Valeura Energy Inc. · TSX:VLE

Valeura Energy — Investor Presentation (November 2015)

68 slides from Valeura Energy's investor presentation, November 2015

  1. Slide 1: Shifting Focus to 100% Owned & Operated Banarli Licences

    A GLOBAL ENERGY COMPANY FOCUSED ON EXCEPTIONAL VALUE CREATION SHIFTING FOCUS TO 100% OWNED & OPERATED BANARLI LICENCES CORPORATE PRESENTATION NOVEMBER 2015

  2. Slide 2: Corporate Profile

    Corporate Profile  Valeura Energy Inc. (VLE – TSX) is a Canada-based oil and gas company with assets in Turkey  Interests in 22 leases & licences in Turkey: 0.9 MM acres (gross); 0.38 MM acres (net) (1)  Pursuing development of conventional gas & tight gas in the Thrace Basin  Utilizing latest 3

  3. Slide 3: Capital Structure November 1, 2015

    Capital Structure November 1, 2015 Basic shares outstanding at November 1, 2015 57,906,135 Common shares purchasable pursuant to outstanding: Financial warrants ($5.50 exercise price per share) 13,269,217 Options ($0.72 weighted average exercise price per share) 5,177,000 Fully diluted shares 76,352

  4. Slide 4: Q3 2015 Financial & Operating Highlights

    Q3 2015 Financial & Operating Highlights (1) 3 MONTHS 3 MONTHS 3 MONTHS RESULTS ENDED ENDED ENDED SEPT 30, 2015 JUNE 30, 2015 SEPT 30, 2014 Production Crude oil & NGLs (bbl/d) 7 8 7 Natural gas (Mcf/d) 4,723 6,219 5,943 boe/d 794 1,045 997 Financial (Canadian $ M, except per boe amounts) P & NG reve

  5. Slide 5: Why Turkey?

    Why Turkey? Prospective TBNG-PTI  Proven petroleum systems TBNG-PTI acquisition Acquisition (natural gas & light/medium oil)  Under-explored & under-exploited conventional & opportunity unconventional plays  Opportunity to deploy modern technology  Thrace Basin main gas producing region  Anatol

  6. Slide 6: Turkey YE 2014 Reserves (Company Gross)

    Turkey YE 2014 Reserves (Company Gross) MMboe  5% and 9% year-over-year increase in 1P 14 Possible and 2P reserves, respectively, in Turkey Probable 12 Proved  Primarily natural gas reserves in Thrace 10.3 10.4 3P Basin on TBNG JV lands (Valeura 40% WI) 10 and Edirne Licence (Valeura 35% WI) 8  G

  7. Slide 7: Thrace Basin Land Position

    Thrace Basin Land Position (1) Bulgaria 2010 Otto asset purchase (Edirne) Black Sea E17-b4-1 (Valeura 35% WI) E17-c1-1 E17-c2-1 Turkey 2013 Banarli licence award (Valeura 100% WI) 5122 3659 2926 F19- F18- F19- d4-2 F17- c1,c2,c3,c4 d1,d4 Greece c2,c3 F18- d1,d2, 3861 d4 F18- F18- F19- c4-2 c3-1 d4-1

  8. Slide 8: Land Position In Turkey At November 1, 2015

    Land Position In Turkey At November 1, 2015 LEASES & GROSS AREA VALEURA NET AREA TRANSACTION LICENCES (1) (acres) (acres) (#) THRACE BASIN TBNG JV - Onshore (2) 15 425,155 170,062 TBNG JV - Offshore - 116,508 17,476 Banarli Licence 5104 Award (3) 2 133,840 133,840 Otto - Edirne 3 49,883 17,459 SUB T

  9. Slide 9: TBNG JV (Valeura 40% WI - Non-Operated) – The Proving Ground

    TBNG JV (Valeura 40% WI - Non-Operated) – “The Proving Ground” I-8 Rig Drilling at TDR-9 9

