CALGARY, June 28, 2018 /CNW/ - Valeura Energy Inc.
(TSX:VLE) ("Valeura" or the "Company") is pleased to provide an
operations update concerning its Basin Centered Gas Accumulation
("BCGA") appraisal program, in the Thrace basin of
Turkey.
"Major contracts and regulatory approvals are in place and well
operations are about to begin," commented Sean Guest, President and CEO, "We have
developed a definitive program to appraise the BCGA and the team is
excited to return to active operations."
Yamalik-1
The Company's plan for the Yamalik-1 well remains intact.
Equipment, including a snubbing rig and a production test unit,
will start arriving on location in the first week of July 2018, with well operations expected to begin
the week thereafter. The objective is to drill out the existing
plugs in the well to allow for a comingled test from all eight
frac'ed intervals. Valeura is then planning to immediately tie-in
the well to the Company-owned production facilities via a new
pipeline which is nearing completion. Tie-in will allow for gas
sales and long-term testing.
Appraisal Drilling
Valeura has obtained all land permitting and regulatory approvals
to begin operations on Inanli-1, the first BCGA appraisal well.
Construction of the well location is expected to commence in
July 2018, followed by mobilization
of the drilling rig to the site in August
2018 and spud of the well in September 2018.
The Inanli-1 location is approximately 6 km to the north-east of
Yamalik-1 and is designed to be drilled to a depth of 5,000 m. This is approximately 800 m deeper than Yamalik-1 which stopped
drilling while still within an overpressured gas column. Given the
deeper total depth, Valeura expects the well will extend the proven
gas column, which would then increase gas volumes in the DeGolyer
and MacNaughton external resource report released on February 6, 2018, which attributed 10.1 trillion
cubic feet of estimated unrisked mean prospective resources of
natural gas including 236 MMbbls of condensate to Valeura's working
interest of the BCGA.
Results from Inanli-1 can be expected around late November 2018 given the significant coring and
data acquisition currently planned for the well. Assuming the well
is successful, it will be frac'ed, tested and tied into the
Company's sales facilities to maximize technical data collection.
The costs of Inanli-1 will be carried by Statoil Banarli Turkey
B.V. (now referred to as "Equinor" following the Statoil's recent
name change), and will complete Equinor's earning obligations under
the Banarli farmout agreement.
Valeura and its partner Equinor plan to drill two additional
appraisal wells. The newly-acquired 3D seismic data is being used
to select optimal drilling locations so as to optimally delineate
the BCGA play. The two wells are planned to be drilled in a
continuous sequence immediately following
Inanli-1.
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 news release contains certain forward-looking statements
and information (collectively referred to herein as
"forward-looking information") including, but not limited to: the
timing of the arrival of a snubbing rig and a production test unit
and the resumption of operations at Yamalik-1; the objectives of
the appraisal program objective at Yamalik-1; the construction of a
new pipeline and the timing thereof; the timing to tie-in and
conduct a long term production test and achieve natural sales from
the Yamalik-1 well; the timing of construction of the well
location, rig mobilization and spudding of the Inanli-1 well; the
drilling and targeted depth of the Inanli-1 well and the timing
thereof; the timing to tie-in and conduct a long term production
test and achieve natural sales from the Inanli-1 well; and the
drilling of two additional wells as part of the BCGA appraisal
program and the timing thereof. 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.
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 information contained herein regarding "prospective
resources" may include estimated volumes of prospective resources
and the ability to finance future development.
Forward-looking information is based on management's current
expectations and assumptions regarding, among other things:
political stability of the areas in which the Company is operating
and completing transactions, and in particular the aftermath of the
July 2016 failed coup attempt in
Turkey and the April 2017 constitutional referendum; continued
safety of operations and ability to proceed in a timely manner;
continued operations of and approvals forthcoming from the Turkish
government in a manner consistent with past conduct; future seismic
and drilling activity on the expected timelines; the prospectivity
of the deep BCGA and shallow gas plays on the TBNG joint venture
lands and Banarli licences; 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 for the 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, including potential changes in
Turkey's constitution, political
leaders or parties or a resurgence of a coup or other political
turmoil; the uncertainty regarding government and other approvals;
counterparty risk; potential changes in laws and regulations; risks
associated with weather delays and natural disasters; the risk
associated with international activity; and, the uncertainty
regarding the ability to fulfil the drilling commitment on the West
Thrace lands. 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.