CALGARY, Dec. 17, 2015 /CNW/ - Valeura Energy Inc. ("Valeura" or the "Corporation") (TSX: VLE) is pleased to announce encouraging drilling results and the commencement of completion and testing operations on its initial two exploration wells Bati Gurgen-1 and Yayli-1 on its 100% owned and operated Banarli licences in the Thrace Basin of Turkey. In anticipation of further positive results, equipment procurement, pipeline right of way agreements and the finalization of gas marketing arrangements have continued to advance targeting first gas sales from Banarli by the end of January 2016. The Energy Market Regulatory Authority in Turkey has also granted the Corporation's Turkish affiliate a natural gas wholesale marketing licence to facilitate sales from Banarli.
"We are encouraged by the initial exploration drilling results, which are supported by extensive wireline logging analysis, and we are expecting positive confirmatory flow testing results in the coming weeks", said Jim McFarland, President and Chief Executive Officer. "A further operational update will be provided in early January. Banarli has the potential to provide a significant boost to our net sales volumes in the first quarter of 2016, given the leverage of our 100% ownership position at Banarli."
"The estimated final cost of US$5.5 million for this initial two well exploration drilling, completion, testing and tie-in program at Banarli is being fully funded from cash on hand and operating cash flow, leaving our balance sheet debt free."
BANARLI DRILLING RESULTS (VALEURA OPERATED, 100% WORKING INTEREST)
Bati Gurgen-1 Well
The Bati Gurgen-1 exploration well (Valeura 100% working interest) was spudded on November 10, 2015 with the Viking I-27 rig to test the Osmancik and Mezardere formations in a separate structural closure along the same fault trend as the Gurgen-1 discovery well (Valeura 40% working interest) located approximately 3.0 kilometres to the southeast on the joint venture lands acquired from Thrace Basin Natural Gas (Turkiye) Corporation ("TBNG") and Pinnacle Turkey Inc. ("PTI") (the "TBNG-PTI JV").
The Bati Gurgen-1 well was drilled in 11 days to a measured depth of 2,735 metres into the top of the Teslimkoy member of the Mezardere formation. Based on positive log evaluation results, including formation pressure and fluid mobility testing, the Bati Gurgen-1 well was cased to a measured depth of 2,729 metres and the drilling rig was released on November 26.
The completion and flow testing program for the well commenced on December 9 and will initially include further cased-hole evaluation of the tight gas potential in the Mezardere formation followed by the main completion of shallower, conventional stacked sands in the Osmancik formation.
Yayli-1 Well
The Yayli-1 exploration well (Valeura 100% working interest) was spudded on December 1, 2015 with the Viking I-27 rig to test the Osmancik and Mezardere formations in a separate structural closure located 2.2 kilometers northwest of and along the same fault trend as the Bati Gurgen-1 well.
The Yayli-1 well was drilled in 11 days to a measured depth of 2,914 metres to evaluate a thicker section of the Teslimkoy member. Mud weights and log results indicate that the Mezardere formation is over-pressured below approximately 2,500 metres in both the Bati Gurgen-1 and Yayli-1 wells. Based on positive log evaluation results, the Yayli-1 well was cased to total depth. Rig release is expected on December 18.
Completion and testing of the well is expected to commence in early January following release of the service rig from the Bati Gurgen-1 well.
ABOUT THE CORPORATION
Valeura Energy Inc. is a Canada-based public company currently engaged in the exploration, development and production of petroleum and natural gas in Turkey.
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