NEWS
VALEURA TESTS HEAVY OIL IN ALTINAKAR-1 WELL IN TURKEY UNDER AME-GYP FARM-IN
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CALGARY, Feb. 25 /CNW/ - Valeura Energy Inc. ("Valeura" or the "Corporation") (TSXV: VLE) announced today that it has conducted a preliminary drill stem test
indicating 11o to 13o API gravity heavy oil from a carbonate zone near the top of the Mardin
group at the Altinakar-1 exploration well in Turkey. The preliminary
testing was conducted to evaluate productive capability of the zone.
The well produced approximately 140 barrels of fluid to surface
consisting of 88 barrels of oil, 52 barrels of drilling mud and no
water in 11 hours of swabbing and flowing operations from a 6 meter
open-hole interval at a subsurface depth of 1,557 meters to 1,563
meters.
The Altinakar-1 well is located on Licence 2674 in the Karakilise area
and is the Corporation's first exploration well in Turkey. The primary
exploration target of the well is light oil in the deeper Bedinan
formation at a depth of approximately 2,500 meters, although the Mardin
group was viewed as a potential secondary target. There is Mardin
production approximately 25 km northeast of the Altinakar-1 well at the
Kastel field and 30 km to the northwest at the Karakilise-1 well in
Licence 2677, which was recently re-completed as a Mardin producer by
the Corporation. The preliminary test results at Altinakar-1 are
encouraging and potentially extends the established Mardin play fairway
south onto Licence 2674, however the Corporation cautions that
preliminary flow rates may not be indicative of stabilized production
rates.
Upon completion of the evaluation of the Mardin group, drilling is
expected to resume to the programmed depth of 2,500 meters, in order to
evaluate the Bedinan formation.
If the Altinakar-1 well can be shown to be productive on a sustainable
basis from the Mardin group, the GDPA regulatory agency may grant a
three-year extension to Licence 2674 upon application. The Corporation
and its partners were recently successful in extending the exploration
term for Licence 2677 by three years to November 30, 2013 on the basis
of establishing a 30 to 35 bopd production rate from the re-completion
of the Karakilise-1 well. The Corporation and its partners intend to
pursue the extension to Licence 2674 as the Corporation has identified
more than 20 prospects and leads in the Mardin and Bedinan formations
on Licence 2677 and Licence 2674 based on new 2D seismic acquired by
the Corporation in the fourth quarter of 2010 and the reprocessing of
vintage seismic.
The Altinakar-1 well, which is being funded on a 100% basis by Valeura
(turnkey cost of US$4.0 million), represents almost half of the US$8.8
million Phase I earning expenditure already committed to the previously
announced farm-in agreement with Aladdin Middle East Ltd. ("AME") and Guney Yildizi Petrol Uretim Sondaj, Muteahhitlik ve Ticaret A.S.
("GYP"). Completion of Phase I would earn Valeura a 25% working interest in
Licences 2674 and 2677. The Corporation has the option to proceed with
Phase II, which is currently under review, for an additional
expenditure of up to $US$8.8 million in 2011 thereby increasing the
Corporation's working interest on a sliding scale basis up to 50% in
Licences 2674 and 2677, up to 29.9% in five other exploration licences
in the Rubai area and up to 50% in the Kahta heavy oil production
lease.