  10. Slide 10: TBNG JV

    TBNG JV  Interests in 15 leases & licences in Thrace Basin (0.51 MM gross acres onshore)  Well established shallow gas production and marketing business: - ~65 producing wells (gross) in 15 gas fields in onshore lands - Owned compression facilities & distribution lines - Direct sales to 55 commerc

  11. Slide 11: TBNG JV Shallow Gas & Tight Gas Plays

    TBNG JV Shallow Gas & Tight Gas Plays SHALLOW GAS Akcahalil-1 Inecik- Aydede-1 YAGCI-8 ND-1 TDR-2 TS-18 DTD-1 KAYI-7 BATI GAZI-1 BATI  Danismen & Osmancik 2 KARAEVLI-1 SOUTHWEST NORTHEAST  5 re-entry fracs since DANISMEN mid-2011 (Osmancik)  62 workovers & 17 new 500 m OSMANCIK drills in 2012-201

  12. Slide 12: Thrace Basin Tight Gas Learning Curve 2011 – 2015 YTD

    Thrace Basin Tight Gas Learning Curve 2011 – 2015 YTD 3 OSMANLI THRACE BASIN Cumulative Exploration DISCOVERIES Program capex (1) ≈ $74MM (net) Horizontal Drills 6 Hz MEZ/TES/KESAN DRILL & FRACS & Fracs Vertical Drills & Develop 12 VERTICAL TESLIMKOY/KESAN DRILL & FRACS Fracs 232KM2 3D Studies 413KM

  13. Slide 13: Tekirdag Area Frac Results & Potential Vertical Well Development

    Tekirdag Area 2011-2015 YTD Mezardere/Teslimkoy/Kesan Frac Results & Potential Vertical Well Development (1) KAYI-14 Guney Kayi-1 Kayi Derin-1 KAYI-7 5.0 MMcf/d 1.8 MMcf/d 0.7 MMcf/d 3.4 MMcf/d KAYI-12 KAYI-14 1.6 MMcf/d 5.4 MMcf/d TDR-2 TDR-5H KAYI-6 KAYI-16 0.6 MMcf/d 2.0 MMcf/d 0.9 MMcf/d 0.9 MMc

  14. Slide 14: Mezardere Slope Fan Play Fairway

    Mezardere Slope Fan Play Fairway Mezardere Prospective Depth Structure Mezardere play fairway Banarli Tekirdag Tekirdag area Mezardere exploitation program 10 km  Slope fan play in Mezardere Formation showing encouraging results  Seismic imaging clearly shows channel trends with both structural &

  15. Slide 15: Banarli (Valeura 100% WI - Operated)

    Banarli (Valeura 100% WI - Operated) – “Opportunity to Leverage Four+ Years of Learnings” 3D Seismic Acquisition on Banarli – May 2015 15

  16. Slide 16: Banarli Exploration Strategy

    Banarli Exploration Strategy  Banarli licence awarded to Valeura (100% WI) in April 2013 (480 km2; 185 square miles)  Converted to two licences under New Petroleum Law, which extends initial 5-year term to June 27, 2020: – US$9.2 MM commitment: 2,000 m well year 1; 2,000 m well year 2; 3,800 m wel

  17. Slide 17: TBNG JV Producing Fields & Banarli Exploration Prospects

    TBNG JV Producing Fields & Banarli Exploration Prospects Banarli Banarli Banarli licences F18-C F19-d1,d4 Producing fields (1) Banarli prospects Merged Banarli, Tekirdag & Osmanli 3D seismic (~550 Muratli km2) similarity imaging 5 km Aydinkoy Yayli-1 Bati Gurgen-1 Planned Drilling Gurgen 2P: 5.3 Bcf

