CALGARY, July 31, 2018 /CNW/ - Valeura Energy Inc.
(TSX:VLE) ("Valeura" or the "Company") is pleased to announce an
immediate increase in the sales price of its natural gas production
in Turkey. Boru Hatlari ile Petrol Tasima Anonim Sirketi
("BOTAS"), who own and operate Turkey's crude oil and natural gas pipeline
grid, has announced that effective August 1,
2018, Turkey's natural gas
reference price will increase 49.5% for power generation customers
and 14.0% for Valeura's other industrial and commercial
customers.
This is the third price increase in calendar 2018, following
increases of 10% effective April, 2018 and 14% effective
January 1, 2018. Given today's
exchange rates, power generation customers will now pay the
equivalent of C$9.82/mcf, and
Valeura's other customers the equivalent of C$7.49/mcf. BOTAS has also announced that
while the prices will remain locally denominated in Turkish lira,
power generation customers will transact with BOTAS in US dollars,
at daily exchange rates.
"Price increases by Turkey's
regulators are very welcome news. This ongoing trend gives us
greater confidence in the long-term value of the Basin Centered Gas
Accumulation resource we are appraising in Turkey, as we anticipate Turkish pricing to
continue to track broadly in line with European import prices,"
commented Sean Guest, President and
CEO, "This also has an immediate positive effect on our
revenues. We expect to see our overall price realizations
increase by a minimum of 14%, as we have historically sold
production to a mix of industrial, commercial, and power generation
customers."
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 further production testing of the
Yamalik-1 well, due to commence shortly, and drilling three
additional deep delineation wells, the first of which will is
expected to start drilling around the end of the third quarter of
this year.
About the Company
Valeura Energy Inc. is a Canada-based public company currently engaged
in the exploration, development and production of petroleum and
natural gas in Turkey.
Oil and Gas Advisories and Resource Definitions
The prospective resources estimates provided herein are
estimates only and there is no guarantee that the estimated
prospective resources will be recovered.
There is no certainty that any portion of the unconventional
prospective resources estimated herein will be discovered. If
discovered, there is no certainty that it will be commercially
viable to produce any portion of the unconventional prospective
resources evaluated.
Please see the Company's Annual Information Form for the year
ended December 31, 2017 (the
"AIF"), which is available under Valeura's issuer profile on
SEDAR at www.sedar.com, for more information with respect to the
Company's prospective resources.
"Natural Gas" is defined as Conventional Natural Gas
product type as per National Instrument 51-101, Standards
of Disclosure for Oil and Gas Activities.
"Prospective Resources" are those quantities of petroleum
estimated, as of a given date, to be potentially recoverable from
undiscovered accumulations by application of future development
projects. Prospective resources have both an associated change of
discovery and a change of development.
Forward-Looking Statements and Cautionary Statements
This press release contains certain forward-looking statements
within the meaning of applicable securities law. Forward-looking
statements typically contains statements with words such as
"anticipate", estimate", "expect", "target", "potential", "could",
"should", "would" or similar words suggesting future outcomes.
Forward-looking statements in this press release includes
information with respect to currency exchange rates; realized gas
prices; the Company's expectations regarding its production
revenue; the long-term value of the BCGA; and the appraisal program
regarding the Company's unconventional gas discovery in
Turkey and the timing thereof.
Statements related to "prospective resources" are deemed forward
looking statements as they involve the implied assessment, based on
certain estimates and assumptions, that the prospective resources
can be profitably produced in the future. Specifically,
forward-looking statements contained herein regarding "prospective
reserves" may include estimated volumes of prospective resources
and the ability to finance future development. Forward-looking
statements are based on the current expectations and opinions of
management at the date the statements are made and are subject to a
variety of risks and uncertainties and other factors that could
cause the actual results differ materially from that projected in
the forward-looking statements. They are made as of the date hereof
and are subject to change and the Company assumes no obligation to
revise or update them to reflect new circumstances, except as
required by law. The Company cautions readers and prospective
investors in the Company's securities to not place undue reliance
on forward-looking statements, as by nature, they are based on
current expectations regarding future events that involve a number
of assumptions, inherent risks and uncertainties, which could cause
actual results to differ materially from those anticipated by the
Company. A number of risk factors could cause actual results to
differ materially from those anticipated by the Company, including
but not limited to risks associated with the oil and natural gas
industry, risks associated with negotiating with foreign
governments as well as country risk associated with conducting
international activities, and other factors, many of which are
beyond the control of the Company. The material risk factors
affecting the Company and its business are contained in the
Company's AIF which is available under Valeura's issuer profile on
SEDAR at www.sedar.com.
Neither the Toronto Stock Exchange nor its Regulation
Services Provider (as that term is defined in the policies of the
Toronto Stock Exchange) accepts responsibility for the adequacy or
accuracy of this news release.
SOURCE Valeura Energy Inc.
