 10.26
Average realized price
Crude oil ($/bbl) 72.83 63.67 39.75
Natural gas -- Turkey ($/mcf) 7.06 7.96 10.05
Average operating netback
($/boe at 6:1) (1) 28.62 33.43 45.85

(1) The table includes non-IFRS measures, which may not be comparable with other companies. Funds flow from
operations are calculated as net income (loss) for the period adjusted for non-cash items in the statement of
cash flows. Operating netback is calculated as petroleum and natural gas sales less royalties, production
expenses and transportation costs. See the MD&A for further discussion.

(2) Botas owns and operates the national crude oil and natural gas pipeline grids in Turkey, and purchases the
majority of Turkey's natural gas imports. Botas regularly posts prices and its level 2 wholesale tariff is shown
herein as a reference price. See the 2016 annual information form for further discussion.



2017 Outlook

The corporation is currently targeting a capital expenditure program of $15-million to $16-million (net) in 2017 directed entirely to the shallow gas business. The corporation has the flexibility to control the pace of spending since it is now the operator of the TBNG JV. The capital program is expected to include drilling of up to seven wells (gross) in the shallow formations on the TBNG JV lands and Banarli licences, targeting to deliver 2017 exit rate net sales of approximately 1,500 barrels of oil equivalent per day.

Annual general meeting webcast

Valeura's annual and special meeting of shareholders will he held on May 11, 2017, at 9 a.m. MST, in the Northcote Room at the Bow Valley Square Conference Centre, Level 3, Bow Valley Square 2, 202 6th Ave. SW, Calgary, Alta.

A webcast of the proceedings will be available, including a presentation by Mr. McFarland at the end of the meeting.

About Valeura Energy Inc.

Valeura Energy 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

When used herein, the term barrels of oil equivalent means barrels of oil equivalent on the basis of one barrel of oil equivalent being equal to one barrel of oil or natural gas liquids, or 6,000 cubic feet of natural gas. Barrels of oil equivalent may be misleading, particularly if used in isolation. A barrel-of-oil-equivalent conversion ratio of 6,000 cubic feet to one barrel is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.


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[Kostolanys Erbe]

Valeura Energy JV starts drilling Yamalik-1 well



2017-05-15 07:43 ET - News Release



Mr. Jim McFarland reports

VALEURA ANNOUNCES COMMENCEMENT OF DEEP EXPLORATION DRILLING UNDER THE BANARLI FARM-IN AGREEMENT WITH STATOIL

The first deep exploration well, Yamalik-1, under the Banarli farm-in agreement with Valeura Energy Inc.'s partner Statoil, commenced drilling on May 13, 2017. It is expected that the Yamalik-1 well will be drilled to a target depth of 4,000 metres and is designed to assess the potential for a high-impact, overpressured, basin-centred gas accumulation play below approximately 2,500 metres on the Banarli licences located in the Thrace basin in northwest Turkey. An extensive coring and logging program is planned for the well, with an expected timeline from spud to rig release of approximately 60 days.

Following rig release, a completion and testing program will be developed. The results from the well will be evaluated during the third quarter of 2017. Work will also be done to agree on the scope and design of the completion and testing program, select contractors, firm cost estimates and mobilize equipment prior to commencement. Execution of such a completion and testing program would be required to satisfy the phase 1 commitment under the farm-in agreement.

About the corporation

Valeura Energy is a Canada-based public company currently engaged in the exploration, development and production of petroleum and natural gas in Turkey.


https://www.stockwatch.com/News/Item.aspx?bid=Z-C%3aVLE-2471179&symbol=VLE&region=C

 

[Kostolanys Erbe]

Valeura Energy appoints Guest COO



2017-05-17 07:58 ET - News Release



Mr. Jim McFarland reports

VALEURA ANNOUNCES EXECUTIVE APPOINTMENT

Valeura Energy Inc. has appointed Dr. Sean Guest as chief operating officer of the corporation. He will initially divide his time between Turkey and Calgary as operational activity ramps up in Turkey.

Dr. Guest brings more than 25 years of experience in the oil and gas industry, almost all international, including 15 years in senior and executive leadership roles. His early 12-year career with Shell included assignments in the Netherlands, Australia and Malaysia. He subsequently joined Woodside Energy, where he managed the company's exploration program in Libya from 2005 to 2009, followed by management of the exploration and new business functions in Australia. For the past seven years, he has been chief executive officer of two private, junior international companies with exploration and production operations in Australia, Indonesia, Malaysia and Ethiopia.

Dr. Guest has a PhD in geology and a BSc in applied science (honours), both from Queen's University at Kingston.

Jim McFarland, president and chief executive officer of Valeura, said: "We are delighted to welcome Sean to the Valeura team. His appointment completes a key step in our plan to effectively transition Valeura to a larger operator role in its shallow gas business in the Thrace basin in northwest Turkey. Valeura operates the Banarli licences and now also operates the TBNG JV lands as a result of the corporation's recent acquisition of TBNG. A new shallow gas drilling campaign is expected to commence by the end of May, 2017. Valeura is also operator of the $36-million (U.S.), deep exploration program under the Banarli farm-in agreement with Statoil, in which drilling of the first deep well commenced on May 13, 2017."

About the corporation

Valeura Energy is a Canada-based public company currently engaged in the exploration, development and production of petroleum and natural gas in Turkey.


https://www.stockwatch.com/News/Item.aspx?bid=Z-C%3aVLE-2472133&symbol=VLE&region=C

 

[Kostolanys Erbe]

Valeura Energy closes West Thrace rights interest sale



2017-06-22 11:38 ET - News Release



Mr. Jim McFarland reports

VALEURA ANNOUNCES CLOSING OF THE SUBSEQUENT WEST THRACE DEEP RIGHTS SALE TO STATOIL AND OPERATIONAL UPDATE

Valeura Energy Inc. has noted the closing of a sale by an affiliate of Valeura of a 10-per-cent participating interest in the deep rights on its West Thrace lands in the Thrace basin of Turkey to Statoil Banarli Turkey BV for $3-million (U.S.) ($4-million) following receipt of Turkish government approvals. These funds will be directed to Valeura's shallow gas drilling program in the Thrace basin.

As a result of this sale transaction, Statoil increases its participating interest to 50 per cent and Valeura retains a 31.5-per-cent participating interest in the deep formations below 2,500 metres on the West Thrace lands, which include two exploration licences (F17-C and F18-D) and three production leases (2926, 3659 and 3734-5122). Valeura also retains an 81.5-per-cent interest in the shallow formations. The West Thrace lands cover a gross area of 174,046 acres.

Closing of the subsequent West Thrace deep rights sale completes a series of four interlinked and transformational transactions executed in 2016/2017, including: the $36-million (U.S.) Banarli farm-in agreement with Statoil; the $15-million (U.S.) sale of deep rights on the West Thrace lands to Statoil; the $20.7-million (U.S.) acquisition of Thrace Basin Natural Gas (Turkiye) Corp. (TBNG); and the $11-million (gross proceeds) underwritten private placement of subscription receipts. These transactions have reset the business and positioned the corporation to move forward on a new growth plan focused on ramping up shallow gas drilling to grow production, and exploring for a potential high-impact, deep, basin-centred gas play in the Thrace basin with its partner Statoil.

Operational update

Banarli deep exploration program

The first deep exploration well, Yamalik-1, under phase 1 of the Banarli farm-in agreement with its partner Statoil, commenced drilling on May 13, 2017. Intermediate casing has been set at 2,609 metres. Coring operations are under way below 3,000 metres. The target total depth of the well is 4,000 metres with an expected timeline from spud to rig release of approximately 60 days.

The acquisition stage of the 3-D seismic program under phase 2 of the Banarli farm-in agreement commenced on June 18, 2017. Up to 500 square kilometres of 3-D seismic is expected to be acquired before year-end 2017 covering most of the Banarli licences and part of the West Thrace lands.

TBNG joint venture and Banarli shallow gas drilling program

The second well in the 2017 shallow gas drilling program, Dogu Kilavuzlu-2, located on the TBNG joint venture lands at South Thrace (Valeura: 81.5-per-cent participating interest) commenced drilling on May 22, 2017, and was drilled to a total depth of 1,260 metres and cased. The timeline from spud to rig release was nine days. The well was completed and flowed at approximately 500,000 cubic feet per day from the Osmancik formation on a short two-hour confirmatory flow test and is currently being tied in with a 550-metre line to the existing gathering system. First gas is expected by early July. The estimated final cost to drill, complete and tie in the well is on budget at $1.2-million ($900,000 (U.S.)).

The third well in the 2017 shallow gas drilling program, Sariyer-1, located on the TBNG joint venture lands at West Thrace (Valeura: 81.5-per-cent participating interest) commenced drilling on June 7, 2017, and is currently drilling below 2,300 metres. Drilling of the Sariyer-1 well and the earlier Dogu Atakoy-3 well is expected to satisfy the 2017 drilling commitment on the West Thrace lands.

The next well in the program is expected to be at Aydinkoy-1 located on the Banarli licences (Valeura: 100-per-cent participating interest).

About Valeura Energy Inc.

Valeura Energy is a Canada-based public company currently engaged in the exploration, development and production of petroleum and natural gas in Turkey.


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[Kostolanys Erbe]

Valeura finds "encouraging" gas shows at Yamalik-1



2017-07-24 17:28 ET - News Release



Mr. Jim McFarland reports

VALEURA ANNOUNCES RIG RELEASE FROM YAMALIK-1 WELL AND POSITIVE EVALUATION RESULTS

Drilling at the first deep exploration well, Yamalik-1, under phase 1 of the Banarli farm-in agreement with Valeura Energy Inc.'s partner Statoil Banarli Turkey BV, has been completed, and the drill rig has been released. The well was drilled to a total depth of 4,196 metres and has been cased and left in a state ready for completion and production testing. The estimated well cost at rig release is within budget. Under the Banarli farm-in, Statoil is financing the drilling of Yamalik-1 on a 100-per-cent basis up to a cap of 110 per cent of the budgeted cost.

