Valeura Energy Inc., Calgary, a natural gas company with assets in the Thrace Basin of Turkey, agreed to sell its producing shallow conventional gas business to TBNG Ltd.
The deal is structured as a sale of the shares of Thrace Basin Natural Gas (Turkiye) Corp. and Corporate Resources BV, both wholly owned subsidiaries of Valeura which, following a recent internal reorganization, collectively hold the company's conventional, gas producing business.
Valeura’s interest in its 20 tcfe unrisked mean prospective resource deep, tight gas play in the Thrace Basin is unaffected by the deal and Valeura will remain the operator of record for all subject leases and licenses (OGJ Online, Apr. 6, 2020). The company also will retain access to local gas markets via the existing gas transportation and processing infrastructure under the agreement, for use in its ongoing deep gas appraisal activities.
Cash consideration of $15.5 million is to be paid to Valeura upon closing. Valeura also will be entitled to royalty payments over a 5-year period, tied to local gas prices, ranging in total from $1-2.5 million.
TBNG Ltd. is a private UK registered company whose shareholders include Ian Hannam, founder of investment bank Hannam & Partners.
Deal completion, expected in first-quarter2021, is subject to customary termination rights and closing conditions including regulatory approvals and other governmental authorizations.
