Valeura Energy books $65mn Q4 loss
Valeura Energy, the Calgary-based producer active in Turkey's Thrace Basin, racked up a $64.6mn loss in the fourth quarter of 2021, more than trebling its deficit from the end of 2020, the company said on March 31.
Valeura's gas sales revenues fell year/year from $8.3mn to $3mn. The revenue largely relates to interest on gas batches delivered prior to May 2021 under term contracts, before Valeura sold its conventional Thrace Basin shallow gas play in a deal worth $16.9mn plus royalties. It also includes gas purchased from other local producers and sold at a discount of 12.5% to 15% on the rate set by Turkish gas importer BOTAS.
Valeura's cash holdings at the end of last year increased to $40.8mn, from $30.1mn at the end of 2020. It currently holds operator rights across six deep Thrace Basin exploration licences and production leases. In light of the impact of the COVID-19 pandemic, local regulators have extended the term of Valeura's exploration agreements to June 2023.
Valeura did not register any gas production for the final quarter. In the quarter ending June 30, 2021 its hydrocarbon output amounted to 614 barrels of oil equivalent/day, down marginally from 684 boe/d in the first quarter.
The company is now focusing on the Banarli licence, a deep unconventional gas play in the region. It conducted a 500 km2 3D seismic programme in the prospect under a farm-in agreement with Norway's Equinor.
Valeura completed three exploration and appraisal wells at Banarli, but was left searching for a new partner after Equinor backed out of the project in mid-2020. A production test at its Yamalik-1 appraisal well flowed 2.9mn ft3 of gas and condensate over a 24 hour period.