Vle

Table of Contents
Rpt. 65470444 VALEURA ENERGY INC 3-5

27-Jul-2018 SADIF ANALYTICS
- RESEARCH SADIF
Rpt. 63004105 VALEURA ENERGY INC 6 - 37

15-Jul-2018 MARKETLINE - COMPANY RESEARCH
- DATAMONITOR INDEPENDENT RESEARCH

11-Jul-2018 SADIF ANALYTICS
- RESEARCH SADIF

05-Jul-2018 GLOBALDATA
- GLOBALDATA

29-Jun-2018 CORMARK SECURITIES
- URSU, GARETT, ET AL

28-Jun-2018 BUYSELLSIGNALS RESEARCH
- RESEARCH TEAM, ET AL

17-Jun-2018 WRIGHT INVESTORS SERVICE
- WRIGHT REPORTS, ET AL

07-Jun-2018 MINKABU
- RESEARCH DEPARTMENT

05-Jun-2018 GLOBALDATA
- GLOBALDATA

31-May-2018 SADIF ANALYTICS
- RESEARCH SADIF
These reports were compiled using a product of Thomson Reuters www.thomsonreuters.com
1
Table of Contents

30-May-2018 CORMARK SECURITIES

11-May-2018 CORMARK SECURITIES

10-May-2018 GMP SECURITIES
- ENGELS, DARREN B., ET AL

07-May-2018 BUYSELLSIGNALS RESEARCH
- RESEARCH TEAM, ET AL
These reports were compiled using a product of Thomson Reuters www.thomsonreuters.com
2
Data as of Market Close: 26 July 2018
Rating Update¹ for Valeura Energy Inc
Stock downgraded to Above Average from Good
Ticker Company Name Exchange Industry Sector

VLE Valeura Energy Inc Toronto Stock Exchange Oil & Gas Exploration and Energy
C1. SADIF overall Rating (SMR) and its drivers Highlights
Valeura Energy Inc has a a fair prospect, with an overall

score of 76/100. This represents a downgrade in relation
to the previous rating. This is mostly due to a fall in its
business quality. More specifically, the company
experienced a decline of 26.51% in its financials.
Looking forward, its quality declines but our estimates

rating shows an improvement, mainly due to a rise in
revenue per share.
Overall, we expect Valeura Energy Inc to be an above

average long-term investment that is not due for a rebound
in the near term.
Quality Safety Sentiment Last Close Price 52-Week Range Market Cap.
SMQ SMD SMC 3.780 CAD 0.43 - 8.27 323.803M CAD
Beta PE PBV
14.74 -31.76 2.68
EPS ² Earnings Yield Div Announc. Date

Business Operational Technicals -0.12 -17.00% -
SMB SMD1 SMS DPS Dividend Yield Div Ex Date
- 0.00% -
T1. Quarterly EPS
Financials Information Outlook Year Q1 Q2 Q3 Q4

SMF SMD2 SMA 2018 -0.032 -0.039f -0.036f -
2017 -0.031 -0.007 -0.067 -0.013
2016 -0.017 -0.011 -0.022 -0.054
T2. Quarterly BVS

Earnings Market Valuation
SMI SMD3 SMW Year Q1 Q2 Q3 Q4
2018 1.398 1.929f 2.347f -
2017 1.015 0.898 0.793 0.749
2016 1.251 1.220 1.168 1.001
Summary StockMarks Ratings for Valeura Energy Inc were calculated in relation to the entire population of 1881 Canada-listed companies rated today,
using a scale from 0 (worst) to 100 (best). For an explanation of each rating, see page 3. Readers should check for the latest news and events not yet
reflected in the company financials.
Newsletter & Investment Management Portal 1

© 2007-2018 Marques Mendes & Associados Lda ( MM&A). All Rights Reserved. Please read disclaimer in page 3
3
Valeura Energy Inc
Summary Due Diligence Report
Estimates C2. SADIF and Sell Side consensus estimates vs historical EPS
The book value and earnings estimates
above were based on the following
revenue forecast which is not adjusted for
company guidance:
T3. Quarterly Revenue Per Share
Year Q1 Q2 Q3 Q4
2018 0.0 0.0f 0.035f -
2017 0.0 0.0 0.031 0.0
2016 0.1 0.1 0.044 0.0
The company's business outlook (SMA) is T5. Benchmark Group: Industry Competitors Outlook
positive and, based on an improving trend
in our estimates (SMH), is likely to Industry
Ticker Company Name Similarity SMA SMH SMO1 ACR
improve. Earnings per share are Share
strengthening, while its book value per VLE Valeura Energy Inc 0.03% 93 85 59 83
share is rising. The trend on market BBI Blackbird Energy Inc 68.42% 0.03% 43 26 59 69
multiples is favorable. Our target price has
BNP Bonavista Energy Corp 63.16% 1.03% 81 85 50 54
an implicit annual CAGR of 23.7%, well
below that of the analyst consensus. PONY Painted Pony Energy Ltd 63.16% 0.78% 67 63 76 59
CR Crew Energy Inc 63.16% 0.42% 50 21 88 70
Sentiment
TGL TransGlobe Energy Corp 63.16% 0.30% 64 48 29 75
The current investor sentiment in relation
to Valeura Energy Inc is bullish, but with a C3. Overall Investor Sentiment (SMC) and its constituents
negative outlook. This is attenuated by a
positive trend in analyst consensus.
Meanwhile, the short term trend measured
through technical indicators shows some
worsening in the last month.
T4. History of up(down)grades ³
Date Trend SADIF Rating

26 Jul 2018 Above Average
10 Jul 2018 Good
13 Apr 2018 Above Average
Conclusion
Valeura Energy Inc is an average quality company. With reasonable business rating, it has fair financials and poor
earnings quality. In terms of risk, Valeura Energy Inc, is very safe. With average operational risk, it has average
information risk and low market risk. The current market sentiment in relation to the company is positive notwithstanding
unfavorable technical indicators, positive estimates and a fair valuation. The trend in Valeura Energy Inc fair value
exchange rate against its closest rated-competitor, Blackbird Energy Inc, has been stable over the past 2 weeks. When
compared to its closest competitor, Blackbird Energy Inc, Valeura Energy Inc shows less undervaluation and is less likely
to outperform the market.
Notes:
1) Last due diligence report published on 31 May 2018
2) EPS, last twelve months, adjusted for stock splits.
3) Current Ratings are not stricly comparable to those published before 8 Dec 2016 due to changes in methodology.

4
The StockMarks™ Ratings
SMR
SMD SMQ SMC
SMD2
SMB SMA
SMS
SMD1 SMG
SMW
SMD3 SMF
SMR
SMR
A SADIF recommendation based on equal weighting of company ratings for quality (SMQ), safety (SMD) and
investor sentiment (SMC). Investors with different strategies (e.g. growth or safety) should reweight accordingly.
A company's business quality based on its ratings

SMQ
SMB
Recommendation (SMR)
A company's overall quality rating based on its

for revenue growth, cash conversion and level of
ratings for business, financials and governance.
leverage.
Quality (SMQ)
SMD
SMF
A company's overall safety rating based on its A company's financial quality based on its ratings
ratings for operational, information and market risk. for financial strength, efficiency and performance.
A company's governance quality based on its

A company's overall sentiment rating based on
SMG
SMC
ratings for earnings quality, compensation policy

investors’ ratings for its current valuation, estimates
and tunnelling risk. For most companies, the rating
and technical indicators.
includes only the earnings quality rating (SMI).
A company's operational safety based on its ratings A company's valuation attractiveness based on the
SMD1
SMW
for revenue growth, leverage adequacy and ratings for its current price multiples,
Sentiment (SMC)
financial strength. outperformance likelihood and price attractiveness.

Safety (SMD)
A company's informational safety based on its A company's current estimates based on the ratings
SMD2
SMA
rating for earnings quality, data availability and for its current outlook, estimates forecasts and
reliability. consensus recommendations.
A company's market safety based on its ratings for A company's technical indicators rating based on
SMD3
SMS
its continuation as a listed company, its exposure to the current values for Bollinger Bands, rates of
takeover bids and its stock price volatility. change and relative strength indexes.
© 2007-2018 Marques Mendes & Associados Lda (MM&A). All Rights Reserved. This report is for information purposes only and is not a solicitation or
advice to buy or sell any security. The data contained within this report is not warranted to be accurate or complete. This report is only intended as a
summary of SADIF's stock ratings and not a recommendation for stock purchase or sale. Redistribution of this report without explicit permission is strictly
prohibited. All logos are the copyright property of their respective companies and are used here only to aid the reader in identification of the subject of
the article. The author of this article does not hold a position in any of the companies featured within this report.

5
MarketLine Financial Deals
Vendor, acquirer, target and partner report for Valeura Energy Inc. and its subsidiaries.
Includes Mergers & Acquisitions, Private equity, Venture capital, Joint ventures, Alliances and
Investments
Valeura Energy Inc. – Mergers & Acquisitions

(M&A), Partnerships & Alliances and
Investments
REFERENCE CODE: 2385527C-E6FD-4374-8128-6D3F07E24789

PUBLICATION DATE: July 2018
WWW.MARKETLINE.COM
MARKETLINE. THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED
6
COMPANY OVERVIEW AND KEY FACTS
VALEURA ENERGY INC.
Valeura Energy is engaged in the exploration, development and production of petroleum and natural gas. The
company's oil and gas prospects include Thrace Basin in northwest Turkey and the Anatolian Basin in southeast
Turkey. It also operates nine oil and gas properties in Alberta, Canada. The company operates in Canada, the
Netherlands and Turkey. It is headquartered in Calgary, Canada.
The company reported revenues of (Canadian Dollars) CAD14.1 million for the fiscal year ended December 2016
(FY2016), a decrease of 24.6% over FY2015. The operating loss of the company was CAD4.2 million in FY2016,
compared to an operating loss of CAD0.4 million in FY2015. The net loss of the company was CAD6.1 million in
FY2016, compared to a net loss of CAD0.6 million in FY2015.
Key facts
Address Bow Valley Square 1, Suite 1200
Country Canada
Telephone 1 403 237 7102
Fax 1 403 237 7103
Website www.valeuraenergy.com
Exchange / Ticker TSE / VLE
Valeura Energy Inc.– Mergers & Acquisitions (M&A), Partnerships & Alliances and Investments -2018
© MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED
7
«mainheding1» «head2»
«chart1» «chart2»
Source: Financial Deals MARKETLINE Source: Financial Deals MARKETLINE

