Valeura Energy

Primary ticker: TSX:VLE; LON:VLU
Stage of development: Exploration, Production
Project types: Gas – conventional onshore, Shale gas/tight gas
Project to promote: Turkey: Thrace Basin Centered Gas Accumulation

Live financials

Valeura Energy Inc. is an upstream natural gas producer focused on appraising and developing an unconventional gas accumulation play in the Thrace Basin of Turkey in partnership with Equinor.

The Company is testing the flow potential of the significant, interpreted gas columns encountered in its three new appraisal wells to de-risk the commerciality of its 10 Tcfe (286 BCM) of unrisked gas resource, including 236 MMbbl (32 MM Tonnes) of condensate, net to Valeura.

Management Profile

Dr. Sean Guest, President and CEO

Dr. Guest (Ph.D., Geology) has been working internationally in the oil and gas industry for 30 years. Prior to joining Valeura, he was the CEO of two private junior companies. Pexco Energy, a $700 million company held production and exploration assets in the Australia-Asia region and East Africa. Prior to his CEO roles, he also worked for Woodside in Australia and Libya, and for Shell in the Netherlands, Australia and Malaysia. He started his career with Schlumberger working in Egypt.

What is your rationale for attending 121 Oil & Gas Investment?

Valeura is attending the 121 London conference to meet equity investors interested in on-market purchases of Valeura shares or participation in potential future equity raises.
The company has recently announced encouraging results from its reservoir stimulation and testing programme in Turkey and is seeking invaestors to participate through the rest of the appraisal programme and beyond.

What recent news would you like to highlight to investors attending?

• Bought out partner and became operator of Thrace Basin gas production in Turkey
• Brought in Equinor (Statoil) via farm-in to fund testing of the deep unconventional gas play

• Drilled Yamalik-1 discovery well
• Discovered 1,300m of highly over-pressured gas-condensate filled sands
• Demonstrated gas-condensate flow post stimulation
• External resource evaluation indicated 10.1 Tcfe net recoverable resource

• C$60 million raised through oversubscribed bought deal financing
• Inanli-1 and Devepinar-1 appraisal wells confirmed reservoir and over-pressured gas with upto 20km stepout
• Listed on the London Stock Exchange
• First Inanli-1 stimulation and test resulted in stable dry gas production
• Ongoing reservoir stimulation and testing throughout remainder of 2019.

What are your key goals for the next 3, 6 and 12 months?

3 Months:

Conduct reservoir stimulation and flow tests on at least four intervals in the Inanli-1 appraisal well.

6 Months:

Conduct reservoir stimulation and flow tests on at least four intervals in the Devepinar-1 appraisal well.

12 Months:

Continue an appraisal/pilot development project on the Thrace Basin Centered Gas accumulation to demonstrate commerciality and scalability of the play.

Based on successful testing, next step would likely be an early development project with horizontal wells

What do you see as the key risks and challenges facing your company at the moment and how are you overcoming these?

Valeura is singularly focussed on appraising and de-risking the technical aspects of its Basin Centered Gas Accumulation plan in Turkey. Through a rigorous and fully-funded reservoir stimulation and flow testing programme, the company intends to demonstrate the commerciality of its new 10 Tcfe gas play (D&M Report 2018).

In a sentence, what do you think makes your company such a compelling investment?

Valeura offers investors an opportunity to participate (alongside Equinor) in a new, very large, gas and condensate discovery on the doorstep of undersupplied markets in Europe, and within a stable operating regime, with strong economics. Successful demonstration of commerciality can yield multiple returns to shareholders.

Additionally, Valeura currently has positive free cash flow from its conventional production which it operates and further reserves ready for development.