CALGARY, Jan. 28, 2019 /CNW/ - Valeura Energy Inc.
(TSX:VLE) ("Valeura" or the "Company"), the upstream
natural gas producer focused on appraising and developing an
unconventional gas accumulation in the Thrace Basin of Turkey, has finished successfully drilling and
logging the Inanli-1 appraisal well.
Highlights
- Inanli-1 drilled to a total depth of 4,885 metres
- The objective section from 3,270 metres to 4,885 metres (1,615
metres gross column) is high net-to-gross sandstone that is
interpreted to contain over-pressured gas
- More natural fracturing was encountered than in Yamalik-1,
including four stand-out intervals
- Two reservoir sweet-spots were encountered that can be
correlated to offsetting wells
- The well is being cased and will be left in a state ready for
completion fracking and production testing
- Completion operations are planned to commence around the end of
Q1
Drilling operations
Inanli-1 was drilled safely to a total depth of 4,885 metres
("TD"), at which point the associated time and cost to trip
the drill pipe for a new drill bit drove the decision to call TD.
The well is currently being cased and will be left in a state ready
for completion, fracking, and production testing. The rig will be
released from the location in the coming days and will begin
relocating to the next appraisal well location, Devepinar-1.
The key objectives of the well were to prove that the
over-pressured, gas-bearing reservoir discovered in the Yamalik-1
exploration well is laterally continuous and is indicative of a
basin-centered gas accumulation ("BCGA"), to test for
effective reservoir and over-pressured gas at deeper depths than
Yamalik-1, and to test for the presence of natural fracturing in
the reservoir as predicted from the Company's seismic and
geological studies. All of these objectives have been
met.
Costs for the drilling, coring and logging evaluation are
carried by Equinor Turkey B.V. ("Equinor") under the Banarli
farm-in agreement up to 10% above the approved AFE. Current cost
estimates suggest the final cost will be approximately 110% of the
approved AFE.
Positive evaluation
Based on drilling and wireline logging data, Inanli-1
encountered the top of the primary objective sands at 3,270 metres
at the base of the Mezardere Formation, after which high
net-to-gross sandstone was present almost continuously down to TD
within the Kesan Formation. The well recorded gas shows throughout
drilling operations, and based on both drilling and wireline data,
the 1,615 metre gross column below 3,270 metres is interpreted to
contain over-pressured gas.
The drilling data, core analysis and wireline image logs all
indicate that Inanli-1 encountered more natural fracturing than was
seen in Yamalik-1. In particular, there are four intervals of
interest which stand out as being moderately to intensely
fractured, covering approximately 600 gross metres. Two of these
are in the shallower portion of the objective section, in the upper
Kesan Formation, while two are deeper, including one just above TD.
These results appear to support the pre-drill fracture predictions
from the 3D seismic data.
Based on the extensive data acquired, the evaluation suggests
that the best reservoir was encountered in the shallower sands of
the upper Kesan Formation. In particular, two reservoir sweet spots
are interpreted over an interval from approximately 3,270 to 3,750
metres, which also exhibit increased natural fracturing.
Importantly, these zones can be correlated laterally to offsetting
wells, suggesting that Inanli-1 has encountered the same
prospective reservoir intervals as previously observed. The lateral
continuity of target reservoir intervals will be important in the
future for planning potential horizontal development wells. The
matrix porosities of the objective sandstones in Inanli-1 gradually
decrease with depth along the compaction trend predicted from the
Yamalik-1 core and wireline data. However, natural fracturing is
more extensive at this location which could enhance the effective
porosity and permeability of these fractured sands at depth. The
planned fracking and testing programme on Inanli-1 is expected to
test the productivity of these and other interpreted reservoirs in
the well.
Sean Guest, President and CEO
Commented:
"These results further support the interpretation of a
basin-centered gas accumulation in the Thrace Basin. We are
encouraged by the results and look forward to now drilling
Devepinar-1, 20 kilometres west, to prove that the play is
pervasive across the basin.
