CALGARY, March 22, 2012 /CNW/ - Valeura Energy Inc. ("Valeura" or the "Corporation") (TSX: VLE) is pleased to report highlights of its unaudited financial and operating results for the three month period ended December 31, 2011, audited results for the year ended December 31, 2011, reserves and estimated contingent resources as at December 31, 2011, and an update on subsequent developments. The complete annual reporting package for the Corporation, including the audited annual financial statements and associated management's discussion and analysis and the 2011 Annual Information Form, have been filed on SEDAR at www.sedar.com and posted on the Corporation's website at www.valeuraenergy.com.
"The fracture stimulation program in the Thrace Basin of Turkey continues to provide very encouraging results and is an important step in defining the potential of the tight gas play in the basin", said Jim McFarland, President and Chief Executive Officer. "We completed eight well re-entry fracs in the second half of 2011, including five in the fourth quarter, which contributed to a 13% quarter-over-quarter increase in consolidated net production in Turkey and Canada to 1,856 barrels of oil equivalent per day ("BOE/d") in the fourth quarter of 2011. Seven additional well re-entry fracs have been completed in the first quarter of 2012."
"Our independent engineers D&M and GLJ have assessed the Corporation's reserves in Turkey and Canada, respectively, and, on a consolidated basis, estimated company gross proved plus probable ("2P") reserves of 2.4 million barrels of oil equivalent ("MMBOE") as at December 31, 2011. In addition, D&M provided a best estimate of company gross contingent ("2C") resources of 27 MMBOE (162 billion cubic feet ("Bcf")) in Turkey as at December 31, 2011. These estimated contingent resources have been assessed in tight gas reservoirs in five discovered fields in the Thrace Basin. These fields cover an area of 10,982 acres, representing less than 1% of the Corporation's gross land holdings in the area. In that regard, we believe there is considerable room for growth in both reserves and resources as the seismic, drilling and frac programs advance."
- Petroleum and natural gas sales in the fourth quarter of 2011 averaged 1,856 BOE/d (net), including 1,771 BOE/d (10.6 million cubic feet per day ("MMcf/d")) in Turkey and 85 BOE/d in Canada. These sales are up by approximately 14% from the third quarter of 2011.
- Completed eight well re-entry fracs over the July to December 2011 period in the deeper, undeveloped tight gas sands in the Mezardere formation (Mezardere shale and Teslimkoy sand units) on lands purchased from Thrace Basin Natural Gas (Turkiye) Corporation ("TBNG") and Pinnacle Turkey Inc. ("PTI") (Valeura 40%) in the Thrace Basin. An additional seven wells have been frac'd to date in the first quarter of 2012. The frac results are summarized in Table 1 below:
- The aggregate initial seven-day on-stream production rate from 12 of these 15 frac'd wells which are tied-in was approximately 15 MMcf/d (gross). The aggregate 30-day rate for 10 of these wells with at least 30 days of history was approximately 11 MMcf/d.
Table 1 Thrace Basin Mezardere Formation Frac Results (Gross)
| PEAK 24-HOUR
| INITIAL 7-DAY
| INITIAL 30-DAY
MARCH 18, 2012
|Yazir-2; 1st stage||18/07/2011||27||8.5||0.1||0.1||-||2|
|Yazir-2; 2nd stage||1/08/2011||46||10||-||-||-||-|
|Kayra Derin-1 (2)||04/02/2012||7||12||0.1||NA||NA||NA|
|(2)||These early production results are not necessarily indicative of long term performance or ultimate recovery.|
|(3)||Frac'd into a water zone; well is not tied into the gathering system.|
|(4)||Two-stage limited entry frac.|
|(5)|| Frac test to extend licence term; well not tied into gathering system.
- Executed an active recompletion and drilling program on the onshore TBNG-PTI lands:
- Completed 37 recompletions (gross) on existing wells in the shallow Danismen and Osmancik formations during the fourth quarter of 2011. The aggregate initial production rate for these recompletions was approximately 13 MMcf/d (gross).
- Spudded two wells (gross) in the fourth quarter, which completed drilling in January 2012. The Sulemaniye-2 well was drilled and cased to a depth of 2,450 metres as a potential gas well and is expected to be completed and potentially frac'd in the second quarter of 2012. The Guney Osmanli-2 shallow gas well was drilled to a depth of 1,250 metres and was abandoned after encountering wet sands.
