Valeura announces binding letter agreement with Statoil for farm-out on Banarli Licences in Turkey

On May 15, 2016, Valeura Energy Inc. ("Valeura") announced that its wholly-owned affiliate, Corporate Resources B.V. ("CRBV") (collectively "Valeura") has entered a binding letter agreement with Statoil Holding Netherlands B.V. ("Statoil") a wholly-owned affiliate of Statoil ASA for a farm-out agreement for the exploration of the deeper formations below approximately 2,500 metres where over-pressure is expected on Valeura's two 100% owned and operated Banarli exploration licences in the Thrace Basin.

Under terms of the agreement, Statoil will have the option to earn 50% in the deep formations on the Banarli licences by investing in an exploration program that includes payments and carried costs of at least US$36 million. Valeura will operate the deep exploration program during the earning phase under the Letter Agreement. Valeura will retain a 100% interest in the shallow formations in the Banarli licences.

The letter agreement is subject to satisfaction of certain conditions precedent including the execution of definitive agreements and the approval of the General Directorate of Petroleum Affairs of the Republic of Turkey for the associated licence interest transfers, which is expected to occur before the end of September 2016.

The Banarli licences encompass an area of 540 square kilometres or 133,840 gross acres near the centre of the Thrace Basin, the European side of Turkey.

Valeura is a Canada-based public company currently engaged in the exploration, development and production of petroleum and natural gas in Turkey.

Statoil is an energy company primarily engaged in oil and gas exploration and production activities.

Further information can be found on Canada Newswire's website.