  18. Slide 18: Osmancik Prospect Map (Play Types 1 and 2)

    Osmancik Prospect Map (Play Types 1 and 2) Osmancik B PSTM Time Structure P10 Prospect Areas (1) MURATLI PROSPECT AYDINKOY PROSPECT YAYLI PROSPECTS BATI GURGEN YAYLI-1 PROSPECT PLANNED BATI GURGEN-1 MAIN DRILLING OSMANLI GAS FIELD GURGEN PRODUCING FIELD (1) Internal estimate. 18

  19. Slide 19: Mezardere Prospect Map (Play Type 3)

    Mezardere Prospect Map (Play Type 3) Tekirdag D PSTM Time Structure P10 Prospect Areas (1) MURATLI PROSPECT AYDINKOY PROSPECT YAYLI PROSPECTS BATI GURGEN YAYLI-1 PROSPECT PLANNED BATI GURGEN-1 DRILLING MAIN OSMANLI GAS FIELD GURGEN PRODUCING FIELD (1) Internal estimate. 19

  20. Slide 20: Potential Basin-Centered Gas Play Fairway (Play Type 5)

    Potential Basin-Centered Gas Play Fairway (Play Type 5) 10 km Mezardere Depth Structure Alacaoglu-1 CI 100m 0.73 psi/ft Potential Pressure Seal Area Hayrabolu-10 Ergene-1 1,500 km2 0.75 psi/ft 0.68 psi/ft Kazanci-5 0.77 psi/ft Kandamis-1 0.77 psi/ft Kayi Derin-1 0.43 psi/ft Pressure Normal Pressure

  21. Slide 21: Robust Netbacks & Competitive Costs Drive Attractive Natural Gas Economics

    Robust Netbacks & Competitive Costs Drive Attractive Natural Gas Economics in Turkey Cost Structure – US$MM (gross) FUTURE Operating Netbacks – $/boe (1) CURRENT POTENTIAL 80 CONVENTIONAL GAS VERTICAL WELL (2) Royalty Drill & Case 1.7 1.7 Opex 70 Tie-in (new facilities) 0.5 0.5 Netback 62.00 61.54 5

  22. Slide 22: Turkey Natural Gas Indicative Well Economics

    Turkey Natural Gas Indicative Well Economics (1) PHYSICAL PARAMETERS PER WELL ECONOMICS PER WELL – BEFORE TAX (5) PROGRAM RESERVES (2) IP30 (3) CAPEX (4) IRR PAYOUT NPV10 RECYCLE (Bcf) (MMcf/d) (US$MM) (%) (MONTHS) (US$MM) RATIO (6) Thrace Basin - Gas Shallow Gas Drilling (500 m) with Tie-in 0.3 0.8

  23. Slide 23: Turkey Net Capital Budget Outlook 2015

    Turkey Net Capital Budget Outlook 2015 (1)  2015 work program and budget targeting to: − Achieve 2015 net sales from the TBNG JV lands of 900 – 950 boe/d − Banarli: acquire 152 km2 of 3D seismic and spud two exploration wells in Q4 2015 (satisfies two of three commitment wells required in five-year

  24. Slide 24: Summary

    Summary  Valeura provides exposure to a natural gas-focused, pure play in Turkey: $9-10/Mcf natural gas prices, 12.5% government royalty & >$40/boe operating netbacks  Large land position of 0.9 MM acres (gross); 0.38 MM acres (net)  Applying latest 3D seismic, horizontal drilling and multi-stage

  25. Slide 25: Reader Advisories

    Reader Advisories Forward-Looking Statements: This presentation contains certain forward-looking statements and forward-looking information (collectively, "forward-looking statements") as defined by applicable securities legislation including, but not limited to: Valeura’s 2015 work program and budg

  26. Slide 26: Reader Advisories (Cont’d)

    Reader Advisories (Cont’d) Other Advisories: INITIAL ON-STREAM PRODUCTION RATES: The initial on-stream production rates disclosed in this presentation are preliminary in nature and may not be indicative of stabilized on- stream production rates. Initial on-stream production rates are typically discl

