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Valeura Energy Inc T.VLE

Alternate Symbol(s):  VLERF

Valeura Energy Inc. is an upstream oil and gas company engaged in the production, development, and exploration of petroleum and natural gas in the Gulf of Thailand and the Thrace Basin of Turkiye. The Company holds an operating working interest in four shallow water offshore licenses in the Gulf of Thailand, which include G10/48 (Wassana field), B5/27 (Jasmine and Ban Yen fields), G1/48 (Manora field) and G11/48 (Nong Yao field). It holds a 100% operating interest in license B5/27 containing the producing Jasmine and Ban Yen oil fields. It holds an operated 70% working interest in license G1/48 containing the Manora oil field, which produces approximately 2,935 barrels per day (bbls/d) of medium-weight sweet crude oil. The Company holds interests ranging from 63% through 100% in various leases and licenses in the Thrace basin. The Company also operates Floating Storage and Offloading (FSO) vessel Aurora, location at Nong Yao field, offshore Gulf of Thailand.


TSX:VLE - Post by User

Bullboard Posts
Comment by sneakyvalueon May 23, 2018 10:49am
79 Views
Post# 28069246

RE:How does the Lira affect us?

RE:How does the Lira affect us?Falling Turkish lira should only have beneficial effects on VLE as far as I can tell.  

CAPEX should drop.  While some expenses (skilled labor, drilling rigs, pipe) will still be priced in USD and CAD and remain consistent for a Canadian company, many costs other costs may fall as the locally priced costs drop.  

Revenues should not be impacted as pricing for gas is set by BOTAS and are relative to EU gas pricing.  $7.50 CAD per mcf is $7.50.  It shouldn't matter to VLE what the conversion rate to Turkish lira is.  

Development might get an extra push from Erdogan's government in order to help decrease widening trade deficit.  

While it's a more extreme case than the drop in Canadian currency at times in the past, I don't think that a falling Canadian dollar ever negatively impacted oil and gas prospects in Canada.  It has generally been the reverse impact, in that low global oil prices tend to impact the Canadian economy and thus lead to a lower dollar.  Not the other way around.
 
I can't come up with any negatives.  Any help there?  





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