TBNG to acquire the producing shallow conventional gas business of Valeura Energy for up to $18m.

TBNG, a natural gas production company in Turkey, agreed to acquire the producing shallow conventional gas business of Valeura Energy, a Canada-based public company engaged in the exploration, development, and production of petroleum and natural gas in Turkey, for up to $18m. "I am pleased to announce the pending sale of our mature, conventional gas business as a way to strengthen our balance sheet and increase our cash to pursue higher-value growth opportunities. Our objective has been to maximise the value of these mature assets, and today’s monetisation agreement is a key step towards accomplishing that goal. We have re-tooled Valeura into a lean, shrewd, debt-free machine, focused on value growth. To that end, the other pillars of our strategy remain unchanged. We are pursuing near/mid-term opportunities through the mergers and acquisition market intended to add significant growth potential and at the same time, we are continuing in our commitment to Turkey, as we appraise our 20 Tcfe unrisked mean prospective resource deep tight gas play. In all instances, our priority is to add cash-flow generation to the portfolio, along with opportunities for smart re-investment to generate incremental value for shareholders," Sean Guest, Valeura Energy President and CEO.