Valeura Energy Partners with Transatlantic for Gas Exploration
Valeura Energy Inc. Collaborates for Hydrocarbon Exploration
Valeura Energy Inc. (TSX: VLE, OTCQX: VLERF) has made a significant move in its exploration strategy by entering into a joint venture with Pinnacle Turkey, Inc. This new agreement, formed with a subsidiary of Transatlantic Petroleum LLC, is centered on exploring and developing hydrocarbons in the Thrace basin of Türkiye, a region rich in deep gas resources.
Insights from Leadership
Dr. Sean Guest, President and CEO of Valeura Energy, expressed that despite the company's shift towards the Asia-Pacific region, the deep gas play in northwest Türkiye presents a promising opportunity. Valeura's previous drilling activities between 2017 and 2019 confirmed multiple trillion cubic feet (Tcf) of gas in the region. The CEO is optimistic that enhanced testing efforts could lead to commercial success, especially given the current favorable European gas prices.
Operational History in Türkiye
Valeura has made substantial investments in the Thrace basin for nearly 15 years. The deep rights held in various exploration licenses and production leases span an area of approximately 955 square kilometers. The company has engaged in discussions regarding a possible two-year extension of the current exploration phase, which is set to expire soon.
Re-entering Key Wells
The joint venture is designed to revitalize exploration activities within the field. A key component includes the re-entry into the Devepinar-1 well, where Valeura previously drilled and stimulated the formation in 2019. While initial tests showed promise, long-term commercial flow rates were not sustained. The upcoming testing is expected to be a critical step in determining the viability of the resource.
Advantages of Joint Ventures
Valeura is leveraging Transatlantic's operational expertise in Türkiye, especially noting their active participation in previous joint ventures. The collaboration allows Transatlantic to earn a 50% working interest in the deep rights held by Valeura and Pinnacle through specific drilling operations. Additionally, Valeura remains the designated operator with the Turkish government, reinforcing its leadership stance in the project.
Devepinar-1 Well Testing Plan
Under the terms of the joint venture, Transatlantic is committed to covering the re-entry costs of the Devepinar-1 well, which is capped at US$2 million. Any expenses beyond this threshold will be evenly split among the partners. The re-testing is anticipated to commence shortly, potentially unveiling new avenues for gas flow.
The Path Forward with Appraisal Wells
Transatlantic is also looking to earn an interest in the eastern segment of the field by drilling to a depth of at least 4,000 meters. If this endeavor is successful, they could secure a similar 50% stake in Valeura's interests there as well. The early geological findings suggest that the Hanoglu-1 well, which has already been permitted for drilling, could intersect quality reservoirs and expedite the appraisal process.
Focus on Operational Safety and Growth
This latest agreement showcases Valeura's dedication to maintaining safety and efficiency while pushing towards ambitious growth projections. Combining their history of creating cost-effective exploration frameworks, this partnership aims to capitalize on high global demand for natural gas.
Frequently Asked Questions
What is the primary objective of the joint venture?
The joint venture aims to explore and develop hydrocarbons in the Thrace basin of Türkiye, enhancing operational efficiency and potential gas production.
How long has Valeura operated in Türkiye?
Valeura has been active in Türkiye for nearly 15 years, focusing on gas exploration and development in the Thrace basin.
What are the expected next steps for the Devepinar-1 well?
The re-entry and testing of the Devepinar-1 well are planned to commence soon, with the hope of confirming commercial viability through new gas flow rates.
Who will lead the operations in the joint venture?
While Transatlantic will act as the contract operator, Valeura will still maintain the operator of record designation with the government of Türkiye.
What is Valeura's long-term goal?
Valeura aims to pursue growth through exploration and expansion in the deep gas sector while adhering to high standards of environmental responsibility.
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