«table1» «table2»
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TABLE OF CONTENTS
TABLE OF CONTENTS
COMPANY OVERVIEW AND KEY FACTS ............................................ 2
TABLE OF CONTENTS .......................................................................... 4
LIST OF TABLES .................................................................................... 5
LIST OF FIGURES .................................................................................. 5
MERGERS & ACQUISITIONS ................................................................ 6

Mergers and Acquisitions – Deal reports .......................................................................................... 6
PARTNERSHIP ..................................................................................... 14
Partnership – Deal reports ................................................................................................................ 14
CAPITAL RAISING ............................................................................... 17

Capital Raising – Deal reports .......................................................................................................... 17
PRIVATE EQUITY & OWNERSHIP ...................................................... 19
Private Equity and Ownership – Deal reports ................................................................................. 19
APPENDIX............................................................................................. 22
Contact Us ......................................................................................................................................... 22
About MarketLine Financial Deals Database ................................................................................... 22
Deal Definition and Methodology ..................................................................................................... 24
About MarketLine ............................................................................................................................... 31
9
TABLE OF CONTENTS
LIST OF TABLES
NO TABLE OF FIGURES ENTRIES FOUND.
LIST OF FIGURES
NO TABLE OF FIGURES ENTRIES FOUND.
10
TABLE OF CONTENTS
MERGERS & ACQUISITIONS

Mergers and Acquisitions – Deal reports
Deal Report: Valeura Energy and TransAtlantic Petroleum acquire natural gas assets
from Thrace Basin Natural Gas Turkiye and Pinnacle Turkey
Deal in brief
Valeura Energy, Inc. and TransAtlantic Petroleum, Ltd. have acquired natural gas production in Turkey of
approximately 10 million cubic feet per day and 588,719 net acres of land in the Thrace and Anatolian
basins for $57.3 million in cash.
Valeura Energy is a Canadian petroleum and natural gas exploration company, while TransAtlantic is a US-
based oil and gas exploration and production company.
Through the transaction, Valeura has acquired 40% of the total production of Thrace Basin Natural Gas
Turkiye Corporation (TBNG) and Pinnacle Turkey, Inc. (PTI), and working interests from 15% to 40% in 19
leases and licences.
Announcement (February 9, 2011):
Valeura Energy and TransAtlantic Petroleum have entered into an agreement to acquire natural gas
assets and a stake in exploration lands in Turkey from TBNG and PTI.
TBNG and PTI are Turkey-based natural gas producers.
Thrace Basin Natural Gas Turkiye Corporation – Assets –

Target 1
Turkey
Target 2 Pinnacle Turkey, Inc. – Assets
Acquirer 1 TransAtlantic Petroleum Ltd.
Acquirer 2 Valeura Energy Inc.
Seller/Vendor 1 Pinnacle Turkey Inc
Seller/Vendor 2 Thrace Basin Natural Gas Türkiye Corporation
Deal status Completed
Deal value ($m) 57.30
Deal value (US Dollar)(m) 57.30
Deal category Acquisition
Deal sub-category Asset purchase
Date of announcement Feb 09, 2011
Date of completion Jun 08, 2011

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TABLE OF CONTENTS
Deal financials
Method of payment
TransAtlantic Petroleum Ltd. Cash 100 (%)
Valeura Energy Inc. Cash 100 (%)
Company information: Target, acquirer, and seller/vendor
Target 1: Thrace Basin Natural Gas Turkiye Corporation – Assets – Turkey
Company type Private
The assets belong to Thrace Basin Natural Gas Turkiye

Business description
Corporation, a Turkey-based producer of natural gas.
Energy and Utilities-->Commodity-->Gas

Industry
Energy and Utilities-->Natural Resources-->Upstream
Energy-->Production
Target 2: Pinnacle Turkey, Inc. – Assets
The assets belong to Pinnacle Turkey, Inc., a producer of

natural gas.

Industry
Energy-->Production
Acquirer 1: TransAtlantic Petroleum Ltd.
Company type Public
Stock exchange NYSE (New York Stock Exchange)
Ticker symbol TAT
TransAtlantic Petroleum (TransAtlantic) is an international

energy company engaged in the acquisition, development,
exploration, and production of oil and natural gas. It holds
interests in developed and undeveloped oil and natural gas
Business description properties in Turkey and Bulgaria. The company operates in
Australia, Bahamas, Bermuda, British Virgin Islands,
Bulgaria, Cyprus, Romania, Turkey, Ukraine, Morocco and
the US. It is headquartered in Addison, Texas and employs
around 622 people.
Industry 7
12
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Energy and Utilities-->Commodity-->Oil
Energy-->Production
Address 16803 Dallas Parkway, Addison
Country United States
Website www.transatlanticpetroleum.com
Phone number 1 214 220 4323
Vendor 1: Pinnacle Turkey Inc
Consumer Packaged Goods-->Food-->Chilled Food-->Deli

Food-->Cooked Meats
Energy and Utilities
Energy-->Exploration
Industry Energy and Utilities-->Natural Resources-->Upstream
Energy-->Production
Energy-->Production
Energy-->Production
Energy
Country Turkey
Vendor 2: Thrace Basin Natural Gas Türkiye Corporation
Thrace Basin Natural Gas Türkiye Corporation is engaged in

Business description the drilling activity for natural gas pipelines and for new
discoveries. The company is headquartered in Turkey.

Energy and Utilities-->Natural Resources-->Midstream
Energy-->Pipelines
Industry Energy-->Exploration
Energy-->Production 8
13
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Energy-->Production
Energy-->Production
Energy
Address Turan Günes Boulevard, 89. Sok. 14 / 4
City ANKARA
Country Turkey
Website www.thracebasin.com.tr
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Deal Report: Valeura Energy acquires Turkey natural gas assets from Edirne Enerji
Petrol Arama Uretim Ve Ticaret Limited Sirketi
Deal in brief
Valeura Energy, Inc., a Canadian petroleum and natural gas exploration, development, exploitation, and
marketing company, has acquired certain producing natural gas assets in Turkey from Edirne Enerji Petrol
Arama Uretim Ve Ticaret Limited Sirketi (Edirne) for a cash consideration of $2.29 million.
Edirne is a wholly-owned affiliate of Australia-based oil and gas exploration and production company Otto
Energy, Ltd.
The assets consist of a 35% non-operated interest in the Edirne exploration license 3839 in the Thrace
Basin, the main natural gas producing region of Turkey.
Announcement (December 14, 2010):
Valeura has signed a definitive agreement to acquire certain non-operated producing natural gas assets in
Turkey from Edirne for a consideration of $3.1 million.
Edirne Enerji Petrol Arama Uretim Ve Ticaret Limited Sirketi

Target
- Natural Gas Assets - Turkey
Acquirer Valeura Energy Inc.
Seller/Vendor Edirne Enerji Petrol Arama Uretim Ve Ticaret Limited Sirketi
Deal sub-category Asset purchase
Date of announcement Dec 14, 2010
Date of completion Mar 24, 2011
Deal financials
Method of payment
Valeura Energy Inc. Cash 100 (%)
Company information: Target, acquirer, and seller/vendor

10
15
TABLE OF CONTENTS
Target: Edirne Enerji Petrol Arama Uretim Ve Ticaret Limited Sirketi - Natural Gas Assets
- Turkey
The assets include the producing natural gas assets in

Turkey of Edirne Enerji Petrol Arama Uretim Ve Ticaret
Limited Sirketi, a company engaged in natural gas
exploration and production.

Industry
Energy-->Production
Vendor: Edirne Enerji Petrol Arama Uretim Ve Ticaret Limited Sirketi
Edirne Enerji Petrol Arama Uretim Ve Ticaret Limited Sirketi

is engaged in natural gas exploration and production.

Industry
Energy-->Production
Country Turkey
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Deal Report: PanWestern Energy acquires Industrial Air Corp.
Deal in brief
PanWestern Energy, Inc., a Canada-based oil and gas company, has acquired all of the outstanding
shares in Industrial Air Corp. (IAC), an oil and gas exploration and production company, for a consideration
of $5.4 million.
As per the agreement, PanWestern issued 12 million common shares at a price of $0.45 per share to
acquire 100% of the outstanding shares of IAC.
Update on March 11, 2008:
The TSX Venture Exchange has approved PanWestern Energy’s proposed acquisition of IAC.
Announcement (August 15, 2007):
PanWestern Energy has entered into a letter of intent to acquire all of the shares in IAC.
Under the terms, IAC shareholders would receive 12 million PanWestern common shares for all of the
issued and outstanding securities of IAC held. The total transaction is valued at $5.4 million.
Target Industrial Air Corp.
Acquirer Valeura Energy Inc.
Deal sub-category 100% acquisition
Date of announcement Aug 15, 2007
Date of completion Apr 22, 2008
Company information: Target and acquirer
Target: Industrial Air Corp.
Industrial Air Corp. is a company that is enagaged in

acquisition of helium and associated gas exploration permits
Business description and leases. The company has permits and leases in the
hydrocarbon producing land area, that is in close proximity to
Swift Current, Saskatchewan. The company is located in
12
17
TABLE OF CONTENTS
Alberta, Canada.

Industry
Energy-->Production
State Alberta
Country Canada
13
18
TABLE OF CONTENTS
PARTNERSHIP
Partnership – Deal reports
Deal Report: Valeura Energy to form joint venture with Aladdin Middle East and Guney
Yildizi Petrol
Deal in brief
Valeura Energy Inc. (formerly, PanWestern Energy, Inc.), a Canada-based oil and gas company, has
agreed to form a joint venture and has executed a farm-out agreement with Aladdin Middle East, Ltd. and
Guney Yildizi Petrol Uretim Sondaj, Muteahhitlik ve Ticaret A.S., affiliated oil and gas exploration and
production companies controlled by Sayer Group of Companies. Aladdin, Guney and Sayer are based in
Turkey.
Sayer is a private oil exploration company.
Under terms of the agreement, Valeura will farm-in to one production lease containing the Kahta heavy oil
field and eight exploration licenses, located in southeastern Turkey, operated by Aladdin and Guney.
As part of the transaction, Valeura will invest a minimum of $8.8 million in phase I over the next four
months. Upon completion of phase I, Valeuran will earn a 25% stake in the Kahta production lease, a 25%
stake in three Karakalise exploration licenses, and a 12.45% stake in five Rubai exploration licenses.
Pursuant to the agreement, Valeura has the option to increase its earning expenditures up to a total of
$17.6 million in phase II prior to the end of 2011.
Partner 1 Valeura Energy Inc.
Partner 2 Aladdin Middle East, Ltd.
Guney Yildizi Petrol Uretim Sondaj Muteahhitlik ve Ticaret

Partner 3
Anonim Sirketi
Deal status Announced
Deal category Partnership
Deal sub-category Joint venture
Date of announcement Sep 02, 2010
Deal rationale
The joint venture will provide Valeura Energy a presence in Turkey and the MENA region/Mediterranean
basin.
Company information: Partners

14
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Partner 1: Aladdin Middle East, Ltd.
Aladdin Middle East, Ltd. (Aladdin) is an independent oil and

gas exploration and production company. It focuses on the
exploration and exploitation of oil and gas assets in Turkey.
The company operates oil fields such as Molla-Diyarbakir,
Kahta-Adiyaman, Zeynel-Adiyaman, Bulgurdag-Adana and
Karakilise-Diyarbakir in Turkey. Aladdin’s business activity
Business description flow includes exploration, appraisal, development and
production. It has conducted exploration and development of
wells for companies such as Mobil, Exxon, Wintershall,
Placid, Neste Oy, Coplex, MOL and other operators through
its contracting division. The company operates through its
field offices located in Adiyaman, Diyarbakir and in Adana.
Aladdin is headquartered in Wichita, Kansas, the US.

