Valeura Narrows 3Q Net Loss
Canada’s Valeura Energy, which is developing a potential deep gas prospect in Turkey’s Thrace Basin, reported a 3Q 2019 net loss of C$219mn ($US165mn), down from a net loss of $2.15mn in 2Q 2019 and $2.65mn in 3Q 2018. Net loss through nine months slipped to $5.4mn from $6.85mn.
Although production for the three-month period fell 19% to 531 barrels of oil equivalent (boe)/day from 655 boe/day in the year ago period, CEO Sean Guest said the company’s primary focus is on interpreting flow tests from its latest well in the Thrace Basin, Inanli-1, and on completing tests on the Devepinar-1 well, 20 km to the west of Inanli-1, in order to build an understanding of the lateral continuity of the basin centred gas accumulation (BCGA).
“I am pleased with our third quarter performance as operating conditions in country remained favourable for the industry and as our testing programme of our deep gas appraisal continued as planned,” he said. “Encouragingly, all zones tested to date flow gas and we are at the cusp of the next exciting phase of our stimulation and testing programme alongside partner Equinor, with operations now underway at the Devepinar-1 well.”
The BCGA is estimated to hold about 10 trillion ft3 of mean unrisked prospective natural gas resources, including 236mn barrels of condensate, net to Valeura.
Natural gas production from Valeura’s shallow wells in Turkey averaged 3.1mn ft3/day in 3Q 2019, down from 3.9mn ft3/day in 3Q 2018, reflecting natural declines and planned shut-downs by most customers during Turkey’s national holidays in August. Price realisations were strong in the quarter, averaging C$9.64/’000 ft3, 45% higher than in 3Q 2018.
Despite what the company characterises as strong test results from the first two wells in its BCGA programme – Inanli-1 and Yamalik-1 – the company’s shares, which were listed on the London Stock Exchange in April 2019, have struggled recently. On the Toronto Stock Exchange, they closed the third quarter at $2.66/share, but fell sharply in the wake of the fourth set of Inanli-1 test results in October, and were trading at $0.81/share mid-morning November 13. At press time, near the close in London, they were sitting at 56.5 pence/share, just off the 52-week low of 50 p.