Valeura Sees Production, Revenue Decline in 3Q
Canada’s Valeura Energy, a junior with operations in Turkey’s Thrace Basin, said November 13 its oil and gas revenues in 3Q 2018 were off 18.5% sequentially, reflecting reduced production and a lower realised natural gas price reflecting a sharp decline in the value of the lira.
Revenue for the period was C$2.4mn (US$1.81mn) compared to C$2.95mn in 2Q 2018, while production averaged 655 barrels of oil equivalent/day (boe/day), down from 736 boe/day. Revenue in 3Q 2017 was C$3.97mn.
Natural gas production, primarily from Valeura’s conventional holdings in the Thrace Basin, fell to 3.9mn ft3/day from 4.36mn ft3/day, reflecting natural reservoir declines. Natural gas production in 3Q 2017 averaged 6.08mn ft3/day.
In 3Q 2018, Valeura realised an average natural gas price of C$6.64/000 ft3 (US$5.15/mn Btu) compared to C$7.24/000 ft3 in 2Q 2018, as the Botas reference price fell to C$6.65 from $7.33. In 3Q 2017, the Botas reference price averaged C$7.10/000 f3, while Valeura's realised price averaged C$6.98/000 ft3.
Since the end of September, however, Botas has adjusted the reference price upward to offset the decline of the lira, which itself has increased by 14% since the end of 3Q, and over the last five week’s Valeura’s realised natural gas price as averaged C$8.53/000 ft3.
At Valeura’s basin centred gas accumulation (BCGA) play in the central Thrace Basin, the Yamalik-1 discovery well has been on an extended production test since early September. On the first day of the test, gas flowed at a rate of 2.53mn ft3/day through a 20/64-inch choke at a wellhead pressure of 2,535 psi. Following the installation of a gas lift compressor in late October to assist in the flowback of frac fluids, production stabilised, and on November 1, the well flowed at a rate of 500,000 ft3/day on an 18/64-inch choke at a wellhead pressure of 1,131 psi.
Valeura’s first appraisal well in the BCGA, Inanli-1, began drilling on October 8 at a location six km northeast of Yamalik-1, and by mid-November was at a depth of 3,460 m on the way to a targeted total depth of 5,000 m. Drilling results from Inanli-1, which is being paid for entirely by Equinor to complete its farm-in obligations, are expected by late December, while fracking and flow testing will take place in 1Q 2019, Valeura said.