- Spudded the Baglik-1 deep test well on March 10, 2012. The well is a 3,600 metre test on Licence 3931 targeting full penetration of the Teslimkoy sand unit. Drilling is expected to be completed in 40 to 50 days at an estimated cost of approximately US$3.0 million (gross) for drilling and evaluation.
- Progressed the work program associated with two farm-ins in the Thrace Basin:
- Completed the drilling of the Evrenbey-1 exploration well in farm-in Licence 4094 in November 2011, which was cased to a depth of 1,900 metres as a potential gas well. The well is expected to be completed and potentially frac'd in the second quarter of 2012. This is the first of two exploration wells to be drilled by Valeura to earn a 50% working interest in Licences 4094 and 4532.
- Completed the drilling of the Dagdere-1 exploration well on Licence 4201 in February 2012, which was cased to a depth of 2,256 metres as a potential gas well. The well is expected to be completed and potentially frac'd in the second quarter of 2012. This is the first of two exploration wells to be drilled by Valeura to earn a 100% working interest in Licence 4201.
- Acquired a 24% participating interest in three exploration licences 3998, 3999 and 4187 covering an area of 242,440 acres (gross) or 58,168 acres (net) in the western reaches of the Thrace Basin. The interest was acquired from Guney Yildizi Petrol Uretim Sondaj, Muteahhitlik ve Ticaret A.S. ("GYP") for a payment of US$1.5 million under a binding letter agreement executed on November 14, 2011.
- Completed the acquisition and processing of 413 km2 of new 3D seismic in the Tekirdag and Hayrabolu areas on the TBNG-PTI lands by year-end 2011. The initial interpretation for all of the seismic is expected to be completed in the second quarter of 2012.
- Secured approvals from the General Directorate of Petroleum Affairs of the Republic of Turkey ("GDPA") thus far for the transfer to Valeura of participating interests in 20 exploration licences and leases. Transfers in two exploration licences in the Thrace Basin associated with a farm-in on Licences 4094 and 4532 (Valeura 50%) are pending and are expected to be completed in the next few months.
- Relinquished offshore licences 4632, 4323, 4324, 4459 and 4460 (Valeura 35%) in the deep waters of the Sea of Marmara in late February 2012 in advance of a March 2012 drilling commitment after farm-out efforts were unsuccessful.
- Finalized Valeura's earning at 27.5% under the farm-in with Aladdin Middle East Ltd. ("AME") and GYP in two exploration Licences 2674 and 2677 in the Karakilise area of southeast Turkey. Under the terms of a binding letter agreement dated November 14, 2011, Valeura agreed to fund the first US$1.3 million of the deepening cost of the Altinakar-1 well to the primary exploration target of light oil in the Bedinan Formation. Valeura funded the drilling of the original well to a depth of approximately 1,562 metres in early 2011, which discovered heavy oil in the Mardin Group.
- Completed the deepening of the Altinakar-1 well to a depth of 2,418 metres in March 2012. Based on oil shows during drilling and encouraging logging results in both the Bedinan Formation and Mardin Group, the well was cased and is currently being tested.
- Drilled and abandoned the Siratas-1 exploration well on Licence 4656 in the Gaziantep area of southeast Turkey (Valeura 26%) in November 2011 after encountering minor oil shows. The well was targeting oil in the Mardin Group at a depth of approximately 2,350 metres.
- Relinquished Licence 4638 (Valeura 26%) in the Gaziantep area in December 2011 after it was assessed to have limited potential.
- As at December 31, 2011, the Corporation had a positive working capital surplus of approximately $29.4 million, including cash and cash equivalents of approximately $24.1 million. This compares to a working capital surplus of $19.7 million as at December 31, 2010.
- Funds flow from operations in the fourth quarter of 2011 was $4,084,943 compared to negative ($879,447) in the fourth quarter of 2010.
- Capital expenditures in the fourth quarter of 2011 were $5,116,243 compared to $4,894,478 in the fourth quarter of 2010.
- Additional financial and operational results are summarized in Table 2 below.
