Valeura Energy (TSX: VLE): Quality partner to revive Turkiye
• TransAtantic Petroleum is acquiring 50% WI in the West Thrace Production and Exploration Licences, currently held 63% by Valeura and 37% by Pinnacle. In exchange, TransAtlantic will fund the re-entry of the Devepinar-1 well—including hydraulic stimulation and testing of the Kesan zones (4.7–4.8 km depth)—for up to US$2 mm. Operations could commence in 4Q25.• TransAtlantic has the option to acquire 50% of Valeura’s 100% WI in the Banarli exploration licence, contingent on drilling a deep appraisal well (≥4,000 m) on one of the licences, with a carry of up to US$8 mm.
• The tight gas play in Türkiye holds significant upside potential, albeit requiring hydraulic stimulation. A 2018 reserves audit estimated unconventional prospective resources of 20 tcfe of gas across the licences. Equinor previously farmed in to drill three wells, which confirmed over-pressured gas columns but delivered sub-commercial flow rates. Equinor exited the project in 2020.
• Valeura has permitted a drilling location (Hanoglu-1) on the Banarli licence that could intersect the highest-quality reservoir within the dry gas window. This combination may enhance flow rates and reduce decline.
• While early-stage, Türkiye represents a material upside lever. For now, we value the asset based on the farm-in terms (~US$9 mm) and maintain our target price of C$12.70/share.
TransAtlantic
Transatlantic have been operating in Türkiye since 2007. The company announced in 2025 a JV with Continental Resources and TPAO, to develop unconventional oil and gas resources in the Diyarbakir and Thrace basins.
Valuation
We have trimmed our Brent price forecast for 4Q25 and 1Q26 from US$70/bbl to US$65/bbl. Our Core NAV and ReNAV for Valeura are ~C$10.20/sh and C$12.66/sh respectively. We forecast that the company’s YE25 net cash will represent in excess of 50% of Valeura’s current market cap.
Valeura Energy is engaged in the exploration, development and production of petroleum and natural gas in Turkey and Western Canada. As of Dec 31 2010, proven gross reserves for light and medium oil was 116 thousand barrels (net reserves of 104 thousand barrels); proven gross reserves for heavy oil was 10 thousand barrels (net reserves of 9 thousand barrels); proven gross reserves for natural gas was 1,047 million cubic feet (net reserves of 938 million cubic feet); and proven gross reserves for natural gas liquids was 26 thousand barrels (net reserves of 19 thousand barrels).
Auctus Advisors is a specialist Equity Capital Markets and Advisory business with a focus in the Energy Sector.
The partners have complementary skill sets, with decades of experience across Equity Capital Markets, Investment Banking and the Energy industry. We have worked at Société Générale, Canaccord Capital, BMO Capital Markets and Schlumberger. Most recently we have worked together for many years at GMP FirstEnergy.
Auctus has been set up at the beginning of a new decade in which we see significant opportunities in the Energy space. Globally, demand for energy is at record levels and continues to grow. Conversely, investment in traditional energy sources has been severely constrained. We believe this imbalance creates opportunities for both companies and investors.
Auctus provides Corporate Broking, Equity Research and Investment Banking services.
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