Valeura Reports Increased Gas Prices, Updates Operation

Valeura Energy (TSX:VLE) has announced a gas price increase and also released an update on its appraisal operations.

Energy explorer Valeura is currently engaged in the exploration, development and production of petroleum and natural gas in Turkey.

As quoted from the press release:

Gas Price Increase
Effective September 1, 2018, Boru Hatlari ile Petrol Tasima Anonim Sirketi (BOTAS), who own and operate Turkey’s crude oil and natural gas pipeline grid, has announced a further increase in Turkey’s natural gas reference price by 14 percent for industrial and commercial customers.

This is the fourth price increase in calendar 2018, resulting in local prices having increased by 63 percent so far this year, on a compounded basis. While gas prices are denominated in Turkish Lira, these frequent and ongoing adjustments to the reference price result in exchange rate-adjusted prices broadly in line with prevailing European gas prices, and Valeura continues to realize stable prices in the C$7/mcf range.

Operations Update
Valeura has achieved a milestone in its recompletion operations on the Yamalik-1 well. As of today, the company has safely drilled through all the plugs that were set during the initial frac’ing and cleaned out the well to bottom. The well bore will now be fitted with production tubing for clean-up and testing and then the well will be put on long-term test through the Company’s owned gathering infrastructure.

Site construction at the Inanli-1 location is progressing on plan. The KCA Deutag drilling rig has arrived in Turkey and will be mobilized to the location in the coming weeks. Equipment and operations remain on track for a spud around the end of Q3, with initial results expected in late Q4. The Inanli-1 well is designed to be drilled to a depth of 5,000 m, approximately 800 m deeper than Yamalik-1. The costs for Inanli-1 will be carried by Equinor, while Valeura will fund its working interest share for the two additional appraisal wells, which will be drilled immediately after Inanli-1.

Click here to read the full press release