Valeura Energy Inc. announced successful drilling results at the Gurgen-2 appraisal well in the Thrace Basin of Turkey, which is on-stream and producing at an average restricted rate of 3.0 million cubic feet per day (MMcf/d) (gross). The Gurgen-1 discovery well was the most productive of the three discovery wells and has been on-stream for 62 days at an average restricted rate of 3.1 MMcf/d (gross) at choke sizes ranging from 18/64 to 22/64 inches. Gurgen-2, the first of two planned appraisal wells on the Gurgen discovery, was spudded on November 30 and was drilled in 14 days to a vertical depth of 2,000 metres into the Osmancik formation. The well is located approximately 500 metres southeast of Gurgen-1. The log analysis indicated 52 metres of net pay at an average porosity of 17%. This compares favourably to Gurgen-1, which intersected 57 metres of net pay with 17% average porosity. The Gurgen-2 well was cased to a depth of 1,650 metres and 11 metres of net pay was perforated as an initial completion. The well is tied-in and has been on-stream for 13 days at an average restricted rate of 3.0 MMcf/d (gross) through a 20/64 inch choke at an average flowing tubing pressure of 1,510 pounds per square inch. The second appraisal well, Gurgen-3, was spudded on January 3, 2015. The well location is approximately 500 metres southeast of Gurgen-2.

The company reported Turkey net sales for the fourth quarter and full year 2014. Net petroleum and natural gas sales in Turkey in the fourth quarter of 2014 averaged 1,180 barrels of oil equivalent per day (boe/d), which were up 18% from the third quarter of 2014 and included 7.0 MMcf/d of natural gas and 10 barrels of oil per day. The preliminary estimate for the average natural gas price realization in the fourth quarter of 2014 is approximately $10.50 per thousand cubic feet (Mcf), up 9% from the third quarter of 2014. This increase reflects the impact of a 9% increase in the reference price for domestic gas sales in Turkey (priced in Turkish Lira).

Net petroleum and natural gas sales in Turkey for the full year 2014 averaged 1,143 boe/d, which was up 23% from 2013. This result also exceeded the revised August 2014 production guidance range for the full year of 1,030 to 1,080 boe/d.

The Corporation announced capital expenditure budget in Turkey in 2015. The Corporation announced that it plans a capital budget of up to $19 to $22 million (net) in Turkey in 2015 that is targeted to grow production volumes by 10 to 15% compared to 2014 and is expected to include the acquisition of approximately 140 square kilometres of 3D seismic and drilling of up to three exploration wells on its 100% Banarli licence in the Thrace Basin.