  27. Slide 27: Reader Advisories (Cont’d)

    Reader Advisories (Cont’d) Glossary: Certain other terms used in this presentation but not defined herein or under "RESERVES DEFINITIONS" below are defined in NI 51-101 or Valeura’s most recent annual information form and, unless the context otherwise requires, shall have the same meanings herein as

  28. Slide 28: Reader Advisories (Cont’d)

    Reader Advisories (Cont’d) Abbreviations: Oil and Natural Gas Liquids Natural Gas bbl barrels Mcf thousand cubic feet bbl/d barrels per day Mcf/d thousand cubic feet per day NGLs natural gas liquids MMcf/d million cubic feet per day Bcf billion cubic feet Other boe barrels of oil equivalent m metres

  29. Slide 29: Supplementary Information

    A GLOBAL ENERGY COMPANY FOCUSED ON EXCEPTIONAL VALUE CREATION SUPPLEMENTARY INFORMATION

  30. Slide 30: Our Heritage

    Our Heritage Senior Management Board of Directors 30

  31. Slide 31: Past Successes of Management & Board

    Past Successes of Management & Board Sold 2009 $360 mm Market Cap 3x ROI (’04-’09) ~$529 mm CAGR 22% Market Cap at Trust Conversion Sold in 2007 $916 mm $898 mm 35x ROI (‘94-’03) 6x ROI (’05-’07) CAGR 51% CAGR 118% Sold in 2006 Market Cap $306 mm ~$4,412 mm 1.4x ROI (’03-’06) CAGR 10% Sold in 2004 $

  32. Slide 32: Organization Structure

    Organization Structure BOARD OF DIRECTORS Abby Badwi Tim Marchant Bill Fanagan Jim McFarland Claudio Ghersinich Ron Royal Stephanie Stimpson, Corporate Secretary PRESIDENT & CEO ASSISTANT Jim McFarland Shari Lemon VP VP VP VP CFO BUSINESS ENGINEERING OPERATIONS EXPLORATION DEVELOPMENT Steve Bjornson

  33. Slide 33: Officers

    Officers President & CEO: Jim McFarland, P. Eng. 43 years oil & gas experience  Former President & CEO, director and co-founder, Verenex Energy (Libya light oil)  Former Managing Director, Southern Pacific Petroleum (Australian shale oil)  Former President & COO, Husky Oil (heavy oil, upgrading)

  34. Slide 34: Officers (Cont’d)

    Officers (Cont’d) VP Engineering: Don Shepherd, P. Eng. 41 years oil & gas experience  Former General Manager, Verenex Energy Area 47 Libya based in Tripoli  13 years with Saudi Aramco as Asset Management Team Leader and Senior Engineering Specialist (Saudi Arabia)  12 years in executive manageme

  35. Slide 35: Other Vice Presidents

    Other Vice Presidents VP Business Development: Barry Wihak, P. Geol. 32 years oil & gas experience  Former President & CEO, director and co-founder, Cangea Energy (private, Colombia focus)  5 years with Vermilion Energy Trust as Business Development Advisor on acquisitions in France, Netherlands a

  36. Slide 36: Manager

    Manager Country Representative (Ankara, Turkey): Mehmet Ekinalan 8 years oil & gas experience  Former Resident Representative of Thrace Basin Natural Gas Turkiye Corporation 21 years telecommunications experience (Turkey and USA)  Former CEO and Board member of Turkish Telecom  Former CEO of AYCE

  37. Slide 37: Board of Directors

    Board of Directors Abby Badwi, P. Geol. Vice-Chairman, Bankers Petroleum Ltd. Executive Chairman, Americas Petrogas Inc. Former President & CEO, Bankers Petroleum Ltd. Geological background Bill Fanagan, CA (Chair) Former Chairman, Verenex Energy Inc. Former President & CEO, Gulf Indonesia Resources

