Valeura Energy Inc (LON:VLU), an upstream oil and gas company with assets in the Thrace Basin of Turkey, has announced the closing of its sale of its shallow conventional gas business to TBNG Limited.
Valeura’s corporate cash balance is now approximately US$44 million, and pursuant to the terms of the Sale Transaction the Company is entitled to receive royalty payments over a five-year period, tied to local gas prices and ranging in total from a minimum of US$1.0 million and a cap of US$2.5 million.
Sean Guest, Valeura Energy President and CEO commented:
“I am very pleased to have completed the sale of our shallow gas business, which bolsters our cash position and will pave the way for our inorganic growth strategy. We are pressing forward with evaluation work on several potential transactions and continuing in our efforts to secure a suitable partner for our deep tight gas play in Turkey, which remains an important part of our portfolio.”
