VALEURA ENERGY TRADING UPDATE
Calgary, January 15, 2020: Valeura Energy Inc. (TSX:VLE, LSE:VLU) ("Valeura" or the "Company"), the upstream natural gas producer focused on appraising and developing an unconventional gas accumulation play in the Thrace Basin of Turkey, provides a trading update for the year ended December 31, 2019. This is in advance of the Company's full financial and operating results due to be announced on March 12, 2020.
As of December 31, 2019, the Company was in a strong financial position, with a net working capital surplus of approximately US$37 million (CDN$48 million).
Fourth quarter 2019 production averaged 646 boe/d, comprised of gas produced from the Company's ongoing conventional programme. This is an increase of 22% over the prior quarter, and a demonstration of how the Company's shallow gas work programme of well workovers and recompletions can offset natural declines.
Valeura's shallow gas play provides a reliable stream of production and cash flow. Price realisations were relatively stable throughout 2019, averaging US$7.40/Mcf (CDN$9.82/Mcf) in Q4 2019. Revenues increased in Q4 2019 due to a combination of higher production and gas prices, and were more than sufficient to cover the operating costs and all of the G&A costs of the Company.
Deep gas appraisal
Valeura remains encouraged by the potential for its deep gas play. Every deep well stimulation to date in the Thrace basin has successfully resulted in gas flowing to surface. Technical evaluation and reservoir modelling work is ongoing with joint venture partners incorporating all of the new data acquired through the recent drilling and the testing operations. This work is expected to extend through the next one to two months and will be used to define the forward appraisal programme for the deep play in 2020. The Company expects to communicate its 2020 work programme and capital expenditure outlook later in Q1.
For further information please contact:
Valeura Energy Inc. (General and Investor Enquiries) +1 403 237 7102
Sean Guest, President and CEO
Heather Campbell, CFO
Robin Martin, Investor Relations Manager
Canaccord Genuity Limited (Corporate Broker) +44 (0) 20 7523 8000
Henry Fitzgerald-O'Connor, James Asensio
CAMARCO (Public Relations, Media Adviser) +44 (0) 20 3757 4980
Owen Roberts, Monique Perks, Billy Clegg