RCS - Valeura Energy Inc. - Türkiye Joint Venture Agreement

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RNS Number : 4623D  Valeura Energy Inc.  15 October 2025

Türkiye Joint Venture Agreement

 

Singapore, October 15, 2025: Valeura Energy Inc. (TSX:VLE, OTCQX:VLERF)
("Valeura" or the "Company") is pleased to announce that via a wholly-owned
subsidiary, and together with its partner, Pinnacle Turkey, Inc. ("Pinnacle"),
it has entered into an agreement with a subsidiary of Transatlantic Petroleum
LLC ("Transatlantic") to explore for and develop hydrocarbons in the deep
rights formations of the Thrace basin of northwest Türkiye (the "Joint
Venture").

 

 

Dr. Sean Guest, President and CEO commented:

"Despite our strategic pivot toward the Asia-Pacific region, we have
maintained our conviction that the deep gas play we discovered in northwest
Türkiye offers significant potential to add value to the Company.  Our
drilling programme from 2017 to 2019 demonstrated that there are multiple Tcf
of gas in place across Valeura's lands in a deep tight gas play.  We drilled
three wells into this play and tested 12 separate zones - every one of which
flowed gas.  It is my hope that with a reinvigorated push to test the play,
we will see this evolve into a commercial success, especially when coupled
with the higher European gas prices that exist today.

 

Valeura has a proven history of creating cost-efficient structures to pursue
exploration ventures, and this Joint Venture is no different. Moreover, this
agreement will result in near-term action in the field with re-entry and
testing of new zones in our key Devepinar-1 well expected this quarter.  With
success in that testing operation, Transatlantic can fully earn a 50% working
interest across the play by drilling and testing a new deep appraisal well.

 

We are pleased to be working again with Transatlantic, who, given their strong
presence in Türkiye and proven unconventional operating credentials both in
Türkiye and the United States, are well-placed to operate this next phase of
the play to drive value generation for all stakeholders."

 

 

Thrace Deep Gas Play

Valeura has held various blocks and operated in Türkiye for almost 15 years.
 The Company continues to hold the deep rights (being below 2,500 metres or a
pressure gradient of 0.6 psi/ft, whichever is shallower) in various
exploration licences and production leases covering a total of 955 km(2)
(gross) in the Thrace basin, located just west of Istanbul.  For the majority
of the acreage (those lands held under exploration licences), the current
exploration phase expires on June 27, 2026, but discussions are underway with
the government in relation to a two-year appraisal period extension.

 

Between 2017 and 2020, Valeura explored and discovered a ubiquitous,
gas-charged, over-pressured sandstone reservoir, believed to represent a
basin-centred gas play at depths of approximately 2,900 - 4,775 metres.  In
conjunction with its partner at the time, Equinor, it drilled the Yamalik-1,
Inanli-1, and Devepinar-1 exploration wells, all which demonstrated the
presence of hydrocarbons.  The Company undertook hydraulic stimulation of 12
separate intervals, all which flowed gas to surface.  The testing programme
included one long-term test that was flowed and sold into the gas grid for
approximately three months.  While the drilling programme confirmed multiple
Tcf of gas in place, none of the wells were declared a commercial success at
that time given the flow rates and local gas price.  Since the exit of
Equinor from the play in Q2 2020, the assets have remained an operationally
dormant part of Valeura's portfolio.

 

 

Joint Venture

Transatlantic have been operating in Türkiye since 2007 and continue to be
very active in country including the announcement earlier this year of a joint
venture with Continental Resources and Türkiye Petrolleri AO (Türkiye's
state-owned petroleum corporation), to develop unconventional oil and gas
resources in Türkiye's Diyarbakir and Thrace basins.  Additionally,
Transatlantic have partnered with both Valeura and Pinnacle in the Thrace
basin between 2011 and 2017 as operator of the conventional gas production.
Given their active operations in Türkiye, Transatlantic will serve as
contract operator for the venture, with Valeura remaining the operator of
record designated with the Government of Türkiye.

 

The Joint Venture provides an opportunity for Transatlantic to earn a 50%
undivided working interest in the deep rights held by Valeura and Pinnacle
through two separate operations.

 

 

Devepinar Re-Entry

Valeura drilled and hydraulically stimulated the Devepinar-1 exploration well
in 2019 and conducted short-term tests of three separate intervals in the deep
part of the Kesan formation at a depth of 4,660 - 4,765 metres.  While gas
was produced at good initial rates from all intervals, relatively high decline
rates were observed that suggested the zones would not support long-term
commercial flow rates.  Thereafter, the Company preserved the well in a
suspended state and performed extensive technical modelling work alongside its
search for a new joint venture partner.

