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CALGARY, June 18, 2012 /CNW/ - Valeura Energy Inc. ("Valeura" or the "Corporation") (TSX: VLE) is pleased to announce that it has been awarded two new
exploration licences on a 100% working interest basis in southeast
Turkey by the General Directorate of Petroleum Affairs of the Republic
of Turkey ("GDPA"). These awards include Bostanci Licence 4985 at the juncture of the
Syria and northern Iraq borders and Karakilise Licence 5052 near the
city of Diyarbakir.
"We are delighted that the GDPA has awarded the Bostanci licence to
Valeura", said Jim McFarland, President and Chief Executive Officer.
"In our view this was the most prospective of the Rubai licences, which
expired under a previous farm-in arrangement, and offsets a number of
world-class oil discoveries in northern Iraq and Syria. Under a new
licence term, we have the time to fully evaluate the prospectivity of
Bostanci. The Karakilise licence is also a great complement to our
existing position in two other contiguous licences and establishes
Valeura as an operator in this very active area."
BOSTANCI LICENCE 4985
Bostanci Licence 4985 covers an area of 123,051 gross acres and
encompasses the same area previously designated as Licence 2600 in
which Valeura and partners had spudded the Bostanci-1 well in April
2011 as a farm-in commitment well, only to have the licence cancelled
due to a failure to meet the petroleum district's spudding deadline.
Valeura immediately reapplied on May 12, 2011 for Licence 4985 only.
Under a pre-bidding arrangement, Exile Resources Inc. ("Exile"), the other funding partner in the Bostanci-1 well, has a right to a
50% participating interest in the license.
The Bostanci-1 well, located adjacent to the northern Iraq border, was
spudded on April 24, 2011 and was drilled to a depth of 508 metres
where surface casing was set. Upon cancellation of the licence, the
well was temporarily suspended with a 50 metre cement plug at the base
of the well. The Corporation believes that the well could be re-entered
to continue drilling. The primary exploration target at the time was
the Mardin Group at a depth of 3,300 metres.
The Corporation believes that the Bostanci prospect remains an
attractive target. Valeura had co-funded 60 km of new 2D seismic on and
around the Bostanci surface anticline and carried out a structural
modelling study of the area to locate the Bostanci-1 well. A number of
very large producing oil fields offset Bostanci including the Tawke
field 35 km east in northern Iraq and the Karatchok field 12 km
southwest in Syria. Over the next few months, the Corporation will be
updating its assessment of the Bostanci prospect and the timing, cost
and funding of an initial exploration well.
KARAKILISE LICENCE 5052
Karakilise Licence 5052 covers an area of 122,965 gross acres and is
contiguous with Licences 2674 and 2677, in which Valeura has a 27.5%
The area is prospective for heavy oil in the Mardin Group and light oil
in the Bedinan Formation with a number of discoveries in the area. More
recently there has been growing interest in unconventional oil and gas
exploitation in the Dadas Shale source rock which sits above the
Bedinan Formation. A number of companies are active in the area,
including most recently Shell which has farmed-in on several licences
held by TPAO, the Turkish national oil company, to the north and
contiguous with Licence 2677.
Valeura has been active in this area since late 2010 and has shot 227 km
of 2D seismic, carried out a successful well recompletion in the Mardin
Group in the Karakilise-1 well on Licence 2677 and drilled a Mardin
Group and Bedinan Formation discovery in the Altinakar-1 well on
Licence 2674. Valeura and its partners are currently producing the
Altinakar-1 well at a rate of 10 to 13 barrels of oil per day (gross)
from the Bedinan and a potential fracture stimulation program is under
review to improve well productivity. The up-hole Dadas Shale and
additional pay in the Mardin Group may also be tested in the
Altinakar-1 well. Additional 2D seismic is planned in 2012 prior to any
additional drilling in the area.
ABOUT THE CORPORATION
Valeura Energy Inc. is a Canada-based public company currently engaged
in the exploration, development and production of petroleum and natural
gas in Turkey and Western Canada.
CAUTION REGARDING FORWARD-LOOKING INFORMATION
This news release contains certain forward‐looking statements including,
but not limited to the extent and timing of the seismic, frac and
drilling program on the Bostanci Licence 4985 and the Karakilise
licences. Forward‐looking information typically contains statements
with words such as "anticipate", "estimate", "expect", "potential",
"could", "would" or similar words suggesting future outcomes. The
Corporation cautions readers and prospective investors in the
Corporation's securities to not place undue reliance on forward‐looking
information, as by its nature, it is based on current expectations
regarding future events that involve a number of assumptions, inherent
risks and uncertainties, which could cause actual results to differ
materially from those anticipated by the Corporation.
Forward looking information is based on management's current
expectations and assumptions regarding, among other things: continued
political stability of the areas in which the Corporation is operating
and pursuing transactions; continued operations of and approvals
forthcoming from the GDPA in a manner consistent with past conduct;
results of seismic programs; future drilling, well completions and
frac'ing activity and results; future capital and other expenditures
(including the amount, nature and sources of funding thereof); future
economic conditions; future currency and exchange rates; and, the
Corporation's continued ability to obtain and retain qualified staff
and equipment in a timely and cost efficient manner. Although the
Corporation believes the expectations and assumptions reflected in such
forward‐looking information are reasonable, they may prove to be
incorrect. The transfer of a working interest in Bostanci Licence 4985
to Exile will be subject to GDPA approval.
Forward‐looking information involves significant known and unknown risks
and uncertainties. Exploration, appraisal, and development of oil and
natural gas reserves are speculative activities and involve a
significant degree of risk. A number of factors could cause actual
results to differ materially from those anticipated by the Corporation
including, but not limited to: risks associated with the oil and gas
industry (e.g. operational risks in exploration, inherent uncertainties
in interpreting geological data, and changes in plans with respect to
exploration or capital expenditures, the uncertainty of estimates and
projections in relation to costs and expenses, and health, safety, and
environmental risks); the uncertainty regarding the sustainability of
initial production rates and decline rates thereafter and the ability
to improve well productivity; the risk of commodity price and foreign
exchange rate fluctuations; the uncertainty associated with negotiating
with third parties in countries other than Canada; the uncertainty
regarding Exile's intention to acquire an interest in the Bostanci
Licence; the uncertainty regarding future financing and market
conditions; the risk of partners having different views on work
programs and potential disputes among partners; the uncertainty
regarding government and other approvals; the risks associated with
weather delays and natural disasters; and, the risk associated with
international activity. The forward‐looking information included in
this news release is expressly qualified in its entirety by this
cautionary statement. The forward‐looking information included herein
is made as of the date hereof and Valeura assumes no obligation to
update or revise any forward‐looking information to reflect new events
or circumstances, except as required by law.
Additional information relating to Valeura is also available on SEDAR at
Neither the Toronto Stock Exchange nor its Regulation Services Provider
(as that term is defined in the policies of the Toronto Stock Exchange)
accepts responsibility for the adequacy or accuracy of this news
SOURCE Valeura Energy Inc.
For further information:
Jim McFarland, President and CEO
Valeura Energy Inc.
Steve Bjornson, CFO
Valeura Energy Inc.