Valeura Energy Inc. Announces Revised Outside Date for Shallow Gas Business Sale
CALGARY, AB / ACCESSWIRE / April 15, 2021 / Valeura Energy Inc. (TSX:VLE)(LSE:VLU) (the “Company” or “Valeura”), an upstream oil and gas company with assets in the Thrace Basin of Turkey, has agreed with TBNG Limited (the “Buyer”) to amend the long stop date (the “Outside Date”) for the completion of the previously announced sale of its shallow conventional gas business (the “Sale Transaction”).
The parties have made progress on satisfying the closing conditions for the Sale Transaction having obtained one of two key government consents, with only one approval remaining outstanding. Valeura and the Buyer have agreed to revise the Outside Date from April 19, 2021 to July 30, 2021 to continue the approval process. Both parties remain committed to the transaction.
No other terms of the Sale Transaction have been revised. Upon closing, Valeura will be paid a headline cash consideration of US$15.5 million, subject to normal closing adjustments and based on an economic effective date of July 1, 2020. Additionally, Valeura will be entitled to royalty payments over a five-year period, with a minimum royalty payment of US$1.0 million up to a maximum of US$2.5 million.
For further information please contact:
Valeura Energy Inc. (General and Investor Enquiries) +1 403 237 7102
Sean Guest, President and CEO
Heather Campbell, CFO
Robin Martin, Investor Relations Manager
Auctus Advisors LLP (Corporate Broker) +44 (0) 7711 627 449
CAMARCO (Public Relations, Media Adviser) +44 (0) 20 3757 4980
Owen Roberts, Billy Clegg, Monique Perks, Hugo Liddy
Advisory and Caution Regarding Forward-Looking Information
Certain information included in this new release constitutes forward-looking information under applicable securities legislation. Such forward-looking information is for the purpose of explaining management’s current expectations and plans relating to the future. Readers are cautioned that reliance on such information may not be appropriate for other purposes, such as making investment decisions. Forward- looking information typically contains statements with words such as “anticipate”, “believe”, “expect”, “plan”, “intend”, “estimate”, “propose”, “project”, “target” or similar words suggesting future outcomes or statements regarding an outlook. Forward-looking information in this new release includes, but is not limited to: the completion of the transaction, the total headline cash consideration, the Company’s entitlement to royalty payments over a five-year period, and receipt of regulatory consents and approvals.
Forward-looking information is based on management’s current expectations and assumptions regarding, among other things: the ability to close the transaction on the terms described herein; political stability of the areas in which the Company is operating and completing transactions; continued safety of operations and ability to proceed in a timely manner; continued operations of and approvals forthcoming from the Turkish government in a manner consistent with past conduct, including any impact of the COVID-19 pandemic; Although the Company believes the expectations and assumptions reflected in such forward-looking information are reasonable, they may prove to be incorrect.
Forward-looking information involves significant known and unknown risks and uncertainties. A number of factors could cause actual results to differ materially from those anticipated by the Company including, but not limited to: the risks of further disruptions from the COVID-19 pandemic; potential changes in laws and regulations, the uncertainty regarding government and other approvals, including those required for the transaction; counterparty risk; and the risk associated with international activity. The forward-looking information included in this news release is expressly qualified in its entirety by this cautionary statement. See the AIF for a detailed discussion of all risk factors facing the Company.
The forward-looking information contained in this new release is made as of the date hereof and the Company undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, unless required by applicable securities laws. The forward-looking information contained in this new release is expressly qualified by this cautionary statement.
Additional information relating to Valeura is also available on SEDAR at www.sedar.com.
This announcement contains inside information as defined in EU Regulation No. 596/2014, part of UK law by virtue of the European Union (Withdrawal) Act 2018, and is in accordance with the Company’s obligations under Article 17 of that Regulation.
This announcement does not constitute an offer to sell or the solicitation of an offer to buy securities in any jurisdiction, including where such offer would be unlawful. This announcement is not for distribution or release, directly or indirectly, in or into the United States, Ireland, the Republic of South Africa or Japan or any other jurisdiction in which its publication or distribution would be unlawful.
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SOURCE: Valeura Energy Inc.
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