Our attention is now turning to the completion and testing
programme for Inanli-1. With several reservoir sweet spots,
and intervals of increased natural fracturing identified, we are
eager to test flow rates and are focused squarely on starting the
completion process."
Next steps
Valeura and its partner Equinor are interpreting the Inanli-1
data gathered from drilling, logging, and core to define the
fracking and completion programme. As previously announced,
fracking and testing operations are planned to commence around the
end of Q1.
Additional information relating to Valeura is also available on
SEDAR at www.sedar.com and on the Company's corporate website at
www.valeuraenergy.com.
Valeura Energy Inc. (General and Investor Enquiries)
+1 403 237 7102
Sean Guest, President and CEO
Steve Bjornson, CFO
Robin Martin, Investor Relations
Manager
Contact@valeuraenergy.com, IR@valeuraenergy.com
CAMARCO (Public Relations, Media Advisor)
+44 (0) 20 3757 4980
Billy
Clegg
Owen Roberts
Valeura@camarco.co.uk
About the Company
Valeura Energy Inc. is a Canada-based public company currently engaged
in the exploration, development and production of petroleum and
natural gas in Turkey.
Forward-Looking Statements and Cautionary Statements
This news release contains certain forward-looking statements
and information (collectively referred to herein as
"forward-looking information") including, but not limited to: the
timing for rig release from the Inanli-1 location and relocation to
the Devepinar-1 location, Valeura's intent to frack and production
test the Inanli-1 well, timing to commence fracking and testing
operations, the cost for the drilling, coring and logging
evaluation, the assessment of the resources in the test formations,
the potential that the BCGA play is pervasive across the basin, and
the effect of natural fracturing on effective porosity and
producibility. Forward-looking information typically contains
statements with words such as "anticipate", estimate", "expect",
"target", "potential", "could", "should", "would" or similar words
suggesting future outcomes. The Company cautions readers and
prospective investors in the Company's securities to not place
undue reliance on forward-looking information, as by its nature, it
is based on current expectations regarding future events that
involve a number of assumptions, inherent risks and uncertainties,
which could cause actual results to differ materially from those
anticipated by the Company.
Forward-looking information is based on management's current
expectations and assumptions regarding, among other things:
continued political stability of the areas in which the Company is
operating; continued safety of operations; continued timeliness of
approvals forthcoming from the Turkish government and regulators in
a manner consistent with past conduct; future drilling activity on
the expected timelines; the continued favourable pricing and
operating netbacks in Turkey;
future production rates and associated operating netbacks and cash
flow; future sources of funding; future economic conditions; future
currency exchange rates; and the Company's continued ability to
obtain and retain qualified staff and equipment in a timely and
cost efficient manner. In addition, the Company's work programmes
and budgets are in part based upon expected agreement among joint
venture partners and associated exploration, development and
marketing plans and anticipated costs and sales prices, which are
subject to change based on, among other things, the actual results
of drilling and related activity, availability of drilling,
fracking and other specialised oilfield equipment and service
providers, changes in partners' plans and unexpected delays and
changes in market conditions. 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 currency
fluctuations; changes in gas prices and netbacks in Turkey; uncertainty regarding the contemplated
timelines and costs for the deep evaluation; the risks of
disruption to operations and access to worksites, threats to
security and safety of personnel and potential property damage
related to political issues, terrorist attacks, insurgencies or
civil unrest in Turkey; political
stability in Turkey; the
uncertainty regarding government and other approvals; counterparty
risk; potential changes in laws and regulations; and risks
associated with weather delays and natural disasters. The
forward-looking information included in this news release is
expressly qualified in its entirety by this cautionary statement.
The forward-looking information included herein is made as of the
date hereof and Valeura assumes no obligation to update or revise
any forward-looking information to reflect new events or
circumstances, except as required by law. See the AIF for a
detailed discussion of the risk factors.
Additional information relating to Valeura is also available on
SEDAR at www.sedar.com
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.
SOURCE Valeura Energy Inc.