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Valeura Energy Inc talks up cash position as it eyes acquisition opportunities



“The current market environment is generating a flow of new deal opportunities which the company is well-positioned to pursue,” the company said.

Valeura Energy Inc (LON:VLU, CVE:VLE) talked up its cash position as it released financial results for the three months ended June 30.

The company noted that at the end of June it had US$30.7mln which, as Valeura highlights, is some 50% above the market price of its shares (18p prior to today’s update, which equates to around US$20mln).

It said that management believes Valeura shares offer compelling value, on that basis.

Valeura also highlighted that it has a producing conventional shallow gas business in Turkey which it describes a strong gas price market. An externally evaluated valuation for that business Is US$23.8mln, the company noted.

During the second quarter two shallow exploration commitment wells were drilled in, and, testing took place on the Devepinar-1 well in the deep gas play. 

Mergers and acquisition opportunities are presently sought to leverage the company’s strong financial position.

Valeura told investors it is currently evaluating several potential inorganic growth transactions and it has engaged RBC Capital Markets in these efforts.

“Management believes the conditions are favourable for inorganic growth to play a significant role in the forward strategy as the current market environment is generating a flow of new deal opportunities which the company is well-positioned to pursue given its enviable financial position,” it said.



Read More: Valeura Energy Inc talks up cash position as it eyes acquisition opportunities

2020-07-13 07:41:00

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