Valeura Release Q2 Results and Offers Update for the Yamalik Well

Valeura Energy (TSX:VLE), has released its financial and operating results for Q2 2018 and the restart of operations at the Yamalik-1 well.

According to the company, Yamalik production testing is the first step in the company’s appraisal of its unconventional gas discovery in Turkey, which has been evaluated by DeGolyer and MacNaughton to hold 10.1 trillion cubic feet of estimated resources of natural gas.

As quoted from the press release:

Financial and Operating Highlights for Q2:

• Yamalik-1: Preparations for the Yamalik-1 long-term production test progressed smoothly throughout the quarter, including sourcing and importing suitable production testing equipment and constructing a pipeline to tie the well in to Valeura’s gathering and processing infrastructure. All required equipment is now onsite and operations have resumed.
• BCGA appraisal drilling: Permitting of multiple well locations was completed in the quarter and procurement activities for the three well appraisal drilling program progressed on plan for a spud of the first well, Inanli-1, around the end of Q3 2018. Well site construction has commenced and the rig is currently being mobilized. The company also selected the second appraisal well, Devepinar-1, which will be located in the West Thrace Lands 18km west of Yamalik-1.
• Conventional gas: The Company’s shallow, conventional gas play continued to provide a modest, reliable production stream of 736 boe/d average production, generating revenue of C$2.9 million. The company drilled the Karanfiltepe-7 commitment well, which was a gas discovery and is now tied in and producing.
• Balance Sheet: Valeura’s balance sheet remained strong throughout the quarter, with an ending working capital position of C$60.3 million.

“We have had an exciting quarter as the team prepares to begin appraisal operations on our 10 Tcf gas discovery in Turkey,” said Sean Guest, President and CEO, “I am very pleased to have our operations team back at work on the Yamalik-1 well, and look forward to seeing the results of our production testing in the coming weeks and months. In addition, we have made great progress in preparing for the appraisal drilling program. All permits, approvals, and major contracts are in place with a plan to spud the first well, Inanli-1, at the end of Q3 2018.”

Click here to read the full announcement