  38. Slide 38: Turkey YE 2014 Reserves (Company Gross)

    Turkey YE 2014 Reserves (Company Gross) TOTAL OIL LIGHT & MEDIUM NATURAL GAS NPV10 BEFORE TAX NPV10 AFTER TAX CATEGORY EQUIVALENT OIL (Mbbl) (Bcf) (US$MM) (US$MM) (Mboe) PROVED DEVELOPED 7 3.8 639 19.1 19.1 PRODUCING PROVED DEVELOPED NON- 36 2.5 448 8.5 7.4 PRODUCING PROVED 36 3.7 651 6.4 4.9 UNDEVE

  39. Slide 39: TBNG JV Shallow Gas Business

    TBNG JV Shallow Gas Business  2013 shallow gas program: − Spudded 1 new drill (evaluating) − Completed 14 workovers (11.0 MMcf/d aggregate initial 7-day rate); 3 well re-entry fracs − Acquired 232 km2 of new 3D seismic in Osmanli area  2014 shallow gas program: − Spudded 1 sidetrack & 5 new drills

  40. Slide 40: Osmanli Area Conventional Gas Drilling

    Osmanli Area Conventional Gas Drilling Banarli Merged Osmanli & Tekirdag 3D seismic Gurgen-1 area Osmanli Gurgen-2 Gurgen-3 Dogu Guney Osmanli-1 Osmanli-3 Tavanli-1 Karaevli Kayi Gazi Recent drills Biyikali-2 ST Tekirdag Osmancik D Depth Structure Yagci 5 km  Seven (gross) conventional gas wells dr

  41. Slide 41: TBNG JV Tight Gas Proof-Of-Concept Program Phases

    TBNG JV Tight Gas Proof-Of-Concept Program Phases 1. Recompletion fracs (750-2,000 m depth) − Identify gas bearing zones in Mezardere, Teslimkoy & Kesan formations that require fracs to achieve commercial rates focusing initially on areas within structural closure − Initiated new Mezardere laminated

  42. Slide 42: Teslimkoy/Kesan Multi Frac Type Curves (Vertical Wells)

    Teslimkoy/Kesan Multi Frac Type Curves (Vertical Wells) (1)(2) Type Curve - Vertical Wells 1200 120 D&M Vertical Well, 2P - 0.8 Bcf, Rate vs. Time 1100 1000 D&M Vertical Well, 2P - 0.8 Bcf, Cum. Recovery vs. Time 100 900 CUMMULATIVE RECOVERY - % OF EUR 800 80 PRODUCTION RATE - Mcf/d 700 600 60 500 4

  43. Slide 43: Mezardere Multi Frac Type Curve (Horizontal Wells)

    Mezardere Multi Frac Type Curve (Horizontal Wells) (1)(2) Type Curve Comparisons - Horizontal Wells 3000 120 2500 100 CUMMULATIVE RECOVERY - % OF EUR 2000 80 PRODUCTION RATE - Mcf/d VLE HZ Type #2, Reserves - 1.0 Bcf, Rate vs. Time 1500 60 D&M Teslimkoy Hz, 2P - 1.35 Bcf, Rate vs. Time VLE HZ Type #

  44. Slide 44: Tekirdag Area Horizontal Drilling

    Tekirdag Area Horizontal Drilling 2nd HZ well BTD-4H 1st HZ well DTD-19H Teslimkoy U. Kesan 655 m lateral 425 m lateral 10-stage frac 7-stage frac IP30 rate 3.0 MMcf/d IP30 rate 0.4 MMcf/d 5th HZ well TDR-11H Mezardere TDR-14 678 m lateral DTD-6 10-stage frac Baglik-1 BTD-5 IP30 rate 1.3 MMcf/d DTD-

