Valeura Energy, the upstream natural gas company focused on the Thrace Basin of Turkey, provides an update on its ongoing production operations.

Valeura's operations in Turkey are continuing, with Q1 2020 production averaging 706 boe/d, an increase of 9% over Q4 2019. Realised gas prices were unchanged versus the prior quarter on a Turkish Lira basis, but down 4% from Q4 2019 on a US dollar basis to US$7.08/Mcf reflecting a sharp increase in the value of the US dollar towards the end of the quarter. Petroleum and natural gas sales revenue for Q1 2020 was US$2.8 million, an increase of 6% over the prior quarter.

Recently, in light of the global COVID-19 pandemic, economic activity in Turkey has begun to slow down, resulting in reduced gas demand from some of Valeura's light industrial customers. This reduced demand has been managed primarily by curtailing third-party gas throughput and imposing only minimal reductions to Valeura's equity gas production. Valeura's recent gas production has averaged approximately 75-80% of the Q1 2020 average rate.

Valeura is adhering to advice provided by local and international health authorities regarding social distancing and increased hygiene practices. As a result, most of the Company's production operations are able to proceed normally, however the Company has suspended non-critical field work, including workovers and redevelopment of existing wells, and has implemented work-from-home arrangements wherever possible. The Company still anticipates completing its two shallow wells in the West Thrace licence in Q2 but will continue to conduct its operations in accordance with expert medical guidance and government directives related to COVID-19.

Sean Guest, President and CEO commented:
"Maintaining our high standards of health, safety, and environmental protection takes on a special meaning in the current context. We recognise the need to implement new measures including social distancing and increased hygiene and encourage everyone to do likewise. At the same time, we will not compromise on safety-critical staffing as we continue to meet the needs of our customers in Turkey.

"Even with the effects of the COVID-19 pandemic in the latter half of the quarter, our first quarter performance increased relative to Q4 and is a continuing demonstration of how we can optimise our production operations. Looking forward, we will undoubtedly face headwinds as this unprecedented turmoil unfolds, but we will continue to always adhere to the best medical and safety advice to protect the health of our staff."

KeyFacts Energy: Valeura Energy Turkey country profile