Valeura Energy Inc T.VLE

RE:Valeura Energy News Release

[CravenMoorehead]

Calgary, September 5, 2018: Valeura Energy Inc. (TSX:VLE) (“Valeura” or the “Company”) is pleased to announce increased gas prices and provide an update on appraisal operations. Gas Price Increase Effective September 1, 2018, Boru Hatlari ile Petrol Tasima Anonim Sirketi (“BOTAS”), who own and operate Turkey’s crude oil and natural gas pipeline grid, has announced a further increase in Turkey’s natural gas reference price by 14% for industrial and commercial customers. This is the fourth price increase in calendar 2018, resulting in local prices having increased by 63% so far this year, on a compounded basis. While gas prices are denominated in Turkish Lira, these frequent and ongoing adjustments to the reference price result in exchange rate-adjusted prices broadly in line with prevailing European gas prices, and Valeura continues to realize stable prices in the C$7/mcf range. “This ongoing trend of gas price corrections helps to ensure the long-term value of our Basin Centered Gas Accumulation (or “BCGA”).” commented Sean Guest, President and CEO, “Our net 10.1 Tcf of mean unrisked prospective resources remain just as valuable as when we first announced it in February 2018, and we are expecting material data points in the coming months as our appraisal operations start to de-risk the play.” Operations Update Valeura has achieved a milestone in its recompletion operations on the Yamalik-1 well. As of today, the Company has safely drilled through all the plugs that were set during the initial frac’ing and cleaned out the well to bottom. The wellbore will now be fitted with production tubing for clean-up and testing and then the well will be put on long-term test through the Company’s owned gathering infrastructure. Site construction at the Inanli-1 location is progressing on plan. The KCA Deutag drilling rig has arrived in Turkey and will be mobilized to the location in the coming weeks. Equipment and operations remain on track for a spud around the end of Q3, with initial results expected in late Q4. The Inanli-1 well is designed to be drilled to a depth of 5,000 m, approximately 800 m deeper than Yamalik-1. The costs for Inanli-1 will be carried by Equinor, while Valeura will fund its working interest share for the two additional appraisal wells, which will be drilled immediately after Inanli-1. For further information please contact: Sean Guest, President and CEO Valeura Energy Inc. [phone] [e-mail]