Valeura Begins Deep Appraisal Drill in Turkey

Valeura Energy (TSX:VLE) has announced the start of deep appraisal drilling on its basin centered gas accumulation (BCGA) play in Turkey and a further increase in the reference price for natural gas in Turkey.

As quoted from the press release:

The Inanli-1 appraisal well was spudded on October 8, 2018, using the KCA Deutag T-700 drilling rig. The well has been designed to drill to a depth of 5,000 metres and is intended to test the vertical extent of the BCGA at a location approximately 6 km to the north-east of the discovery well location. In addition, the drilling program includes an extensive data-gathering plan including logging, coring, and flow testing. Drilling operations are expected to take approximately 80 days, after which, the well will be fracture stimulated to test select intervals.

“This is an exciting step for Valeura,” commented Sean Guest, president and CEO, “We have learned a great deal from the Yamalik-1 discovery well, but it had to stop drilling while still in a gas column due to high pressures. We are eager to test the full vertical and lateral extent of the BCGA through appraisal drilling.”

Valeura is the operator of the well, but costs are being carried by the Company’s joint venture partner Statoil Banarli Turkey B.V. (“Equinor”) as a condition of their farm-in agreement. Following Inanli-1, Valeura intends to drill two additional appraisal wells, on a back-to-back basis, with both companies paying their respective working interest share of the costs.

Click here to read the full announcement