Canadian-based, Turkish-focused natural gas company Valeura Energy said on Tuesday it is exploring potential merger and acquisitions opportunities to take advantage of current market conditions.
Posting its first-quarter results, the company said it wants to grow its portfolio and capitalize on the current environment, Kallanish Energy reports.
The M&A would play a role in the company’s growth, “particularly in light of recent economic turmoil, which may result in new opportunities emerging across the region,” it said.
The company will evaluate opportunities to assess strategic fit, with a priority on adding value to the portfolio in the near to mid-term and retaining relative balance sheet strength.
The Calgary-based firm recognizes the Turkish unconventional deep gas play is at an early phase of its life cycle and requires more drilling and testing. It’s now looking for a new partner following Equinor’s exit from the Thrace Basin, which has led to Valeura doubling its stake in the Banarli (100%) and West Thrace (63%) licenses. Pinnacle Turkey Inc is a partner in the latter license.
“The target will be a partner who brings both financial and technical capability to the joint venture, for a carried work program that is expected to include drilling new vertical and horizontal wells, reservoir stimulation, and production testing,” Valeura said.
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