Yamalik-1 was designed as the corporation's first test of the Deep-basin-centred gas potential in the Thrace basin of northwest Turkey. The key objectives of this well were to prove the presence of reservoir rock, to confirm that the encountered reservoirs are overpressured and to demonstrate that there are significant sections of the reservoirs, which are gas saturated. Encouraging gas shows were encountered while drilling the objective section, and, based on the drilling data, the well is overpressured below approximately 2,900 metres down to the total drilled depth of 4,196 metres. Interpretation of the extensive wireline logging data acquired in the objective section indicates the well has exceeded the criteria to proceed further with the completion and to test potential zones with hydraulic stimulation. As the Yamalik-1 well was drilled in an area with no structural closure, the overpressures and the indicated pervasive gas saturation in the well are positive indicators of the potential for a basin-centred gas play in the Thrace basin.

Valeura is currently working with Statoil to design the completion, multistage fracking and testing program. Further analysis of the Yamalik-1 well logs and 130 metres of new core data are in progress to finalize the design and cost estimate for the completion and testing. It is expected that the completion and testing program will commence late in the third quarter of 2017. Under the Banarli farm-in, Statoil will pay 100 per cent of the completion and testing program up to a cap of 110 per cent of the agreed budget. Commerciality of the Yamalik-1 well will be determined after the completion and testing program.

After the testing of Yamalik-1 is complete, the corporation anticipates having improved data to assess the extent of the resources in the tested formations. The corporation will then work with its partner Statoil to determine potential future work programs for continued delineation of the basin-centred gas play.

In further advancement of the Banarli farm-in, Statoil is proceeding with phase 2 of the farm-in agreement, which comprises the acquisition of 3-D seismic across the Banarli farm-in lands and parts of the West Thrace lands not currently covered with 3-D seismic. Shooting of the seismic has already commenced, with more than 76 square kilometres recorded to date out of a planned scope of approximately 500 square kilometres. The survey is expected to be completed by early in the fourth quarter of 2017 with Statoil financing 100 per cent of the agreed budget of $10-million (U.S.).

About Valeura Energy Inc.

Valeura Energy is a Canada-based public company currently engaged in the exploration, development and production of petroleum and natural gas in Turkey.


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[Kostolanys Erbe]

Valeura loses $526,000 in Q2



2017-08-10 18:28 ET - News Release



Mr. Jim McFarland reports

VALEURA ANNOUNCES SECOND QUARTER 2017 FINANCIAL AND OPERATING RESULTS

Valeura Energy Inc. has released highlights of its unaudited financial and operating results for the three- and six-month periods ended June 30, 2017, and has provided an update on subsequent developments. The complete quarterly reporting package for the Corporation, including the unaudited financial statements and associated management's discussion and analysis ("MD&A"), has been filed on SEDAR at www.sedar.com and posted on the Corporation's website at www.valeuraenergy.com.

"We are very excited about the drilling results at the Yamalik-1 deep exploration well, which have exceeded our expectations in terms of the extent of over-pressure, gas saturations and net pay, based on the drilling and wireline log analysis," said Jim McFarland, President and Chief Executive Officer. "We are working diligently with Statoil to design a fulsome completion, multi-stage fracing and testing program and to begin execution by early Q4 2017. In the meantime, the new 500 square kilometre 3D seismic program funded by Statoil is progressing well with target completion of the recording phase by early in Q4 2017. Discussions are also underway with Statoil on the program for 2018. Under the Banarli farm-in agreement (the "Banarli Farm-in"), Statoil Banarli Turkey B.V. ("Statoil") must drill, complete and test a second deep exploration well to earn 50% in the deep rights, with Valeura retaining 50%.

"The planned seven well shallow gas drilling program in 2017 is nearing completion with five wells drilled to date, all of which have been cased. While production additions in aggregate from these new wells are below expectations, two of the wells were commitment wells which are expected to hold the shallow and deep rights on the West Thrace lands. Our extensive workover program in 2017 has delivered strong results and has been decisive in mitigating natural declines. We plan to pause the shallow gas drilling program after the sixth planned well, Karaevli-6, in order to assess drilling results and well performance to date, refresh the prospect portfolio and seek required government approvals for any new locations. This pause also provides us with financial flexibility in the event the pace of the deep program with Statoil is accelerated in 2018, based on the positive deep drilling results to date," adds McFarland.

Q2 2017 RESULTS AND SUBSEQUENT DEVELOPMENTS AT A GLANCE

Yamalik-1 deep exploration well drilled with positive evaluation results
Net sales 934 boe/d - Funds flow from operations $1.0 million
Working capital surplus $8.6 million
Natural gas price realization $7.34/Mcf
Operating netback $22.38/boe
Exploration & development capital expenditures $4.0 million


TRANSACTIONAL HIGHLIGHTS

An affiliate of Valeura closed the sale of an additional 10% participating interest in the deep rights on the West Thrace lands in the Thrace Basin of Turkey to Statoil on June 22, 2017 for US$3 million ($4.0 million) (the "Subsequent West Thrace Deep Rights Sale"), following receipt of Turkish government approvals.

OPERATIONAL HIGHLIGHTS

Net petroleum and natural gas sales in Turkey in Q2 2017 averaged 934 barrels of oil equivalent per day ("boe/d"), which was up 16% from Q1 2017 reflecting the acquisition of Thrace Basin Natural Gas (Turkiye) Corporation ("TBNG"), which closed on February 24, 2017 (the "TBNG Acquisition"). Net sales were unchanged from Q2 2016, with additions from the TBNG Acquisition, well workovers and one new drill being offset by natural declines. Net sales in Q2 2017 included 5.6 million cubic feet per day ("MMcf/d") of natural gas, representing more than 99% of net petroleum and natural gas sales.

Current net sales are approximately 1,100 boe/d reflecting additions from workovers and new drills, partially offset by natural declines.

Financial and Operating Results Summary (1)
(thousands of Canadian dollars, except share and share trading amounts, and as otherwise stated)

Three months ended Three months ended Six months ended Three months ended Six Months Ended
June 30, 2017 March 31, 2017 June 30, 2017 June 30, 2016 June 30, 2016
Financial
Petroleum and
natural gas revenues 3,764 3,088 6,852 4,809 9,137
Funds flow from
(used in)
operations (1) 959 (2,883) (1,924) 2,098 4,067
Net loss from
operations (526) (2,001) (2,527) (642) (1,634)
Exploration and
development capital 4,011 1,932 5,943 3,215 5,919
Acquisitions - 21,450 21,450 - -
Dispositions (3,973) (22,315) (26,288) - -
Net working capital
surplus 8,618 7,545 8,618 5,741 5,741
Cash 9,903 5,760 9,903 4,611 4,611

Operations
Production
Crude oil (bbl/d) 9 3 6 7 8
Natural Gas (Mcf/d) 5,550 4,825 5,189 5,560 5,129
boe/d (@ 6:1) 934 807 871 933 862
Average reference
price
Brent ($ per bbl) 66.63 71.28 68.82 57.81 51.31
BOTAS Reference
($ per Mcf) (2) 7.47 7.12 7.29 9.78 10.01
Average realized
price
Crude oil ($ per bbl) 68.39 72.83 69.64 54.41 46.09
Natural gas - Turkey
($ per Mcf) 7.34 7.06 7.21 9.44 9.72
Average Operating
Netback
($ per boe @ 6:1)
(1) 22.38 28.62 25.25 43.02 44.31

Notes:
(1)The above table includes non-IFRS measures, which may not be comparable to other companies.
Funds flow from operations is calculated as net income (loss) for the period adjusted for
non-cash items in the statement of cash flows. Operating netback is calculated as petroleum
and natural gas sales less royalties, production expenses and transportation costs. See MD&A
for further discussion.
(2)Boru Hatlari ile Petrol Tasima Anonim Sirketi ("BOTAS") owns and operates the national
crude oil and natural gas pipeline grids in Turkey and purchases the majority of Turkey's
natural gas imports. BOTAS regularly posts prices and its Level-2 wholesale tariff is
shown herein as a reference price. See the 2016 Annual Information Form for further
discussion.



2017 OUTLOOK

Given the positive drilling results on the Yamalik-1 well, the completion, multi-stage fracing and testing program is expected to proceed under the Banarli Farm-in and commence by early Q4 2017. The recording phase of the Statoil funded Karaca 3D seismic program is expected to be completed by early in Q4 2017 with processing to follow. Completion of these programs would fulfill Phase 1 and 2 of the Banarli Farm-in. To earn 50% in the deep rights, Statoil would need to commit to Phase 3, which requires the drilling, completion and testing of a second deep well with a minimum depth of 4,000 metres and a minimum investment of US$10 million. Discussions are underway with Statoil to develop the plan for the joint venture in 2018, including the number of wells to drill, complete and test, including potential post-earning drilling.

The Corporation plans to spud the sixth well in the 2017 shallow gas drilling program at Karaevli-6 on the TBNG JV lands in late August 2017, following which the program will be paused to assess results to date, refresh the portfolio and seek government approvals for new drilling locations. The Corporation is looking forward to early interpreted results from the new 500 square kilometre Karaca 3D seismic program, which should be available in Q1 2018. This new seismic is expected to add to the shallow gas prospect and lead inventory on the Banarli licences and West Thrace lands.

In view of lower than expected additions from the shallow gas drilling program and reduced scope, the Corporation has reduced its outlook for 2017 exit rate net sales from 1,500 boe/d to a target range of 1,000 to 1,100 boe/d. This outlook is based on a $2.0 million reduction in the 2017 capital program to $13 to $14 million (net) for six shallow gas new drills and an extensive workover program. This pause in the shallow gas drilling program also provides a measure of financial flexibility in the event the pace of the deep program with Statoil is accelerated in 2018, based on the positive drilling results at Yamalik-1.

Valeura Energy Inc. is a Canada-based public company currently engaged in the exploration, development and production of petroleum and natural gas in Turkey.


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[Kostolanys Erbe]

Valeura Energy reaches deal for Yamalik-1 testing



2017-10-17 13:56 ET - News Release


Mr. Jim McFarland reports

VALEURA ANNOUNCES YAMALIK-1 TESTING PROGRAM AND OPERATIONAL UPDATE

Valeura Energy Inc. has reached agreement with Statoil Banarli Turkey BV on the scope and budget for the completion, multistage fracking and flow testing program for the Yamalik-1 well. The well is the first deep exploration well under phase 1 of the Banarli farm-in agreement with Statoil and was drilled to a depth of 4,196 metres. Interpretation of the extensive drilling and wireline logging data from the Yamalik-1 well provided further positive indicators of the potential for a basin-centred gas play in the Thrace basin of Turkey. Valeura currently holds interests in a large land position of 500,000 gross acres in the Thrace basin, of which approximately 200,000 gross acres may be prospective for this play. Equipment is currently being mobilized to the Yamalik-1 well site, and the Yamalik-1 testing program is expected to commence during November, 2017.

