Valeura Energy announces fourth quarter 2018 financial and operating results and year-end 2018 reserves

Valeura Energy, the upstream natural gas producer focused on appraising and developing an unconventional gas accumulation in the Thrace Basin of Turkey, has reported its financial and operating results for the three month period ended 31st December 2018 and the year ended 31st December 2018, and year-end 2018 reserves and prospective resources.

 

The complete quarterly reporting package for the company, including the audited financial statements and associated management’s discussion and analysis (‘MD&A’) and the 2018 annual information form (‘AIF’), have been filed on SEDAR at www.sedar.com and posted on the Company’s website at www.valeuraenergy.com

 

2018 Financial and Operating Results Highlights

  • Average Q4 2018 realised gas prices of US$9.06/Mcf, up 36% from Q3 2018
  • Q4 2018 average production of 623 boe/d, 2018 exit rate of 777 boe/d
  • Q4 2018 operating netbacks of US$32.48/boe, up 37% from Q3 2018
  • Net working capital surplus at year-end of US$59.5 million
  • Total Proved Plus Probable Reserves of 7,350 Mboe at year-end, down 6% from the prior year
  • Total Proved Plus Probable Reserves value of US$87.5 million, up 35% from the prior year
  • Prospective Resources of 10.1 Tcf of unrisked natural gas remains unchanged at year end 2018

 

Ongoing Operations and Corporate Highlights

  • Devepinar-1 has been drilled to its intermediate casing point at 3,375 metres and is currently being readied for logging. Clear indication of over-pressured gas prior to section TD.
  • Operations are ongoing at Yamalik-1 with preparations for Production Logging Tool (“PLT”) zonal analysis which is planned for the coming weeks.
  • Operations are ongoing at Inanli-1 for a Diagnostic Fracture Injectivity Test (“DFIT”) in the coming weeks to assist in planning for reservoir stimulation and testing operations in Q2 2019.
  • Preparation and filing of documents for listing of the company’s common shares on the London Stock Exchange is ongoing, with timing of announcement driven by final approval from the UK Listing Authority.

 

Sean Guest, President and CEO commented: “Our financial results from 2018 reflect the high value of gas in Turkey and reiterates why we have built a portfolio of scale in this optimally located market. With prices continuing to track the broader European markets, we have seen price realisations of more than US$9/Mcf, and coupled with our focus on managing production costs, we generated strong operating netbacks of US$32.48/boe in the fourth quarter.

 

“These results bode well for the long-term value of our unconventional resource in Turkey, and underscore just how valuable our Basin Centred Gas Accumulation (“BCGA”) play could be for Valeura shareholders.

 

“We are progressing our deep appraisal programme on all fronts. The Inanli-1 well accomplished all its drilling objectives earlier this year, including encountering two intervals interpreted to be reservoir sweet spots, which correlate to Yamalik-1. We are about to embark on an exciting completion programme at Inanli. Meanwhile, the Devepinar-1 well is drilling ahead at a location 20 kilometres to the west and will test the lateral extent of our play.

 

Already we have seen early indications of over-pressured gas, which confirms our mapping on the breadth of the play. At Yamalik-1, we continue to monitor the production and will re-enter the wellbore to conduct some zone-by-zone production analysis aimed at gathering as much data as possible.

 

Financially, we are in a strong position. With approximately US$60 million cash on hand, we are fully funded through our 2019 capital programme. And with our upcoming listing of the company’s common shares in London, we are looking forward to attracting more market interest, to bolster value for our shareholders.”

 

Source: Energy-pedia