Energy-->Equipment and Services
Industry Energy-->Equipment and Services
Energy-->Production
Industrial Goods and Machinery
Energy
Address Suite 500, 100 N. Broadway
City Wichita
State Kansas
Country United States
Website aladdinmiddleeast.com
Phone number 1 316 2659311
Partner 2: Guney Yildizi Petrol Uretim Sondaj Muteahhitlik ve Ticaret Anonim Sirketi
Guney Yildizi Petrol Uretim Sondaj Muteahhitlik ve Ticaret

Anonim Sirketi is an independent oil and gas company. The
Business description company is involved in exploration, development and
production of oil as well as provision of running drilling and
oil field services.

Industry
Energy and Utilities-->Commodity-->Oil 15
20
TABLE OF CONTENTS

Energy-->Equipment and Services
Energy-->Production
Industrial Goods and Machinery
Address Sogutozu Cad. No: 23, Balgat
City Ankara
Country Turkey
Website www.guneyyildizi.com.tr
Phone number 90 312 287 35
16
21
CAPITAL RAISING
CAPITAL RAISING
Capital Raising – Deal reports
Deal Report: PanWestern Energy completes $10 million private placement
Deal in brief
PanWestern Energy, Inc., a Canada-based oil and gas company, has raised $10 million in a private
placement of 18 million units at a price of $0.50 per unit and placement flow-through units (FT units) at a
price of $0.60 per FT unit.
Announcement (March 11, 2008):
PanWestern Energy is planning to raise approximately $10 million in a private placement of 18 million units
at a price of $0.50 per unit and placement flow-through units (FT units) at a price of $0.60 per FT unit.
PanWestern will raise $9 million through issue of units. Each unit will be comprised of one common share
and one common share purchase warrant with each warrant being exercisable for one common share for a
period of 24 months at a price of $0.75 for the first 12 months and $1 for the following 12 months.
PanWestern Energy will raise $1 million through issue of FT units, with each FT unit comprising of one
flow-through share and one warrant. The transaction is expected to close on or about March 21, 2008.
PowerOne Capital Markets Limited and Union Securities, Ltd. are acting as placement agents for the
offering.
Target Valeura Energy Inc.
Deal value ($m) 10
Deal value (US Dollar)(m) 10
Deal category Private placement
No. of shares issued 18,000,000
Date of announcement Mar 11, 2008
Deal rationale
PanWestern Energy would use the net proceeds from the units to fund the completion of the acquisition
and for general working capital, and the gross proceeds from the FT units to pay for Canadian exploration
expenditures.
17
22
CAPITAL RAISING
Security type information
Security type Common stock
Valeura Energy Inc. Financial information – (Fiscal year 31-Dec-2006)
Financial parameters US Dollar (USD) (m) ($m)
Revenues 0.44 0.44
Operating profit -0.16 -0.16
EBITDA - 0
Post tax profit -0.17 -0.17
Net assets 0.19 0.19
Earnings per share (absolute) - -0.03
Shares in issue (absolute) 2,264,250
Key ratios
Operating margin (%) -35.66
Advisor information
Target : Valeura Energy Inc.
Placement agent
PowerOne Capital Markets Limited
Union Securities Ltd.
18
23
PRIVATE EQUITY & OWNERSHIP

Private Equity and Ownership – Deal reports
Deal Report: Brownstone Ventures acquires shares of PanWestern Energy
Deal in brief
Brownstone Ventures, Inc., an energy focused investment company, has acquired 3,000,000 common
shares and 3,000,000 common share purchase warrants in PanWestern Energy, Inc., an oil and gas
company.
Each warrant entitles the holder thereof to acquire one additional common share at a price of $0.75 until
April 21, 2009 and $1.00 until April 21, 2010. In the event that the warrants are fully exercised, these
holdings represent approximately 12.1% of the total issued and outstanding common shares of
PanWestern as of April 21, 2008.
Target Valeura Energy Inc.
Acquirer ThreeD Capital
Deal sub-category Minority acquisition
Deal rationale
The acquisition was made for investment purpose.
Deal financials
Valuation multiples (Valeura Energy Inc.)
EV/Revenues 5.32
EV/Operating profit -14.21
EV/EBITDA -389.60
EV/Total assets 0.95
Company information: Target and acquirer
19
24
Valeura Energy Inc. Financial information – (Fiscal year 31-Dec-2006)
Financial parameters US Dollar (USD) (m) ($m)
Revenues 0.42 0.42
Operating profit -0.16 -0.16
EBITDA - 0
Post tax profit -0.17 -0.17
Net assets 0.19 0.19
Market capitalization 2.23 2.23
Earnings per share (absolute) - -0.03
Key ratios
Operating margin (%) -37.41
Net assets-share ratio 0.03
Acquirer: ThreeD Capital
Company type Public
Stock exchange CNQ (Canadian National Stock Exchange)
Ticker symbol IDK
ThreeD Capital (formerly Brownstone Energy Inc.) is a

venture capital firm focused on investments in companies in
the junior resources, technology and biotechnology markets.
The company holds 50% interest in the exploration licenses
of the Rimouski and Rimouski North properties in the St.
Business description Laurent Lowlands, Quebec. It also holds direct and indirect
investments in the oil and gas properties located in Canada,
the US, Argentina, Colombia, Israel and Brazil. ThreeD
Capital operates in Canada, Spain and Barbados. It is
headquartered in Toronto, Canada.

Industry
Energy-->Production
Financial Services
Financial Services-->Institutional Investment Management
Metals and Mining-->Metal Ore Mining
Energy
Address 69 Yonge St Suite 1010
City TORONTO
20
25
State Ontario
Country Canada
Website brownstoneenergy.com
Phone number 1 416 9418900
21
26
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– detailed advisory information, financial information, deal multiple, deal rationale, and
information related to business operations in addition to basic fields;
– Value addition through a wide network of contacts with top advisors, law firms,
investment banks, and industry experts.
22
27
APPENDIX
• Want to know more? – Should you have any queries, send us an email at
reachus@marketline.com
23
28
APPENDIX
Deal Definition and Methodology
Deal type definition
Merger
A deal will be classified as Merger when two or more companies combine to form one company.
An amalgamation in the nature of merger is an amalgamation which satisfies all the following
conditions:
 All the assets and liabilities of the transferor company become, after amalgamation, the
assets and liabilities of the transferee company.
 Shareholders holding not less than 90% of the face value of the equity shares of the
transferor company (other than the equity shares already held therein, immediately before
the amalgamation, by the transferee company or its subsidiaries or their nominees) become
equity shareholders of the transferee company by virtue of amalgamation.
 The consideration for the amalgamation receivable by those equity shareholders of the
transferor company who agree to become equity shareholders of the transferee company is
discharged by the transferee company wholly by the issue of equity shares in the transferee
company, except that cash may be paid in respect of any fractional shares.
 The business of the transferor company is intended to be carried on, after the amalgamation,
by the transferee company.
 No adjustment is intended to be made to the book values of the assets and liabilities of the
transferor company when they are incorporated in the financial statements of the transferee
company except to ensure uniformity of accounting policies.
Acquisition
Transactions where a company acquires equity stake in another company. The following are the
different sub-categories under acquisition:
 Minority acquisition: The acquisition of less than 50% equity stake in the target
 Majority acquisition: The acquisition of 50% or more than 50% and less than 100% equity
stake in the target
 100% acquisition: The acquisition of all of the issued capital or 100% of the issued share
capital of the target
 Asset Purchase: The acquisition of a business unit or an asset which is a not a legal entity
Private equity
Private equity transactions capture equity investment / buyout by a private equity (PE) firm. The
following are the different sub-categories under private equity:
 Institutional buyout: PE firm or a group of PE firms acquiring a company from non-PE firms
or another company
 Secondary buyout: PE firm or a group of PE firms acquiring a company from a PE firm