Yamalik-1 testing program agreed

The Yamalik-1 testing program has been designed to reflect the positive drilling results and extent of net pay identified on wireline logs. As the first deep well to be extensively tested in pursuit of a basin-centred gas play in the Thrace basin, the program is targeting to maximize information on reservoir properties and flow capability of several high-graded intervals.

The key elements of the program are as follows:

Four production tests are planned with two frac stages per test interval (eight stages in total).
The duration of the Yamalik-1 testing program is expected to be approximately 60 days.
The estimated all-in cost of the Yamalik-1 testing program is $10.3-million (U.S.), to be financed 100 per cent by Statoil up to a cap of 110 per cent of the budget. This level of cost is reflective of the extensive and detailed information gathering and is not expected to be representative of cost in a development well.
If the aggregate flow test results are sufficiently positive, it is planned to tie in the well to Valeura's existing pipeline and facility infrastructure to enable a long-term production test, while at the same time generating additional natural gas sales.

Recording completed on Banarli 3-D seismic program

Under phase 2 of the Banarli farm-in, Statoil is required to fully finance $10-million (U.S.) on 3-D seismic acquisition and processing.

The recording stage of the Karaca 3-D seismic program under phase 2 commenced on June 18, 2017, and was completed on Sept. 20, 2017, within the planned timeline and budget. Approximately 500 square kilometres of 3-D seismic have been acquired. This increases Valeura's 3-D seismic coverage on its acreage in the Thrace basin to more than 1,300 square kilometres.

Processing of the new 3-D seismic is under way and should be completed late in Q1 2018. However, faster processing approaches are being assessed, which would provide early preliminary data to support planning for the 2018 deep drilling program. This program is expected to include the phase 3 well under the Banarli farm-in.

The new 3-D seismic will also be used by Valeura to build on its portfolio of shallow gas prospects.

Resource assessment for basin-centred gas play under way

Given the positive results from the Yamalik-1 well, Valeura has commissioned DeGolyer and MacNaughton (D&M) of Dallas, Tex., to provide a resource assessment under the Canadian Oil and Gas Evaluation Handbook and in accordance with National Instrument 51-101, Standards of Disclosure For Oil and Gas Activities, for the potential basin-centred gas play underlying Valeura's significant acreage position in the Thrace basin. D&M has been Valeura's independent reserves evaluator since the corporation was formed. Completion of this resource assessment will be timed to incorporate the results from the Yamalik-1 testing program.

Outlook

The corporation has always viewed the deep basin-centred gas play as providing the most significant upside potential in its asset portfolio. The Yamalik-1 testing program will be important in shedding additional light on this potential. Preliminary plans to further delineate the basin-centred gas play in 2018 are being developed. Under the Banarli farm-in, Statoil must drill, complete and test one additional deep well to earn its 50-per-cent interest in the deep rights on the Banarli licences.

The corporation continues to believe there is a meaningful conventional shallow gas business in the Thrace basin, where it holds interests in 500,000 gross acres of land. Following the acquisition of Thrace Basin Natural Gas (Turkiye) Corp. (TBNG) in early 2017, Valeura holds participating interests of 81.5 per cent to 100 per cent in the shallow rights on these lands. In Q3, 2017, Valeura's conventional shallow gas business delivered net petroleum and natural gas sales averaging 1,024 barrels of oil equivalent per day (99 per cent natural gas), up almost 10 per cent from Q2 2017. The 2018 conventional drilling program will be determined once the new Karaca 3-D seismic is integrated with the lessons learned from the shallow gas drilling and tight gas fracking programs over the past six years.

In managing the business, the corporation remains committed to safe operations and ensuring that operational and administrative functions are conducted in the most cost-efficient way.

Turkey remains a very attractive place to do business, with a competitive fiscal and royalty regime. There is a ready domestic market for any increased natural gas sales as Turkey has experienced some of the fastest growth in energy demand since 2010 among OECD (Organization for Economic Co-operation and Development) countries and currently imports more than 99 per cent of its consumption. Natural gas prices are about double those in North America, with Valeura's natural gas price realization being $6.98 per thousand cubic feet in Q3 2017.

About Valeura Energy Inc.

Valeura Energy is a Canada-based public company currently engaged in the exploration, development and production of petroleum and natural gas in Turkey.

We seek Safe Harbor.

© 2017 Canjex Publishing Ltd. All rights reserved.


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[Kostolanys Erbe]

Valeura's McFarland to retire as president, CEO



2017-10-19 08:39 ET - News Release



Mr. Bill Fanagan reports

VALEURA ANNOUNCES EXECUTIVE CHANGES

Valeura Energy Inc. co-founder, president and chief executive officer, Jim McFarland, will be retiring as an executive of the corporation effective Dec. 31, 2017. After his retirement, Mr. McFarland will continue to serve as a director of Valeura and will provide continuing support to the corporation under a consulting services agreement. Mr. McFarland expects to stand for re-election to the board of directors at the next annual general meeting of shareholders in May, 2018. In line with the corporation's chief executive officer succession plan, Sean Guest, Valeura's chief operating officer, will assume the additional role of president effective immediately and become president and chief executive officer upon Mr. McFarland's retirement. Mr. McFarland will remain as chief executive officer in the interim period to year-end 2017.

Mr. Guest joined Valeura in May, 2017, as chief operating officer and brings more than 25 years of experience in the oil and gas industry, all international, including 15 years in senior and executive leadership roles. His early 12-year career with Shell included assignments in the Netherlands, Australia and Malaysia. He subsequently joined Woodside Energy, where he managed the company's exploration program in Libya from 2005 to 2009, followed by management of the exploration and new business functions in Australia. More recently, he was chief executive officer of two private, junior international companies with exploration and production operations in Australia, Indonesia, Malaysia and Ethiopia.

Since joining Valeura, Mr. Guesthas divided his time between Turkey and Calgary. He has had the opportunity to develop an in-depth understanding of the corporation's operations, and the associated challenges and opportunities. This has positioned him well to take on the leadership of Valeura in the years ahead.

Valeura will continue to focus on its natural gas exploration and production business in the Thrace basin in northwestern Turkey, where the corporation has a large land position of almost 500,000 gross acres. The business has two complementary elements: a deep, potential high-impact basin-centred gas play currently in the exploration stage being financed by Statoil under a farm-in agreement; and an operated, high-working-interest, cash-flow-generating conventional shallow gas business. In managing this business Valeura remains committed to safe operations and ensuring that the operational and administrative functions are conducted in the most cost-efficient way.

"Sean Guest's broad exploration and production background and executive leadership experience is expected to be crucial on all fronts, including building a robust drill-ready shallow gas prospect inventory aimed at realizing the potential of this important part of the business," said chairman of the board of directors, Bill Fanagan.

"Jim's retirement is well deserved after a 45-year career in the oil and gas industry, more than 27 years of which were in senior executive roles in a major, a large independent and a number of public company start-ups," said Mr. Fanagan. "On behalf of the board of directors I would like to thank Jim for his leadership and significant contributions over many years to the corporation and to the industry. We look forward to continuing to work with Jim as a board member and a valued consultant to the corporation," added Mr. Fanagan.

Mr. McFarland stated: "After a long and rewarding career in this business, the last seven years as chief executive officer of Valeura, the time is right for me to retire and to pass the baton to Sean Guest. I have seen Sean operate over the past five months and that experience has convinced me that our chief executive officer succession plan is unfolding exactly as we had hoped and that Sean is ready to step up."

About Valeura Energy Inc.

Valeura Energy is a Canada-based public company currently engaged in the exploration, development and production of petroleum and natural gas in Turkey.

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[Kostolanys Erbe]

Valeura loses $4.9-million from operations in Q3



2017-11-14 19:34 ET - News Release



Mr. Jim McFarland reports

VALEURA ANNOUNCES THIRD QUARTER 2017 FINANCIAL AND OPERATING RESULTS AND COMMENCEMENT OF THE YAMALIK-1 TESTING PROGRAM

Valeura Energy Inc. has provided the highlights of its unaudited financial and operating results for the three- and nine-month periods ended Sept. 30, 2017, and an update on subsequent developments, including the commencement of the Yamalik-1 testing program and implementation of an orderly chief executive officer succession plan. The complete quarterly reporting package for the Corporation, including the unaudited financial statements and associated management's discussion and analysis ("MD&A"), has been filed on SEDAR at www.sedar.com and posted on the Corporation's website at www.valeuraenergy.com.

"We are pleased to report that the completion, multi-stage fracing and flow testing program for the Yamalik-1 well (the "Yamalik-1 Testing Program") is now underway", said Jim McFarland, Chief Executive Officer. "The Yamlik-1 well will provide the first substantive evaluation of the potential of a basin-centered gas play in the Thrace Basin. As such, we are at the front-end of what is expected to be a steep learning curve going by industry's experience in developing other unconventional resource plays. We had a good start to the evaluation with positive drilling results in the Yamalik-1 well. The testing program will provide critical information on reservoir properties and flow capability of the deep over-pressured tight gas sands encountered in the well. In parallel a third party resource assessment is underway which will frame for the first time the potential size of the basin-centered gas play in the Thrace Basin", added McFarland.

Q3 2017 RESULTS AND SUBSEQUENT DEVELOPMENTS AT A GLANCE

Yamalik-1 Testing Program underway
Net sales 1,024 boe/d
Funds flow from operations $1.2 million
Working capital surplus $5.5 million
Natural gas price realization $6.98/Mcf
Operating netback $22.66/boe
Exploration & development capital expenditures $5.0 million
Sean Guest to succeed Jim McFarland as CEO on his retirement December 31, 2017


OPERATIONAL HIGHLIGHTS

Net petroleum and natural gas sales in Turkey in Q3 2017 averaged 1,024 barrels of oil equivalent per day ("boe/d"), which was up 10% from Q2 2017 reflecting additions from new drill wells and workovers, partially offset by natural declines. Net sales were up 51% from Q3 2016 reflecting the acquisition of Thrace Basin Natural Gas (Turkiye) Corporation ("TBNG"), which closed on February 24, 2017 (the "TBNG Acquisition"), and additions from new drills and workovers, partially offset by natural declines. Net sales in Q3 2017 included 6.1 million cubic feet per day ("MMcf/d") of natural gas, representing more than 98% of net petroleum and natural gas sales.

