Valeura Energy Announces Positive Production Test Results at the Second Zone in Inanli-1

Valeura Energy, the upstream natural gas producer focused on appraising and developing an unconventional gas accumulation play in the Thrace Basin of Turkey in partnership with Equinor, has announced a successful natural gas flow test from the second stimulated zone in the Inanli-1 appraisal well.

Based on the positive flow results from the first test (reported on August 12th, 2019), Valeura and its partner Equinor decided to add an additional test zone to the Inanli-1 work programme.

The interval 4,176 through 4,217 metres was targeted to test an area of tighter and less fractured rock, slightly shallower than the first zone, to determine gas flow potential and fluid characteristics from rock in the same general stratigraphic unit as the first test, but interpreted based on petrophysics to be of lower reservoir quality. The reservoir stimulation was relatively small with approximately 15 tonnes of proppant deployed into the reservoir.

Once natural gas flow was confirmed post-stimulation by flowing gas up the casing for several hours, production tubing and artificial lift were installed to assist in cleaning up the well. The well was then flowed for approx. four days with an average net gas rate over the flowing period of 185 Mcf/d. The rate for the final 24 hours of flow was 130 Mcf/d.

The fluid characteristics from this interval were similar to that produced from the first zone with a condensate-gas ratio of less than 10 bbls/MMcf. While the well was still flowing back some amount of stimulation fluid, water production was minimal with an average of approx. 4 bbl/d for the final 24-hour period of flow.

The Company believes these results are very encouraging given the ability to flow gas from what was interpreted to be a lower quality reservoir section, and the further confirmation of low water rates associated with the gas production at these depths.

Attaining stabilised natural gas flow, even at relatively low rates, is the key to defining target areas for potential pilot development programmes. This work will underpin the Company’s next steps to demonstrate the commerciality of its 10 Tcfe (286 BCM) of unrisked gas resource, including 236 MMbbl (32 MMTonnes) of condensate, net to Valeura.

This second test has now concluded and the Company is currently preparing the well for the stimulation and testing of the third zone of interest. Testing in Inanli-1 is expected to extend into in Q4 2019 with all tests fully funded by Equinor.