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Valeura Energy Inc Announces Third Quarter 2020 Results
THIRD QUARTER 2020 RESULTS CALGARY, AB / ACCESSWIRE / November 13, 2020 / Valeura Energ...
About this update from Valeura Energy Inc.
[{"type":"text","content":"Valeura Energy Inc Announces Third Quarter 2020 ResultsTHIRD QUARTER 2020 RESULTSCALGARY, AB / ACCESSWIRE / November 13, 2020 / Valeura Energy Inc. (TSX:VLE)(LSE:VLU) (\"Valeura\" or the \"Company\"), an upstream oil and natural gas company with assets in the Thrace Basin of Turkey, reports its financial and operating results for the three month and nine month periods ended September 30, 2020.HighlightsOperations - Return to steady operations throughout Q3 with average production up 10% from Q2 to 615 boe/d, generating petroleum and natural gas sales revenue of US$1.8 million;Financial position - A strong financial position, with net working capital surpus of US$32.2 million at September 30, 2020 (including US$31.3 million cash), and no debt;Shallow sale - Announced sale of its producing shallow conventional gas business for cash consideration of US$15.5 million, plus royalty payments of up to an additional US$2.5 million;Growth - Incremental cash from the shallow sale bolsters the Company's ability to execute its inorganic growth strategy; andDeep play - Valeura's interest in its 20 Tcfe unrisked mean prospective resource deep, tight gas play will be unaffected by the sale and the Company retains access to infrastructure with work continuing in the period to secure a partner for the Group's upcoming appraisal campaign.Sean Guest, President and CEO commented:\"Q3 was a steady quarter with operations conducted safely and with production ramping up to pre-COVID-19 levels. As announced last month, we have agreed to sell our interest in the producing conventional business, with an effective date of July 1, 2020 and anticipate the deal closing in Q1 of next year. Our efforts have resulted in Valeura being in a very strong financial position, which as of September 30, 2020 included a working capital surplus of US$32.2 million, with no debt. This balance sheet strength, plus the additional approximately US$15.5 million in cash to be received shortly from the shallow conventional sale, places us in an opportune position to access opportunities at a time when our industry is cash starved. We are focused on value growth and intent on deploying cash to build a more material near-term and mid-term portfolio. This will complement our longer-term growth opportunity in Turkey, where we retain our full interest in, and control of the deep tight...