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. The 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 include hydraulic stimulation and testing of shallower zones in the Kesan formation.
Why It's Important?
This joint venture represents a strategic move for Valeura to leverage its existing assets in Türkiye amidst a shift towards Asia-Pacific operations. The collaboration with Transatlantic Petroleum could unlock significant commercial value from the deep gas resources, especially given the current high European gas prices. Successful exploration and development could enhance energy security and supply in the region, potentially impacting local and international gas markets.
What's Next?
If the re-entry program is successful, Transatlantic has the option to drill a deep appraisal well, potentially at the pre-permitted Hanoglu-1 location. This would target high-quality reservoir intervals within the dry gas window, with Transatlantic funding up to $8 million in drilling costs. The joint venture marks Valeura's return to operational activity in the Thrace basin, aligning with Transatlantic's recent unconventional development partnerships in the region.
Beyond the Headlines
The partnership highlights the growing interest in unconventional gas resources as a means to diversify energy supply and reduce dependency on traditional sources. The use of advanced technology and strategic collaborations could set a precedent for similar ventures in other regions, fostering innovation and investment in the energy sector.