24
29
APPENDIX
 Management buyout (MBO): The management of the target acquires the target with the
backing of a PE firm will back the management in the buyout by providing the necessary
funds
 Management buy-in (MBI): A manager or a management team from outside the target
company (target) raises the necessary finance, buys the target and becomes the target's
new management. The necessary financing is provided by private equity firms.
 Buy-In Management buyout (BIMBO): A BIMBO is a combination of MBO and MBI, where
an external group of managers buy into the business and joins forces with the internal
management team
 Going Private: A public listed company being acquired by PE firms or with the management
and is de-listed form the stock exchange on which it was listed
 Exit: PE firm selling its stake in a portfolio company
Private placement
A private placement is a direct private offering of securities by the issuer to a limited number of
investors. Private placement is a primary market transaction.
Venture financing
Investments made in a start-up or young company by a venture capital or private equity firm in the
primary market (i.e. the target company is issuing new shares and receiving the proceeds directly).
The following are the different sub-categories under venture financing:
 Seed: Financing provided for companies which have still not started marketing their product
or services. The purpose of such funding will generally be to assess and develop an initial
business concept
 Start-up: Financing provided to companies for developing their product/service and to

purchase the necessary assets for their production/operation
 Growth/Expansion: Financing provided for companies to increase their sales, marketing, and
production operations, which have developed and started marketing their products
 Late stage: Financing provided for companies which have already established themselves in
the market and are looking for expanding their production capacities
 Exit: This node is assigned when a venture capital is selling its stake in a portfolio company
Initial Public Offering
 Initial public offering (IPO) occurs when a company first sells its shares to the public. The
following are the different stages under initial public offering:
 Filing: When a company announces its plans to go for an IPO or files the prospectus with the
concerned regulator about the IPO
 Pricing: When the company fixes the issue price for its offering
25
30
APPENDIX
 Secondary offering: When a public listed company’s existing shareholders are offering their
shares to general public or a public listed company itself is making a follow-on public offering
 Withdrawn: When the company withdraws its IPO
 Postponed: When the company postpones its IPO
Partnership
A partnership is the relationship existing between two or more entities that join to carry on a trade or
business. The following are the different sub-categories under partnership:
 Joint Venture (JV): Two or more companies forming a new entity to undertake an activity
 Co-marketing: Two or more companies coming together to collaborate either for product
development, distribution, or for providing services. In a broader sense any alliance related
to products and / or services where products or service of one company are marketed jointly
with product or services of another company is tagged as co-marketing alliance. Agreements
with a distribution company are not considered as Co-Marketing.
 Affinity marketing: An agreement by which one company is getting access to the customer
base of another for selling its products and the company which is providing access to its
customer base is not involved in the product/service development or any other obligations
relating to such product/service
 Licensing agreement: An agreement in which one party gives the rights to another party to
use its technology, intellectual property, and brands. Financial Deals does not capture
licensing deal related to software.
Deal status details
Financial Deals captures deal status according to following stages:
 Rumor: Neither of the parties involved in the transaction announces the deal but has been
reported by media/market sources
 Announced: Either party involved in the transaction announces the deal
 Completed: Involved parties complete the transaction
 Terminated: Involved parties do not intend to complete the earlier announced transaction
and either terminates the agreement or withdraws the bid
 Dead rumor: Rumor denied by either of the parties involved in the transaction
Deal value
Deal value is the consideration paid by the acquirer for acquiring the target.
Financial Deals uses a deal value estimation model (for cases where deal value is not available
through secondary and primary sources), which is based on comparables. The estimation model
analyzes deal values based on market capitalization of the target company on the day prior to the
announcement. In addition, it also includes approximation derived through inputs from advisors
involved in the deal, approximate enterprise value, gross consideration and share price and number
of shares.
All deals values which are mentioned as approximate consideration are tagged as estimated values.
Deal value criteria for filtering deals

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31
APPENDIX
For M&A, private equity, IPO and private placement, FD focuses on transactions where deal value is
more than or equal to $5 million. For venture investment and partnership, FD captures all deals.
Deal payment details

Deal payment is captured in the following fields:
Payment type: Payment type indicates the mode by which the purchase consideration has been
paid to the vendor. It includes the following sub-categories:
 Cash: It indicates the amount paid in cash (either in %age or absolute value) by the acquirer
 Debt: It indicates the amount of debt (either in %age or absolute value) of the target
assumed by the acquirer
 Shares: It indicates the amount of shares (either in %age or absolute value) issued by the
acquirer
 Quantity type: It indicates the consideration by payment mode in terms of value and
percentage
% acquired: % acquired indicates the stock acquired in percentage terms
Share price paid: Price per share offered by the acquirer to the target
Debt-related fields
Below is the list of fields captured:
Debt provider: Field ‘provider type’ indicates the type of debt provider. It includes the following sub-
categories:
 Lead: Represents the lead debt provide

 Syndicate: Represents group of lenders that are collectively lending or offering the debt to
the acquirers
Debt amount: Amount of debt raised by the acquirer to finance the acquisition
Debt category: It represents the nature of the debt that has been used by the acquirer in financing
the acquisition. It includes the following categories:
 Bank facilities: These are general loans provided by banks to companies.
 Senior: Debt that has priority for repayment in liquidation.
 Mezzanine: Debt that incorporates equity-based options such as warrants with a lower-
priority debt. Mezzanine debt is often used to finance acquisitions and buyouts, where it can
be used to prioritize new owners ahead of existing owners in the event of bankruptcy.
 Second lien: Debts that are subordinate to the rights of other, more senior debts issued
against the same collateral, or a portion of the same collateral. If a borrower defaults, second
lien debts stand behind higher lien debts in terms of rights to collect proceeds from the
debt's underlying collateral.
 Other debt: Any other debt facility other than the above mentioned debt categories.
27
32
APPENDIX
Securities issued to finance deal

Below is a list of category and sub-category of securities issued by the acquirer, captured in FD:
Capital increase type: It is the type of debt or equity securities issued by the acquirer to raise the
necessary funds to finance the transaction. It includes the following options:
 Converted debt: Converted debt is a debt security which can be exchanged for a specified
amount of another, related security, usually shares of stock in the issuing company, at the
option of the issuer and/or the holder
 Convertible bond: A convertible bond is a type of debt instrument that can be converted
into shares of stock in the issuing company, usually at some pre-announced ratio
 Convertible loan: A convertible loan is a loan issued by companies that can be converted
into ordinary shares or preference shares at a given price at a future date
 Open offer: Indicates the manner in which the company raised money by offering its shares
to the public (public offering)
 Placing: General term to describe the process of raising money via the issue of new shares
 Private placing: Private placing is a process of raising money by the issue of new shares to
institutions and private clients rather than to the general public
 Rights issue: Rights issue is the process of raising money by issuing rights to a company's
existing shareholders to buy a proportional number of additional securities at a given price
within a fixed period
 Scrip issue: A scrip issue (also called a capitalization issue or a bonus issue) is the issue of
new shares to existing shareholders at no charge, on a pro-rata basis to their existing
shareholdings
 Vendor placing: A method of using shares to fund an acquisition by allotting shares from
the purchaser to the vendor in exchange for shares in the target (or other assets). The
consideration shares are then placed on behalf of the vendor by the purchaser’s bank so
that the vendor receives cash (the proceeds of sale of shares by the purchaser’s bank).
Financial and operational information
Financial Deals captures all the key financial items from income statement, balance sheet including
key ratios and valuation multiples, which help in providing a detailed understanding of the deal. The
financial information is captured for target companies. All the financial fields are presented in local
currency as well as US Dollar. In addition to financial fields, Financial Deals also captures certain
operational parameters. Below is a list of key fields along with their definitions:
Fiscal year end: Refers to the fiscal year (or financial year or accounting reference date), a 12-
month period used for calculating annual (yearly) financial statements. All the financial fields in
MarketLine Financial Deals database are captured according to the fiscal year-end values.
No. of employees: Number of employees at the fiscal year end

Local currency: The currency in which the company is reporting its financial statements
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33
APPENDIX
Revenue (non banking): Revenue is the amount of money that a company receives from its
activities in a given period, primarily from sales of products and/or services to customers
Revenue (banking): This value is sum of interest income and non interest income
Operating profit: Operating profit is the earnings before deduction of interest payments and income
taxes; also called EBIT (earnings before interest and taxes) or operating income. For banking
companies interest payments are not deducted.
EBITDA: Earnings before interest, taxes, depreciation and amortization
Post tax profit: Post tax profit is the amount of earnings that is available after deducting the taxes,
also known as profit after tax
Operating margin: This value measures the percent of revenues remaining after paying all
operating expenses. It is calculated as annual operating income divided by annual total revenue,
multiplied by 100.
Enterprise value: Enterprise value is calculated by adding a company’s market capitalization,

preferred stock, minority interest, and outstanding debt together and then subtracting out the cash
and cash equivalents found on the balance sheet as on the fiscal year end
Shares issued: Number of shares the company has issued out of its authorized capital
Market capitalization: Market capitalization is calculated by taking the number of outstanding

shares of common stock multiplied by the market price-per-share as on fiscal year end
Outstanding shares: It represents stock currently held by investors, including restricted shares
owned by the company's officers and insiders, as well as those held by the public. It is also defined
as the difference between shares in issue and treasury shares as of the fiscal year end.
Net assets: Net assets are the difference between the total asset and liabilities that has to be paid to
third parties. It is also known as net worth
Net assets-share ratio: It is defined as net assets divided by number of shares outstanding
Earning per share: Earnings per share (EPS) is calculated by dividing a company's net income by
the outstanding shares
Price earning ratio (P/E): The P/E ratio (price-to-earnings ratio) of a stock (also called its ‘earnings
multiple’, or simply multiple, P/E, or PE) is a measure of the price paid for a share relative to the
income or profit earned by the company per share. P/E ratio is arrived by dividing share price at the
end of the fiscal year with net income per share.
Deal multiples
Financial Deals captures the following four valuation multiples:

 EV/revenues
 EV/EBIT
 EV/EBITDA
 EV/total assets
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34
APPENDIX
Advisor information
Financial Deals captures detailed advisor information including financial advisor, legal advisor,
placement agent, and public relation (PR) advisors along with respective executives involved in the
deal. The following are the different types of advisors:
Legal advisor: Legal advisors are those who look into the legal matters of a company for that
particular deal.
Financial advisor: Financial advisors are those who look into the financial matters of a company for
that particular deal. Financial advisor is separated into the following types:
 Financial due diligence: The process of investigation, performed by investors, into the details
of a potential investment, such as examination of operations and management and
verification of material facts
 Accounting: Financial advisor who looks into the accounting matters for a deal
 Tax: Financial advisor who looks into the tax matters for a deal
 Corporate Finance: Financial advisor who looks into the financial decisions of a corporation
 Book runners: Book runner is the managing or lead underwriter who maintains the books of
securities sold for a new issue
 Underwriters: A company or other entity that administers the public issuance and distribution
of securities from a corporation or other issuing body
 Brokers: An individual or firm that charges a fee or commission for executing buy and sell
orders submitted
 Others: All other financial advisors not falling in the above-mentioned categories are tagged
as other
Placement agent: A company that specializes in finding institutional investors who are willing and
able to invest primarily in unregistered securities
Public Relations (PR) advisor: An entity that advises a company or manages its communication
activities with its stakeholders
30
35
APPENDIX
About MarketLine
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APPENDIX
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UNITED KINGDOM, EC1R 3DA
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T: + 44 161 238 4040| F: + 44 870 134 4371
E: REACHUS@MARKETLINE.COM
37
Data as of Market Close: 10 July 2018
Rating Update¹ for Valeura Energy Inc
Stock upgraded to Good from Above Average