Table 2 Financial Results Summary
| Three Months
| Three Months
| Year Ended
| Year Ended
(CDN$ except share and per share amounts)
|Petroleum and natural gas revenues (net)||7,619,255||686,098||16,725,345||3,234,538|
|Funds flow from operations (1)||4,084,943||(879,447)||2,521,567||(2,779,424)|
|Net working capital surplus||29,419,475||19,696,967|
| Common shares outstanding
| Share trading
|Crude oil & NGLs (bbl/d)||56||74||59||85|
|Natural Gas (Mcf/d)||10,801||714||6,192||894|
|BOE/d (@ 6:1) (2)||1,856||193||1,091||234|
| Average reference price
Edmonton light ($ per bbl)
BOTAS Reference ($ per Mcf) (3)
| Average realized price
Crude oil ($ per bbl)
Natural gas liquids ($ per bbl)
Natural gas - Turkey ($ per Mcf)
Natural gas - consolidated ($ per Mcf)
| Average Operating Netback
($ per BOE @ 6:1) (1) (2)
|(1)||The above table includes non-IFRS measures, which may not be comparable to other companies. Funds flow from operations is calculated as net loss for the period adjusted for non-cash items in the statement of cash flows. Operating netback is calculated as petroleum and natural gas sales less royalties, production expenses and transportation costs. See MD&A for further discussion.|
|(2)||BOEs may be misleading, particularly if used in isolation. A BOE conversion ratio of 6.0 Mcf:1.0 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not necessarily represent a value equivalency at the well head.|
|(3)||Boru Hatlari ile Petrol Tasima Anonim Sirketi ("BOTAS") owns and operates the national crude oil and natural gas pipeline grids in Turkey. BOTAS regularly posts prices and its Industrial Interruptible Tariff benchmark is shown herein as a reference price. See the 2011 Annual Information Form for further discussion.|
RESERVES AND CONTINGENT RESOURCES
Independent reserves evaluations as at December 31, 2011 were conducted by DeGolyer and MacNaughton ("D&M") of Dallas, Texas for the Corporation's properties in Turkey (the "D&M Reserves Report"), and by GLJ Petroleum Consultants Ltd. ("GLJ") of Calgary, Alberta for the Corporation's properties in Canada (the "GLJ Reserves Report").
A separate contingent resources evaluation was conducted by D&M for certain lands in the Thrace Basin of Turkey as at December 31, 2011 (the "D&M Contingent Resources Report").
All of these evaluations were prepared using guidelines outlined in the Canadian Oil and Gas Evaluation Handbook ("COGE Handbook") and in accordance with National Instrument 51-101 National Standards of Disclosure for Oil and Gas Activities ("NI 51-101").
- Consolidated estimates of company gross reserves and values in Turkey and Canada, as follows:
- Proved reserves ("1P") of 1.1 MMBOE
- Proved plus probable reserves ("2P") of 2.4 MMBOE
- Proved, probable and possible reserves ("3P") of 3.2 MMBOE
- Net present value of 2P reserves of approximately $46 million (before tax discounted at 10% based on a Cdn$/US$ exchange rate of 1.0)
- Net present value of 3P reserves of approximately $65 million (before tax discounted at 10% based on a Cdn$/US$ exchange rate of 1.0)
- Initial estimates of company gross contingent resources in five discovered gas fields in the Thrace Basin of Turkey covering an area of approximately 10,982 gross acres, which represents less than 1% of the Corporation's gross acreage in the Thrace Basin, as follows:
- Low estimate ("1C") of 0.4 MMBOE (2.4 Bcf)
- Best estimate ("2C") of 27 MMBOE (162 Bcf)
- High estimate ("3C") of 66 MMBOE (396 Bcf)
Additional reserves information as required under NI 51-101, together with additional disclosure on estimated contingent resources, are included in the Corporation's 2011 Annual Information Form filed on SEDAR.
The following tables and commentary summarize information contained in the D&M Reserves Report and the D&M Contingent Resources Report for Turkey.
D&M evaluated reserves as at December 31, 2011 on the TBNG-PTI lands (40% working interest) and Edirne Licence (35% working interest) in the Thrace Basin. These assets were acquired with an effective date of October 1, 2010. The high porosity sandstone reservoirs evaluated included those in the shallow Danismen and Osmancik Formations. The reserves are primarily natural gas but small light oil volumes are assigned to the Bati Kazanci-4 well in the Osmancik Formation.
