Valeura Energy has increased working interest in the deep play to 100% in the Banarli exploration licences, and 63% in the West Thrace exploration licence and production leases
Canada-based Valeura Energy has announced that it has doubled its working interest in the Banarli and West Thrace exploration licences in Turkey.
On 2 April, the Turkey had approved the transfer of Equinor’s working interests and rights to Valeura and PTI, doubling Valeura’s working interest in the deep play.
The upstream natural gas company will hold 100% in the Banarli exploration licences and will increase holdings to 63% of the deep rights in the West Thrace exploration licence and production leases.
Ownership in shallow rights is unchanged at 100% in Banarli and 81.5% in West Thrace. Valeura remains operator in all blocks.
Valeura will now apply for the first extension to the Banarli and West Thrace exploration licences.
Turkey’s exploration licences have an initial 5-year phase followed by up to three 2-year phases, for a maximum of 11 years, prior to being converted to production leases.
The first 5-year phase ends 26 June, with first extension to 26 June 26.
According to Valeura, the deep play is at an early phase and will require more drilling and testing. Of 11 wells to date, only the most recent three have been stimulated and tested. All flowed gas to surface.
Deep zones have been identified with drier gas where hydrocarbon maturity, reservoir quality, saturation and natural fracturing are all improved. Short-term production tests from these zones suggest potential for economic development.
Valeura stated that production from Devepinar-1 is expected to restart with a longer-term test than earlier carried out.
All produced gas will be sold to Valeura’s customers.
Valeura said that the ongoing COVID-19 pandemic makes timing of the restart uncertain.
Data sharing and cooperation arrangements with other operators in the region have been initiated by the company.
Valeura seeks an additional partner for the deep unconventional play
Valeura seeks an additional partner for the deep unconventional play who brings both financial and technical capabilities.
The work programme is expected to include drilling new vertical and horizontal wells, reservoir stimulation, and production testing operations.
Valeura Energy president and CEO Sean Guest said: “We are doubling our interest in the deep play and reaffirming our conviction that this presents an opportunity to add substantial value. The character of our business will evolve to ensure we have the resources and the longevity to see through a meaningful ongoing appraisal programme.
“In the near term, we will be cautious with our spending and creative when it comes to opportunities to learn more from our existing well stock and from our neighbouring operators. There are exciting days ahead for Valeura and its shareholders.”