CALGARY, Feb. 25 /CNW/ - Valeura Energy Inc. ("Valeura" or the "Corporation") (TSXV: VLE) announced today that it has conducted a preliminary drill stem test indicating 11o to 13o API gravity heavy oil from a carbonate zone near the top of the Mardin group at the Altinakar-1 exploration well in Turkey. The preliminary testing was conducted to evaluate productive capability of the zone. The well produced approximately 140 barrels of fluid to surface consisting of 88 barrels of oil, 52 barrels of drilling mud and no water in 11 hours of swabbing and flowing operations from a 6 meter open-hole interval at a subsurface depth of 1,557 meters to 1,563 meters.

The Altinakar-1 well is located on Licence 2674 in the Karakilise area and is the Corporation's first exploration well in Turkey. The primary exploration target of the well is light oil in the deeper Bedinan formation at a depth of approximately 2,500 meters, although the Mardin group was viewed as a potential secondary target. There is Mardin production approximately 25 km northeast of the Altinakar-1 well at the Kastel field and 30 km to the northwest at the Karakilise-1 well in Licence 2677, which was recently re-completed as a Mardin producer by the Corporation. The preliminary test results at Altinakar-1 are encouraging and potentially extends the established Mardin play fairway south onto Licence 2674, however the Corporation cautions that preliminary flow rates may not be indicative of stabilized production rates.

Upon completion of the evaluation of the Mardin group, drilling is expected to resume to the programmed depth of 2,500 meters, in order to evaluate the Bedinan formation.

If the Altinakar-1 well can be shown to be productive on a sustainable basis from the Mardin group, the GDPA regulatory agency may grant a three-year extension to Licence 2674 upon application. The Corporation and its partners were recently successful in extending the exploration term for Licence 2677 by three years to November 30, 2013 on the basis of establishing a 30 to 35 bopd production rate from the re-completion of the Karakilise-1 well. The Corporation and its partners intend to pursue the extension to Licence 2674 as the Corporation has identified more than 20 prospects and leads in the Mardin and Bedinan formations on Licence 2677 and Licence 2674 based on new 2D seismic acquired by the Corporation in the fourth quarter of 2010 and the reprocessing of vintage seismic.

The Altinakar-1 well, which is being funded on a 100% basis by Valeura (turnkey cost of US$4.0 million), represents almost half of the US$8.8 million Phase I earning expenditure already committed to the previously announced farm-in agreement with Aladdin Middle East Ltd. ("AME") and Guney Yildizi Petrol Uretim Sondaj, Muteahhitlik ve Ticaret A.S. ("GYP"). Completion of Phase I would earn Valeura a 25% working interest in Licences 2674 and 2677. The Corporation has the option to proceed with Phase II, which is currently under review, for an additional expenditure of up to $US$8.8 million in 2011 thereby increasing the Corporation's working interest on a sliding scale basis up to 50% in Licences 2674 and 2677, up to 29.9% in five other exploration licences in the Rubai area and up to 50% in the Kahta heavy oil production lease.


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. The Corporation is continuing to pursue a strategy to expand internationally in Turkey and to other selected countries in the Middle East and North Africa region, the Mediterranean Basin and Latin America.


This news release contains certain forward‐looking statements relating, but not limited, to the Corporation's plans and expectations associated with: the resumption of drilling to a deeper target in the Altinakar-1 well; potential production rates and product type from the Altinakar-1 well; achieving regulatory approval to extend the licence term for Licence 2674; the completion of the Phase I earning requirement in the AME-GYP farm-in and the anticipated extent of, expenditures associated with and timing of a Phase II earning program; and, operational plans and the timing associated therewith. 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, the Corporation's growth strategies, plans for and results of future transactions, 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, continued political stability of the areas in which the Corporation is anticipating completing transactions, the Corporation's continued ability to obtain and retain qualified staff and equipment in a timely and cost efficient manner and the receipt of all necessary approvals for transactions. In addition, budgets are based upon the Corporation's current acquisition plans and 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 is speculative and involves 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; 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 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 competitive bidding rounds and timing of results, the uncertainty regarding government and other approvals 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 TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.

SOURCE Valeura Energy Inc.

For further information:

Jim McFarland, President and CEO
Valeura Energy Inc.
(403) 930-1150

Steve Bjornson, CFO
Valeura Energy Inc.
(403) 930-1151

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