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Valeura Begins Reservoir Stimulation & Testing Operations at Inanli-1

Source: www.gulfoilandgas.com 6/25/2019, Location: Europe

Valeura Energy Inc., the upstream natural gas producer focused on appraising and developing an unconventional gas accumulation in the Thrace Basin of Turkey in partnership with Equinor, is pleased to announce the start of reservoir stimulation and testing operations on the Inanli-1 appraisal well.

As of June 24, 2019 all required completion and testing equipment, rated for up to 15,000 psi, was on the Inanli-1 site and rigged up. Diagnostic fracture injection test (“DFIT”) and extended leakoff test (“XLOT”) operations are scheduled to commence this week preceding the first reservoir stimulation, planned for next week.

The Company intends to test a minimum of four zones in the Inanli-1 well. As is customary in multi-zone completions, the deepest zones will be evaluated first and then testing will progress up the well to shallower zones.

Given the rock’s natural compaction with depth, the deepest zones are expected to have the lowest porosity and permeability. The stimulation programme is designed to test well-defined discrete intervals and in most cases only a single stage high-pressure stimulation is planned for each zone. The objective of testing is not to maximise flow rates, but rather to obtain accurate flow and fluid information on each zone as a way to calibrate the existing petrophysical interpretation. The duration of each test will be driven by the flow characteristics observed.

Sean Guest, President and CEO Commented:
“I am very pleased to begin testing operations on Inanli-1. With 11 vertical well penetrations into the overpressured gas-bearing formations, we have built a strong understanding of the depth and breadth of the reservoir intervals and are now turning our attention toward understanding how the rocks will flow with fracture stimulation. We expect to stimulate at least eight zones between Inanli-1 and Devepinar-1, the next drilled well we expect to test, and have designed the programme not to maximise flow rates, but to maximise data capture and to identify zones which provide the potential for future commercial flow with horizontal and/or vertical wells with massive development-type fracture stimulations.

“This is an exciting time for Valeura and our shareholders as we begin to develop a picture of the commercial potential for our basin centered gas accumulation play by demonstrating both fluid characteristics and flow potential.”

The Company will provide the results of flow testing in due course, adhering always to its timely disclosure obligations, as mandated by securities regulators. The Company intends to announce results on a zone by zone basis, following testing, and once the data are interpreted and understood.

Valeura is prioritising the stimulation and testing of drilled, but untested, wells as a way to define the forward work programme to demonstrate the commerciality of its deep unconventional gas play. The Company’s objective is to identify those zones that warrant further evaluation through additional targeted drilling, potentially as part of a pilot development programme including horizontal wells and multi-stage fracture stimulation.

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