  45. Slide 45: TBNG JV 2011 Frac Results

    TBNG JV 2011 Frac Results PEAK 24-HOUR INITIAL 7-DAY CUMULATIVE FRAC DATE NET PAY (1) POROSITY (1) ON-STREAM AVERAGE IP30 RATE PRODUCTION TO WELL (d/m/y) (m) (%) RATE ON-STREAM RATE (MMcf/d) OCT 31, 2015 (MMcf/d) (MMcf/d) (MMcf) Yazir-2; 1st stage 18/07/2011 2 10 0.1 0.1 - 3 (2) Yazir-2; 2nd stage 1

  46. Slide 46: TBNG JV 2012 Frac Results

    TBNG JV 2012 Frac Results INITIAL 7-DAY CUMULATIVE PEAK 24-HOUR FRAC DATE NET PAY (1) POROSITY (1) AVERAGE IP30 RATE PRODUCTION TO WELL ON-STREAM RATE (d/m/y) (m) (%) ON-STREAM RATE (MMcf/d) OCT 31, 2015 (MMcf/d) (MMcf/d) (MMcf) DTD-11 7/01/2012 3 13 1.1 0.8 0.6 117 Karya Derin-1 (2) 4/02/2012 11 14

  47. Slide 47: TBNG JV 2012 Frac Results (Cont’d)

    TBNG JV 2012 Frac Results (Cont’d) INITIAL 7-DAY CUMULATIVE PEAK 24-HOUR FRAC DATE NET PAY (1) POROSITY (1) AVERAGE IP30 RATE PRODUCTION TO WELL ON-STREAM RATE (d/m/y) (m) (%) ON-STREAM RATE (MMcf/d) OCT 31, 2015 (MMcf/d) (MMcf/d) (MMcf) Sulemaniye-2 (2) 9/05/2012 1 10 0.3 NA NA NA Dogu Karya-1 (3)

  48. Slide 48: TBNG JV 2013 Frac Results

    TBNG JV 2013 Frac Results INITIAL 7-DAY CUMULATIVE PEAK 24-HOUR FRAC DATE NET PAY (1) POROSITY (1) AVERAGE IP30 RATE PRODUCTION TO WELL ON-STREAM RATE (d/m/y) (m) (%) ON-STREAM RATE (MMcf/d) OCT 31, 2015 (MMcf/d) (MMcf/d) (MMcf) Baglik-1 (L. Kesan) (2) 8/01/2013 NA NA NA NA NA NA Kazanci-5 (1st stag

  49. Slide 49: TBNG JV 2013 Frac Results (Cont’d)

    TBNG JV 2013 Frac Results (Cont’d) INITIAL 7-DAY CUMULATIVE PEAK 24-HOUR FRAC DATE NET PAY (1) POROSITY (1) AVERAGE IP30 RATE PRODUCTION TO WELL ON-STREAM RATE (d/m/y) (m) (%) ON-STREAM RATE (MMcf/d) OCT 31, 2015 (MMcf/d) (MMcf/d) (MMcf) Karanfiltepe-6 (2) (L. Osmancik) 12/07/2013 NA NA NA NA NA NA

  50. Slide 50: TBNG JV 2013 Frac Results (Cont’d)

    TBNG JV 2013 Frac Results (Cont’d) INITIAL 7-DAY CUMULATIVE PEAK 24-HOUR FRAC DATE NET PAY (1) POROSITY (1) AVERAGE IP30 RATE PRODUCTION TO WELL ON-STREAM RATE (d/m/y) (m) (%) ON-STREAM RATE (MMcf/d) OCT 31, 2015 (MMcf/d) (MMcf/d) (MMcf) Yagci-6 (Mezardere) 07/10/2013 9 11 0.5 0.2 0.2 8 Kayi-14 (Mez

  51. Slide 51: TBNG JV 2014 Frac Results

    TBNG JV 2014 Frac Results INITIAL 7-DAY CUMULATIVE PEAK 24-HOUR FRAC DATE NET PAY (1) POROSITY (1) AVERAGE IP30 RATE PRODUCTION TO WELL ON-STREAM RATE (d/m/y) (m) (%) ON-STREAM RATE (MMcf/d) OCT 31, 2015 (MMcf/d) (MMcf/d) (MMcf) Kayi-16 (2-stage) (Mezardere/Teslimkoy) 22/01/2014 20 17 0.2 0.2 0.1 8

