Valeura Energy posts ‘positive’ Inanli-1 appraisal well results

Valeura Energy posts ‘positive’ Inanli-1 appraisal well results

Turkey-focused upstream natural gas supplier Valeura Energy Inc. (LON: VLU) today posted mixed financial and operational results for the second quarter of 2019, alongside ‘positive’ production test results for its Inanli-1 appraisal well.

For the second quarter of FY19, the Company noted that production had dipped 9% compared to Q1, and was down 5% on a year-on-year comparison for the second quarter. Its operating income of $1.8 million for Q2 was 21% lower than its figure for the previous quarter, but up 20% on Q2 2018.

Its average realised gas price of $8.54/Mcf was 7% lower than in Q1 FY19, but up 15% on-year for the same period. The Company’s net working capital surplus also dropped during the quarter, from $56.1 million on March 31, to $52.3 million on June 30 2019. 

Operationally, Valeura Energy told investors that it had completed drilling operations at the Devepinar-1 project within budget.

Further, it reported that it had successfully flowed natural gas from a 21 metre gross interval that it had stimulated at its Inanli-1 appraisal well. The well has been flowing since August 3 2019 and gas flow is stable, with production for the first eight days averaging 

Valeura Energy comments

Investor notes

The Company’s share price last closed at 2.41 CAD, after rallying over 5% during trading. The Company’s p/e ratio is currently unavailable, their market cap stands at £136.37 million.

Elsewhere in the oil and gas sector, there have been updates from; Eco Atlantic Oil and Gas Ltd (AIM: ECO), President Energy PLC (LON: PPC), Mosman Oil and Gas Limited (AIM: MSMN), Nostrum Oil and Gas PLC (LON: NOG) and Reabold Resources PLC (LON: RBD).