Current net sales are approximately 1,100 boe/d.

Banarli Deep Exploration Program

The Yamalik-1 Testing Program commenced in early November 2017 and is expected to extend over a period of approximately 60 days. Yamalik-1 is the first deep exploration well under Phase 1 of the Banarli farm-in agreement with Statoil Banarli Turkey B.V. ("Statoil") (the "Banarli Farm-in") and was drilled to a depth of 4,196 metres. Interpretation of the extensive drilling and wireline logging data from the Yamalik-1 well provided further positive indicators of the potential for a basin-centered gas play in the Thrace Basin of Turkey.

The Yamalik-1 Testing Program has been designed to reflect the positive drilling results and extent of net pay identified on wireline logs. As the first deep well to be extensively tested in pursuit of a basin-centered gas play in the Thrace Basin, the program is targeting to systematically assess reservoir properties and flow capability of several high-graded intervals with varying reservoir quality representing, in aggregate, less than half of the net pay measured in the well. The program is expected to include four production tests with two frac stages per test interval (eight stages in total).

The estimated all-in cost of the Yamalik-1 Testing Program is US$10.3 million, to be funded 100% by Statoil up to a cap of 110% of the budget. This level of cost is reflective of the extensive and detailed information gathering and is not expected to be representative of cost in a development well.

If the aggregate flow test results are sufficiently positive, it is planned to tie-in Yamalik-1 to Valeura's existing pipeline and facility infrastructure to enable a long-term production test, while at the same time generating additional natural gas sales.

Two frac stages in the first flow test interval in the Kesan formation below 4,000 metres are expected to be completed this week. The Corporation plans to report aggregate flow test results at the conclusion of the testing program after all eight planned frac stages have been completed.

The Karaca 3D seismic program under Phase 2 of the Banarli Farm-in commenced on June 18, 2017 and the acquisition step was completed on September 20, 2017 within the planned timeline and budget. Statoil is required to fully fund US$10 million on 3D seismic acquisition and processing under Phase 2. Approximately 500 square kilometres of 3D seismic has been acquired. This increases Valeura's 3D seismic coverage on its acreage in the Thrace Basin to more than 1,300 square kilometres.

Processing of the new 3D seismic is underway and should be completed late in Q1 2018. An initial fast-track processing step will provide preliminary data before year-end 2017 to support planning for the 2018 deep drilling program. This drilling program is expected to include the Phase 3 well under the Banarli Farm-in.

The Karaca 3D seismic will also be used by Valeura to build on its portfolio of shallow gas prospects.

Valeura has commissioned DeGolyer and MacNaughton ("D&M") of Dallas, Texas to provide a resource assessment (the "D&M Resource Assessment") under the Canadian Oil and Gas Evaluation Handbook and in accordance with National Instrument 51-101, Standards of Disclosure For Oil and Gas Activities for the potential basin-centered gas play underlying Valeura's significant acreage position in the Thrace Basin. The D&M Resource Assessment will be timed to incorporate the results from the Yamalik-1 Testing Program.

TBNG JV and Banarli Shallow Gas Drilling and Workover Program

Upon assuming operatorship of the TBNG JV, Valeura put a renewed emphasis on well workovers to mitigate natural declines. To date the Corporation has completed 29 workovers on the TBNG JV lands and three on the Banarli licences, including eight workovers in total in Q3 2017.

Valeura has completed its planned 2017 shallow gas drilling campaign, which included five wells on the TBNG JV lands and one well on the Banarli licences. In summary, three of these wells Dogu Atakoy-3, Dogu Kilavuzlu-2 and Koseilyas-2 were cased and tied-in and are currently producing. Two other wells Sariyer-1 and Aydinkoy-1 were cased but tested insufficient natural gas volumes to justify tie-in. These two wells remain under evaluation. A sixth well Karaevli-6 was unsuccessful and was plugged and abandoned.

FINANCIAL HIGHLIGHTS

Funds flow from operations of $1.2 million in Q3 2017 was up 21% from Q2 2017 due to higher volumes, lower net general and administrative expenses and lower operating costs, partially offset by lower natural gas price realizations and higher realized foreign exchange losses. Funds flow from operations in Q3 2017 was up 9% from Q3 2016 due to higher volumes and lower transaction costs, partially offset by lower natural gas price realizations, higher operating costs and higher realized foreign exchange losses. (See discussion below regarding non-IFRS measures).

Exploration and development capital expenditures were $5.0 million in Q3 2017, up 24% and 62% from Q2 2017 and Q3 2016, respectively, due to higher drilling and workover expenditures.

The net working capital surplus at September 30, 2017 was $5.5 million including cash of $3.0 million (excludes restricted cash of $3.4 million).

The average natural gas price realization in Turkey of $6.98 per thousand cubic feet ("Mcf") in Q3 2017 was down 5% from Q2 2017 due to some weakening in the value of the Turkish Lira, and down 25% from Q3 2016 due to a 10% reduction in the BOTAS Reference Price (in Turkish Lira) effective October 1, 2016 and a decline in the value of the Turkish Lira.

The average operating netback of $22.66 per boe in Q3 2017 was up marginally from Q2 2017 due to lower unit operating costs and lower unit royalties, partially offset by lower natural gas price realizations, and down 41% from Q3 2016 due to lower natural gas price realizations and higher unit operating costs, partially offset by lower unit royalties. The operating netbacks for 2017 are well below the forecasted average operating netback of $35.00 per boe due to lower natural gas price realizations, which have been negatively impacted by a further devaluation of the Turkish Lira, and higher operating costs. (See discussion below regarding non-IFRS measures).

Additional financial and operating results are summarized in the Table 1 below.

Table 1 Financial and Operating Results Summary (1)
(thousands of Canadian dollars, except share and share trading amounts, and as otherwise stated)

Three months Nine months Three months Nine months
Sept. 30 June 30 Sept. 30 Sept. 30 Sept. 30
2017 2017 2017 2016 2016
Financial
Petroleum and natural gas revenues 3,970 3,764 10,822 3,510 12,647
Funds flow from (used in)
operations (1) 1,165 959 (759) 1,066 5,133
Net loss from operations (4,911) (526) (7,438) (1,263) (2,897)
Exploration and development capital 4,992 4,011 10,935 3,080 8,999
Acquisitions - - 21,450 - -
Dispositions - (3,973) (26,288) - -
Net working capital surplus 5,458 8,618 5,458 3,697 3,697
Cash 2,968 9,903 2,968 2,336 2,336
Share trading
High 0.72 0.85 1.00 1.25 1.44
Low 0.49 0.62 0.49 0.80 0.60
Close 0.49 0.70 0.49 0.85 1.24
Operations
Production
Crude oil (bbl/d) 11 9 8 10 8
Natural Gas (Mcf/d) 6,077 5,550 5,489 4,020 4,756
boe/d (@ 6:1) 1,024 934 923 680 801
Average reference price
Brent ($ per bbl) 65.27 66.63 67.66 59.75 55.31
BOTAS Reference ($ per Mcf) (2) 7.10 7.47 7.23 9.67 9.90
Average realized price
Crude oil ($ per bbl) 65.16 68.39 67.49 56.24 52.15
Natural gas - Turkey ($ per Mcf) 6.98 7.34 7.13 9.35 9.61
Average Operating Netback
($ per boe @ 6:1) (1) 22.66 22.38 24.28 38.69 42.72

Notes:
(1)The above table includes non-IFRS measures, which may not be comparable to other companies.
Funds flow from operations is calculated as net income (loss) for the period adjusted for non-cash
items in the statement of cash flows. Operating netback is calculated as petroleum and natural gas
sales less royalties, production expenses and transportation costs. See MD&A for further discussion.
(2)Boru Hatlari ile Petrol Tasima Anonim Sirketi ("BOTAS") owns and operates the national crude oil
and natural gas pipeline grids in Turkey and purchases the majority of Turkey's natural gas imports.
BOTAS regularly posts prices and its Level-2 wholesale tariff is shown herein as a reference price.
See the 2016 Annual Information Form for further discussion.


EXECUTIVE CHANGES

As announced previously, a seamless transition of executive leadership of the Corporation is progressing. Sean Guest, who was hired as Valeura's Chief Operating Officer in May 2017, has assumed the additional role of President and will become President and CEO upon the retirement of Jim McFarland on December 31, 2017. Mr. McFarland will remain as CEO in the interim period and will continue to serve on the board of directors and provide consulting services to the Corporation.

OUTLOOK

The Corporation continues to believe that the deep basin-centered gas play in the Thrace Basin provides the most significant upside potential in its asset portfolio in Turkey. Results from the Yamalik-1 Testing Program will be important in shedding additional light on this potential. The Corporation holds participating interests of 31.5% (West Thrace lands) to 50% (Banarli licences post Statoil earning) in the deep rights in almost 0.2 million gross acres of land that are prospective for a basin-centered gas play. The D&M Resource Assessment will also provide the first measure of this play potential and help frame the upside for shareholders.

Preliminary plans to further delineate the basin-centered gas play in 2018 are being developed. Under the Banarli Farm-in, Statoil must drill, complete and test one additional deep well to earn its 50% interest in the deep rights on the Banarli licences.

The Corporation also believes there is a meaningful shallow gas business in the Thrace Basin and remains focused on developing a viable exploitation plan that incorporates well workovers and re-completions, drilling and selective fracing programs. Valeura operates and holds interests in 0.5 million gross acres of land. Following the closing of the TBNG Acquisition in early 2017, Valeura holds participating interests of 81.5% (TBNG JV lands) to 100% (Banarli licences) in the shallow rights on these lands. The 2018 shallow gas drilling program will be determined once the new Karaca 3D seismic is integrated with the lessons learned from the shallow gas drilling and tight gas fracing programs over the past six years.

