Beginnings: 2010

Valeura Energy Inc.’s origins stem from two predecessor companies, Pan Western Energy Inc. and Northern Hunter Energy Inc., which were combined by a Plan of Arrangement and renamed Valeura Energy Inc. in September 2010.

The Company immediately set out to become a global energy company focused on exceptional value creation, with a primary geographic concentration on Turkey, plus minor non-core interests in Canada which were inherited from the combination of Pan Western Energy/Northern Hunter Energy.  


Commercial Evolution: 2010-2014

Through a series of commercial transactions spanning 2010 through 2014, Valeura entered into several farm-in agreements, acquisitions, and new licences, focused initially on the Anatolian Basin in southeast Turkey, and later on the Thrace basin in northwest Turkey. The company was strategically seeking production opportunities where it recognized upside potential via both development-focused operations and also exploration.

Over this period, the company generated revenue from oil and gas sales reaching an annual peak of nearly $25 million in 2014.


Focus and Development: 2014-2015

In 2014 and 2015, Valeura relinquished various assets in southeast Turkey given the deteriorating political situation in Syria and where the assets did not realise the upside potential. The Company concentrated its focus on its business in the Thrace basin.  

Also during this period, regulatory and legislative changes in Turkey resulted in the conversion of various petroleum titles to a new form of exploration licences and production leases.  

Valeura and its JV partners, including Thrace Basin Natural Gas (“TBNG”) concentrated their operational efforts on conventional, shallow gas production from their lands in the Thrace basin.  As part of that strategic focus, the company acquired a 100% interest in the Banarli licenses.  Valeura made several shallow gas discoveries and drilled the Yayli-1 well, which demonstrated high pressure gas.  

Valeura also sold its small legacy oil and gas properties in Canada.


Key Transactions: 2016-2017

In 2016, Valeura executed various agreements with Statoil (later renamed “Equinor”) to jointly exploit deeper formations on Valeura’s acreage in the Thrace basin.  Under the terms of the agreements Equinor committed to an investment including purchase price, payment of back costs, and carrying the cost of two deep wells plus completing a significant infill 3D seismic program to earn an interest.  Equinor will also be granted a one-time right to become operator of the deep rights after earning its interest.  

Also in 2016, Valeura acquired its JV partner TBNG, and concurrently sold certain deeper rights to Statoil.  

During this period, Valeura continued to generate revenue from its ongoing conventional gas production in the Thrace Basin, with annual revenues of C$16 million in 2016 and C$15 million in 2017. Decreased revenues were largely a function of globally depressed energy prices. 


Basin Centered Gas Discovery and Appraisal: 2017-2018

From May through July 2017, Valeura drilled the first well intended to explore the deeper formations of its Thrace basin lands, Yamalik-1.  The well was drilled to approximately 4,100 metres and encountered a 900-metre interval of highly overpressured gas-bearing sands, indicating the presence of a basin centered gas accumulation (“BCGA”) play.  Test results gathered in November and December 2017 proved an aggregate 24-hour test rate of 2.9 MMcf/d of liquids-rich gas.  

In February 2018, the Company announced results of an independent evaluation of the Company’s prospective resources in the BCGA play as prepared by DeGolyer and MacNaughton (“D&M”) which attributed 10.1 trillion cubic feet of estimated unrisked mean prospective resources of natural gas which includes 236 MMbbls of condensate, to Valeura’s working interest of the BCGA.

In September 2018 the company re-completed the Yamalik-1 well, connected it to Valeura’s gas gathering infrastructure, and put the well on long-term test.

In October 2018, the company began deep appraisal drilling on the BCGA by spudding the Inanli-1 appraisal well, at a location approximately 6 km to the north-east of Yamalik-1.

Further appraisal of the BCGA play is expected to continue through 2018 and 2019.