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Energy Firm's First of Three Appraisal Wells Shows 'Encouraging' Results
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A Mackie Research Capital Corp. report reviewed findings from this company's prospects in Turkey.

In a Jan. 28 research note, analyst Bill Newman reported Valeura Energy Inc.'s (VLE:TSX; PNWRF:OTCMKTS) Inanli-1 appraisal well in Turkey's Thrace Basin "confirmed a thick overpressured gas reservoir." Inanli-1, in which the company owns a 50% working interest, is part of its current three-well appraisal program.

Located about 6 kilometers (6 km) northeast of the discovery well Yamalik-1, Inanli-1 was drilled to 4,885 meters (4,885m), about 689m deeper than Yamalik-1. Inanli-1 hit the primary objective sands at 3,270m "with high net-to-gross sandstone almost continuously to total depth." The area between 3,270 and 4,885m was assessed as overpressured. Overall, the well seemingly intersected more natural fractures than Yamalik-1.

Ready to test, Inanli-1 is now being cased. Fracking and testing are slated to begin in late Q1/19.

The program's second appraisal well, Devepinar-1, 20 km to the west of Yamalik-1, is expected to spud in February or March 2019. Valeura is still finalizing the location of the third appraisal well.

Mackie Research has a Speculative Buy rating and a CA$5.75 per share target price on Valeura Energy, whose stock is currently trading at around CA$3.38 per share.


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Disclosures from Mackie Research, Valeura Energy Inc., Update, January 28, 2019

Relevant disclosures required under Rule 3400 applicable to companies under coverage discussed in this research report are available on our web site here.

Each analyst of Mackie Research Capital Corporation whose name appears in this report hereby certifies that (i) the recommendations and opinions expressed in this research report accurately reflect the analyst's personal views and (ii) no part of the research analyst's compensation was or will be directly or indirectly related to the specific conclusions or recommendations expressed in this research report.

Mackie Research Capital Corporation, its directors, officers and other employees may, from time to time, have positions in the securities mentioned herein.

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