The Corporation's outlook for 2017 exit rate net sales remains unchanged from earlier guidance, with a target range of 1,000 to 1,100 boe/d on the basis of a 7% reduction in the 2017 capital program to $12 to $13 million (net). In Q4 2017, the Corporation is planning to carry out re-entry fracs in two wells on the TBNG JV South Thrace lands targeting normally pressured tight gas formations. This frac program builds on the extensive tight gas frac program carried out by the TBNG JV in the 2011 to 2015 period.

The Corporation will remain committed to safe operations and ensuring that operational and administrative functions are conducted in the most cost efficient way, with targeted cost reductions in the 2018 budget.

The Corporation does not expect to provide guidance on its 2018 work program and budget until Q1 2018, pending the results of the Yamalik-1 Testing Program and its impact on further deep drilling under the Banarli Farm-in, the reset of the shallow gas drilling inventory and further discussion with partners.

ABOUT THE CORPORATION

Valeura Energy Inc. is a Canada-based public company currently engaged in the exploration, development and production of petroleum and natural gas in Turkey.

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Valeura pumps 0.8 MMcf/d natural gas in Yamalik-1 test



2017-11-27 09:36 ET - News Release



Mr. Jim McFarland reports

VALEURA ANNOUNCES POSITIVE INTERIM PRODUCTION TEST RESULTS AND CONFIRMS NATURAL GAS AND CONDENSATE DISCOVERY AT THE YAMALIK-1 WELL

Valeura Energy Inc. has received positive interim production test results at the Yamalik-1 exploration well in Turkey and has confirmed Yamalik as a natural gas and condensate discovery.

Yamalik-1 is the first deep exploration well drilled under phase 1 of the Banarli farm-in agreement with its partner Statoil Banarli Turkey BV and is the corporation's first test of the deep, basin-centred gas potential in the Thrace basin of northwest Turkey. The well was drilled through overpressured formations below 2,500 metres to a total drilled depth of 4,196 metres. A comprehensive 60-day testing program commenced in early November, 2017, comprising four planned production tests with two frac stages per test interval (eight stages in total), starting at the bottom of the well.

The first of the four planned production tests has been successfully completed in the Kesan formation. Two slick-water fracs were completed in the first production test interval to access approximately 15 metres of indicated net gas pay over a depth interval from 3,996 to 4,147 metres. After establishing steady flow, the well was producing continuously for 44 hours through a range of choke sizes and was concluded on Nov. 25, 2017. Over the final 24 hours of the test the well was producing at an average restricted rate of approximately 800,000 cubic feet per day (cf/d) of natural gas and 60 to 70 barrels per day of 56-degree-API-gravity condensate (70 to 80 barrels per million cf). At the end of the test, the well was still cleaning up.

This 44-hour flow period for the first production test was viewed as sufficient for preliminary internal evaluation purposes. As disclosed previously, if the aggregate production tests are sufficiently positive, the company plans to tie Yamalik-1 in to Valeura's existing pipeline and facility infrastructure to enable a long-term production test and to generate gas and liquids sales.

The estimated initial bottom hole pressure in the well is in the range of 10,700 to 11,200 pounds per square inch based on a preliminary analysis of a diagnostic fracture-injection test carried out in advance of the first-stage frac. This pressure is higher than estimated from mud weights during drilling and represents a pressure gradient from surface of 0.80 to 0.84 psi/foot (18.1 to 19.0 kilopascals per metre) or 85 to 94-per-cent higher than a normal water pressure gradient.

Although the corporation had previously advised that aggregate test results would be disclosed at the end of the test program after all four planned production tests were completed, these interim production test results have exceeded expectations and are viewed as material to the corporation. The results are also encouraging given that this first production test was in the deepest and lowest porosity test interval. Additionally, the test only accessed approximately 10 per cent of the planned total net pay to be production tested in the well. The condensate content of the gas was also much higher than expected and is a significant value addition to any future on-stream sales.

These positive interim production test results have increased the likelihood that Yamalik-1 will be tied in at the conclusion of the testing program. Accordingly, the corporation is commencing engineering and design work to be positioned for a timely tie-in. Any future sales from Yamalik-1 will benefit from strong commodity prices in Turkey. In the third quarter of 2017, the corporation's realized prices for natural gas and liquids were $6.98 per thousand cubic feet and $65.16 per barrel, respectively.

The Yamalik-1 testing program is continuing and a bridge plug has been set above the first test interval prior to executing a planned two-stage frac in the second test interval at a depth of approximately 3,950 metres.

About Valeura Energy Inc.

Valeura Energy is a Canada-based public company currently engaged in the exploration, development and production of petroleum and natural gas in Turkey.

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Valeura's Yamalik-1 produces 0.8 mmcf/d in 2nd test



2017-12-11 09:22 ET - News Release



Mr. Jim McFarland reports

VALEURA UPDATES PRODUCTION TESTING PROGRESS AT THE YAMALIK-1 WELL

Valeura Energy Inc.'s second of four planned production tests in the Kesan formation at the Yamalik-1 exploration well in Turkey has been completed with positive results. The results of the first production test were announced on Nov. 27, 2017.

Two slick-water fracs were carried out in test No. 2 to access approximately 34 metres of indicated net gas pay over a depth interval from 3,819 metres to 3,968 metres. After establishing steady flow, the well was produced continuously for 39 hours. Over the final 24 hours of the test, the well was produced at an average restricted rate of approximately 800,000 cubic feet per day of natural gas. A similar final 24-hour natural gas rate was achieved in test No. 1.

The initial production rate for several hours from test No. 2 was higher than the initial rate measured in test No. 1. However, surface pressure measurements suggest that, several hours into test No. 2, there was a failure of downhole equipment that appears to have obstructed production for the remainder of the test period, including the final 24-hour test rate noted herein. Condensate production in the range of 30 to 40 barrels per million cubic feet was observed in this test. The condensate measurement is subject to considerable uncertainty given the nature of the testing protocol and the short duration of the testing.

The Yamalik-1 testing program is continuing and a bridge plug has been set above the second test interval prior to executing a planned two-stage frac in the third test interval at a depth of approximately 3,550 metres.

About Valeura Energy Inc.

Valeura Energy is a Canada-based public company currently engaged in the exploration, development and production of petroleum and natural gas in Turkey.

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Valeura's Yamalik-1 produces 0.9 mmcf/d in 3rd test



2017-12-18 10:56 ET - News Release



Mr. Jim McFarland reports

VALEURA UPDATES PRODUCTION TESTING PROGRESS (TEST #3) AT THE YAMALIK-1 WELL

The third of four planned production tests in the Kesan formation at Valeura Energy Inc.'s Yamalik-1 exploration well in Turkey has been completed with positive results. The results of the first production test and the second production test were announced on Nov. 27, 2017, and Dec. 11, 2017, respectively.

Two slick-water fracs were carried out in test No. 3 to access approximately 26 metres of indicated net gas pay over a depth interval from 3,488 metres to 3,635 metres. The well was produced for a total of 37 hours. Over the final 24 hours of stable flow, the well produced at an average restricted rate of approximately 900,000 cubic feet per day of natural gas. This rate compares with the final 24-hour rate of 800,000 cubic feet per day in both test No. 1 and test No. 2.

Condensate production in the range of 20 to 30 barrels per million cubic feet was observed in test No. 3. The condensate measurement is subject to considerable uncertainty given the nature of the testing protocol and the short duration of the testing.

The Yamalik-1 testing program is continuing, and it is expected that a bridge plug will be set above the test No. 3 interval prior to executing a planned two-stage frac in the fourth test interval at a midpoint depth of approximately 3,400 metres.

About Valeura Energy Inc.

Valeura Energy is a Canada-based public company currently engaged in the exploration, development and production of petroleum and natural gas in Turkey.

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[Kostolanys Erbe]

4 CAN$ !!!

Kostolanys Erbe schrieb am 19.12.2017, 18:42 Uhr[/url]"]
Valeura's Yamalik-1 produces 0.9 mmcf/d in 3rd test



2017-12-18 10:56 ET - News Release



Mr. Jim McFarland reports

VALEURA UPDATES PRODUCTION TESTING PROGRESS (TEST #3) AT THE YAMALIK-1 WELL

The third of four planned production tests in the Kesan formation at Valeura Energy Inc.'s Yamalik-1 exploration well in Turkey has been completed with positive results. The results of the first production test and the second production test were announced on Nov. 27, 2017, and Dec. 11, 2017, respectively.

Two slick-water fracs were carried out in test No. 3 to access approximately 26 metres of indicated net gas pay over a depth interval from 3,488 metres to 3,635 metres. The well was produced for a total of 37 hours. Over the final 24 hours of stable flow, the well produced at an average restricted rate of approximately 900,000 cubic feet per day of natural gas. This rate compares with the final 24-hour rate of 800,000 cubic feet per day in both test No. 1 and test No. 2.

Condensate production in the range of 20 to 30 barrels per million cubic feet was observed in test No. 3. The condensate measurement is subject to considerable uncertainty given the nature of the testing protocol and the short duration of the testing.

The Yamalik-1 testing program is continuing, and it is expected that a bridge plug will be set above the test No. 3 interval prior to executing a planned two-stage frac in the fourth test interval at a midpoint depth of approximately 3,400 metres.

About Valeura Energy Inc.

Valeura Energy is a Canada-based public company currently engaged in the exploration, development and production of petroleum and natural gas in Turkey.

https://www.stockwatch.com/News/Item.aspx?bid=Z-C%3aVLE-2547374&symbol=VLE&region=C

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Valeura Energy completes fourth production test



2017-12-27 17:39 ET - News Release



Mr. Jim McFarland reports

VALEURA UPDATES PRODUCTION TESTING PROGRESS (TEST #4) AT THE YAMALIK-1 WELL

Valeura Energy Inc.'s fourth production test in the Kesan formation at the Yamalik-1 exploration well in Turkey has been completed with positive results. The results of the three earlier production tests in the Kesan formation were announced on Nov. 27, 2017, Dec. 11, 2017, and Dec. 18, 2017, respectively.

Two slick-water fracs were carried out in test No. 4 to access approximately 66 metres of indicated net gas pay over a depth interval from 3,320 to 3,461 metres. The well was produced for a total of 41 hours. Over the final 24 hours of the test, the well was produced at an average restricted rate of approximately 400,000 cubic feet per day of natural gas. This result increases the aggregate 24-hour tested production rate from the four completed tests to approximately 2.9 cubic feet per day.

