Valeura to Acquire Turkish Tight Gas Assets

Valeura Energy Inc. has announced that it has executed a conditional offer with  an wholly-owned affiliate of TransAtlantic Petroleum Ltd., to acquire natural gas production of approximately 10.0 mmcfd (net before royalties), 546,030 net acres of land in the Thrace and Anatolian basins of Turkey and exposure to a world-class unconventional tight gas opportunity in the Thrace Basin for a purchase price of approximately US$61.5 million in cash.

Valeura said that if completed, the Acquisition will provide immediate cash flow to the Corporation from sales of conventional shallow gas production in the Thrace Basin that historically have realized prices of approximately US$8.00 per mcf and netbacks of almost US$6.00 per mcf after royalties and operating costs.

The Assets complement Valeura's existing operations in Turkey acquired in two earlier transactions announced in September and December 2010 and provide exposure to a significant unconventional tight gas opportunity in the Thrace Basin. The Acquisition is expected to increase the Corporation's working interest production in Turkey to approximately 12.0 mmcfd and net acreage holdings to more than 836,000 acres.

"This proposed transaction is a great fit with our announced growth strategy, providing immediate cash flow, a meaningful production base in Turkey and a rich portfolio of exploitation and exploration opportunities in both conventional and unconventional gas plays in a premium-priced gas market and diversity to complement our oil focus in southeast Turkey," said Jim McFarland, President and CEO of Valeura. "We are also very pleased to be expanding our relationship with TransAtlantic, which has established a strong upstream business and a large oil and gas services division in Turkey that can provide specialized equipment, particularly in pursuit of the tight gas opportunities."

Source: Valeura Energy Inc.