 

Under the terms of the Joint Venture, Transatlantic has agreed to undertake a
re-entry of the Devepinar-1 well including hydraulic stimulation and testing
of shallower zones in the Kesan.  If the results constitute a commercial
discovery, Transatlantic shall earn a 50% proportion of the working interest
held by each of Valeura (currently 63%) and Pinnacle (currently 37%) in the
western portion of the lands (comprised of the West Thrace Production Leases
and West Thrace Exploration Licence, as defined in Valeura's Annual
Information Form for the year ended December 31, 2024).

 

Under the terms of the Joint Venture, Transatlantic will pay 100% of the costs
to re-enter the Devepinar-1 well, up to US$2 million.  Any costs there above
shall be shared amongst the parties, 50% Transatlantic / 31.5% Valeura / 18.5%
Pinnacle.  Testing operations are expected to commence in Q4 2025.

 

 

Deep Appraisal Well

Transatlantic has an option to earn an interest in the eastern portion of the
lands (the Banarli Exploration Licences, as defined in Valeura's Annual
Information Form for the year ended December 31, 2024) by drilling a well down
to at least 4,000 metres on either the western or eastern portion of the
lands.  If such well results in a commercial discovery, Transatlantic shall
earn a 50% proportion of the interest held by Valeura (currently 100%).
 Transatlantic will pay 100% of the costs up to US$8 million, and any costs
there above shall be shared 50% Transatlantic / 50% Valeura.

 

Valeura gathered significant learnings in the earlier drilling and testing
phase and its technical studies thereafter have identified a well location
that could intersect the best quality known reservoir within the dry gas
window of the play.  Valeura postulates that this combination should improve
the flow rates and minimise decline, and hence offers the best chance of
yielding a commercial discovery. That well location, which is on the Banarli
Exploration Licence and is known as Hanoglu-1, has already been permitted for
drilling and may therefore serve as a fast-track opportunity for the deep
appraisal well.  However, the final decision on the well will be made in
collaboration between Valeura, Transatlantic, and Pinnacle, and only after the
testing of the Devepinar-1 well.

 

 

 

For further information, please contact:

 

Valeura Energy Inc. (General Corporate
Enquiries)                       +65 6373 6940

Sean Guest, President and CEO

Yacine Ben-Meriem, CFO
Contact@valeuraenergy.com (mailto:Contact@valeuraenergy.com)

 

Valeura Energy Inc. (Investor and Media
Enquiries)                       +1 403 975 6752 / +44
7392 940495
Robin James Martin, Vice President, Communications and Investor Relations
IR@valeuraenergy.com (mailto:IR@valeuraenergy.com)

 

Contact details for the Company's advisors, covering research analysts and
joint brokers, including Auctus Advisors LLP, Canaccord Genuity Ltd (UK),
Cormark Securities Inc., Research Capital Corporation, and Stifel Nicolaus
Europe Limited, are listed on the Company's website at
www.valeuraenergy.com/investor-information/analysts/
(http://www.valeuraenergy.com/investor-information/analysts/) .

 

 

About the Company

Valeura Energy Inc. is a Canadian public company engaged in the exploration,
development and production of petroleum and natural gas in Thailand and in
Türkiye. The Company is pursuing a growth-oriented strategy and intends to
re-invest into its producing asset portfolio and to deploy resources toward
further organic and inorganic growth in Southeast Asia. Valeura aspires toward
value accretive growth for stakeholders while adhering to high standards of
environmental, social and governance responsibility.

Additional information relating to Valeura is also available on SEDAR+ at
www.sedarplus.ca (http://www.sedarplus.ca) .

 

Advisory and Caution Regarding Forward-Looking Information

Certain information included in this news release constitutes forward-looking
information under applicable securities legislation. Such forward-looking
information is for the purpose of explaining management's current expectations
and plans relating to the future. Readers are cautioned that reliance on such
information may not be appropriate for other purposes, such as making
investment decisions. Forward-looking information typically contains
statements with words such as "anticipate", "believe", "expect", "plan",
"intend", "estimate", "propose", "project", "target" or similar words
suggesting future outcomes or statements regarding an outlook.

 

Forward-looking information in this news release includes, but is not limited
to, the potential for the deep gas play to add value and evolve into a
commercial success; the Joint Venture resulting in near-term action in the
field; timing for testing operations on the Devepinar-1 well; the potential
for a two-year appraisal period extension; the potential for the Hanoglu-1
location to yield the best quality reservoir within the dry gas window of the
play; and potential for the location serve as a fast-track opportunity for the
deep appraisal well.

