Valeura, Canada’s exploration, development and production company said it has closed a farm-in deal in Turkey with Statoil for US$18 million.
The Canadian firm has received cash payments from Statoil of $6 million and $12 million for the Banarli Farm-in and the West Thrace Deep Rights Sale, respectively, it said in a statement.
Norway's Statoil will earn a 50 per cent interest in the deep rights by investing $36 million of which $6 million is an up-front payment as a contribution to back costs incurred on the Banarli licences, 100 per cent owned by Valuera.
It also buys from Corporate Resources B.V., a wholly-owned affiliate of Valuera, a 40 per cent participating interest in the deep formations below approximately 2,500 metres on certain lands in an existing joint venture with Thrace Basin Natural Gas Corporation (TBNG) and Pinnacle Turkey Inc.
Valeura anticipates using the above payments from Statoil, together with the $11 million raised under its underwritten private placement offering of subscription receipts to fund the acquisition of TBNG by Valeura Energy Netherlands B.V., a wholly-owned affiliate of Valeura. It will also use the proceeds to ramp-up shallow gas drilling.
Closing of the TBNG acquisition will require a payment of approximately $18.5 million, after closing adjustments, and is currently expected to occur in February 2017. This transaction will increase Valeura's participating interest in the TBNG JV to 81.5 per cent (subject to the West Thrace Deep Rights Sale) and establishes Valeura as the operator.
The Ministry of Energy and Natural Resources of the Republic of Turkey approved the Banarli Farm-in, the West Thrace Deep Rights Sale and the TBNG Acquisition on December 30, 2016.
"Closing of these transformational transactions with Statoil is an exciting milestone for Valeura, which paves the way to spud the first 4,000 metre exploration well in Q1 2017 under the Banarli Farm-in, funded by Statoil, targeting a deep, over-pressured, basin-centered gas play that has the potential to be another game-changer for Valeura", said Jim McFarland, president and chief executive officer of Valeura.
"In addition, we now have the financial capacity to proceed with our planned 2017 shallow gas drilling program in the Thrace Basin, which is expected to commence in February on the TBNG JV lands at the Dogu Atakoy-3 location where approvals and site preparation are already complete", said McFarland.