CALGARY / ACCESSWIRE / March 13, 2020 / Valeura Energy Inc. (TSX:VLE)(LSE:VLU) (“Valeura” or the “Company“), the upstream natural gas company focused on the Thrace Basin of Turkey, reports its financial and operating results for the three month period ended December 31, 2019 and the year ended December 31, 2019, and year-end 2019 reserves.
The complete quarterly reporting package for the Company, including the audited financial statements and associated management’s discussion and analysis (“MD&A“) and the 2019 annual information form (“AIF“), are being filed on SEDAR at www.sedar.com and posted on the Company’s website at www.valeuraenergy.com. At year end 2019, Valeura changed its reporting currency to US dollars and, unless noted, all references to currency are now US dollars.
Financial and Operating Results Highlights
· Q4 2019 average production of 646 boe/d, up 22% from Q3 2019;
· Q4 2019 average realised gas prices of $7.44/Mcf and operating netback of $24.53/boe, relatively unchanged from the prior quarter;
· Net working capital surplus at year-end of $37.6 million, including cash of $36.1 million;
· Total Proved Plus Probable Reserves of 7,936 Mboe at year end, up 8% from the prior year;
· Total Proved Plus Probable Reserves before tax net present value of $91.9 million, up 43% from the prior year;
· Proved Reserves replacement ratio of 250% in 2019;
· Two deep unconventional appraisal wells drilled safely in 2019 with five production tests on stimulated zones all yielding stabilised gas flow; and
· Subsequent to year end 2019, Equinor Turkey B.V. (“Equinor“) provided notification in February 2020 of their intent to withdraw from the appraisal of the deep unconventional play in the Thrace Basin.
Valeura’s ongoing revenue generation remains unimpeded by current volatility in global oil prices. The Company’s gas is sold at fixed prices which are not oil-price linked, and remain unchanged from Q4 2019. In addition, the Company remains in a strong financial position, with a working capital surplus of $37.6 million at year end and no debt, which affords the Company significant flexibility as it looks toward the forward plan.
Sean Guest, President and CEO commented:
“We have continued to realise strong gas prices and generate strong netbacks from our shallow conventional gas business. Our 2019 work programme of selective workovers and well interventions has yielded both an up tick in production and a marked increase in both reserves volumes and value, as assessed by our third party reserves evaluator at year-end.
“Our team remains committed to the ongoing appraisal of our deep tight gas play. The substantial data gathered through our 2019 appraisal programme has furthered our understanding of key subsurface characteristics of this gas accumulation, and these learnings will help inform our next steps to appraise this material resource, which we will communicate to the market as soon as possible.
“Valeura remains in a strong financial position, and we intend to keep it that way. We are a cash flow generating business, with a balance sheet that is debt-free and has working capital resources of over $37 million. Raising our sights to 2020 and beyond, our Company is well-positioned to unlock value for shareholders, both through the deep tight gas play, and through our conventional gas production, where we continue to enjoy gas prices that remain unchanged and not directly linked to volatility in global oil price benchmarks.”
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SOURCE: Valeura Energy Inc
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