Condensate production in the range of 30 to 50 barrels per million cubic feet was observed in test No. 4. As in test No. 2 and test No. 3, the condensate measurement is subject to considerable uncertainty given the nature of the testing protocol and the short duration of the testing.

Test No. 4 completes the planned production testing of the well. However, in a change from earlier plans, the corporation now plans to mill out the bridge and flow-through plugs in the well and flow all of the intervals in a commingled fashion within the 5.5-inch production casing string. There are some limitations with the surface testing equipment that may not enable this planned cleanout and commingled production testing operation to be completed at this time. If so, the well will be suspended until such time as it can be tied into the natural-gas-gathering system in the area. This tie-in is planned for late first quarter 2018 subject to partner approvals on financing. At that time, it is expected that the well will be cleaned out with fit-for-purpose testing equipment and placed on production through smaller diameter production tubing, which should facilitate flowback of the remaining frac fluids and production of natural gas and condensate from the well.

About Valeura Energy Inc.

Valeura Energy is a Canadian public company currently engaged in the exploration, development and production of petroleum and natural gas in Turkey.


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Valeura Energy appoints Guest as CEO



2018-01-02 08:23 ET - News Release



Mr. Sean Guest reports

VALEURA ANNOUNCES COMPLETION OF CEO SUCCESSION PLAN

Valeura Energy Inc. has appointed Sean Guest as the chief executive officer of the corporation effective Jan. 1, 2018. The appointment of Mr. Guest is the final step of the corporation's chief executive officer succession plan announced on Oct. 19, 2017. Mr. Guest was hired as the chief operating officer of the corporation in May, 2017, and assumed the role of president of the corporation on Oct. 19, 2017. Mr. Guest replaces Jim McFarland who has retired from executive duties but will continue to serve on the board and provide consulting services to the corporation.

About Valeura Energy Inc.

Valeura Energy is a Canada-based public company currently engaged in the exploration, development and production of petroleum and natural gas in Turkey.

https://www.stockwatch.com/News/Item.aspx?bid=Z-C%3aVLE-2551999&symbol=VLE&region=C

 

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Valeura suspends testing at Yamalik-1



2018-01-12 17:25 ET - News Release



Mr. Sean Guest reports

VALEURA PROVIDES OPERATIONAL UPDATE AND ANNOUNCES BOARD CHANGES

Valeura Energy Inc. has provided an update of operational results for fourth quarter 2017 and the status of the Yamalik-1 well operations. The corporation is also pleased to announce the addition of Russell Hiscock to the board of directors of the corporation and the appointment of Tim Marchant as the chair of the board.

Frack and test equipment released from Yamalik-1 well

The corporation has temporarily suspended testing operations on the Yamalik-1 well and has released the fracking and testing equipment after accomplishing the primary objectives of the testing. The Yamalik-1 well testing program was designed to demonstrate that fracking would allow gas to flow to surface from these deep, tight reservoirs and without the production of formation water. Both of these factors are key components to demonstrate the presence of a basin-centred gas accumulation. The production testing results have exceeded expectations. The 24-hour aggregate production test rate of 2.9 million cubic feet per day from the four production tests in the Kesan formation was better than modelled. Additionally, the gas was at a higher pressure than expected, and the gas flowed with a significant amount of condensate (with a test data range of 20 to 70 barrels per MMcf).

Valeura stated in its press release on Dec. 27, 2017, that it would attempt to mill out all of the plugs in the well that were required for the multistage fracking operations and, if successful, perform a commingled test. In that press release, Valeura advised of its concern about the limitations of the third party production test equipment and its ability to cope with any flowback during this milling operation given the combination of high-pressure gas, condensate, frack sand and milling debris. This concern was realized while milling the first plug as the surface test equipment became plugged. The attempted milling operation has not compromised the wellbore or the fracked reservoirs, and both remain in a state expected to be suitable for testing, tie-in and production. This type of postfrack cleanout operation is standard in North America.

The corporation is currently proceeding with engineering and design work to enable Yamalik-1 to be tied into its gas gathering and sales network. When the pipeline and surface equipment are ready, the corporation plans to clean out the well with fit-for-purpose milling and testing equipment. The well would then be further tested and placed on production through smaller-diameter production tubing, which should improve the production of natural gas and condensate from the well and allow for a better understanding of the performance of the fracked reservoirs. While the corporation is targeting to recommence operations by the end of first quarter, this timing may be delayed if it is determined that the high-pressure gas necessitates the use of special completion equipment with a longer procurement time.

Based on the current cost estimates up until the release of the test equipment, the testing operations completed to date are expected to be on budget at $10.3-million (U.S.). Under the previously announced Banarli farm-in agreement, Statoil is responsible for all of these testing costs up to 110 per cent of the agreed budget.

Fourth quarter 2017 operational highlights and subseqent developments

Net petroleum and natural gas sales in fourth quarter 2017 averaged approximately 1,038 barrels of oil equivalent per day, up approximately 1 per cent from third quarter 2017, reflecting additions from four well workovers, offset by natural declines.

December, 2017, exit net sales were 929 barrels of oil equivalent per day compared with earlier guidance of 1,000 to 1,100 boe per day. This shortfall was due to a decision to defer execution of two well re-entry fracks in the Tekirdag area to late December given the high activity levels in support of the Yamalik-1 testing program. The two re-entry fracks were completed in the Kayi-14 and Baglik-1 wells in normally pressured, tight gas sands in the Teslimkoy formation.

A single-stage frack was completed in the Kayi-14 well over a depth interval from 1,195 to 1,248 metres. The well has been on stream since Dec. 27, 2017, and has produced at an average restricted rate of 600,000 cubic feet per day (gross) through a 22/64ths- to 26/64ths-of-an-inch choke over the past 16-day period.

A two-stage frack was completed in the Baglik-1 well on Dec. 28, 2017, over a depth interval from 846 to 938 metres. The well has been on stream since Jan. 8, 2018, and has produced at an average restricted rate of 1.0 million cubic feet per day (gross) through a 20/64ths- to 24/64ths-of-an-inch choke over the past four-day period.

Both of these wells are currently on stream and contributing to the corporation's gas sales.

BOTAS (Bori Hatlari ile Petrol Tasima Anonim Sirketi) reference gas price up 14 per cent, effective Jan. 1, 2018

The corporation's average natural gas price realization in fourth quarter 2017 was approximately $6.61 per thousand cubic feet, down 5 per cent from third quarter 2017 due to the weakening of the Turkish lira, which is the pricing basis for Turkish gas sales.

In a positive development, the reference natural gas price in Turkey set by BOTAS was increased by approximately 14 per cent, effective Jan. 1, 2018, to 0.8 Turkish lira per cubic metre, or approximately $7.50 per thousand cubic feet at the current exchange rate of 3.0 Turkish lire to $1 (Canadian) (which is subject to change over time). The corporation's average natural gas price realizations have historically been at a 2- to 4-per-cent discount to the BOTAS reference price.

Mr. Hiscock appointed to board, and Mr. Marchant becomes board chair

Mr. Hiscock is the president and chief executive officer of the CN Investment Division (Montreal), which manages one of the largest corporate pension funds in Canada. Mr. Hiscock has many years of equity portfolio management experience in both the Canadian and international stock markets, with particular emphasis on the oil and gas sector. He is a past chairman of the Pension Investment Association of Canada (PIAC). Mr. Hiscock holds a bachelor of mathematics degree from the University of Waterloo, a master of arts degree in economics from the University of Western Ontario and an MBA from the University of Toronto. He is a certified chartered financial analyst and a certified management accountant. Mr. Hiscock will serve as a member of the audit committee and the governance and compensation committee of the board.

Mr. Marchant stated: "We welcome Russell Hiscock to Valeura Energy. His deep experience of global investment markets will be a valuable addition to the board."

Mr. Marchant has been appointed as chair of the board replacing William T. Fanagan, who requested for health reasons to step down as chair. Mr. Fanagan will continue to serve on the board as a director and as the chair of the audit committee. The corporation would like to thank Mr. Fanagan for his dedication and service to the corporation as board chair since the corporation's inception.

About Valeura Energy Inc.

Valeura Energy is a Canada-based public company currently engaged in the exploration, development and production of petroleum and natural gas in Turkey.


https://www.stockwatch.com/News/Item.aspx?bid=Z-C%3aVLE-2556485&symbol=VLE&region=C

 

[Kostolanys Erbe]

Valeura Energy closes $60-million bought deal



2018-03-01 12:58 ET - News Release



Mr. Sean Guest reports

VALEURA ANNOUNCES CLOSING OF $60 MILLION BOUGHT DEAL FINANCING

Valeura Energy Inc. has completed its previously announced public offering of common shares for gross proceeds of $60,003,900. The shares were sold through a syndicate of underwriters led by GMP FirstEnergy and including Cormark Securities Inc.

The corporation intends to use the net proceeds from the offering to finance its 2018 and 2019 capital program, which is focused on the continued appraisal of its unconventional, basin-centred gas play in Turkey and for general corporate purposes.

About Valeura Energy Inc.

Valeura Energy is a Canada-based public company currently engaged in the exploration, development and production of petroleum and natural gas in Turkey.

https://www.stockwatch.com/News/Item.aspx?bid=Z-C%3aVLE-2576054&symbol=VLE&region=C




2018-03-01 14:07 ET - News Release




Scott Lamacraft Announces Change in Ownership Interest of Valeura Energy Inc.

Canada NewsWire

TORONTO, March 1, 2018


TORONTO, March 1, 2018 /CNW/ - Scott Lamacraft announces that his along with his joint actor's (collectively, the "Lamacraft Group") ownership interest in Valeura Energy Inc. ("VALEURA") has decreased below 10%. Mr. Lamacraft last filed an early warning report on January 7, 2015, at which time the Lamacraft Group owned and controlled approximately 14.7 % of the issued and outstanding shares of VALEURA (the "Shares") on a non-diluted basis. The Lamacraft Group currently owns and controls 7,319,800 Shares. Today, VALEURA announced the closing of its previously announced financing (the "Public Offering") whereby it issued 10,527,000 Shares increasing its issued and outstanding Shares to 83,775,321 per VALEURA's prospectus dated February 22, 2018. The issuance of Shares under the Public Offering reduced the Lamacraft Group's percentage interest in VALEURA from approximately 10% to 8.73% of issued and outstanding Shares.