C1. SADIF overall Rating (SMR) and its drivers Highlights
Valeura Energy Inc has a a fair prospect, with an overall

score of 80/100. This represents an upgrade in relation to
the previous rating. This is mostly due to a rise in its
business safety. More specifically, the company
experienced a rise of 56.15% in its market.
Looking forward, its quality declines but our estimates

rating shows an improvement, mainly due to a rise in
revenue per share.
Overall, we expect Valeura Energy Inc to be an above

average long-term investment that is prone to perform long
term.
Quality Safety Sentiment Last Close Price 52-Week Range Market Cap.
SMQ SMD SMC 4.230 CAD 0.43 - 8.27 360.638M CAD
Beta PE PBV
14.74 -35.54 3.03
EPS ² Earnings Yield Div Announc. Date

Business Operational Technicals -0.12 -17.00% -
SMB SMD1 SMS DPS Dividend Yield Div Ex Date
- 0.00% -
T1. Quarterly EPS
Financials Information Outlook Year Q1 Q2 Q3 Q4

SMF SMD2 SMA 2018 -0.032 -0.039f -0.036f -
2017 -0.031 -0.007 -0.067 -0.013
2016 -0.017 -0.011 -0.022 -0.054
T2. Quarterly BVS

Earnings Market Valuation
SMI SMD3 SMW Year Q1 Q2 Q3 Q4
2018 1.398 1.929f 2.347f -
2017 1.015 0.898 0.793 0.749
2016 1.251 1.220 1.168 1.001

38
Valeura Energy Inc
The book value and earnings estimates
above were based on the following
revenue forecast which is not adjusted for
company guidance:
Year Q1 Q2 Q3 Q4
2018 0.0 0.0f 0.035f -
2017 0.0 0.0 0.031 0.0
2016 0.1 0.1 0.044 0.0
The company's business outlook (SMA) is T5. Benchmark Group: Industry Competitors Outlook
in our estimates (SMH), is likely to Industry
Ticker Company Name Similarity SMA SMH SMO1 ACR
improve. Earnings per share are Share
strengthening, while its book value per VLE Valeura Energy Inc 0.03% 92 85 51 83
share is rising. The trend on market BBI Blackbird Energy Inc 68.42% 0.03% 37 26 42 69
multiples is favorable. Our target price has
PGF Pengrowth Energy Corp 63.16% 1.08% 20 47 84 32
an implicit annual CAGR of 9.5%, well
below that of the analyst consensus. BNP Bonavista Energy Corp 63.16% 1.02% 80 86 68 54
PONY Painted Pony Energy Ltd 63.16% 0.78% 67 63 59 61
Sentiment
SGY Surge Energy Inc 63.16% 0.43% 88 85 85 69
to Valeura Energy Inc is bullish, and with a C3. Overall Investor Sentiment (SMC) and its constituents
neutral outlook. This is supported by a
positive trend in analyst consensus.
Meanwhile, the short term trend measured
through technical indicators shows some
appreciation in the last month.
T4. History of up(down)grades ³

10 Jul 2018 Good
13 Apr 2018 Above Average
27 Mar 2018 Average
Conclusion
Valeura Energy Inc is an average quality company. With reasonable business rating, it has fair financials and poor
earnings quality. In terms of risk, Valeura Energy Inc, is very safe. With average operational risk, it has average
information risk and low market risk. The current market sentiment in relation to the company is positive notwithstanding
unfavorable technical indicators, positive estimates and a fair valuation. The trend in Valeura Energy Inc fair value
exchange rate against its closest rated-competitor, Blackbird Energy Inc, has been depreciating over the past 2 weeks.
When compared to its closest competitor, Blackbird Energy Inc, Valeura Energy Inc shows less undervaluation and is less
likely to outperform the market.
Notes:
1) Last due diligence report published on 31 May 2018
2) EPS, last twelve months, adjusted for stock splits.
3) Current Ratings are not stricly comparable to those published before 8 Dec 2016 due to changes in methodology.

39
SMR
SMD SMQ SMC
SMD2
SMB SMA
SMS
SMD1 SMG
SMW
SMD3 SMF
SMR
SMR

SMQ
SMB

leverage.
Quality (SMQ)
SMD
SMF

SMG
SMC

SMD1
SMW
Sentiment (SMC)

Safety (SMD)
SMD2
SMA
SMD3
SMS
the article. The author of this article does not hold a position in any of the companies featured within this report.

40
Valeura Energy Inc. (VLE)
Financial and Strategic SWOT Analysis Review
Report Code: GDGE7803FSA

Published: July 2018
41
Valeura Energy Inc. (VLE) - Financial and Strategic SWOT Analysis Review
Company Snapshot
Suite 1200, 202 - 6th Avenue South
Phone +1 403 2377102 Revenue 14.10 (million CAD)
West
Calgary, AB Fax +1 403 2377103 Net Profit -8.38 (million CAD)
T2P 2R9 Website www.valeuraenergy.com Employees NA
VLE [Toronto Stock
Canada Exchange Industry Oil & Gas
Exchange]
Company Overview
Valeura Energy Inc. (Valeura), formerly PanWestern Energy Inc., is an upstream oil and gas company that explores for, develops and
produces petroleum and natural gas in Turkey. It produces conventional shallow natural gas and unconventional tight gas. Valeura
operates in Thrace Basin in northwest Turkey and the Anatolian Basin in southeast Turkey. The company also produces natural gas at
Thrace Basin to the west of Istanbul that extends to the borders of Greece and Bulgaria. Besides upstream operations, the company
owns gas gathering and sales infrastructure to market natural gas to end users directly. Valeura is headquartered in Calgary, Alberta,
Canada.
Key Executives SWOT Analysis
Name Title Valeura Energy Inc., SWOT Analysis
Bill Fanagan Chairman Strengths Weaknesses
Sean Guest, Ph.D. Chief Executive Officer
Increasing Net Working Capital Declining Production
Claudio Ghersinich Director
Substantial Reserve Base
Ron Royal Director
Tim Marchant Director
Source: Annual Report, Company Website, Primary and Secondary Opportunities Threats
Research, GlobalData
Share Data Demand: Oil & Petroleum Government Regulations
Products
Valeura Energy Inc. Exploration Production and
Share Price (CAD) as on 29-Jun- 4.78 Strategic Agreement Development Risks
2018
EPS (CAD) -0.12
Source: Annual Report, Company Website, Primary and Secondary Research,
Market Cap (million CAD) 387 GlobalData
Enterprise Value (million CAD) 330

Shares Outstanding (million) 86
Source: Annual Report, Company Website, Primary and Secondary
Financial Performance Recent Developments
Jun 28,2018 Valeura Provides Operations Update, Basin
Centered Gas Accumulation Appraisal Program
Begins
May 09,2018 Valeura Announces First Quarter 2018 Results
and Updates on Progress for Appraisal Activities
Apr 18,2018 Valeura Announces Increased 2018 Natural Gas
Prices, Lyle Martinson Appointed As Chief
Operating Officer
Feb 06,2018 Valeura Announces Prospective Resources For
Unconventional Basin-Centered Gas Prospect
Research, GlobalData Source: Annual Report, Company Website, Primary and Secondary Research,
GlobalData
© GlobalData 2018. This product is licensed and is not to be photocopied. Page 2

42
Table of Contents
Table of Contents ............................................................................................................................................................................... 3
List of Tables.................................................................................................................................................................................. 5
List of Figures ................................................................................................................................................................................ 5
Section 1 - About the Company ......................................................................................................................................................... 6
Valeura Energy Inc. - Key Facts .......................................................................................................................................................... 6
Valeura Energy Inc. - Key Employees ................................................................................................................................................. 7
Valeura Energy Inc. - Key Employee Biographies ............................................................................................................................... 8
Valeura Energy Inc. - Major Products and Services ........................................................................................................................... 9
Valeura Energy Inc. - History ............................................................................................................................................................ 10
Valeura Energy Inc. - Company Statement ...................................................................................................................................... 11
Valeura Energy Inc. - Locations And Subsidiaries ............................................................................................................................ 14
Head Office.................................................................................................................................................................................. 14
Other Locations & Subsidiaries ................................................................................................................................................... 14
Section 2 – Company Analysis.......................................................................................................................................................... 15
Valeura Energy Inc. - Business Description ...................................................................................................................................... 15
Valeura Energy Inc. - Corporate Strategy......................................................................................................................................... 16
Valeura Energy Inc. - SWOT Analysis ............................................................................................................................................... 17
SWOT Analysis - Overview ............................................................................................................................................................... 17
Valeura Energy Inc. - Strengths ........................................................................................................................................................ 17
Valeura Energy Inc. - Weaknesses ................................................................................................................................................... 18
Valeura Energy Inc. - Opportunities ................................................................................................................................................. 19
Valeura Energy Inc. - Threats ........................................................................................................................................................... 20
Valeura Energy Inc. - Key Competitors ............................................................................................................................................ 21
Section 3 – Company Financial Ratios ............................................................................................................................................. 22
Financial Ratios - Capital Market Ratios .......................................................................................................................................... 22
Financial Ratios - Annual Ratios ....................................................................................................................................................... 23
Performance Chart........................................................................................................................................................................... 26
Financial Performance ..................................................................................................................................................................... 26
Financial Ratios - Interim Ratios ...................................................................................................................................................... 27
Financial Ratios - Ratio Charts.......................................................................................................................................................... 28
Section 4 – Company’s Mergers & Acquisitions, Capital Raising and Alliances ............................................................................... 29
Valeura Energy Inc., Transactions by Year, 2012 to YTD 2018 .................................................................................................... 29
Valeura Energy Inc., Transactions by Type, 2012 to YTD 2018 ................................................................................................... 30
Valeura Energy Inc., Transactions by Region, 2012 to YTD 2018 ................................................................................................ 31
Valeura Energy Inc., Recent Transactions Summary........................................................................................................................ 32
Acquisition ....................................................................................................................................................................................... 33
Valeura Energy Completes Acquisition Of Thrace Basin Natural Gas From TransAtlantic Petroleum For US$20.9 Million ............ 33
Asset Transactions ........................................................................................................................................................................... 35
Statoil Completes Acquisition Of Additional 10% Stake In Deep Formations Rights On TBNG JV Lands In Turkey From Valeura
Energy For US$3 Million................................................................................................................................................................... 35
Statoil Holding Completes Acquisition Of 50% Interest In Deep Formations On Banarli Licenses In Turkey From Valeura Energy 37
Statoil Completes Acquisition Of 40% Stake In Deep Formations Rights On TBNG JV Lands In Turkey From Valeura Energy For
US$12 Million ................................................................................................................................................................................... 39
Valeura Energy Sells Nine Oil And Gas Properties In Alberta .......................................................................................................... 41
Valeura Energy Sells 27.5% Interest In Two Karakilise Licenses In Southeast Turkey ..................................................................... 42
Equity Offerings ............................................................................................................................................................................... 43
Valeura Completes Public Offering Of Shares For US$47.8 Million ................................................................................................. 43
Valeura Energy Completes Private Placement Of Subscription Receipts For US$8.3 Million .......................................................... 44
Valeura Energy Completes Public Offering Of Shares For US$15.4 Million ..................................................................................... 46
Section 5 – Company’s Recent Developments................................................................................................................................. 48
Jun 28, 2018: Valeura Provides Operations Update, Basin Centered Gas Accumulation Appraisal Program Begins ...................... 48
May 09, 2018: Valeura Announces First Quarter 2018 Results and Updates on Progress for Appraisal Activities ......................... 49

