CALGARY, AB / ACCESSWIRE / March 25, 2021 / Valeura Energy Inc. (TSX:VLE, LSE:VLU) (the "Company" or "Valeura"), an upstream oil and gas company with assets in the Thrace Basin of Turkey, reports its financial and operating results for the three month period ended December 31, 2020 and the year ended December 31, 2020, and year-end 2020 reserves.
The complete quarterly reporting package for the Company, including the audited financial statements and associated management's discussion and analysis ("MD&A") and the 2020 annual information form ("AIF"), are being filed on SEDAR at www.sedar.com and posted on the Company's website at www.valeuraenergy.com.
Financial and operating results presented in this announcement, together with the financial statements, the MD&A, and the AIF, include results from assets associated with the Company's shallow conventional gas business which are subject to a share purchase agreement announced on October 20, 2020 (the "Sale Transaction"). Valeura and TBNG Limited (the "Buyer") are progressing to closing the Sale Transaction, however, until such time as the Sale Transaction is completed, these assets remain owned and operated by Valeura. All assets associated with the shallow conventional gas business are identified as held for sale ("Assets Held for Sale") in this announcement and the Company's associated reports, identified above.
FINANCIAL AND OPERATING RESULTS HIGHLIGHTS
- Full year 2020 average production of 650 boe/d, relatively unchanged from 660 boe/d in 2019;
- Full year revenues of US$8.5 million, down 16% from the full year 2019, mainly due to lower realised gas prices;
- Total Proved Plus Probable reserves of 7,798 Mboe at year end, down 2% from the prior year;
- Cash position of US$30.1 million at year end; and
- Positive progress toward closing the Sale Transaction for cash consideration of US$15.5 million, plus future royalty payments.
Sean Guest, President and CEO commented:
"The sale of our conventional gas business is progressing and has now obtained all but one remaining government consent to complete the transaction. Both Valeura and the Buyer remain committed to the deal, with confidence on both sides stemming from a solid ongoing production performance which has delivered average full year volumes that are virtually unchanged from the prior year.
"Meanwhile, we are continuing in our efforts to farm out part of our interest in our deep tight gas play. We believe the increasingly positive investment environment we see today should increase interest by potential partners and are therefore continuing the farmout process into 2021.
"We are also pressing ahead on our evaluation of inorganic growth opportunities. With our strong balance sheet and internationally-experienced team, we see M&A as the right way to add near-term cash flow to our portfolio. While our team has been aggressively evaluating and advancing potential opportunities, we are maintaining discipline in these efforts and will only do deals where we have a clear line of sight to generating value for shareholders both through the deal itself and through follow-on investment thereafter."
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SOURCE: Valeura Energy Inc.