Valeura Energy Inc.: Türkiye Joint Venture Agreement

Core Viewpoint - Valeura Energy Inc. has entered into a joint venture with Transatlantic Petroleum LLC to explore and develop hydrocarbons in the Thrace basin of northwest Türkiye, indicating a strategic focus on the deep gas play in the region despite a broader pivot towards the Asia-Pacific market [1][2][4]. Joint Venture Details - The joint venture allows Transatlantic to earn a 50% working interest in the deep rights held by Valeura and Pinnacle through two operations, including re-entry and testing of the Devepinar-1 well [3][7]. - Transatlantic will act as the contract operator for the venture, leveraging its experience in Türkiye, while Valeura remains the operator of record with the government [6][10]. Exploration and Development Plans - Valeura has a history of successful exploration in Türkiye, holding deep rights in various licenses covering a total of 955 km in the Thrace basin, with the current exploration phase set to expire on June 27, 2026 [4][5]. - The company previously identified multiple trillion cubic feet (Tcf) of gas in place across its lands, with successful gas flow from all tested zones during earlier drilling [2][5]. Upcoming Operations - The re-entry and testing of the Devepinar-1 well are expected to commence in Q4 2025, with Transatlantic covering the initial costs up to US$2 million [11][12]. - If the results from the Devepinar-1 well indicate a commercial discovery, Transatlantic will earn a 50% interest in the working rights held by Valeura and Pinnacle [10][12]. Technical Insights - Valeura's previous drilling and testing efforts have provided valuable insights, leading to the identification of a well location that could intersect high-quality reservoirs, potentially improving flow rates and minimizing decline [13][19]. - The Hanoglu-1 well location has been permitted for drilling and may serve as a fast-track opportunity for further exploration, contingent on the results from the Devepinar-1 well [13][19].