- Valeura Energy Inc (TSX:VLE) has reported strong early quarterly figures, but still expects to be impacted by industry-wide COVID-19 related disruptions
- The company is currently producing 706 barrels of oil a day from its Turkey operations, which is a nine per cent increase on the previous quarter
- However, the company conceded that the effects of COVID-19 restrictions and recent drop in oil and gas demand are beginning to be felt
- As a result of the slowdown, Valeura’s recent gas production has averaged approximately 75 per cent of the quarter’s usual rate
- Valeura Energy Inc (VLE) is up 8.47 per cent, with shares trading for C$0.32 and a market cap of $26.8 million
Valeura Energy Inc (TSX:VLE) has reported strong early quarterly figures, but still expects to be impacted by industry-wide COVID-19 related disruptions.
The company works in Turkey’s Thrace Oil Basin and has been producing 706 barrels of oil a day from its operations. This is a nine per cent increase on the previous quarter; surprising, given the recent downturn in oil production seen globally.
However, the company does concede that quarantine restrictions in Turkey have begun to take effect. Demand for oil and gas is dropping and Valeura has noticed this drop in its Turkish customer base.
As a result of the slowdown, the company is curtailing its production slightly in the short-term. Valeura’s recent gas production has averaged approximately 75 to 80 per cent of the quarter’s usual rate.
Sean Guest, President and CEO of Valeura Energy, remains optimistic about the company’s next few months.
“Even with the effects of the COVID-19 pandemic in the latter half of the quarter, our first quarter performance increased relative to Q4 and is a continuing demonstration of how we can optimise our production operations.
“Looking forward, we will undoubtedly face headwinds as this unprecedented turmoil unfolds, but we will continue to always adhere to the best medical and safety advice to protect the health of our staff,” he said.
A week ago, COVID-19 cases were rising more quickly in Turkey than anywhere else in the world. Since then, government restrictions have begun to have some impact and new cases are now rising more slowly.
At the most recent count, the country had 4,093 confirmed cases, mostly clustered around the nation’s capital.
Valeura Energy Inc (VLE) is up 8.47 per cent, with shares trading for C$0.32 at 9:52am EST.
