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Be the first with the news that moves the market- Valeura Energy (TSX:VLE) has increased its working interest in Banarli and West Thrace exploration licenses
- The company intends to restart production at the Devpinar-1 well, with a longer term production test than previously conducted
- Valeura had C$36 million in cash and equivalents at the end of 2019
- The company has initiated data sharing and cooperation arrangements with other operators in the region
- Valeura Energy (TSXV:VLE) is trading up 1.8 per cent at $0.27 per share, with a market cap of $23 million
Alberta-based gas exploration company Valeura Energy (TSX:VLE) has increased its stakes in two Turkish gas lease joint ventures.
The company now owns 100 per cent and 63 per cent in the Banarli and the West Thrace exploration and production leases respectively.
One of Valeura’s joint venture partners, Equinor, has announced it will relinquish its interest in the leases, under the terms of the joint operating agreement.
Equinor’s interests in the Banarli lease will transfer to Valeura, leaving it with 100 per cent ownership of the site.
The second lease will have ownership transferred to both Valeura and the other partner of that venture, Pinnacle Turkey Inc.
In both occasions, the rights are for the deep water exploration leases. The shallow water rights will remain unchanged.
The company believes it is capable of identifying production sweet spots in the lease, and that work is ongoing.
Valeura does accept that the deep water play is in the very early phase of its life cycle. As such, it will require much more drilling and testing.
Valeura’s President and CEO, Sean Guest, said that the company was doubling its interest in the deep plays. He also said that this reaffirmed its conviction that they represented an opportunity for the company.
“The character of our business will evolve to ensure we have the resources and the longevity to see through a meaningful ongoing appraisal programme.
“In the near term, we will be cautious with our spending and creative when it comes to opportunities to learn more from our existing well stock and from our neighbouring operators.
“There are exciting days ahead for Valeura and its shareholders,” he said.
At the end of 2019, Valeura had C$36 million in cash and equivalents. The company has also initiated data sharing and cooperation arrangements with other operators in the region.
Valeura Energy (VLU) is trading up 1.8 per cent at $0.27 per share at 1:36 pm EST.
