Canada’s Valeura closes Turkish shallow gas sale
Canada’s Valeura Energy said May 26 it had closed the sale of its conventional shallow gas assets in Turkey’s Thrace basin to UK-listed TBNG Limited for a cash consideration of US$15.5mn.
The sale, which has been in the works since October 2020, boosts Valeura’s cash position to US$44mn and entitles the company to royalty payments, based on local gas prices, of up to US$2.5mn over the next five years.
“I am very pleased to have completed the sale of our shallow gas business, which bolsters our cash position and will pave the way for our inorganic growth strategy,” Valeura CEO Sean Guest said. “We are pressing forward with evaluation work on several potential transactions and continuing in our efforts to secure a suitable partner for our deep tight gas play in Turkey, which remains an important part of our portfolio.”
The initial stages of Valeura’s assessment of the deep gas play were carried out in partnership with Norwegian Equinor, which pulled out after the third well was drilled in 2020.
Since then, Valeura has been seeking a partner to advance the development of the project, which it says offers an unrisked mean resource of some 20 trillion ft3.