CALGARY, Oct. 9, 2018 /CNW/ - Valeura Energy Inc. (TSX:
VLE) ("Valeura" or the "Company") is pleased to announce the start
of deep appraisal drilling on its Basin Centered Gas Accumulation
("BCGA") play in Turkey and a
further increase in the reference price for natural gas in
Turkey.
Inanli-1 Appraisal Well
The Inanli-1 appraisal well was spudded on October 8, 2018, using the KCA Deutag T-700
drilling rig. The well has been designed to drill to a depth of
5,000 metres and is intended to test the vertical extent of the
BCGA at a location approximately 6 km to the north-east of the
discovery well location. In addition, the drilling program includes
an extensive data-gathering plan including logging, coring, and
flow testing. Drilling operations are expected to take
approximately 80 days, after which, the well will be fracture
stimulated to test select intervals.
"This is an exciting step for Valeura," commented Sean Guest, President and CEO, "We have learned
a great deal from the Yamalik-1 discovery well, but it had to stop
drilling while still in a gas column due to high pressures. We are
eager to test the full vertical and lateral extent of the BCGA
through appraisal drilling."
Valeura is the operator of the well, but costs are being carried
by the Company's joint venture partner Statoil Banarli Turkey B.V.
("Equinor") as a condition of their farm-in agreement. Following
Inanli-1, Valeura intends to drill two additional appraisal wells,
on a back-to-back basis, with both companies paying their
respective working interest share of the costs.
Gas Price Increase
Effective October 1, 2018, Boru
Hatalari ile Petrol Tasima Anonim Sirketi ("BOTAS"), who own and
operate Turkey's crude oil and
natural gas pipeline grid, announced a further increase in
Turkey's natural gas reference
price by 18.5%, as denominated in Turkish Lira. At current
exchange rates, the new reference price is approximately
C$8.15/mcf. This is the fifth
increase in Turkish gas prices this year reflecting both an
increase in regional gas prices and offsetting the decline in the
Turkish Lira.
About the Company
Valeura Energy Inc. is a Canada-based public company currently engaged
in the exploration, development and production of petroleum and
natural gas in Turkey.
Forward-Looking Statements and Cautionary Statements
This news release contains certain forward-looking statements
and information (collectively referred to herein as
"forward-looking information") including, but not limited to: the
targeted drill depth of the Inanli-1 well, the Inanli-1
data-gathering plan, the expected duration to drill the well,
Valeura's intent to drill two additional appraisal wells, and to
release additional information concerning long-term production
testing. Forward-looking information typically contains statements
with words such as "anticipate", estimate", "expect", "target",
"potential", "could", "should", "would" or similar words suggesting
future outcomes. The Company cautions readers and prospective
investors in the Company's securities to not place undue reliance
on forward-looking information, as by its nature, it is based on
current expectations regarding future events that involve a number
of assumptions, inherent risks and uncertainties, which could cause
actual results to differ materially from those anticipated by the
Company.
Forward-looking information is based on management's current
expectations and assumptions regarding, among other things:
continued political stability of the areas in which the Company is
operating; continued safety of operations; continued timeliness of
approvals forthcoming from the Turkish government and regulators in
a manner consistent with past conduct; future drilling activity on
the expected timelines; the prospectivity of the deep BCGA and
shallow gas plays on the Company's working interest lands; the
continued favourable pricing and operating netbacks in Turkey; future production rates and associated
operating netbacks and cash flow; future sources of funding; future
economic conditions; future currency exchange rates; the ability to
meet drilling deadlines and other requirements under licences and
leases; and the Company's continued ability to obtain and retain
qualified staff and equipment in a timely and cost efficient
manner. In addition, the Company's work programs and budgets are in
part based upon expected agreement among joint venture partners and
associated exploration, development and marketing plans and
anticipated costs and sales prices, which are subject to change
based on, among other things, the actual results of drilling and
related activity, availability of drilling, fracing and other
specialized oilfield equipment and service providers, changes in
partners' plans and unexpected delays and changes in market
conditions. Although the Company believes the expectations and
assumptions reflected in such forward-looking information are
reasonable, they may prove to be incorrect.
Forward-looking information involves significant known and
unknown risks and uncertainties. A number of factors could cause
actual results to differ materially from those anticipated by the
Company including, but not limited to: the risks of currency
fluctuations; changes in gas prices and netbacks in Turkey; uncertainty regarding the contemplated
timelines and costs for the deep evaluation in 2018 and 2019; the
risks of disruption to operations and access to worksites, threats
to security and safety of personnel and potential property damage
related to political issues, terrorist attacks, insurgencies or
civil unrest in Turkey; political
stability in Turkey; the
uncertainty regarding government and other approvals; counterparty
risk; potential changes in laws and regulations; and risks
associated with weather delays and natural disasters. The
forward-looking information included in this news release is
expressly qualified in its entirety by this cautionary statement.
The forward-looking information included herein is made as of the
date hereof and Valeura assumes no obligation to update or revise
any forward-looking information to reflect new events or
circumstances, except as required by law. See the AIF for a
detailed discussion of the risk factors.
Additional information relating to Valeura is also available on
SEDAR at www.sedar.com.
Neither the Toronto Stock Exchange nor its Regulation
Services Provider (as that term is defined in the policies of the
Toronto Stock Exchange) accepts responsibility for the adequacy or
accuracy of this news release.
SOURCE Valeura Energy Inc.