CALGARY, April 18, 2018 /CNW/ - Valeura Energy Inc.
(TSX:VLE) ("Valeura" or the "Company") is pleased to announce an
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 an increase of 10% in Turkey's reference natural gas price,
effective April 1, 2018. This
comes less than three months after the last increase of 14%, which
was effective January 1, 2018. When
currency exchange rate changes are incorporated, the Company
expects to report first quarter 2018 realized gas prices of
C$7.37 per thousand cubic feet, which
is an increase of 11.5% 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 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; first quarter
2018 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.
