Canada’s Valeura advances Turkish shallow gas sale
Canadian producer Valeura Energy, which is developing a significant deep natural gas project in Turkey’s Thrace Basin, said May 7 all Turkish approvals have been received for the planned sale of its conventional shallow gas assets in the basin to local producer TBNG. Financial close is expected in the coming weeks.
Valeura reached agreement with TBNG in October 2020, but delayed the deadline for closing the deal to July 30 from April 19 while it awaited the second of two government approvals.
Upon closing, Valeura will receive cash consideration of US$15.5mn, subject to normal closing adjustments based on the economic effective date of July 1, 2021. Valeura will also be entitled to royalty payments for five years, tied to local gas prices and ranging, in total, from US$1mn to US$2.5mn. At closing, the sale is expected to boost Valeura’s corporate cash balance to about US$44mn, solidifying its ability to continue the development of its basin centred deep gas project.
“We remain committed to Turkey, and our longer-term plans to further appraise our 20 trillion ft3 unrisked mean prospective resource deep tight gas play remain intact,” Valeura CEO Sean Guest said. “In the meantime, closing this sale will solidify our increased cash position which will facilitate Valeura pressing forward with our inorganic growth strategy.”