43
Apr 18, 2018: Valeura Announces Increased 2018 Natural Gas Prices, Lyle Martinson Appointed As Chief Operating Officer ..... 51
Feb 06, 2018: Valeura Announces Prospective Resources For Unconventional Basin-Centered Gas Prospect .............................. 52
Jan 16, 2018: TransAtlantic Petroleum Announces Engagement Of Financial Advisor To Market Company And Provides Updates
On Drilling Program & Prospects In Thrace Basin ............................................................................................................................ 54
Jan 15, 2018: Valeura Provides Operational Update and Announces Board Changes .................................................................... 55
Jan 02, 2018: Valeura Announces Completion Of CEO Succession Plan .......................................................................................... 58
Dec 27, 2017: Valeura reports production testing progress (Test 4) at Yamalik-1 well .................................................................. 59
Dec 18, 2017: Valeura reports production testing progress (Test 3) at Yamalik-1 Well .................................................................. 60
Dec 11, 2017: Valeura Updates Production Testing Progress At Yamalik-1 Well ............................................................................ 61
Nov 27, 2017: Valeura Announces Positive Interim Production Test Results And Confirms Natural Gas And Condensate Discovery
At Yamalik-1 Well ............................................................................................................................................................................. 62
Nov 14, 2017: Valeura Announces Third Quarter 2017 Financial And Operating Results And Commencement Of Yamalik-1
Testing Program ............................................................................................................................................................................... 63
Oct 17, 2017: Valeura Announces Yamalik-1 Testing Program And Operational Update ............................................................... 67
Aug 10, 2017: Valeura Announces Second Quarter 2017 Financial And Operating Results ............................................................ 69
Jul 24, 2017: Valeura Announces Rig Release From Yamalik-1 Well And Positive Evaluation Results ............................................ 72
Section 6 – Appendix ....................................................................................................................................................................... 73
Methodology ............................................................................................................................................................................... 73
Ratio Definitions .......................................................................................................................................................................... 73
About GlobalData ........................................................................................................................................................................ 77
Contact Us ................................................................................................................................................................................... 78
Disclaimer .................................................................................................................................................................................... 78

44
List of Tables
Valeura Energy Inc., Key Facts ........................................................................................................................................................... 6
Valeura Energy Inc., Key Employees .................................................................................................................................................. 7
Valeura Energy Inc., Key Employee Biographies ................................................................................................................................ 8
Valeura Energy Inc., Major Products and Services............................................................................................................................. 9
Valeura Energy Inc., History ............................................................................................................................................................. 10
Valeura Energy Inc., Subsidiaries ..................................................................................................................................................... 14
Valeura Energy Inc., Key Competitors.............................................................................................................................................. 21
Valeura Energy Inc., Ratios based on current share price ............................................................................................................... 22
Valeura Energy Inc., Annual Ratios .................................................................................................................................................. 23
Valeura Energy Inc., Annual Ratios (Cont...1) .................................................................................................................................. 24
Valeura Energy Inc., Interim Ratios .................................................................................................................................................. 27
Valeura Energy Inc., Transactions by Year, 2012 to YTD 2018 ......................................................................................................... 29
Valeura Energy Inc., Transactions by Type, 2012 to YTD 2018 ........................................................................................................ 30
Valeura Energy Inc., Transactions by Region, 2012 to YTD 2018 ..................................................................................................... 31
Valeura Energy Inc., Recent Transactions Summary ........................................................................................................................ 32
Currency Codes ................................................................................................................................................................................ 73
Units ................................................................................................................................................................................................. 73
Capital Market Ratios....................................................................................................................................................................... 73
Equity Ratios .................................................................................................................................................................................... 74
Profitability Ratios............................................................................................................................................................................ 74
Cost Ratios ....................................................................................................................................................................................... 75
Liquidity Ratios................................................................................................................................................................................. 76
Leverage Ratios ................................................................................................................................................................................ 76
Efficiency Ratios ............................................................................................................................................................................... 76
List of Figures
Valeura Energy Inc., Performance Chart (2013 - 2017) ................................................................................................................... 26
Valeura Energy Inc., Ratio Charts ..................................................................................................................................................... 28

45
Section 1 - About the Company

Valeura Energy Inc. - Key Facts
Valeura Energy Inc., Key Facts
Corporate Address Suite 1200, 202 - 6th Avenue Ticker Symbol, Exchange VLE [Toronto Stock Exchange]
South West , Calgary, AB, T2P
2R9, Canada
Telephone +1 403 2377102 No. of Employees NA
Fax +1 403 2377103 Fiscal Year End December
URL www.valeuraenergy.com Revenue (in USD Million) 10.6
Industry Energy and Utilities Revenue (in CAD Million) 14.1
Locations Turkey
Source: Annual Report, Company Website, Primary and Secondary Research GlobalData

46
Valeura Energy Inc. - Key Employees

Valeura Energy Inc., Key Employees
Name Job Title Board Level Since Age
Bill Fanagan Chairman Executive Board

Sean Guest, Ph.D. Chief Executive Officer, Director, Executive Board 2018
President
Claudio Ghersinich Director Non Executive Board
Ron Royal Director Non Executive Board
Tim Marchant Director Non Executive Board
Russell Hiscock Director Non Executive Board 2018
Barry Wihak Vice President Business Senior Management
Development
Steve Bjornson Chief Financial Officer Senior Management
Donald Shepherd Vice President Engineering Senior Management
Lyle Martinson Vice President Operations Senior Management
Rob Sadownyk Vice President Exploration Senior Management
Stephanie Stimpson Secretary Senior Management
Lyle Martinson Chief Operating Officer Senior Management 2018

47
Valeura Energy Inc. - Key Employee Biographies

Valeura Energy Inc., Key Employee Biographies
Mr. Bill Fanagan is the Chairman of Valeura . Prior to this, he served as the
Bill Fanagan
Chairman of Verenex Energy Inc from 2004 to 2009. Mr. Fanagan also served as
Job Title: Chairman
President and Chief Executive Officer of Gulf Indonesia Resources Limited from
1998 to 2001.
Board Level: Executive Board
Dr. Sean Guest has been the Director, Chief Executive Officer and President of
Sean Guest, Ph.D.
the company since 2018. Prior to this, he served as the Chief Executive Officer
Job Title: Chief Executive Officer, Director, President
at Pexco Energy and Bukit Energy and he also held various positions at the
Woodside in Australia and Libya and Shell in the Netherlands, Australia and
Malaysia.
Since: 2018
Mr. Steve Bjornson is the Chief Financial Officer of Valeura . Prior to this, he
Steve Bjornson
served as Chief Financial Officer of Vermilion Resources, Clear Energy and Sound
Job Title: Chief Financial Officer
Energy. In addition, Mr. Bjornson was Director of Bulldog Oil & Gas Inc., Bulldog
Resources, and Aventura Energy.
Board Level: Senior Management
Mr.Lyle Martinson has been the Chief Operating Officer of the company since
Lyle Martinson
2018. Prior to this, he served the Company since its founding as the VP
Job Title: Chief Operating Officer
Operations and is a professional engineer with more than 39 years of
management, operations, and engineering experience in the oil and gas
industry internationally and in Canada.
Since: 2018

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Valeura Energy Inc. - Major Products and Services

Valeura is an oil and gas exploration company. Key products offered by the company include the following:
Valeura Energy Inc., Major Products and Services

Products:
Crude Oil
Natural Gas

49
Valeura Energy Inc. - History

Valeura Energy Inc., History
2017 Acquisitions/Mergers/Takeovers In February, the company acquired Thrace Basin Natural Gas Turkiye
Corporation.
2016 Contracts/Agreements In May, Corporate Resources of Valeura Energy signed an agreement with
Statoil for a farm out on Banarli licences in Turkey.
2016 Contracts/Agreements In October, TransAtlantic Petroleum signed a share purchase agreement with
Valeura Energy Netherlands for the sale of its subsidiary, Thrace Basin
Natural Gas Corporation.
2016 Financing Agreements In November, Valeura Energy raised US$8.3 million through Private
placement of subscription receipts.
2016 Financing Agreements In October, Valeura Energy executed definitive agreements for three
transactions in Turkey from TransAtlantic Petroleum, which valued US$18.5
million.
2016 Oil/Gas Discovery In January, Valeura Energy made a natural gas discovery with its first
exploration well, Bati Gurgen-1, on its 100% owned and operated Banarli
licenses in Turkey’s Thrace basin.
2016 Regulatory Approval In December, the company received an approval from Ministry of Energy and
Natural Resources of the Republic of Turkey for its transformational
transactions which include Banarli Farm-in, the West Thrace Deep Rights Sale
and the TBNG Acquisition.
2012 Other In June, the company was awarded two new exploration licenses on 100%
working interest basis in southeast Turkey by the General Directorate of
Petroleum Affairs of the Republic of Turkey.
2011 Acquisitions/Mergers/Takeovers In June, Valeura Energy Inc.acquired natural gas production and land from
TransAtlantic Worldwide Ltd for US$57.3 million.
2011 Asset Purchase In June, the company announced acquisition of natural gas production in
Turkey of approximately 10.0 MMcf/d and 588,719 net acres of land in the
Thrace and Anatolian basins.
2010 Incorporation/Establishment The company was founded.