The assessment also included certain intermediate depth, lower porosity sandstone reservoirs in the underlying Mezardere and Teslimkoy units. The Corporation has characterized exploitation of these deeper reservoirs as a tight gas, unconventional resource play. The Corporation has been fracing existing vertical wells that have penetrated these deeper sands to develop economic production rates. The results are summarized in Table 3 below.
Table 3 Turkey 2011 Year-end Company Gross Reserves Volumes and Values
| LIGHT OIL
| NATURAL GAS
| TOTAL OIL
| PV10 BEFORE
|Total proved plus probable||4||10.4||1,733||38.5|
|Total proved, probable and possible||6||14.9||2,484||57.5|
|(1)||The forecast prices used in the calculation of the present value of future net revenue are based on the D&M December 31, 2011 price forecasts which are included in the Corporation's 2011 Annual Information Form filed on SEDAR.|
D&M also conducted an initial evaluation of estimated contingent resources in five natural gas fields on the TBNG-PTI lands in the Thrace Basin (40% working interest) in sandstone reservoirs in the Mezardere and Teslimkoy units in those areas outside the developed areas in these fields that are already included in the reserves assessment, and at deeper depths down to the base of Teslimkoy unit. These five fields cover a best estimate area of 10,982 gross acres (17 sections). The results are summarized in Table 4 below.
Table 4 Turkey 2011 Year-end Company Gross Contingent Resources
|FORMATION/UNIT|| CONTINGENT RESOURCES (1)
(40% WORKING INTEREST)
|LOW ESTIMATE||BEST ESTIMATE||HIGH ESTIMATE|
|Mezardere - Bcf||0.2||5.7||18|
|Teslimkoy - Bcf||2.2||156||378|
|Total - Bcf||2.4||162||396|
|Total - MBOE||401||26,987||65,977|
|(1)||Natural gas on TBNG-PTI lands in the Thrace Basin only.|
D&M's best estimate of contingent resources is equivalent to approximately 24 Bcf per 640-acre section (gross) (9.5 Bcf per section net Valeura).
At present these resources do not meet the criteria to be classified as reserves due to one or more contingencies. The main contingencies for these contingent resources included in the D&M Contingent Resources Report are as follows.
Although certain areas of these fields are currently undergoing development under approved plans, these plans do not include the areas of the reservoirs with which the contingent resources summarized in the D&M Contingent Resources Report are associated. On the as-of date of the D&M Contingent Resources Report, information was not available concerning the regulatory status of even conceptual development plans under which these contingent resources could be brought on production, nor was information available regarding the likelihood of any such development plans being approved by the Company, by Valeura's partners in these fields, nor by the Turkish Government. Valeura has made no representations about the status of any potential development plans, timing of such plans, or status of regulatory or partner approval for such plans.
The reservoir areas evaluated in the D&M Contingent Resources Report with which the estimated contingent resources are associated cover extensive areas that will require considerable development activity and investment to fully exploit. At the as-of date of the D&M Contingent Resources Report, the evaluation of eventual development of these areas is still in the preliminary stages and assessment of the economic viability is not possible due to the lack of even conceptual development plans and budgets. Accordingly, the contingent resources estimated in D&M Contingent Resources Report have an economic status of "Undetermined."
The D&M Contingent Resources Report did not identify any technical contingencies related to these contingent resources.
Due to the recent acquisition of these resources, Valeura has not determined the timing as to which the non-technical and economic contingencies discussed above might be resolved.
In addition to the contingent resources assessed by D&M on the five discovered fields, the Corporation has identified more than 20 undrilled prospects and leads on its acreage in the Thrace Basin. The Corporation expects that as additional seismic, drilling and fracs are carried out, and as development plans are better defined, the total discovered resource base will grow and resources will be converted to reserves.
The following table and commentary summarize information contained in the GLJ Reserves Report for Canada.
GLJ evaluated the Corporation's reserves in Canada, which consist of light and medium oil, heavy oil, natural gas liquids and natural gas as summarized in Table 5 below.