The Lamacraft Group has a long-term view of the investment and may acquire additional securities either on the open market or through private acquisitions or sell the securities either on the open market or through private dispositions in the future depending on market conditions, reformulation of plans and/or other relevant factors.

VALEURA's head office is located at Bow Valley Square 1, Suite 1200, 202 - 6th Avenue SW, Calgary, Alberta T2P 2R9.

This news release is issued pursuant to National Instrument 62-103 – The Early Warning System and Related Take-Over Bid and Insider Reporting Issues of the Canadian Securities Administrators, which also requires early warning reports to be filed with the applicable securities regulators containing additional information with respect to the foregoing matters. A copy of the early warning report in respect of the foregoing matter will be available on VALEURA's issuer profile on SEDAR at www.sedar.com and may also be obtained by contacting Jeff Kennedy by telephone at (416) 362-6885 or by email at jkennedy@cormark.com.

SOURCE Scott Lamacraft


View original content: http://www.newswire.ca/en/releases/archive/March2018/01/c1483.html

Contact:

Scott Lamacraft, Royal Bank Plaza, South Tower, 200 Bay Street, Suite 2800, Toronto, Ontario M5J 2J2

https://www.stockwatch.com/News/Item.aspx?bid=Z-C%3aVLE-2576110&symbol=VLE&region=C

 

[Kostolanys Erbe]

Valeura loses $8.38-million in 2017



2018-03-20 03:04 ET - News Release



Mr. Sean Guest reports

VALEURA ANNOUNCES FOURTH QUARTER 2017 FINANCIAL AND OPERATING RESULTS AND YEAR-END 2017 RESERVES

Valeura Energy Inc. has released highlights of its financial and operating results for fourth quarter 2017, and for the year ended Dec. 31, 2017, and has provided the activity plan for 2018.

Valeura closed key transformative deals in Q1 2017 to purchase Thrace Basin Natural Gas ("TBNG"), and to partner with Statoil for the exploration of the deep, unconventional potential of its Thrace Basin lands.
The Yamalik-1 gas-condensate discovery well was drilled to 4,196 m and encountered a 1,300 m (gross) column of highly overpressured gas that demonstrated the presence of an unconventional, Basin Centered Gas Accumulation ("BCGA") in the Thrace Basin. The well reached total depth ("TD") still in a gas column.
Yamalik-1 yielded an aggregate flow of 2.9 million cubic feet per day ("MMcf/d") from four production tests, each of which was preceded by a two-stage frac. The produced gas had a significant condensate yield that ranged between 20-70 barrels ("bbl")/MMcf. It is estimated that less than half of the net pay was accessed with the fracing and testing program.
In Q1 2018, the Company released an external resource evaluator's report that assigned to Valeura 10.1 trillion cubic feet ("Tcf") of unrisked, mean recoverable natural gas prospective resources associated with the BCGA play. (See Advisories and Definitions below.)
In Q1 2018, Valeura completed a $60 million (gross) financing (the "Financing") which will fully fund the Company's planned 2018-19 appraisal program of the BCGA play.
The Company is planning to tie in Yamalik-1 well for further testing and production in early Q3 2018.
Valeura expects to commence a three well delineation campaign in late Q3 2018 to establish the full extent of the BCGA play across the basin and to demonstrate commerciality.


The complete quarterly reporting package has been filed on SEDAR and posted on the Company's website at www.valeuraenergy.com. The Company will hold an audio webcast and conference call for analysts and interested listeners on March 22, 2018 at 9:30am MST (11:30am EST). (See details below.)

YAMALIK-1 DISCOVERY DRIVES DEEP UNCONVENTIONAL STRATEGY

Valeura completed several strategic asset transactions in 2017 that allowed it to take operatorship of all its key assets and increase its working interest in both shallow conventional gas rights and production and sales infrastructure. At the same time, the Company brought on a world-class partner in Statoil to fund and assist in exploring deeper, unconventional opportunities within the Thrace Basin in Turkey.

"Our commercial efforts played out as planned by establishing Valeura as the operator and giving us a dominant position in the most prospective lands and the critical gas transportation and processing infrastructure." commented Sean Guest, President and CEO, "This foundation provided the partnerships and the funding model that supported our drilling activity and led to the discovery of the deep, unconventional gas-condensate play. We delivered very positive results for our shareholders in 2017."

The Yamalik-1 gas-condensate discovery well was drilled safely by Valeura with its partner, Statoil, in mid-2017. This well encountered almost 1,300 m of highly overpressured, gas-saturated reservoir below 2,900 m and demonstrated the presence of an unconventional BCGA. Eight slick-water fracs followed by four well tests resulted in a 24-hour aggregate production test rate of 2.9 MMcf/d of gas. "We are pleased with the results of the well," said Sean Guest, "Yamalik-1 demonstrates that gas and condensate will flow to surface with fracture stimulation of these deep, tight sandstone reservoirs. While maturation of the play is still in its early days as long-term production characteristics need to be established by further testing and drilling, we are extremely encouraged by the results of this well which may indicate the potential for a world-class unconventional gas development."

Subsequent to year end, on February 6, 2018, Valeura announced summary results of an independent evaluation of its prospective resources in the BCGA by DeGolyer and MacNaughton ("D&M") of Dallas, Texas (the "D&M Resources Report") which estimates 10.1 Tcf of Valeura working interest, unrisked, recoverable mean natural gas prospective resources, or 5.2 Tcf on a risked mean basis. (See Advisories and Definitions below.)

Given the success of Yamalik-1 and the very large potential of the BCGA, the Company is focusing its strategy and capital allocation on appraising the BCGA play through additional drilling and testing. Yamalik-1 will be tied in for further testing in early Q3 2018. Later in Q3 2018, the Company will commence a three well delineation campaign to establish the full extent of the play across the basin and to demonstrate commerciality. The Company is fully funded for this 2018 and 2019 program having completed the Financing.

Although Valeura's primary focus has now turned to the BCGA play, the Company has continued to exploit the shallow gas potential on its lands. After completing the acquisition of TBNG in Q1 2017, Valeura immediately commenced workovers on existing producing wells and the drilling of six new exploration wells. The results of these operations allowed the Company to deliver modest production increases every quarter in 2017.

FINANCIAL AND OPERATING RESULTS SUMMARY


Three Three Year Three Year
months months ended months ended
ended ended Dec. 31, ended Dec. 31,
Dec. 31, Sept. 30, 2017 Dec. 31, 2016
2017 2017 2016
Financial
(thousands of CDN$ except share and per share amounts)

Petroleum and natural gas revenues 3,824 3,970 14,646 3,508 16,155
Adjusted funds flow (1) (446) 1,165 (1,205) 915 6,048
Net loss from operations (946) (4,911) (8,384) (3,189) (6,086)
Exploration and development capital 1,856 4,992 12,791 536 9,535
Acquisitions - - 21,450 - -
Dispositions - - (26,288) - -
Net working capital surplus 3,421 5,458 3,421 3,786 3,786
Cash 11,108 2,968 11,108 1,987 1,987
Share trading
High 5.02 0.72 5.02 1.15 1.44
Low 0.43 0.49 0.43 0.81 0.60
Close 4.35 0.49 4.35 0.95 0.95
Operations
Production
Crude oil (bbl/d) 9 11 8 12 9
Natural Gas (Mcf/d) 6,176 6,077 5,662 4,699 4,742
BOE/d (@ 6:1) (2) 1,038 1,024 952 795 799
Average reference price
Brent ($ per bbl) 78.05 65.27 70.29 65.17 57.67
BOTAS Reference ($ per Mcf) (3) 6.65 7.10 7.07 8.09 9.41
Average realized price
Crude oil ($ per bbl) 82.78 65.16 71.84 63.67 55.88
Natural gas - Turkey ($ per Mcf) 6.61 6.98 6.98 7.96 9.20
Average Operating Netback
($ per BOE @ 6:1) (1) (2) 22.35 22.66 23.76 33.43 40.41

Notes:
See the Company's 2017 management's discussion and analysis ("MD&A") filed on SEDAR
for further discussion.
(1)The above table includes non-IFRS measures, which may not be comparable to other
companies. Adjusted funds flow is calculated as net income (loss) for the period
adjusted for non-cash items in the statement of cash flows. Operating netback is
calculated as petroleum and natural gas sales less royalties, production expenses
and transportation costs.
(2)See Oil and Gas Advisories and Reserves and Resources Definitions below.
(3)Boru Hatlari ile Petrol Tasima Anonim Sirketi ("BOTAS") owns and operates the
national crude oil and natural gas pipeline grids in Turkey and purchases the
majority of Turkey's natural gas imports. BOTAS regularly posts prices and its
Level-2 Wholesale Tariff benchmark is shown herein as a reference price. See the
2017 AIF for further discussion.



2018 OUTLOOK

Valeura believes that the deep, unconventional BCGA play in the Thrace Basin provides the most significant upside potential for the Company. Valeura's primary focus for 2018 and 2019 will be the appraisal and de-risking of the BCGA play discovered by the Yamalik-1 and evaluated by D&M. The objective of the work program is to delineate the pervasiveness of the play across the Thrace Basin lands where Valeura holds an interest, and to demonstrate that commercial flow rates can be achieved. Success will allow Valeura to convert prospective resources to contingent resources and reserves, test for upside beyond the scope of the D&M Resources Report, and reduce the overall risk of the play.

The key work program activities that support this strategy are:

complete the Yamalik-1 well and tie-in to production facilities for long-term testing and gas sales;
drill and test BCGA Delineation Well #1 in Banarli Licenses (100% funded by Statoil);
drill and test BCGA Delineation Well #2 in the West Thrace Lands (Valeura 31.5%);
drill and test BCGA Delineation Well #3 in the Banarli Licenses (Valeura 50%);
tie-in successful wells for long-term production testing and gas sales.


Further testing and the tie-in of Yamalik-1 is planned to commence in early Q3 2018. Suitable production testing equipment is now planned to be exported from North America to Turkey to support the operation. The Yamalik-1 production testing in Q4 2017 was complicated by the inability of available test equipment to manage the flowback of sand used in the fracing. This type of post-frac flow back is standard in North American drilling and completion operations. Once this test equipment is in country, it will then be available for testing all of the wells in the delineation drilling campaign.