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Valeura Energy Inc. - Company Statement
A statement from the management discussion and analysis of the company is given below. The statement has been taken from the company's
2016 Management’s Discussion and Analysis report.
The Company
Valeura and its subsidiaries are currently engaged in the exploration, development and production of petroleum and natural gas in Turkey.
Valeura’s shares are traded on the Toronto Stock Exchange ("TSX") under the trading symbol "VLE". Valeura was established in 2010 to grow
internationally through opportunistic acquisitions of producing assets with exploitation and exploration upside in selected countries in regions
of interest, which included the Mediterranean Basin. The Company completed its first international transaction in Turkey during 2010 and
since that time has executed a number of other transactions and won several new exploration licence awards in the country.
As at December 31, 2016, the Company held an interest in 21 exploration licences and production leases comprising approximately 0.63
million gross acres (0.31 million net acres) primarily in the Thrace Basin (87% of net lands) of northwest Turkey. The assets in the Thrace Basin
include a 100 percent working interest in two exploration licences in an early exploration and production stage (the "Banarli Licences"), a 40
percent working interest in 14 production leases and exploration licences under a joint venture with an established natural gas production
and marketing business (the "TBNG JV") and a 35 percent working interest in three production leases with mature shallow gas production
operations (the Edirne Leases"). The Thrace Basin lands have both conventional shallow gas exploration and development potential and
unconventional tight gas potential. The tight gas play is in early-stage development after more than four years of activity aimed at de-risking
the play. Some of these lands are also believed to have potential for a basin-centered gas play in over-pressured formations below
approximately 2,500 metres.
Turkish Operations
TBNG JV
The TBNG JV lands provide cash flow to the Company from sales of natural gas production in the Thrace Basin, interests in 293,670 gross acres
of onshore land (117,468 net) as at December 31, 2016, and exposure to a significant unconventional tight gas opportunity in the Thrace
Basin. The lands encompass twelve production leases and two exploration licences, all located onshore, following the conversion process to
the new petroleum law. As at December 31 2016, applications by the TBNG JV for one new exploration licence and two production leases
remained under review by the General Directorate of Petroleum Affairs ("GDPA") of the Republic of Turkey. In February 2017, the TBNG JV
was awarded the two production leases that were under application. Natural gas is currently produced from approximately 85 wells (gross) on
the TBNG JV lands. Approximately 65 percent of the natural gas produced from the TBNG JV lands in Q4 2016 was conventional shallow gas
from sandstone reservoirs in the Danismen and Osmancik formations at a depth of 500 to 1,500 metres. The gas, which is composed primarily
of methane, is gathered, dehydrated and compressed in owned facilities and distributed on an owned sales line network directly to more than
55 light industry customers.
TBNG Acquisition
On February 24, 2017, the Company’s wholly-owned affiliate, Valeura Energy (Netherlands) B.V completed the acquisition of 100 percent of
the shares of its joint venture partner in the TBNG JV, Thrace Basin Natural Gas (Turkiye) Corporation ("TBNG"), for US$22 million in cash
effective March 31, 2016 (the "TBNG Acquisition"), which after preliminary closing adjustments was reduced to a cash payment of US$20.9
million (which includes US$3.1 million held in escrow pending final reconciliation of the closing statement of adjustments). The Company’s
participating interest in the shallow rights on the TBNG JV Lands has increased to 81.5 percent and Valeura has become the operator.
Acquiring operatorship allows Valeura to accelerate the early ramp-up of exploration and development activities on the TBNG JV lands, with
the initial priority on spudding up to four shallow commitment wells on the West Thrace lands by late June 2017, of which one commitment
well was completed in February 2017.
West Thrace Deep Rights Sale
On January 6, 2017, the Company’s wholly-owned affiliate, Corporate Resources B.V ("CRBV") completed the sale and purchase agreement
(the "West Thrace Deep Rights Sale") with Statoil Banarli Turkey B.V. ("Statoil"), a whollyowned affiliate of Statoil ASA, to sell Valeura’s 40
percent participating interest in the deep formations below approximately 2,500 metres depth on certain TBNG JV lands, including two
exploration licenses and the three production leases (the "West Thrace lands"), for cash consideration of US$12 million which was received in
early January. Following the closing of the West Thrace Deep Rights Sale and the TBNG Acquisition, CRBV entered into a sale and purchase
agreement with Statoil on March 10, 2017 to sell an additional 10 percent participating interest in the deep formations below approximately
2,500 metres depth on the West Thrace lands, for cash consideration of US$3.0 million (the "Subsequent West Thrace Deep Rights Sale").
Upon the closing of the Subsequent West Thrace Deep Rights Sale, Valeura retains a 31.5 percent participating interest and Statoil acquires a
50 percent participating interest in the deep formations on the West Thrace lands. Valeura will retain an 81.5 percent participating interest in
the shallow formations on the West Thrace lands and an 81.5 percent participating interest in all formations on the other TBNG JV Lands. The

51
Subsequent West Thrace Deep Rights Sale is contingent on Turkish government approval for the associated licence interest transfer. Closing
of this transaction is expected in Q2 2017.
Banarli Licences
On April 8, 2013, the Company announced that it had been awarded the Banarli Licence 5104 on a 100 percent basis. This licence originally
covered an area of 118,598 gross acres near the centre and deepest part of the Thrace Basin and had a four-year initial term. The Company
shot 93 kilometres of new 2D seismic in June 2013 to complement more than 300 kilometres of vintage 2D seismic on this licence. During Q2
2015, the GDPA approved the Company's application to convert the Banarli licence under the new petroleum law to two new contiguous
exploration licences encompassing an area of 133,840 gross acres. The clock on the initial term of the licences has been re-started and has
also been extended to five years ending on June 27, 2020. During the initial five-year term, the Company will be required to complete, in
aggregate on the two licences, 152 square kilometres of 3D seismic and drill three wells, including a 2,000 metre well in each of year one and
year two and a 3,800 metre well in year four. As at December 31, 2016, the Company had already completed the 3D seismic commitment and
two of the three-well drilling commitments. Following the successful conversion of the Banarli licences in 2015 and the late 2014 drilling
success just south of the Banarli licences on the TBNG JV lands at Gurgen-1, Valeura shifted its corporate strategy to focus on exploration for
both shallow conventional gas and deeper unconventional tight gas at Banarli. As an initial step, Valeura acquired 152 square kilometres of 3D
seismic in the second quarter of 2015 and merged this with the 3D seismic at Osmanli and Tekirdag providing an interpreted data set covering
more than 580 square kilometres. Valeura subsequently drilled two vertical exploration wells at Banarli in November and December 2015. A
third exploration well was drilled in June 2016. The first of these exploration wells Bati Gurgen-1 was drilled to a depth of 2,735 metres into
the top of the Teslimkoy member of the Mezardere formation, with the primary target being conventional gas in the Osmancik formation. The
relatively tight Teslimkoy member was first evaluated with a diagnostic fracture injection test which confirmed that the Teslimkoy member is
over-pressured. However the net pay encountered to this depth in the Teslimkoy member was not sufficient to warrant a frac. Therefore
approximately 12 metres of net pay was initially completed in the Osmancik formation at a depth of approximately 1,500 metres and the well
was tied-in to a TBNG JV dehydration facility located about 3 kilometres away. Gas sales commenced from the Bati Gurgen-1 well on March
12, 2016. The gas is being sold to the TBNG JV, which in turn distributes the gas to its existing customer base.
The second exploration well Yayli-1 was drilled to a depth of 2,914 metres, penetrating an attractive interval in the Osmancik formation with
shallow gas potential. The well also penetrated multiple over-pressured, tighter stacked sands in the Teslimkoy member. Diagnostic fracture
injection tests on several intervals confirmed that the Teslimkoy formation in the Yayli-1 well is over-pressured to the same extent as
encountered in the Bati Gurgen-1 well. Two fracs have been completed in the Yayli-1 well and extensively evaluated to provide important
calibration data to assist in evaluating the potential of a basin-centered gas play below 2,500 metres on the Banarli licences and certain TBNG
JV lands. The Company subsequently plugged off the Teslimkoy and moved uphole to complete and test 13 metres of indicated net pay in
shallower conventional sands in the Osmancik formation at a depth of 1,800 metres. Five intervals in the Osmancik formation were
perforated and simultaneously tested yielding initial short term production rates of more than 1.0 MMcf/d but with high associated water
production. Production logging indicated that the water production appeared to be sourced primarily from one of the lower perforated
intervals but attempts to isolate and plug-off water production and achieve a sustainable gas flow rate were not successful. As at the date of
this MD&A, the well remains shut-in. On June 19, 2016 the third exploration well Bati Gurgen-2 was spudded and was drilled to a true vertical
depth of 2,226 metres. The wellbore penetrated well developed sands in both the Danismen and Osmancik formations but these sands were
25 to 29 metres deeper than expected and appeared to be wet on logs. As a result, a sidetrack drilling operation was carried out targeting
sands in the Osmancik formation in a higher structural position at a bottom-hole location approximately 360 metres west of the initial
bottom-hole location. The sidetrack well was drilled and cased to a true vertical depth of 1,857 metres in the Osmancik formation. The well
was placed onstream on September 26, 2016 as a producer from approximately 8.0 metres of conventional stacked sands in the Osmancik
formation at a depth of 1,640 metres.
Banarli Farm-in
On January 6, 2017, the Company closed the farm-in agreement for the exploration of the deeper formations below approximately 2,500
metres on the Company’s 100 percent owned and operated Banarli exploration licences in accordance with the farm-in agreement between
CRBV and Statoil (the "Banarli Farm-in"). Under the Banarli Farm-in, Statoil will have the option to earn a 50 percent interest in the deep
formations on the Banarli Licences by investing in an exploration program that includes payments and carried costs of at least US$36 million.
The actual amount invested by Statoil to earn its 50 percent interest may be higher based on the actual agreed costs of the three-phase work
program, which includes two deep wells and new 3D seismic. Valeura will operate the deep exploration program during the earning phase of
the Banarli Farm-in and retains a 100 percent interest in the shallow formations in the Banarli exploration licences. Valeura has received
US$6.0 million for up-front payments as a contribution to back costs incurred on the Banarli licences.
Turkish Political Events

On July 15, 2016, an attempted coup by elements of the Turkish military was put down by the government. This event and the aftermath have
not affected the Company’s ability to conduct drilling and production operations in the Thrace Basin and no delays or security issues have
been experienced. The impact so far has been a further devaluation in the Turkish Lira, sovereign debt ratings downgrades and a state of
emergency declaration which was extended to April 19, 2017. The current situation in Turkey has resulted in a 24 percent devaluation of the
Turkish Lira against the Canadian Dollar during 2016. The Company will continue to monitor conditions, including the safety of personnel and

52
operations, the security situation generally, impact on the Turkish Lira and banking facilities, impact on our joint venture partners and any
changes in offtakes by our natural gas customers. The preparation of financial statements in conformity with IFRS requires management to
make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities,
income and expenses. The ability to make reliable estimates is further complicated when the political, economic and security situation is
uncertain. Management has based its estimates with respect to the Company’s operations in Turkey on information available up to the date
of this MD&A.
The situation in Turkey remains uncertain and significant changes could occur which could materially impact the assumptions and estimates
made in this MD&A. Changes in assumptions are recognized in the financial statements prospectively. There can be no assurance that the
Company will be able to maintain operations in a normal manner in the future.
Outlook
The Company is planning a capital expenditure program of $13 to 15 million (net) in 2017 focussed entirely on the shallow gas business. This
level of spending is contingent on closing the Subsequent West Thrace Deep Rights Sale, and some stabilization of the Turkish Lira exchange
rate and the BOTAS Reference Price (denominated in Turkish Lira). The capital program is expected to include drilling of up to seven wells
(gross) in the shallow formations on the TBNG JV lands and Banarli Licences, targeting 2017 exit rate sales of approximately 1,500 boe/d. This
outlook is lower than earlier preliminary projections due to delays in completing the inter-linked transformational transactions, including the
Banarli Farm-in, the West Thrace Deep Rights Sale, the TBNG Acquisition and the Offering, reflecting a longer than expected Turkish
government approval process. The Company also expects that the Banarli Farm-in program, fully funded by Statoil and operated by Valeura,
will commence with the spudding of a deep exploration well in Q2 217 under Phase 1 of the Banarli Farm-in and the start of the 3D seismic
acquisition in Q3 2017 under Phase 2.