  52. Slide 52: TBNG JV New Drill Spuds In 2012 - 2015 YTD

    TBNG JV New Drill Spuds In 2012 - 2015 YTD Hayrabolu Hayrabolu-10 Kazanci-5 Deep Exploration Kuzey Atakoy-1 Area Guney Atakoy-2 Guney Karababa-1 Karanfiltepe-5, 6 Atakoy-8 Biyikali-2ST Tavanli-1 Gurgen-1,2,3 TSK-1, 2 Guney Kayi-1 Guney Osmanli-3 Kayi Derin-1 Dogu Osmanli-1 Osmanli DTD-19, 19H New Di

  53. Slide 53: TBNG JV New Drill Spuds In 2012

    TBNG JV New Drill Spuds In 2012 SPUD RIG RELEASE TD STATUS WELL LICENCE WELL TYPE (d/m/y) (d/m/y) (m) NOVEMBER 1, 2015 Baglik-1 3931 10/03/2012 06/05/2012 Unconventional 3,594 Producing Dogu Karya-1 3934 04/04/2012 23/04/2012 Unconventional 2,022 Evaluating TSK-1 3931 05/04/2012 10/04/2012 Conventio

  54. Slide 54: TBNG JV New Drill Spuds 2013 - 2015 YTD

    TBNG JV New Drill Spuds 2013 - 2015 YTD SPUD RIG RELEASE TD STATUS WELL LICENCE WELL TYPE (d/m/y) (d/m/y) (m) NOVEMBER 1, 2015 TDR-14 3931 29/01/2013 22/02/2013 Unconventional 1,749 Producing Hayrabolu-10 2926 08/02/2013 10/04/2013 Unconventional 4,054 Evaluating Unconventional - 1,626 MD DTD-19H 39

  55. Slide 55: DTD-19H Horizontal – Upper Kesan Reservoir

    DTD-19H Horizontal – Upper Kesan Reservoir  Upper Kesan reservoir horizon (Baglik-1 producing zone) TD @ 1626 m MD  Spud June 3, 2013 (34 drill @1096 m TVD @ -976 m SSTVD days)  1,096 m TVD; 1,626 m MD GR Mud gas  425 m horizontal leg show  Total 209 m of sand LP @ 1201.15 m MD  7-stage frac P

  56. Slide 56: BTD-4H Horizontal - Teslimkoy Reservoir

    BTD-4H Horizontal - Teslimkoy Reservoir  Teslimkoy BTD-2 producing zone  Spud July 27, 2013 (36 drill days)  1,004 m TVD; 1,774 m MD  655 m horizontal leg  Total 308 m of sand  10-stage frac Packers Plus assembly  5,815 bbls X-linked gel; 4% Landing point: 1,119 m KCL water energized with 40-

  57. Slide 57: BTD-5H Horizontal - Teslimkoy Reservoir

    BTD-5H Horizontal - Teslimkoy Reservoir  Teslimkoy BTD-2 producing zone  Spud Nov 19, 2013 (15 drill days)  974 m TVD; 1,519 m MD  403 m horizontal leg  Total 89 m of sand  4-stage frac Packers Plus assembly (3 fracs completed)  583 bbls X-linked gel; 2% KCL water energized with 42-59% N2 Lat

  58. Slide 58: BTD-2H Horizontal - Mezardere Reservoir

    BTD-2H Horizontal - Mezardere Reservoir  Mezardere DTD-6 producing zone  Spud February 3, 2014 (13 drill BTD-2 DTD-6 days)  635 m TVD; 1,246 m MD  Lateral section: 476 m  Total sand encountered: 242 m  8-stage frac Packers Plus assembly Lateral section: 476m  3,420 bbls X-linked gel; 2% KCL w

