Valeura Energy Inc. · TSX:VLE
Valeura Energy — Shareholder Meeting (May 2016)
20 slides from Valeura Energy's shareholder meeting presentation, May 12, 2016
Slide 1: Shifting Focus to 100% Owned & Operated Banarli Licences
aa = SHIFTING FOCUS TO 100 % OWNED & OPERATED BANARLI LICENCES= = ats -- ANNUALMEETING OF.SHAREHOLDERS™ First off, I’d like to thank our shareholders for approving the resolutions put forward to the meeting this morning, and for their ongoing support. Over the next 40 minutes, I’ll recap our progres
Slide 2: Disclaimer/Forward Looking Information
Eo eee] Disclaimer/Forward Looking Information thi cootoion certo, ead "1 03 defeved by secorities inchiding, but not banted to: the Corpetetion’s 2016 woik program and bedet,. uniting, tracing end y ond target soles votes: ‘planned tie-0 of the Yoyf-t weit ond the tuning thereof; the fi of the the
Slide 3: Corporate Profile
Corporate Profile = Valeura Energy inc. (VLE ~ TSX) Canada-based oil & gas company with assets in Turkey «interests in 21 leases & licences In Turkey: 0.63 MM acres (gross); 0.31 MM acres (net)! » Pursuing development of conventional gas & tight gas In the Thrace Basin = Utilizing latest 3D seismic,
Slide 4: Production
Production ‘Crude ofl & NGLs (bbI/d) 9 8 10 Natural gas (Mcf/d) 4,697 4205 77 boe/d 792 809 1,223 _ Financial (Canadian $ M, except per boe amounts) i P & NG revenues (net) | 428 42s 7,67 Funds flow from operations 1,969 1,600 3673 Notincome/(loss} (992) 287 107 Capital expenditures (net) 2704 | 6,1
Slide 5: Thrace Basin Transactions
Thrace Basin Transactions ") Bulgaria Greece TANG:VLEPTI ticanse application F1B-d3 12) an 4c valeuracnnagy nc Focussing more closely on the Thrace Basin, this map in Slide 5 shows an outline of our current lands which are located west of Istanbul, comprising approximately 630,000 gross acres or 310
Slide 6: Valeura Energy Inc
34 valeura energy inc 'd like to turn now to a more detailed discussion of our assets, first with some brief comments on non-operated 40% working interest in the TBNG JV. The JV has been the main focus to date of activity in Turkey up until 2015. In many respects it has been our proving ground to un
Slide 7: TBNG JV
TBNG JV * Interests in 14 leases & licences in Thrace Basin (0.29 MM gross acres) = Well established shallow gas production and marketing business: - ~100 producing wells (gross) (shallow gas & tight gas) in 15 gas fields in onshore lands - Owned compression facilities & distribution lines + Direct
Slide 8: TBNG JV Shallow Gas & Tight Gas Plays
TBNG JV Shallow Gas & Tight Gas Plays SHALLOW GAS: * Danismen & Osmancik * 5 re-entry fracs since mid-2011 (Osmancik} |__ * 63 workovers & 17 new drills in 2012-2026 YTD © H2 2014 Osmancik discoveries in Osmanti area indicate new play type potential ‘IGHTGAS * Mezardere, Teslimkoy & Kesan |. * Norma
Slide 9: Banarli (Valeura 100% WI - Operated)
Banarli (Valeura 100% WI - Operated) — “Opportunity to Leverage Four+ Years of Learnings” , ‘ 1 valeuraenergyinc. fs 4 I'd like to turn now to our 100% owned and operated Banarli Licences. We are very excited about the potential at Banarli, given its proximity to the centre of the basin. At Banarli
Slide 10: Banarli Exploration Strategy
Banarli Exploration Strategy © Ganatten 0 vaeura O0% Wil In Ar 201 (541 kn 2 cue mi cs under New Petroleum Un, which entends eka Syear term to year 2,5 RO0 em wltyeoe 152 + Spudéed rs 2016 {conventional ye Macch pice of $9.56/24eL wel Yevl-s on December i, 2015 (2,914 m MO); racing program estoy (ih
