Business
Valeura Announces Increased Natural Gas Prices
Valeura Announces Increased Natural Gas Prices Canada NewsWire CALGARY, July 31,...
About this update from Valeura Energy Inc.
[{"type":"text","content":"\n\n\n\nValeura Announces Increased Natural Gas Prices\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n\n\n\n\n\n\n\nCanada NewsWire\nCALGARY, July 31, 2018\n\n\n\n\n\n\n\n\nCALGARY, July 31, 2018 /CNW/ - Valeura Energy Inc. (TSX:VLE) (\"Valeura\" or the \"Company\") is pleased to announce an immediate increase in the sales price of its natural gas production in Turkey.  Boru Hatlari ile Petrol Tasima Anonim Sirketi (\"BOTAS\"), who own and operate Turkey's crude oil and natural gas pipeline grid, has announced that effective August 1, 2018, Turkey's natural gas reference price will increase 49.5% for power generation customers and 14.0% for Valeura's other industrial and commercial customers. \n\n\n \n \n\n \nThis is the third price increase in calendar 2018, following increases of 10% effective April, 2018 and 14% effective January 1, 2018.  Given today's exchange rates, power generation customers will now pay the equivalent of C$9.82/mcf, and Valeura's other customers the equivalent of C$7.49/mcf.  BOTAS has also announced that while the prices will remain locally denominated in Turkish lira, power generation customers will transact with BOTAS in US dollars, at daily exchange rates.  \n\n\"Price increases by Turkey's regulators are very welcome news.  This ongoing trend gives us greater confidence in the long-term value of the Basin Centered Gas Accumulation resource we are appraising in Turkey, as we anticipate Turkish pricing to continue to track broadly in line with European import prices,\" commented Sean Guest, President and CEO, \"This also has an immediate positive effect on our revenues.  We expect to see our overall price realizations increase by a minimum of 14%, as we have historically sold production to a mix of industrial, commercial, and power generation customers.\"  \n\nThe Company is preparing for a major appraisal phase of its unconventional gas discovery in Turkey, which has been evaluated by DeGolyer and MacNaughton to hold 10.1 trillion cubic feet of estimated working interest unrisked mean prospective resources of natural g...