Valeura Energy Inc. · TSX:VLE

Valeura Energy — Shareholder Meeting (May 2016)

20 slides from Valeura Energy's shareholder meeting presentation, May 12, 2016

  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 ANNUAL MEETING OF SHAREHOLDERS MAY 12, 2016

  2. Slide 2: Disclaimer/Forward Looking Information

    Disclaimer/Forward Looking Information 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: the Corporation’s 2016 work program and bud

  3. 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)(1)  Pursuing development of conventional gas & tight gas in the Thrace Basin  Utilizing latest 3D seism

  4. Slide 4: Q1 2016 Financial & Operating Highlights

    Q1 2016 Financial & Operating Highlights 3 MONTHS 3 MONTHS 3 MONTHS ENDED ENDED ENDED RESULTS MARCH 31, DECEMBER 31, MARCH 31, 2016 2015 2015 Production Crude oil & NGLs (bbl/d) 9 8 10 Natural gas (Mcf/d) 4,697 4,805 7,273 boe/d 792 809 1,223 Financial (Canadian $ M, except per boe amounts) P & NG r

  5. Slide 5: Thrace Basin Transactions

    Thrace Basin Transactions (1) Bulgaria 2010 Otto asset purchase (Edirne) Black Sea E17-b4-1 (Valeura 35% WI) E17-c1-1 E17-c2-1 Turkey 2013 Banarli licences award VLE (Valeura 100% WI) license application F18-b3,F19-a4 November 2015 F18-b3 F19-a4 5122 3659 2926 F17- F18- F19- F19-d4-2 TBNG-VLE-PTI Gr

  6. Slide 6: 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 6

  7. 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

  8. Slide 8: TBNG JV Shallow Gas & Tight Gas Plays

    TBNG JV Shallow Gas & Tight Gas Plays SHALLOW GAS Akcahalil-1 Inecik- 2 Aydede-1 YAGCI-8 ND-1 TDR-2 TS-18 DTD-1 KAYI-7 BATI GAZI-1 BATI KARAEVLI-1  Danismen & Osmancik SOUTHWEST NORTHEAST  5 re-entry fracs since mid-2011 (Osmancik) DANISMEN  63 workovers & 17 new 500 m OSMANCIK drills in 2012-201

  9. Slide 9: Banarli (Valeura 100% WI - Operated) – Opportunity to Leverage Four+ Years of Learnings

    Banarli (Valeura 100% WI - Operated) – “Opportunity to Leverage Four+ Years of Learnings” 3D Seismic Acquisition on Banarli – May 2015 9

  10. Slide 10: Banarli Exploration Strategy

    Banarli Exploration Strategy  Banarli licence awarded to Valeura (100% WI) in April 2013 (541 km2; 209 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

  11. Slide 11: TBNG JV Producing Fields & Banarli Conventional Exploration Prospects

    TBNG JV Producing Fields & Banarli Conventional Exploration Prospects Banarli Banarli F18-c1,c2,c3,c4 F19-d1,d4 Muratli Banarli licences Producing fields (1) Aydinkoy Banarli prospects (2) Merged Banarli, Tekirdag & Osmanli 3D seismic (~550km2) Bati Gurgen-1 Osmancik similarity imaging Yayli-1 IP30:

  12. Slide 12: Osmancik/Danismen Prospect Map (Play Types 1 & 2)

    Osmancik/Danismen Prospect Map (Play Types 1 & 2) Mid Danismen PSTM Time Structure Osmancik/Danismen Prospects Discoveries MURATLI Prospects (< 2500 m) (1) AYDINKOY YAYLI-1 TESLIMKOY FRACING UNDERWAY BATI GURGEN-1 OSMANCIK IP30 3.4 MMCF/D GURGEN PRODUCING FIELD Osmanli Field (1) These are internally

  13. Slide 13: 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 Hayrabolu-10 Ergene-1 Pressure 0.75 psi/ft 0.68 psi/ft Seal Area 1,500 km2 Kazanci-5 0.77 psi/ft Banarli Banarli F18-c1,c2,c3,c4 F19-d1,d4 Kandamis-1 0.77 psi/ft Yayli-1

  14. Slide 14: Formations & Depositional Environments Within Potential Pressure Seal Area

    Formations & Depositional Environments Within Potential Pressure Seal Area Yayli-1 Ergene-1 Banarli Licenses Boundary Unconformity Top Potential Pressure Seal TD 2,914 m TD 2,967 m Osmancik Shorelines Map View Depth Slice @ 2,500 m Mezardere Ergene-1 Slope Channels Teslimkoy Member Basin Floor Fans

  15. 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 – US$MM (gross) TBNG JV BANARLI Operating Netbacks – $/boe (1) CONVENTIONAL GAS VERTICAL WELL (2) Drill & Case (2,000 m TVD) 1.7 1.7 80 Netback Opex Royalty Tie-in (new facilities) 0.5 0.5 Tot

  16. 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

  17. Slide 17: 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 ANNUAL MEETING OF SHAREHOLDERS MAY 12, 2016

  18. Slide 18: Reader Advisories

    Reader Advisories INITIAL ON-STREAM PRODUCTION RATES: The initial on-stream production rates and 24-hour production test 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

  19. 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 requires, shall have the same meanings herein as in NI 51-101 or the AIF, as applicabl

  20. Slide 20: 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

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