Calgary, February 4, 2020: Valeura Energy Inc. (TSX:VLE, LSE:VLU) ("Valeura" or the "Company"), the upstream natural gas producer focused on the Thrace Basin of Turkey, provides an update on partner participation in its deep gas appraisal programme.
The Company has received notification from its joint venture partner Equinor indicating that it intends to discontinue participation in the deep gas appraisal programme. Valeura and Equinor have begun discussions on the commercial mechanism by which Equinor will exit the play and the Company will provide more detail in due course.
Valeura is in robust financial shape and has both a producing shallow gas business which generates cash flow, and a strong working capital position of approximately US$37 million at December 31, 2019. The Company intends to deploy capital in a judicious manner in 2020, and expects to continue its deep gas appraisal programme aimed at demonstrating the potential for commercial development, and to enhance its shallow gas play through ongoing investment into existing fields. Valeura will communicate its 2020 work programme in more detail later in Q1.
Sean Guest, President and CEO commented:
"We are sorry to see Equinor discontinue their participation in the deep play, but we are pleased with how efficient the joint investment has been for Valeura up to this point. Through our partnership, we have gathered a significant volume of new data and key learnings about the attributes of the large gas resource base in the Thrace Basin, with much of the investment funded by Equinor's carry under its agreements with Valeura. We will leverage these data in the next phase of appraisal and we remain encouraged about the long-term potential for the play."