The delineation drilling campaign is also expected to commence in late Q3 2018 and the three wells will be drilled back-to-back. The wells have been designed to drill to 5,000 m to attempt to find the maximum depth of the BCGA play. Yamalik-1 reached 4,196 m depth and was still in an overpressured hydrocarbon column that flowed gas and condensate after fracing and testing. Each well is expected to take about three months to drill which will then be followed by a fracing and testing program.

Additionally, Valeura and its partners are evaluating the re-completion potential of Hayrabolu-10 which was drilled in 2013 in the West Thrace Lands to a depth of 4,054 m. After standard perforation, gas flowed to surface but no fracture stimulation was performed. If it is concluded that the well design still permits re-entry fracture stimulation, the well is expected to be completed, tied-in and tested in Q4 2018.

The Company continues to progress activity on its shallow production from the TBNG JV and Banarli Licenses. Current activity is focused on workovers of producing wells with one new well to be drilled on the West Thrace Lands in Q2 2018. The Company expects to interpret the new 500 square km Karaca 3D seismic when final processing is completed in April 2018 and review the new portfolio of opportunities prior to making further drilling decisions.

In all its activities, the Company remains committed to continuing its safe operations and ensuring that operational and administrative functions are conducted in the most cost-efficient way.

2017 YEAR-END CORPORATE RESERVES REPORT

The Company has completed its independent reserves evaluation as at Dec. 31, 2017. This evaluation was conducted by D&M in its report dated March 20, 2018 ("D&M Reserves Report"). (See Advisories and Definitions below.)

Table 1 summarises the Company's reserves in Turkey and the net present value discounted at 10% ("NPV10"). D&M evaluated reserves as at Dec. 31, 2017 on the Company's Banarli Licenses (100% working interest) and TBNG JV lands (81.5 % working interest).

Table 1 Company Gross Reserves Volumes and Values (1)(2)(3)(4)




RESERVES (Mboe) NPV10 ($ MILLIONS - $MM)
2017 2016 % CHANGE2017 2016 % CHANGE
Proved
Developed producing 602 470 28 5.5 9.4 -41
Developed non-producing 311 405 -23 4.7 6.9 -32
Undeveloped 1,298 692 88 7.5 4.7 60
Total Proved (1P) 2,211 1,567 41 17.7 21.0 -16
Probable 5,605 3,137 79 47.1 40.8 15
Total Proved Plus Probable (2P) 7,816 4,704 66 64.8 61.8 5
Possible 4,433 2,526 75 51.2 42.0 22
Total Proved Plus Probable Plus Possible (3P) 12,249 7,230 69 116.0 103.8 12

Notes:
(1)See Oil and Gas Advisories and Reserves and Resources Definitions below.
(2)D&M's valuations for reserves in Turkey are prepared in US$ and have been
converted for purposes of this illustration to Cdn$ assuming a $Cdn/$US
exchange rate of 0.74 for the year-end 2016 values and 0.80 for the
year-end 2017 values.
(3)The forecast prices used in the calculations of the present value of
future net revenue for year-end 2017 are included in Table 3 and are based
on the D&M Dec. 31, 2017 forecast prices.
(4)Due to rounding, summations in the table may not add.



The reserves are primarily natural gas but small oil volumes are assigned to a number of wells. The 2017 year-end reserves by principal product type are summarized in Table 2.

Table 2 2016 Year-end Company Gross Reserves Volumes by Principal Product Type (1)

Reserves category Light and medium Conventional natural Total oil
crude oil (Mbbl) gas (bcf) equivalent (Mboe)
Proved 5 13.2 2,211
Probable 3 33.6 5,605
Total Proved Plus Probable 8 46.8 7,816
Possible 5 26.6 4,433
Total Proved Plus Probable Plus Possible 13 73.4 12,249

Note:
(1) See Oil and Gas Advisories and Reserve Definitions below.



The forecast oil and natural gas prices and cost escalation rates used in the D&M Reserves Report are shown in Table 3.

Table 3 Forecast Prices and Cost Escalation Rates (1)

YEAR CONVENTIONAL NATURAL GAS LIGHT AND MEDIUM CRUDE OIL COST ESCALATION
TBNG (US$/Mcf) BANARLI (US$/Mcf) TBNG (US$/bbl) BANARLI (US$/bbl) %/YEAR
2018 5.99 5.57 42.00 42.00 0.0
2019 6.09 5.66 44.25 44.25 2.0
2020 6.29 5.84 45.00 45.00 2.0
2021 6.49 6.03 45.68 45.68 2.0
2022 6.68 6.21 46.43 46.43 2.0
2023 6.78 6.30 47.10 47.10 2.0
2024 6.98 6.49 47.85 47.85 2.0
2025 7.18 6.67 48.60 48.60 2.0
2026 7.39 6.86 49.38 49.38 2.0
2027 7.59 7.06 50.16 50.16 2.0
2028 7.81 7.26 50.94 50.94 2.0
2029 8.04 7.47 51.72 51.72 2.0
2030 8.27 7.68 52.50 52.50 2.0
2031++2.0%/year thereafter+2.0%/year thereafter+2.0%/year Thereafter+2.0%/year thereafter+2.0%/year Thereafter

Note:
(1)The forecast prices used in the calculation of the present value of future net revenue
are based on the D&M Dec. 31, 2017 forecast prices, which are included in the 2017 AIF
filed on SEDAR.



Table 5 sets forth a reconciliation of reserves changes in 2016.

Table 5 2017 Year-end Company Gross Reserves Reconciliation



CHANGES 1P (Mboe) 2P (Mboe)

At Dec. 31, 2016 1,567 4,704
Technical Revisions -254 -710
Discoveries 0 0
Acquisitions 1,246 6,077
Economic Factors 0 0
Production -348 -348
At Dec. 31, 2017 2,211 7,816



ANNUAL AND SPECIAL MEETING MATTERS

Valeura will hold its annual and special meeting of shareholders on May 10, 2018. The meeting materials will be mailed in the first part of April 2018. At the meeting, five directors will be proposed for election: Timothy Marchant, William Sean Guest, Russell Hiscock, James McFarland and Ronald Royal. William Fanagan has decided not to stand for re-election for medical reasons. After twelve years on the boards of Valeura and its predecessor corporation, Northern Hunter Energy Inc., Claudio Ghersinich has also decided to step-down from the board to pursue other commitments. Over the next few months, the board plans to conduct a search for another director.

Mr. Marchant stated, "The Board wishes to thank Mr. Fanagan and Mr. Ghersinich for their significant contributions and dedication to the Company since it was founded. They helped lead the Company through last year's transformative transactions to the point of its recent operational and financing success."

CONFERENCE CALL

The Company will hold an audio webcast and conference call for analysts and interested listeners on March 22, 2018 at 9:30am MST (11:30am EST), including a question and answer session.

Event title: Valeura Energy Fourth Quarter 2017 Results and 2018 Outlook Conference Call

Webcast link: http://event.on24.com/wcc/r/1640461-1/704F95C344ACAE885C14E13C9AD96D96

Direct dial-in: 1-647-427-7450

Toll-free dial-in: 1-888-231-8191

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

D&M Resources Report and D&M Reserves Report

The D&M Resources Report and the D&M Reserves Report were prepared using guidelines outlined in the Canadian Oil and Gas Evaluation Handbook ("COGE Handbook") and in accordance with National Instrument 51-101, Standards of Disclosure for Oil and Gas Activities ("NI-51-101"). Additional resources and reserves information as required under NI-51-101 is included in the Company's 2017 annual information form ("2017 AIF") filed on SEDAR.

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[Kostolanys Erbe]

Valeura expects Q1 realized gas price of $7.37/Mcf



2018-04-18 14:14 ET - News Release



Mr. Sean Guest reports

VALEURA ANNOUNCES INCREASED 2018 NATURAL GAS PRICES, LYLE MARTINSON APPOINTED AS CHIEF OPERATING OFFICER

Valeura Energy Inc. has confirmed an increase in the sales price of its natural gas production in Turkey. Boru Hatlari ile Petrol Tasima Anonim Sirketi, which owns and operates Turkey's crude oil and natural gas pipeline grid, has announced an increase of 10 per cent in Turkey's reference natural gas price, effective April 1, 2018. This comes less than three months after the last increase of 14 per cent, which was effective Jan. 1, 2018. When currency exchange rate changes are incorporated, the company expects to report first quarter 2018 realized gas prices of $7.37 per thousand cubic feet, which is an increase of 11.5 per cent from the fourth quarter in 2017. Actual price realizations for the second quarter 2018 will be dependent on the Turkish lira exchange rate.

"These price increases by BOTAS help to keep the value of domestic Turkish gas broadly in line with European natural gas prices," commented Sean Guest, President and CEO. "Valeura expects to continue to realize strong dollar-denominated revenue from our production in Turkey, and more importantly, it also increases our confidence in the long-term value of our major unconventional Basin-Centered Gas Accumulation (the "BCGA") in Turkey's Thrace Basin."

The Company is preparing for a major appraisal phase of its unconventional gas discovery in Turkey, which has been evaluated by DeGolyer and MacNaughton to hold 10.1 trillion cubic feet of estimated working interest unrisked mean prospective resources of natural gas as of December 31, 2017. The appraisal program will include drilling three additional deep delineation wells, the first of which will start drilling in the third quarter of this year, fracing, and long-term production testing through the Company's gathering and processing infrastructure.

In preparation for this appraisal program, which Valeura will operate, the Company is also making adjustments to its organization to ensure operations are conducted in the most safe and efficient manner. The Company is pleased to announce that Lyle Martinson has been promoted to the role of Chief Operating Officer. Lyle has been with the Company since its founding as the VP Operations and is a professional engineer with more than 39 years of management, operations, and engineering experience in the oil and gas industry internationally and in Canada. Sean Guest commented, "I have no doubt that Lyle's level-headed demeanor and steadfast commitment to safe and efficient operations will be a great benefit as we press forward with operations to appraise the BCGA."

About the Valeura Energy Inc.

Valeura Energy is a Canada-based public company currently engaged in the exploration, development and production of petroleum and natural gas in Turkey.

https://www.stockwatch.com/News/Item.aspx?bid=Z-C:VLE-2595286&symbol=VLE&region=C