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TICKERS: VLE; PNWRF

Appraisal Well 'Demonstrates Stable Natural Gas Production'
Research Report

Source:

The test results and next steps are provided in a Mackie Research Capital Corp. report.

In an Oct. 21 research note, Mackie Research Capital Corp. analyst Bill Newman reported that Valeura Energy Inc. (VLE:TSX; PNWRF:OTCMKTS) completed the final test of the Inanli-1 appraisal well in Turkey, which, like the first three, showed stable natural gas production.

Of the four tests of Inanli-1, the first, or deepest, zone had the "most encouraging" results, noted Newman. It had the highest average flow rate and a low, decreasing water rate. The other three tests flowed gas but more slowly than the first. The final test achieved a maximum sustained flow rate of 643,000 cubic feet per day at its deepest point.

"Valeura remains optimistic that certain zones within the Inanli-1 well hold the potential for exploitation through horizontal drilling and potentially through comingled vertical completions," relayed Newman.

Valeura will begin testing the Devepinar-1 appraisal well, located 20 kilometers to the west of Inanli-1. The aim is to "better understand the lateral and vertical reservoir characteristic and hydrocarbon composition of its potential massive basin-centered natural gas accumulation (BCGA)," explained Newman.

The analyst added that whereas the potential size of the BCGA is "massive," further drilling and testing are needed to derisk the play and advance the project to the development phase. Accordingly, Mackie has a Speculative Buy rating and a CA$3.50 per share target price on Valeura, recently down from CA$5.75 per share and versus the CA$0.82 current share price.

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Disclosures from Mackie Research, Valeura Energy, Update, October 21, 2019

RELEVANT DISCLOSURES APPLICABLE TO COMPANIES UNDER COVERAGE
Relevant disclosures required under Rule 3400 applicable to companies under coverage discussed in this research report are available on our web site at www.mackieresearch.com.

ANALYST CERTIFICATION
Each analyst of Mackie Research Capital Corporation whose name appears in this report hereby certifies that (i) the recommendations and opinions expressed in this research report accurately reflect the analyst's personal views and (ii) no part of the research analyst's compensation was or will be directly or indirectly related to the specific conclusions or recommendations expressed in this research report.

Mackie Research Capital Corporation, its directors, officers and other employees may, from time to time, have positions in the securities mentioned herein.

RELEVANT DISCLOSURES APPLICABLE TO: VALEURA ENERGY INC.
1. Relevant disclosures required under IIROC Rule 3400 applicable to companies under coverage discussed in this research report are available on our web site at www.mackieresearch.com.
2. None Applicable for this Issuer




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