Valeura Energy Inc. · TSX:VLE
Valeura Energy — Canaccord Genuity Global Energy Conference 2011
17 slides from Valeura Energy's conference presentation, Oct 12, 2011
Slide 1: Building Momentum in Turkey
A GLOBAL ENERGY COMPANY FOCUSED ON EXCEPTIONAL VALUE CREATION BUILDING MOMENTUM IN TURKEY CANACCORD GENUITY GLOBAL ENERGY CONFERENCE OCTOBER 12, 2011 MIAMI
Slide 2: Disclaimer/Forward Looking Information
DISCLAIMER/FORWARD LOOKING INFORMATION Certain information contained herein constitutes forward-looking information under applicable securities legislation. Such forward- looking information is provided for the purpose of providing information about management's current expectations and plans relati
Slide 3: Disclaimer/Forward Looking Information (Cont'd)
DISCLAIMER/FORWARD LOOKING INFORMATION (CONT’D) the ability to reach agreement with partners; the ability of the Corporation to successfully manage the political and economic risks inherent in pursuing oil and gas opportunities in foreign countries; the state of the capital markets; the ability of t
Slide 4: Profile
PROFILE Valeura Energy Inc. (VLE – TSX) Canada-based oil and gas E&P company with assets in Turkey and Western Canada Executed agreements for five transactions in Turkey since Sept 2010 (1): − AME-GYP farm-in (minimum US$8.8MM): oil in SE Anatolian Basin − Otto asset acquisition ($1.9MM): natural
Slide 5: Why Turkey?
WHY TURKEY? Prospective TBNG-PTI TBNG-PTI acquisition Proven petroleum systems Acquisition (natural gas & light/heavy oil) Under-explored & under-exploited conventional opportunity & unconventional plays Opportunity to deploy modern technology Anatolian Basin main oil producing region in Zag
Slide 6: Valeura Lands in Turkey
VALEURA LANDS IN TURKEY PETROLEUM LEASES & LICENCES GROSS AREA VALEURA NET AREA TRANSACTION DISTRICT (#) (acres) (acres) (1) THRACE BASIN TBNG-PTI – Onshore (2) I (MARMARA) 9 507,851 203,140 TBNG-PTI – Offshore (2) I (MARMARA) 5 715,217 227,024 Marhat/TransAtlantic (3) I (MARMARA) 3 364,000 243,000
Slide 7: Thrace Basin Lands
THRACE BASIN LANDS Bulgaria Otto asset purchase (35% WI) 3839 TBNG-PTI asset purchase (40% onshore; 15-35% offshore) Turkey Greece 2926 Marhat farm-in 3659 (100% WI) 3861 3860 3734 Istanbul 4126 4201 3858 3931 3934 4532 4324 4094 4322 4323 4460 4459 TransAtlantic farm-in (50% WI) 50 km 7
Slide 8: TBNG-PTI Shallow Gas Business
TBNG-PTI SHALLOW GAS BUSINESS Kazanci/ Hayrabolu Osmanli Kilavuzlu/ Bekirler Karaevli Tatarli Kayi Yagci/ Nustratli Gazi Aydede Tekirdag Evrenbey-1 (planned spud late Oct ‘11) 10 km 10 km Estimated sales 19.4 MMcf/d (gross) or 7.8 MMcf/d (net) in 3rd Cumulative Proved + Probable quarter 2011 Field
Slide 9: Southern Thrace Basin Mezardere X-Section
SOUTHERN THRACE BASIN MEZARDERE X-SECTION FORMATION MEZARDERE PARAMETER LOW HIGH A A’ Depth (m) 1,000 3,500 Aydede-1 Yagci-8 BTD-1 BTD-2 DTD-3 DTD-7 DTD-9 Kuzey Kayi-1 Gross H (m) 500 2,500 Gross sand H (m) 240 900 Net pay H (m) 32 120 Ф (%) 3 15 DTD-7,9 K (md) 0 2 Frac’d Mezardere Perforations TOC
Slide 10: Tight Gas - Proof-of-Concept Program Phases
TIGHT GAS - PROOF-OF-CONCEPT PROGRAM PHASES 1. RECOMPLETION FRACS (750-2,000 m DEPTH) Identify zones which are gas bearing in Mezardere that require fracs to achieve commercial rates focusing initially on areas within structural closure Up to six well re-entries with at least a single-stage frac i
Slide 11: BTD-2 Frac Success
BTD-2 FRAC SUCCESS Frac Design and Results Third well in proof-of-concept frac program Single-stage frac completed on Oct 3, 2011 29 metre gross interval in Teslimkoy sands in Mezardere formation at depth of 980 metres Interpreted 9.0 metres net pay and 16% porosity Limited frac size to 22
Slide 12: AME-GYP Farm-in - Karakilise Licences 2674 & 2677
AME-GYP FARM-IN - KARAKILISE LICENCES 2674 & 2677 Karakilise-1 recompletion (currently producing TPAO Kastel field 40-50 bopd) EUR: 15 MMbbl Mardin Play Fairway Altinakar-1 drill well (Mardin oil discovery) AME Arpatepe field (currently producing 500-600 bopd) Bedinan Play Fairway Valeura Farm-in La
Slide 13: Licence 2674 – Bedinan Prospects & Leads
LICENCE 2674 – BEDINAN PROSPECTS & LEADS 119,265 gross acres N 10+ Bedinan prospects & leads identified 2674 with new 2D seismic (tilted fault blocks) Altinakar-1 discovered heavy oil in Mardin Altinakar-1 GDPA on Sept 18, 2011 approved 3-year Bedinan drill well extension of Licence 2674 to
Slide 14: Turkey Indicative Well Economics
TURKEY INDICATIVE WELL ECONOMICS PHYSICAL PARAMETERS PER WELL PV10 ATAX (6) RECYCLE PROGRAM IP (2) ATAX ($MM) RATIO (7) RESERVES (1) CAPEX (3) F&D COST (5) (MMcf/d or Netback (4) (Bcf or Mbbl) ($MM) ($/BOE) bbl/d) ($/BOE) Thrace Basin Gas Shallow Gas Drilling 0.4 0.7 0.7 25.68 11.64 0.6 2.2 Tight Ga
Slide 15: Turkey Indicative Budget 2011
TURKEY INDICATIVE BUDGET 2011 (1) DRILLING NON DRILLING TOTAL BUSINESS SEGMENT GROSS WELLS NET WELLS WI AMOUNT WI AMOUNT WI AMOUNT (#) (#) (US$MM) (US$MM) (US$MM) TBNG-PTI Acquisition 13 5.2 4.3 7.3 11.6 Otto Acquisition 4 1.4 1.1 0.3 1.4 Marhat/TransAtlantic Farm-in 1 1.0 1.5 1.0 2.5 AME-GYP Farm-i
Slide 16: Summary
SUMMARY Closing of TBNG-PTI acquisition in Turkey has transformed Valeura: - Boosted estimated production to 1,630 BOE/d in 3rd quarter 2011 - Acquired an established shallow gas production & marketing business currently realizing wellhead prices of approximately US$7.00/Mcf - Increased exposure to
Slide 17: Building Momentum in Turkey
A GLOBAL ENERGY COMPANY FOCUSED ON EXCEPTIONAL VALUE CREATION BUILDING MOMENTUM IN TURKEY CANACCORD GENUITY GLOBAL ENERGY CONFERENCE OCTOBER 12, 2011 MIAMI
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