Valeura Converts Banarli Licence in Turkey to Two New Licences With 13 Percent Larger Area

Valeura Energy Inc. (TSX:VLE) announced that the the General Directorate of Petroleum Affairs of the Republic of Turkey has approved its application to convert its Banarli Exploration Licence 5104 in the Thrace Basin to the licencing terms under Turkey’s new petroleum law adopted on June 30, 2013. As a result the licence acquired by the company in April 2013 has now been converted to two new contiguous exploration licences, with a total area of 542 square kilometers, which represents a 13 percent increase.
As quoted in the press release:

The Corporation is also pleased to advise that it completed the acquisition phase of a new 3D seismic survey at Banarli. The seismic covers an area of 152 square kilometres, which satisfies the seismic requirement in the initial term of the new licences. The total all-in cost to acquire, process and interpret the seismic is estimated at $5.0 million. Processing and interpretation of the seismic is underway and should be completed by early September to position potential drilling at Banarli as early as the fourth quarter of 2015, contingent on the 3D seismic results and the Corporation’s cash position at the time. Under the new licencing terms, an initial commitment well will need to be spudded by June 26, 2016.
As a result of the successful conversion process, the initial five-year term of the original Banarli licence has been extended by more than two years to June 27, 2020. During the initial five-year term, Valeura will be required to complete, in aggregate on the two licences, 152 square kilometres of 3D seismic and three wells, including a 2,000 metre well in each of year one and year two and a 3,800 metre well in year four. The total assigned value to this program is US$9.15 million and an associated 2% bond is in the process of being submitted to the GDPA.

Jim McFarland, president and CEO of Valeura Energy, commented:

We are pleased that the Banarli licence has been successfully converted to new terms and the licence evaluation program is proceeding as planned with completion of the 3D seismic program as a key first step. We believe that Banarli offers significant exploration upside potential both in terms of the extension of the successful conventional gas and unconventional tight gas plays under development just south of Banarli on our joint venture lands, and in a potential basin-centered gas play at depths below about 2,500 metres.

Click here to read the full Valeura Energy Inc. (TSX:VLE) press release.