Valeura Energy Achieves First Gas Sales from Bati Gurgen-1 Well in Turkey

Valeura Energy has achieved first gas sales from its maiden exploration well Bati Gurgen-1 on the 100 percent owned and operated Banarli licences in the Thrace Basin of Turkey.

The well has been on on-stream for nine days and over this period has produced conventional natural gas from the Osmancik formation at an average restricted rate of approximately 3 million cubic feet per day, the company said.

"We are delighted to reach the important milestone of first gas from Banarli, which has boosted our current sales in Turkey by more than 60%," said Jim McFarland, President and Chief Executive Officer.  "We plan to produce the well at restricted rates in the near term and perforate additional pay as pressure and deliverability decline naturally."

"Natural gas prices continue to be strong in Turkey and we expect Banarli to attract sales price realizations of approximately $8.85 per Mcf and an operating netback of more than $40 per boe at current reference prices and exchange rates."

Gas sales commenced from the Bati Gurgen-1 well on March 12, 2016. The gas is being sold to the TBNG-PTI JV, net of a transportation and marketing fee, and is being distributed to existing TBNG-PTI JV customers located north of Banarli.