 

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 is based on management's current expectations and
assumptions regarding, among other things: political stability of the areas in
which the Company is operating; continued safety of operations and ability to
proceed in a timely manner; continued operations of and approvals forthcoming
from governments and regulators in a manner consistent with past conduct;
ability to achieve extensions to licences in Thailand and Türkiye to support
attractive development and resource recovery; future drilling activity on the
required/expected timelines; the prospectivity of the Company's lands; the
continued favourable pricing and operating netbacks across its business;
future production rates and associated operating netbacks and cash flow;
decline rates; future sources of funding; future economic conditions; the
impact of inflation of future costs; future currency exchange rates; interest
rates; the ability to meet drilling deadlines and fulfil commitments under
licences and leases; future commodity prices; the impact of the Russian
invasion of Ukraine; the impact of conflicts in the Middle East; royalty rates
and taxes; management's estimate of cumulative tax losses being correct;
future capital and other expenditures; the success obtained in drilling new
wells and working over existing wellbores; the performance of wells and
facilities; the availability of the required capital to funds its exploration,
development and other operations, and the ability of the Company to meet its
commitments and financial obligations; the ability of the Company to secure
adequate processing, transportation, fractionation and storage capacity on
acceptable terms; the capacity and reliability of facilities; the application
of regulatory requirements respecting abandonment and reclamation; the
recoverability of the Company's reserves and contingent resources; future
growth; the sufficiency of budgeted capital expenditures in carrying out
planned activities; the impact of increasing competition; the availability and
identification of mergers and acquisition opportunities; the ability to
successfully negotiate and complete any mergers and acquisition opportunities;
the ability to efficiently integrate assets and employees acquired through
acquisitions; global energy policies going forward; international trade
policies; future debt levels; 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, offshore
storage and offloading facilities 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. Exploration, appraisal, and development of oil and natural gas
reserves and resources are speculative activities and involve a degree of
risk. A number of factors could cause actual results to differ materially from
those anticipated by the Company including, but not limited to: the ability of
management to execute its business plan or realise anticipated benefits from
acquisitions; the risk of disruptions from public health emergencies and/or
pandemics; competition for specialised equipment and human resources; the
Company's ability to manage growth; the Company's ability to manage the costs
related to inflation; disruption in supply chains; the risk of currency
fluctuations; changes in interest rates, oil and gas prices and netbacks; the
risk that the Company's tax advisors' and/or auditors' assessment of the
Company's cumulative tax losses varies significantly from management's
expectations of the same; potential changes in joint venture partner
strategies and participation in work programmes; uncertainty regarding the
contemplated timelines and costs for work programme execution; the risks of
disruption to operations and access to worksites; potential changes in laws
and regulations, including international treaties and trade policies; the
uncertainty regarding government and other approvals; counterparty risk; the
risk that financing may not be available; risks associated with weather delays
and natural disasters; and the risk associated with international activity.
See the most recent annual information form and management's discussion and
analysis of the Company for a detailed discussion of the risk factors.

 

Certain forward-looking information in this news release may also constitute
"financial outlook" within the meaning of applicable securities legislation.
Financial outlook involves statements about Valeura's prospective financial
performance or position and is based on and subject to the assumptions and
risk factors described above in respect of forward-looking information
generally as well as any other specific assumptions and risk factors in
relation to such financial outlook noted in this news release. Such
assumptions are based on management's assessment of the relevant information
currently available, and any financial outlook included in this news release
is made as of the date hereof and provided for the purpose of helping readers
understand Valeura's current expectations and plans for the future. Readers
are cautioned that reliance on any financial outlook may not be appropriate
for other purposes or in other circumstances and that the risk factors
described above or other factors may cause actual results to differ materially
from any financial outlook.

 

The forward-looking information contained in this news release is made as of
the date hereof and the Company undertakes no obligation to update publicly or
revise any forward-looking information, whether as a result of new
information, future events or otherwise, unless required by applicable
securities laws. The forward-looking information contained in this news
release is expressly qualified by this cautionary statement.

 

 

This news release does not constitute an offer to sell or the solicitation of
an offer to buy securities in any jurisdiction, including where such offer
would be unlawful. This news release is not for distribution or release,
directly or indirectly, in or into the United States, Ireland, the Republic of
South Africa or Japan or any other jurisdiction in which its publication or
distribution would be unlawful.

 

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that term is defined in the policies of the Toronto Stock Exchange) accepts
responsibility for the adequacy or accuracy of this news release.

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