Slide 11: TBNG JV Producing Fields & Banarli Conventional Exploration Prospects
TBNG JV Producing Fields & Banarli Conventional Exploration Prospects \ = AS Ss T] 7 A = , ~. . f / 3 tees / / bo A. / / > y: f Banarli Banarli ? F18-c1,¢2,¢3,c4] Fig-d1,da SOs ‘ x . r ( Banartiticences , v SSP ibProsucing fields ‘Ces i bBanatt prospects = eT wag SE pea meveed nar, Tekidag = > iy {0
Slide 12: Osmancik/Danismen Prospect Map
Osmancik/Danismen Prospect Map (Play Types 1 & 2) | Prospects a ¥ discoveries | 2 prospects mi ¢< 2600 m)(" | 11) These are internally generated prospects and deiling locations, See ‘Drilling Locations’ under "Reader Adwsories” starting on Slide 18 ‘See ‘lntial On Stream Production Rates’ under “Rea
Slide 13: Potential Basin-Centered Gas Play Fairway (Play Type 5)
Potential Basin-Centered Gas Play Fairway (Play Type 5) Mezardere = The seven deep wells within the potential pressure seal area show pressure gradients ranging from 0.60 - 0.77 psi/ft below 2,500 m as measured by mud weights during drilling and pressure measurements APT Wusline Pressure Test = Comp
Slide 14: Formations & Depositional Environments Within Potential Pressure Seal Area
Formations & Depositional Environments Within Potential Pressure Seal Area Ener a ati ate Teslimkoy Member Fans Cpe FREAMRRRRARRRRRAERRERROREESRE REE! (rel rceancans wnerem cea Ye valeuraenergy inc. ——— = — As a measure of the opportunity, this northeast-southwest seismic cross-section through Banar
Slide 15: Robust Netbacks & Competitive Costs Drive Attractive Natural Gas Economics in Turkey
Robust Netbacks & Competitive Costs Drive Attractive Natural Gas Economics in Turkey Current Cost Structure - USSAAM (gross) Operating Nethacks~ S/he! 80 ‘aWeiback Oper Rayaty 70 Sates Price 62.00 59.92 61.54 60.08 TIGHT GAS RE-ENTRY FRACS Coe ‘shaestage Fat Le ma 8.10 OB 808 TIGHT GAS VERTICAL WELL
Slide 16: 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 0.63 MM acres (gross); 0.31 MM acres (net) = Applying latest 3D seismic, horizontal drilling and multi-stag
Slide 17: Shifting Focus to 100% Owned & Operated Banarli Licences
™ SHIFTING FOCUS TO.400% OWNE & OPERATED BANARLI LICENCES ~ ANNUALMEETING O RSHAREHOLDERS - MAY 12, 2076 J — So that completes my formal remarks and | would like to thank you for your attention (pause). I'd be delighted at this time to take your questions. 17
Slide 18: Reader Advisories
Reader Advisories INITIAL ON-STREAM PRODUCTION RATES: The ineiol on-stream production rates and 24-hour praduction test rates disclosed inthis presentation ore preliminary in nature and may ‘ot be indicotive of stabilized on-steeom production rates. Initial on-stream production rotes are typically d
Slide 19: 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 the AIF and, unless the context otherwise reavires, sli have the some meonings herein os in MI 51-101 or the AVF, 0 oppiicoble.
Slide 20: Reader Advisories (Cont'd) - Abbreviations
Reader Advisories (Cont’d) Abbreviations: OU and Noturet Ges Liquids bor borrels bold bosrels per doy WGLs natural gos Hquids Other bee barrels of ofl equivalent doe/d ——_—bortels of oll equivalent per day M tovsand Mit million w working Interest 130 Initio! 3-d0y on-stceom production ote Mo measure