Table 5 Canada 2011 Year-end Company Gross Reserves Volumes and Values
| LIGHT &
| HEAVY OIL
| NATURAL GAS
| NATURAL GAS
| TOTAL OIL
| PV10 BEFORE
|Total proved plus probable||266||13||2.0||70||680||7.9|
|(1)||The forecast prices used in the calculation of the present value of future net revenue are based on the GLJ's December 31, 2011 price forecasts which are included in the Corporation's 2011 Annual Information Form filed on SEDAR.|
Solid progress continues to be made on the Corporation's three main objectives in Turkey, which will remain the focus of the work program and budget in 2012:
- Proving-up the potential of the tight gas play in the Thrace Basin;
- Sustaining the shallow gas business in the Thrace Basin; and
- Fulfilling exploration-focused work programs on high potential farm-in acreage in the Thrace Basin (gas targets) and in the Anatolian Basin (oil targets).
The outlook for capital expenditures in 2012 remains unchanged at approximately $30 to 35 million, almost all of which will be directed to Turkey.
The outlook for consolidated production in the first quarter of 2012 is approximately 1,550 to 1,600 BOE/d. This is down from the fourth quarter of 2011 due primarily to lower volumes in Turkey due to natural declines, compressor downtime on the TBNG-PTI lands, unusually cold and wet weather in the Thrace Basin limiting logistics, and a slower than expected ramp-up in drilling and recompletions activities, partially offset by production from new frac'd wells. However, natural gas realizations in Turkey the first quarter of 2012 are projected to be 4 to 5% higher than the fourth quarter of 2011 ($7.65 to $7.70 per Mcf) due to renegotiated prices for the TBNG-PTI sales contracts effective January 1, 2012 incorporating reduced discounts from the BOTAS reference price, and a strengthening Turkish Lira compared to the US$.
Unlocking the potential in the deeper tight gas play in the Thrace Basin remains a top priority for the Corporation. The Corporation expects to complete 12 or more well re-entry fracs in 2012, including the seven completed to date. In 2012, the Corporation is targeting to drill up to 18 deep wells at depths up to 3,600 metres in the Mezardere and Teslimkoy units, and for planning purposes, stimulate each of these with single or multi-stage fracs. At least one horizontal well is also budgeted.
The Corporation will also be focused on preparing a preliminary development plan in 2012 to exploit the Thrace Basin tight gas play, likely in a phased manner, incorporating conceptual design and costs for wells, surface facilities, pipelines and market outlets, and associated economics. In part, this development plan will address certain contingencies associated with the contingent resources assessment prepared by D&M and is expected to assist in converting a portion of contingent resources into reserves in 2012.
With respect to the shallow gas business, well recompletions are expected to ramp up in the second quarter of 2012. The 2012 budget includes up to 50 such recompletions. Drilling activities are also expected to increase in the second quarter with the benefit of 413 km2 of new 3D seismic acquired in 2011. The Corporation has budgeted 24 shallow gas wells in 2012. An additional 400 km2 of 3D seismic is also planned for 2012 to expand the prospect and lead inventory and to mature drillable locations in both shallow and deep formations.
On the new farm-in lands in the Thrace Basin (Marhat, TransAtlantic and GYP), the Corporation expects to drill up to three wells and to acquire approximately 163 km of new 2D seismic in 2012.
In the Anatolian Basin in southeast Turkey, the Corporation expects to drill up to three exploration wells in the Karakilise and Gaziantep areas to pursue light and heavy oil targets in the Mardin Group, Bedinan Formation and Dadas shale, and acquire up to 100 km2 of 3D seismic at Karakilise in 2012.
The Corporation is pursuing new licence applications and other farm-in and acquisition opportunities in Turkey. These have the potential to further expand the Corporation's acreage position in the Thrace Basin and Anatolian Basin.
SHAREHOLDER RIGHTS PLAN
The Corporation also announces that its board of directors has approved the adoption of a shareholder rights plan (the "Plan"). The Plan has been adopted to ensure the fair and equal treatment of the Corporation's shareholders in the event of a take-over bid for the Corporation's common shares. It is designed to provide the Corporation's board of directors and shareholders with an opportunity to fully evaluate any unsolicited take-over bid and, if appropriate, to evaluate and pursue other alternatives to maximize shareholder value without any undue time constraints. The Plan was not adopted in response to any actual or threatened take-over bid or other proposal from a third party to acquire control of the Corporation. The Plan is similar to those adopted by several other Canadian companies and is not intended to block take-over bids that treat the Corporation's shareholders fairly. According to the terms of the Plan, an offer that satisfies certain minimum standards designed to protect shareholder interests will be considered to be a "permitted bid". A permitted bid must, among other conditions, be made by way of a take-over bid circular to all shareholders, remain open for a minimum of 60 days and be accepted by a specified percentage of the common shares held by independent shareholders.
