Valeura says it has enough funds to carry out the work in Turkey’s gas-rich Thrace basin until 2020, but is seeking further funding with a listing on the London Stock Exchange.PHOTO: VALEURA ENERGY
Canadian gas explorer Valeura Energy will unveil plans to list on the London Stock Exchange this week as it looks to raise funds for a major project in Turkey.
The company is targeting a dual–listing in the U.K. after raising $60 million last year with strong backing from a base of London-based institutional investors. Its shares already trade on the Toronto stock exchange.
Valeura is on the cusp of unlocking the major Mediterranean project, holding an estimated 10 trillion cubic feet of gas, to feed Turkey’s energy-hungry economy and provide Europe with an alternative to Russian gas imports.
Sean Guest, Valeura’s chief executive, has told investors it is “an exciting time” for the company. He said that Valeura has enough funds to carry out the work in Turkey’s gas-rich Thrace basin until 2020, but he is understood to be lining up to the listing to help fund further work.
Valeura completed deep appraisal well drilling last October and will continue to evaluate the basin through further drilling over the year ahead. The company, valued at $230 million, is working on the project alongside state-backed energy giant Equinor, once known as Statoil, which is working to shift its business from oil to gas.
Gas demand is expected to steadily increase in the decades ahead as countries opt for cleaner energy to avoid the greenhouse gas emission associated with oil and coal. Turkey already relies heavily on gas for just over a third of its energy needs, but currently relies on imports that are becoming more expensive as the Lira currency declines.
Turkey is also equipped to act as a key gas transit hub between gas consumers in Europe and the producers in Russia, the Caspian region and the Middle East. This means surplus gas would have an easy route to market in the West where buyers are working to reduce their reliance on Russian gas.
The tumble of the lira has rocked Valeura’s share price, which has plummeted from highs of $6.55 a share last February to around $2.67 on Friday.
Analysts at RBC Capital believe Valeura could trade as high as $7 a share once the project comes online.
Source: Telegraph
