What's Happening?
Valeura Energy Inc. has entered into a joint venture with Transatlantic Petroleum LLC to explore and develop deep gas formations in the Thrace basin of northwest Türkiye. This partnership aims to revitalize
Valeura's deep gas play, initially discovered between 2017 and 2019, which contains multi-trillion cubic feet of gas. Transatlantic will operate the joint venture and can earn a 50% working interest by funding the re-entry of the Devepinar-1 exploration well, expected to begin testing later this quarter. The operation will involve hydraulic stimulation and testing of shallower zones in the Kesan formation to evaluate commercial potential. If successful, Transatlantic may drill a deep appraisal well, potentially at the pre-permitted Hanoglu-1 location, targeting high-quality reservoir intervals within the dry gas window.
Why It's Important?
This joint venture is significant as it marks Valeura's return to operational activity in Türkiye's Thrace basin, where it has held acreage for nearly 15 years. The partnership aligns with Transatlantic's recent unconventional development efforts in the region. The exploration and potential development of deep gas resources could contribute to meeting Europe's energy demands, especially given the current high gas prices. Successful exploration and development could lead to increased energy security and economic benefits for both companies and the region. The collaboration also highlights the strategic importance of advanced technology and international partnerships in unlocking commercial value from natural resources.
What's Next?
The next steps involve the re-entry and testing of the Devepinar-1 exploration well, with hydraulic stimulation planned for shallower zones. If the re-entry program is successful, Transatlantic will have the option to drill a deep appraisal well, fully funding up to $8 million in drilling costs. This could lead to a commercial discovery, earning Transatlantic a 50% interest in the eastern acreage. The outcome of these operations will determine the future development and commercial viability of the deep gas resources in the Thrace basin.
Beyond the Headlines
The joint venture could have broader implications for the energy sector in Türkiye and Europe. It may encourage further investment in unconventional gas resources and stimulate technological advancements in exploration and drilling techniques. Additionally, the partnership reflects a growing trend of international collaborations in the energy industry, which could lead to more efficient resource management and energy production.