The Plan is effective as of March 21, 2012. However, in accordance with the requirements of the Toronto Stock Exchange, the Corporation's shareholders will be asked to confirm and ratify the Plan at the next annual and special meeting of shareholders to be held on May 15, 2012. If the Plan is not so ratified, the Plan and all rights issued thereunder will terminate. Details of the Plan are included in the information circular sent to the Corporation's shareholders in connection with the shareholder meeting.
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 ENGINEERING TERMS
When used herein, the term "BOE" means barrels of oil equivalent on the basis of one BOE being equal to one barrel of oil or NGLs, or 6,000 cubic feet of natural gas. BOEs may be misleading, particularly if used in isolation. A BOE conversion ratio of 6.0 Mcf:1.0 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the well head.
"Company gross reserves" are the Corporation's working interest (operating or non-operating) share before deducting of royalties and without including any royalty interests of the Corporation.
"Proved" reserves are those reserves that can be estimated with a high degree of certainty to be recoverable. It is likely that the actual remaining quantities recovered will exceed the estimated proved reserves.
"Probable" reserves are those additional reserves that are less certain to be recovered than proved reserves. It is equally likely that the actual remaining quantities recovered will be greater or less than the sum of the estimated proved plus probable reserves.
"Possible" reserves are those additional reserves that are less certain to be recovered than probable reserves. It is unlikely that the actual remaining quantities recovered will exceed the sum of the estimated proved plus probable plus possible reserves.
"Contingent resources" are those quantities of petroleum estimated, as of a given date, to be potentially recoverable from known accumulations using established technology or technology under development, but which are not currently considered to be commercially recoverable due to one or more contingencies. Contingent resources have an associated chance of development (economic, regulatory, market and facility, corporate commitment or political risks). The estimates herein have not been risked for the chance of development. There is no certainty that the contingent resources will be developed and, if they are developed, there is no certainty as to the timing of such development or that it will be commercially viable to produce any portion of the contingent resources.
CAUTION REGARDING FORWARD-LOOKING INFORMATION
This news release contains certain forward‐looking statements including, but not limited to: the extent and timing of the frac program on the TBNG-PTI lands; timing for completion of the 3D seismic programs in 2012 and drilling of the first locations thereafter; GDPA approval for the pending licence transfers and timing thereof; anticipated work programs, budgets, operational plans and development plan preparation in 2012 and the timing associated with each of the foregoing; and expected production in the first quarter of 2012. 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.
Statements related to "reserves" or "resources" are deemed forward-looking statements as they involve the implied assessment, based on certain estimates and assumptions, that the reserves and resources can be profitably produced in the future. Specifically, forward-looking information contained herein regarding "reserves" and "resources" may include: estimated volumes and value of Valeura's oil and gas reserves; the estimated life of Valeura's reserves; estimated volumes of contingent resources; and, the conversion of a portion of contingent resources into reserves.
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 completing transactions; continued operations of and approvals forthcoming from the GDPA in a manner consistent with past conduct; results of future seismic programs; future drilling activity; 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. In addition, budgets are based upon the Corporation's current acquisition plans, work programs proposed by partners and associated exploration plans and anticipated costs, both of which are subject to change based on, among other things, the actual results of acquisitions, drilling activity, unexpected delays and changes in market conditions. 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: 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; the risk of commodity and BOTAS pricing and foreign exchange rate fluctuations; the uncertainty associated with negotiating with third parties in countries other than Canada; the risk of partners having different views on work programs and potential disputes among partners; the uncertainty regarding government and other approvals; 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. See Valeura's Annual Information for a detailed discussion of the risk factors.
Additional information relating to Valeura is also available on SEDAR at www.sedar.com
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 release.
For further information:
Jim McFarland, President and CEO
Valeura Energy Inc.
Steve Bjornson, CFO
Valeura Energy Inc.