Valeura Announces Closing of the Subsequent West Thrace Deep Rights Sale to Statoil and Operational Update
Valeura Energy Inc. ("Valeura" or the "Corporation") (TSX: VLE) is pleased to announce the closing of a sale by an affiliate of Valeura of a 10% participating interest in the deep rights on its West Thrace lands in the Thrace Basin of Turkey to Statoil Banarli Turkey B.V. ("Statoil") for US$3.0 million ($4.0 million) (the "Subsequent West Thrace Deep Rights Sale"), 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% and Valeura retains a 31.5% 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% 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 inter-linked and transformational transactions executed in 2016/2017 including: the US$36 million Banarli farm-in agreement with Statoil; the US$15 million sale of deep rights on the West Thrace lands to Statoil (two tranches of proceeds); the US$20.7 million acquisition of Thrace Basin Natural Gas (Turkiye) Corporation ("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-centered gas play in the Thrace Basin with its partner Statoil.
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 underway 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 3D seismic program under Phase 2 of the Banarli farm-in agreement commenced on June 18, 2017. Up to 500 square kilometres of 3D seismic is expected to be acquired before year-end 2017 covering most of the Banarli licences and part of the West Thrace lands.
TBNG JV and Banarli Shallow Gas Drilling Program
The second well in the 2017 shallow gas drilling program, Dogu Kilavuzlu-2, located on the TBNG JV lands at South Thrace (Valeura 81.5% 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 0.5 million 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 (US$0.9 million).
The third well in the 2017 shallow gas drilling program, Sariyer-1, located on the TBNG JV lands at West Thrace (Valeura 81.5% 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% participating interest).
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.
SOURCE: Valeura Energy Inc.
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