Corporate M&A

TBNG Acquires Valeura's Shallow Rights in Turkish Leases

By Shriya Bhargava
October 20, 2020
2 minutes read
Gas Flare

Privately-held UK based investment holding company TBNG Ltd. has entered into a share purchase agreement with Valeura Energy Inc. to acquire its wholly-owned subsidiaries Thrace Basin Natural Gas (Turkiye) Corp. and Corporate Resources BV, for a total consideration of up to US$18.0 million, including royalty payments. The two subsidiaries collectively hold an 81.5% operated interest over the shallow rights in Valeura’s conventional gas assets in Turkey, with Pinnacle Turkey Inc. holding the remaining 18.5% interest.

TBNG will acquire the entire share capital of the companies in exchange for a cash consideration of US$15.5 million, payable at closing. In addition, TBNG will be entitled to receive royalty payments of up to US$2.5 million over a five-year period. TBNG will also assume all associated decommissioning and abandonment liabilities.

The assets acquired include shallow rights in the South Thrace production leases (blocks 3860, 3861, F18-c3-1, F18-c4-2, F19-d4-1, F19-d4-2, G19-a1-1, G18-b2-1, G18-b1-1, F19-d3-1, and F19-c3-1) covering an area of more than 170,735 gross acres, with shallow rights spanning over 139,149 net acres, and the West Thrace production leases (blocks 2926, 3659, and 5122) covering an area of 13,578 gross acres, with shallow rights spanning over 11,066 net acres. The shallow reservoirs in the leases have a depth of approximately 2,800 meters.

TBNG and is owned and controlled by its management team, including Ian Hannam, the founder of Hannam & Partners, an independent investment banking firm with a focus on the metals & mining, energy, financial services and real estate sectors.

Calgary-based Valeura Energy is engaged in the exploration, development and production of oil & natural gas assets in Turkey, with a current focus on appraising and developing a deeper unconventional gas play in the Thrace basin.

The transaction is subject to customary closing conditions including termination rights, government authorizations, and other regulatory approvals, and is expected to close in Q1-2021, with an effective date of July 1st, 2020.

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