  59. Slide 59: TDR-11H Horizontal - Mezardere Reservoir

    TDR-11H Horizontal - Mezardere Reservoir  Mezardere TS-18 producing zone  Spud February 20, 2014 (11 drill days)  518 m TVD; 1,291 m MD  Lateral section: 678 m  Total sand encountered: 394 m  10-stage frac Packers Plus assembly  4,754 bbls X-linked gel; 2% KCL Lateral section: 678 m water ene

  60. Slide 60: TDR-5H1 Horizontal - Teslimkoy Reservoir

    TDR-5H1 Horizontal - Teslimkoy Reservoir  Teslimkoy C producing zone  Spud July 28, 2014 (12 drill TDR-5 TDR-5H days)  991 m TVD; 1,698 m MD  Lateral section: 569 m  Total sand encountered: 35 m  Total silt encountered: 103 m  8-stage frac Packers Plus assembly Landing Point: 1,129m Lateral s

  61. Slide 61: Mezardere Slope Fan Model

    Mezardere Slope Fan Model  Mezardere consists of a north-easterly pro- grading slope fan complex, deposited within delta front and pro-delta setting  Potential reservoirs include: − Porous channel and basin floor sands − Interlaminated sands and shales from channel abandonment, overbank, distal ap

  62. Slide 62: Recent Osmancik & Mezardere Results & Potential Extension into Banarli

    Recent Osmancik & Mezardere Results & Potential Extension of Play Types into Banarli Potential Pressure Seal Hayrabolu-10 Banarli 2015 3D: 152 km2 Gurgen-1 IP30: 3.3 MMcf/d (Osm) Gurgen-2 Yayli-1 Bati Gurgen-1 IP30: 3.3 MMcf/d (Osm) planned drilling Gurgen-3 IP(30): 1.1 MMcf/d (Osm) Dogu Osmanli-1 C

  63. Slide 63: Thrace Basin Seismic

    Thrace Basin Seismic 10 km 2015 Banarli 3D (152 km2)  Drilling on 2D seismic only prior to 2012 2013 Osmanli 3D (232 km2)  2011 & 2013 3D seismic (645 km2) guiding TBNG 2011 Tekirdag/Hayrabolu 3D (413 km2) JV drilling since early 2012 2013 Banarli 2D (92.5 km)  Valeura funded 2013 2D seismic on B

  64. Slide 64: Gaziantep Licences– Alibey-1 Horizontal

    Gaziantep Licences– Alibey-1 Horizontal  152,111 gross acres (Valeura 26% WI) in Anatolian Basin N39-a1  Operated by TransAtlantic New Licence Areas  Alibey-1 Hz drilled in July 2012 as 414 m horizontal side-track in original Alibey-1 vertical well, N39-a4 which flowed heavy oil from the Old Lice

  65. Slide 65: Turkey Natural Gas Infrastructure

    Turkey Natural Gas Infrastructure 65

  66. Slide 66: Turkey Oil Infrastructure

    Turkey Oil Infrastructure 66

  67. Slide 67: Thrace Basin Turkey – Stratigraphic Column

    Thrace Basin Turkey – Stratigraphic Column  Tertiary basin  9,000 m of tertiary age sediments  Depositional environment − Deltaic sands − Turbidite sands − Reef development on Paleozoic highs  Key reservoirs − Danismen - gas − Osmancik – gas − Mezardere - gas − Ceylan – gas − Sogucak – oil − Ham

  68. Slide 68: SE Turkey – Stratigraphic Column

    SE Turkey – Stratigraphic Column Reservoirs  Sinan/Garzan reefs (Tertiary/Upper Cretaceous)  Karabogaz & Mardin (Mid Cretaceous)  Bedinan (Ordovician) Source Rocks  Karabogaz (Cretaceous)  Dadas (Silurian) Seals  Germav (Upper Cretaceous)  Dadas (Silurian) Play Types  Structural - Reverse an

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