CALGARY, May 15, 2017 /CNW/ - Valeura Energy Inc. ("Valeura" or the "Corporation") (TSX: VLE) is pleased to announce that the first deep exploration well, Yamalik-1, under the Banarli farm-in agreement with its partner Statoil, commenced drilling on May 13, 2017. It is expected that the Yamalik-1 well will be drilled to a target depth of 4,000 metres and is designed to assess the potential for a high impact, over-pressured, basin-centered gas accumulation play below approximately 2,500 metres on the Banarli licences located in the Thrace Basin in northwest Turkey. An extensive coring and logging program is planned for the well, with an expected timeline from spud to rig release of approximately 60 days.
Following rig release, a completion and testing program will be developed. The results from the well will be evaluated during the third quarter of 2017. Work will also be done to agree on the scope and design of the completion and testing program, select contractors, firm cost estimates and mobilize equipment prior to commencement. Execution of such a completion and testing program would be required to satisfy the Phase 1 commitment under the farm-in agreement.
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.
ADVISORY AND CAUTION REGARDING FORWARD-LOOKING INFORMATION
This news release contains certain forward-looking statements and information (collectively referred to herein as "forward-looking information") including, but not limited to: the targeted drill depth of the Yamalik-1 well; the potential of a basin-centered gas accumulation play in the deep formations on the Banarli licences; the development of a completion and testing program; and timelines with respect to certain of the foregoing matters. Forward-looking information typically contains statements with words such as "anticipate", estimate", "expect", "target", "potential", "could", "should", "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: political stability of the areas in which the Corporation is operating and completing transactions, and in particular the aftermath of the July 2016 failed coup attempt and results of April 2017 referendum on constitutional change in Turkey; continued safety of operations and ability to proceed in a timely manner; continued operations of and approvals forthcoming from the General Directorate of Petroleum Affairs ("GDPA") of the Republic of Turkey in a manner consistent with past conduct; the prospectivity of the Banarli licences; continued adherence to contractual arrangements by counterparties; 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.
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: political stability in Turkey, including proposed changes in Turkey's constitution, political leaders or parties or a resurgence of a coup or other political turmoil; the uncertainty regarding government and other approvals; counterparty risk; uncertainty regarding the availability of equipment on the contemplated timelines; the risks of disruption to operations and access to worksites, threats to security and safety of personnel and potential property damage related to political issues, terrorist attacks, insurgencies or civil unrest in Turkey; potential changes in laws and regulations; risks associated with weather delays and natural disasters; and the risks 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. See Valeura's 2016 AIF for a detailed discussion of the risk factors.
SOURCE Valeura Energy Inc.
For further information: Jim McFarland, President and CEO, Valeura Energy Inc., (403) 930-1150, [email protected]; Steve Bjornson, CFO, Valeura Energy Inc., (403) 930-1151, [email protected]; www.valeuraenergy.com