Canada’s Valeura reports sale-related loss in Q2
Calgary-based Valeura Energy, which is active in Turkey’s Thrace Basin, said August 5 the completion in May of the sale of its shallow gas assets in the basin resulted in a gain on disposal of US$6.1mn.
However, reclassification of its non-cash accumulated foreign exchange losses – over a period which saw the value of the Turkish lira against the American dollar fall by 80% – resulted in the company taking a loss of US$67mn. Combined with the gain on disposal, Valeura reported a Q2 2021 loss of US$61.5mn compared to a Q2 2020 loss of US$1.9mn.
With the sale completed, Valeura has no producing assets in Turkey but remains in a strong financial position, with cash resources of US$42.6mn, no debt and an expectation of future royalty income from the disposed assets. While continuing its efforts to find a partner to advance its deep unconventional gas project, it is evaluating other organic growth opportunities in the region, taking advantage of its strong financial position and the experience of its management team.
“We continue to be active in evaluating mergers and acquisitions opportunities,” CEO Sean Guest said. “Our remit includes an expanded geographic scope, with a focus on regions where the experience of our management team and board gives us a competitive advantage.”
Its focus, he said, will be on transactions which bring near-term cash flow and opportunities for material value generation.