CALGARY, AB / ACCESSWIRE / May 7, 2021 / Valeura Energy Inc. (TSX: VLE, LSE: VLU) (the "Company" or "Valeura"), an upstream oil and gas company with assets in the Thrace Basin of Turkey, is pleased to announce that all Turkish government consents required to proceed to close its proposed sale of its shallow conventional gas business (the "Sale Transaction") have been granted.
Valeura and TBNG Limited (the "Buyer"), will now proceed to close the transaction. This is anticipated to occur within the coming weeks.
Sean Guest, President and CEO commented:
"I am pleased to announce that all required consents have been granted for us to proceed to closing the sale of our conventional gas business and look forward to strengthening our balance sheet both with immediate sale proceeds and with the royalty payments we will receive thereafter.
"We remain committed to Turkey, and our longer-term plans to further appraise our 20 Tcfe unrisked mean prospective resource deep tight gas play remain intact. In the meantime, closing this sale will solidify our increased cash position which will facilitate Valeura pressing forward with our inorganic growth strategy."
Upon closing, Valeura will receive cash consideration of US$15.5 million, subject to normal closing adjustments based on the economic effective date of July 1, 2020. Thereafter, Valeura will be entitled to royalty payments over a five-year period, tied to local gas prices, and ranging in total from a minimum of US$1.0 million and a cap of US$2.5 million. At closing, the sale is expected to boost Valeura's corporate cash balance to approximately US$44 million.
For further information please contact:
Valeura Energy Inc. (General and Investor Enquiries) +1 403 237 7102
Sean Guest, President and CEO
Heather Campbell, CFO
Robin Martin, Investor Relations Manager
[email protected], [email protected]
Auctus Advisors LLP (Corporate Broker) +44 (0) 7711 627 449
Jonathan Wright
[email protected]
CAMARCO (Public Relations, Media Adviser) +44 (0) 20 3757 4980
Owen Roberts, Billy Clegg, Monique Perks, Hugo Liddy
[email protected]
Prospective Resources
The prospective resources disclosure in this announcement is based on an independent prospective resources evaluation as at December 31, 2018 conducted by D&M in its report dated March 13, 2019, which was prepared using guidelines outlined in the Canadian Oil and Gas Evaluation Handbook and in accordance with NI 51-101, as adjusted to reflect Equinor's withdrawal in Q1 2020. Prospective resources are those quantities of petroleum estimated, as of a given date, to be potentially recoverable from undiscovered accumulations by application of future development projects. Prospective resources have both an associated chance of discovery and a chance of development. The unrisked estimates of prospective resources referred to in this announcement have not been risked for either the chance of discovery or the chance of development. There is no certainty that any portion of the prospective resources will be discovered. If a discovery is made, there is no certainty that it will be developed or, if it is developed, there is no certainty as to the timing of such development or that it will be commercially viable to produce any portion of the prospective resources. Additional prospective resources information is included in the Company's annual information form for the year ended December 31, 2018.
Advisory and Caution Regarding Forward-Looking Information
Certain information included in this new release constitutes forward-looking information under applicable securities legislation. Such forward-looking information is for the purpose of explaining management's current expectations and plans relating to the future. Readers are cautioned that reliance on such information may not be appropriate for other purposes, such as making investment decisions. Forward- looking information typically contains statements with words such as "anticipate", "believe", "expect", "plan", "intend", "estimate", "propose", "project", "target" or similar words suggesting future outcomes or statements regarding an outlook. Forward-looking information in this new release includes, but is not limited to: the completion of the transaction, the total headline cash consideration, and the Company's entitlement to royalty payments over a five-year period.
Forward-looking information is based on management's current expectations and assumptions regarding, among other things: the ability to close the transaction on the terms described herein and ; political stability of the areas in which the Company is operating and completing transactions; continued safety of operations and ability to proceed in a timely manner; and continued operations of and approvals forthcoming from the Turkish government in a manner consistent with past conduct, including any impact of the COVID-19 pandemic. Although the Company believes the expectations and assumptions reflected in such forward-looking information are reasonable, they may prove to be incorrect.
Forward-looking information involves significant known and unknown risks and uncertainties. A number of factors could cause actual results to differ materially from those anticipated by the Company including, but not limited to: the risks of further disruptions from the COVID-19 pandemic; potential changes in laws and regulations; counterparty risk; and the risk associated with international activity. The forward-looking information included in this news release is expressly qualified in its entirety by this cautionary statement. See the AIF for a detailed discussion of all risk factors facing the Company.
The forward-looking information contained in this new release is made as of the date hereof and the Company undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, unless required by applicable securities laws. The forward-looking information contained in this new release is expressly qualified by this cautionary statement.
Additional information relating to Valeura is also available on SEDAR at www.sedar.com.
This announcement contains inside information as defined in EU Regulation No. 596/2014, part of UK law by virtue of the European Union (Withdrawal) Act 2018, and is in accordance with the Company's obligations under Article 17 of that Regulation.
This announcement does not constitute an offer to sell or the solicitation of an offer to buy securities in any jurisdiction, including where such offer would be unlawful. This announcement is not for distribution or release, directly or indirectly, in or into the United States, Ireland, the Republic of South Africa or Japan or any other jurisdiction in which its publication or distribution would be unlawful.
Neither the Toronto Stock Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Toronto Stock Exchange) accepts responsibility for the adequacy or accuracy of this news release.
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SOURCE: Valeura Energy Inc.