Valeura Energy signs Turkey JV deal with Transatlantic

Executive Summary

• Valeura Energy Inc., its wholly‑owned subsidiary and partner Pinnacle Turkey Inc. entered a joint‑venture agreement with Transatlantic Petroleum LLC (via a subsidiary) to explore and develop deep gas assets in the Thrace basin of northwestern Turkey.
• The agreement triggers near‑term re‑entry and hydraulic stimulation of the Devepinar‑1 well (Q4 2025) and gives Transatlantic an option to earn up to 50 % working interest in both western and eastern portions of Valeura’s deep rights by completing successful appraisal wells.
• Transatlantic will fund 100 % of re‑entry costs up to US$2 M (with cost‑share thereafter) and up to US$8 M for a deep appraisal well, aligning financial risk with potential commercial discovery.

Key Details

• Joint Venture Structure
• Parties: Valeura Energy Inc., Pinnacle Turkey Inc., Transatlantic Petroleum LLC (subsidiary).

• Scope: Exploration and development of hydrocarbons in deep rights formations (<2,500 m or pressure gradient ≤0.6 psi/ft) covering ~955 km² in the Thrace basin.

• Devepinar‑1 Re‑Entry

• Transatlantic to conduct re‑entry, hydraulic stimulation, and testing of shallower zones in the Kesan formation (4,660–4,765 m).
• Cost arrangement: Transatlantic pays 100 % up to US$2 M; any excess split 50 % Transatlantic, 31.5 % Valeura, 18.5 % Pinnacle.
• Testing expected to commence Q4 2025.

• If commercial discovery achieved, Transatlantic earns a 50 % undivided working interest in the western portion (Valeura 63 %, Pinnacle 37 %).

• Deep Appraisal Well – Hanoglu‑1

• Location: Banarli exploration licence (eastern lands).
• Option for Transatlantic to earn a 50 % undivided working interest in the eastern portion if a well drilled ≥4,000 m results in commercial discovery.

• Cost arrangement: Transatlantic pays 100 % up to US$8 M; any excess split 50 % Transatlantic / 50 % Valeura.

• Historical Context

• 2017‑2020 drilling program (Yamalik‑1, Inanli‑1, Devepinar‑1) demonstrated multiple trillion cubic feet of gas in place; all tested zones flowed gas but none were commercial due to flow rates and pricing at the time.

• Equinor exited the venture in Q2 2020; assets have been dormant since.

• Strategic Rationale

• Valeura maintains a strategic focus on Asia‑Pacific but retains conviction in the deep gas play’s value, especially given higher European gas prices.
• Partnership leverages Transatlantic’s operational presence in Turkey and its experience with unconventional resources.

Notable Quotes

“Despite our strategic pivot toward the Asia‑Pacific region, we have maintained our conviction that the deep gas play we discovered in northwest Turkiye offers significant potential to add value to the company.” – Dr. Sean Guest, President & CEO, Valeura Energy Inc.

“Transatlantic… are well placed to operate this next phase of the play to drive value generation for all stakeholders.” – Dr. Sean Guest, President & CEO, Valeura Energy Inc.