Valeura Energy Inc. (VLU) ("Valeura"), an upstream oil and gas company with assets in the Thrace Basin of Turkey, is pleased to announce that all Turkish government consents required to proceed to close its proposed sale of its shallow conventional gas business (the "Sale Transaction") have been granted.
Valeura and TBNG Limited (the "Buyer"), will now proceed to close the transaction. This is anticipated to occur within the coming weeks.
Sean Guest, President and CEO commented:
"I am pleased to announce that all required consents have been granted for us to proceed to closing the sale of our conventional gas business and look forward to strengthening our balance sheet both with immediate sale proceeds and with the royalty payments we will receive thereafter.
"We remain committed to Turkey, and our longer-term plans to further appraise our 20 Tcfe unrisked mean prospective resource deep tight gas play remain intact. In the meantime, closing this sale will solidify our increased cash position which will facilitate Valeura pressing forward with our inorganic growth strategy."
Upon closing, Valeura will receive cash consideration of US$15.5 million, subject to normal closing adjustments based on the economic effective date of July 1, 2020. Thereafter, Valeura will be entitled to royalty payments over a five-year period, tied to local gas prices, and ranging in total from a minimum of US$1.0 million and a cap of US$2.5 million. At closing, the sale is expected to boost Valeura's corporate cash balance to approximately US$44 million.