Financial Position and Royalty
As of
During 2021, Valeura reshaped its organisation structure and downsized to best support its forward strategy, resulting in a significant reduction in corporate costs. In Q4 2021, the combined effect of reduced ongoing corporate costs together with anticipated royalty payments resulted in net cash consumption of just over
Strategy
Valeura's 20 Tcfe unrisked mean prospective resource deep tight gas appraisal play in
As a result of the ongoing COVID-19 situation in
In the nearer-term, Valeura intends to leverage its strong financial position toward growing by way of mergers and acquisitions ('M&A'). The collective international experience of the Company's management and board defines a broad focus area, including jurisdictions with significant deal flow and expected relatively low competition for assets. Valeura is actively pursuing several M&A opportunities, targeting near-term production and cash flow, plus follow-on investment opportunities to enable mid-term growth. The Company is currently in discussions on several opportunities, and will disclose further details on these transactions in due course as appropriate.
Contact:
Tel: +1 403 237 7102
Advisory and Caution Regarding Forward-Looking Information
Certain information included in this news release constitutes forward-looking information under applicable securities legislation. Such forward-looking information is for the purpose of explaining management's current expectations and plans relating to the future. Readers are cautioned that reliance on such information may not be appropriate for other purposes, such as making investment decisions. Forward-looking information typically contains statements with words such as 'anticipate', 'believe', 'expect', 'plan', 'intend', 'estimate', 'propose', 'project', 'target' or similar words suggesting future outcomes or statements regarding an outlook. Forward-looking information in this news release includes, but is not limited to: the Company's expectations regarding the anticipated amount and timing of royalty payments in respect of Q4 2021 and by the end of 2022; the Company's anticipated amount of net cash consumption in Q4 2021; statements with respect to the Company's deep tight gas play strategy, including management's belief that the play represents a material value proposition for shareholders, its ability to find another farm-in partner for the play, and its ability to resume appraisal drilling rapidly upon securing a partner and statements with respect to the Company's inorganic growth strategy, including its ability to leverage its strong financial position and identify M&A targets. In addition, statements related to 'resources' are deemed to be forward-looking information as they involve the implied assessment, based on certain estimates and assumptions, that the resources can be discovered and profitably produced in the future.
Forward-looking information is based on management's current expectations and assumptions regarding, among other things: stability of gas prices and production from the shallow assets used to determine the amount of the royalty payments; approvals forthcoming from the Turkish government in a manner consistent with past conduct; future drilling activity on the required/expected timelines; the prospectivity of the Company's lands, including the deep potential; future economic conditions; future currency exchange rates; the ability to meet drilling deadlines and other requirements under licences and leases; the ability to attract a new partner in the deep play; the ability to identify attractive merger and acquisition opportunities to support growth and the Company's continued ability to obtain and retain qualified staff and equipment in a timely and cost efficient manner. Although the Company believes the expectations and assumptions reflected in such forward-looking information are reasonable, they may prove to be incorrect.
Forward-looking information involves significant known and unknown risks and uncertainties. Exploration, appraisal, and development of oil and natural gas reserves are speculative activities and involve a degree of risk. A number of factors could cause actual results to differ materially from those anticipated by the Company including, but not limited to: reduction in gas prices or production from the shallow assets that impacts the amount of the royalty payments; inability to secure a new partner for the deep play and execute potential M&A transactions; inability to meet drilling deadlines to hold licences; the risks of further disruptions from the COVID-19 pandemic; the risks of currency fluctuations; uncertainty regarding the contemplated timelines and costs for the deep evaluation; potential changes in laws and regulations, the uncertainty regarding government and other approvals; counterparty risk or payment risk for the royalty and the risk associated with international activity. The forward-looking information included in this news release is expressly qualified in its entirety by this cautionary statement.
The forward-looking information contained in this news release is made as of the date hereof and the Company undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, unless required by applicable securities laws. The forward-looking information contained in this news release is expressly qualified by this cautionary statement.
Additional information relating to Valeura is also available on SEDAR at www.sedar.com.
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