Turkey-Focused Valeura Eyes M&As

Turkey-focused Valeura Energy is interested in acquisitions, taking advantage of its cash reserves and the current low-price environment, it said on July 13.

The Canadian firm, which is developing gas in Turkey's Thrace basin for sale to the domestic market, said in an update that it had $30.7mn of cash at the end of June, which is 50% more than the market price of its shares. Its shares therefore offer "compelling value," it said.

Valeura also produces conventional shallow gas in a "strong gas price market," with an externally evaluated valuation for that business of $23.8mn. It sank two shallow exploration wells in the second quarter and carried out testing on the Devepinar-1 deep well, which is targeting unconventional gas.

The company is seeking merger and acquisition opportunities and has hired RBC Capital Markets to assist in the search, it said.

"Management believes the conditions are favourable for inorganic growth to play a significant role in the forward strategy as the current market environment is generating a flow of new deal opportunities which the company is well-positioned to pursue given its enviable financial position," Valeura said.