53
Valeura Energy Inc. - Locations And Subsidiaries

Head Office
Valeura Energy Inc.
Suite 1200
202 - 6th Avenue South West
Calgary
AB
T2P 2R9
Canada
Tel: +1 403 2377102
Fax: +1 403 2377103
Other Locations & Subsidiaries
Valeura Energy Inc., Subsidiaries
Thrace Basin Natural Gas Turkiye Corporation Pinnacle Turkey Inc

Turkey
Turan Günes Boulevard
89. Sok. 14 / 4
ANKARA
Turkey
Url: www.thracebasin.com.tr
Northern Hunter Energy Inc. Valeura Energy (Netherlands) Cooperatief UA

Suite 650-1015 Netherlands
4 Street SW
Calgary
AB
T2R 1J4
Canada
Url: www.nhenergyinc.com

54
Section 2 – Company Analysis

Valeura Energy Inc. - Business Description
Valeura Energy Inc. (Valeura) is an upstream oil and gas company that explores for, develops and produces petroleum and natural gas in
Turkey. The company has operations in Thrace Basin in northwest Turkey and the Anatolian Basin in southeast Turkey. It has subsidiaries in
Canada and the Netherlands, with branches operating in Turkey. As of December 2016, the company had interest in 21 exploration licenses
and production leases which comprises approximately 0.53 million gross acres in the Thrace Basin in northwest Turkey and the Anatolian
Basin in southeast Turkey.
Valeura produces almost 99% of its natural gas in Turkey from the Thrace Basin, which is in an area west of Istanbul and extending to the
borders of Greece and Bulgaria. As of December 2016, it had 16 leases with gross acreage of 344,781. The Thrace Basin lands have
conventional shallow gas exploration and development potential and unconventional tight gas potential. Its holdings in the Thrace Basin
include TBNG JV Licences & Leases, Banarli licenses, and Edirne leases.
The company produces natural gas from both unconventional (tight gas) sandstone and conventional reservoirs in the licenses and the leases
of the TBNG JV. It produces conventional shallow gas from approximately 53 wells in Danismen and Osmancik formations. The gas is
composed primarily of methane. The company sells directly to approximately 55 commercial and end user customers. In FY2016, the company
reported average sales of 3.0 million cubic feet per day (MMcf/d) of net gas sales and 5 bbl/d net oil and natural gas liquids (NGLs).
Valeura holds two leases and licenses in Banarli. The exploration license covers an area of 133,840 gross acres near the Thrace Basin. In
FY2016, Valeura reported average of 1.8 MMcf/d gas sales and 4 bbl/d NGLS. The company operates three licenses in Edirne covering an area
of 49,883 gross acres. In FY2016, gas sales from the Edirne assets averaged 0.01 MMcf/d net of gas.
The assets in the Anatolian Basin include two exploration licenses with oil potential. The TBNG JV acquisition included 26% non-operating
working interest in lands in the Gaziantep area in the Anatolian Basin. In January 2017, the company relinquished licenses in the basin.
As of December 2016, it had 4,704 Mboe of gross proved plus probable reserves and 1,567 gross proved reserves. In FY2016, the company
reported production of 292 Mboe.

55
Valeura Energy Inc. - Corporate Strategy

Valeura focuses on growing its business in Turkey, particularly its natural gas operations in the Thrace Basin, where natural gas prices remain
robust and prospects and potential impact increased with early exploration success in its Banarli licenses.Inline with this it focuses developing
low risk shallow gas business through TBNG JV lands and Banarli Licences; explore for deep, basin-centered gas accumulation play ;and further
expand in Thrace Basin.

56
Valeura Energy Inc. - SWOT Analysis

SWOT Analysis - Overview
Valeura Energy Inc. (Valeura) is an upstream oil and gas company. It explores for, develops and produces petroleum and natural gas in Turkey.
Substantial reserve base, increasing net working capital are the major strengths of the company. Decreased production remains a cause for
concern. New agreements, potential growth for unconventional oil and gas and demand for oil and petroleum products could provide growth
opportunities . However, it could face challenges due to stringent government regulations, exploration production and development risks and
oil and gas prices.
Valeura Energy Inc. - Strengths

Strength - Increasing Net Working Capital
Valeura reported increase in its net working capital during FY2016, which has strengthened its short term operations. In FY2016, the
company’s net working capital increased 181.55% to CAD 20.42 million from CAD 7.25 million in FY2015. The increase in its net working
capital was due to 86.2% increase in its total current assets to CAD 24.69 million in FY2016 from CAD13.26 million in FY2015. In FY2016, its
current and quick ratios increased to 5.79 and 5.79 from 2.21 and 2.21 in FY2015.
Strength - Substantial Reserve Base
Valeura has most of its crude oil and natural gas reserves in Turkey in the Thrace Basin area, which is to the west of Istanbul. It also has a small
proportion of the crude oil reserves in the Anatolian Basin in eastern Turkey. As of December 2016, it had 4,704 Mboe of gross proved plus
probable reserves and 1,567 gross proved reserves. At the production of 292 Mboe in FY2016 the company has reseverve life of
approximately seven years.

57
Valeura Energy Inc. - Weaknesses

Weakness - Declining Production
Valeura reported decline in its total production in FY2015, which affected its performance. In FY2016, the company reported 69.77% decline
in its total production to 292 boe/d from 966 boe/d. The decline in total production was due to 15.6% decrease in natural gas production,
which fell to 1,736 Mcf/d in FY2016 from 5,745 Mcf/d in FY2015. The presence of mature licenses in its production portfolio also contributed
to the decline. As of December 2016, Valeura had 35% working interest in three production leases with mature shallow gas production
operations in Thrace Basin. Its Edirne license is a mature asset and currently provides only small sales volumes of less than 50 Mcf/d (net).

58
Valeura Energy Inc. - Opportunities

Opportunity - Demand: Oil & Petroleum Products
Valeura could strengthen its business with the expected increase in demand for oil and petroleum products across the world. According to
World Oil Outlook (WOO) 2016, long-term demand for oil is expected to increase to 109.4 millions of barrels per day (MMbbl/d) by 2040.
Developing countries will continue to lead this growth, which would increase to 25 MMbbl/d over the period, to reach 66.1 MMbbl/d by
2040. Eurasia also would expand from 5.3 MMbbl/d to 6.0 MMbbl/d by 2040. The demand in the OECD region is expected to decrease to 37.3
MMbbl/d by the end of the forecast period. The demand in India and China accounted for 16% of the total demand in 2015. This percentage is
set to increase to 25% by 2040. According to WOO 2016, the demand for oil stood at 93 MMbbl/d in 2015 and is expected to increase to 109.4
MMbbl/d by 2040. The demand for diesel and gasoline is expected to increase to 33.2 MMbbl/d and 28 MMbbl/d, respectively, by 2040. The
demand for middle distillates is expected to increase by 42.6 MMbbl/d. This accounts for around 60% of the overall growth in demand for all
liquid products. The OECD is forecast to account for 34% and developing countries 60% of global demand for oil and petroleum products.
Opportunity - Strategic Agreement
The company's various collaborations and agreements help expand its reach and facilitate its organic growth. In August 2016, Valeura
announced that its wholly-owned affiliate, Corporate Resources B.V. (CRBV) entered an agreement with Statoil Holding Netherlands B.V.
(Statoil) a wholly-owned affiliate of Statoil ASA. The agreement is for the exploration of the deeper formations below approximately 2,500
meters where over-pressure is expected in Valeura's two 100% owned and operated Banarli exploration licenses in the Thrace Basin of
Turkey. Under the agreement, Statoil would need to invest at least US$36 million in three phases to earn 50% interest below 2,500 meter in
Banarli licenses, while the company retains 100% interest above 2,500 meters. The company will operate shallow and deep programs during
the Statoil earning phase. Partnering with Statoil will enable the company to explore the potential of its assets and develop its tight gas
resources.
Opportunity - Potential Growth for Unconventional Oil and Gas
With the petroleum industry turning to unconventional sources of oil and gas, Valeura can take advantage by increasing its contract portfolio
and revenue. Unconventional sources have the potential to add significant amounts to the world’s energy supplies. According to the forecast
of the US Energy Information Administration (EIA), the annual growth rate of unconventional production will be above the annual growth rate
of conventional production. According to the EIA’s forecast, by 2035, the world’s total conventional production is expected to be around 97.1
million barrels per day (MMbbl/d), whereas the unconventional production would be around 14.6 MMbbl/d. Currently, the share of
unconventional oil is around 5%, which is expected to increase to approximately 13% of the world’s oil production. Certain of the
unconventional sources include oil sands, CBM, tight gas, and shale gas.

59
Valeura Energy Inc. - Threats

Threat - Government Regulations
The company’s operations are subject to extensive regulation under federal, state and local statutes, rules, regulations and laws. Oil and gas
exploration and production is a political issue and results in higher risk of direct government intervention. Such intervention can extend, in
certain jurisdictions, to nationalization, expropriation or other actions that effectively deprive companies of their assets. Existing laws and
regulations include matters related to land tenure, production practices including hydraulic fracturing of wells, drilling, environmental
protection, marketing and pricing policies, various taxes and levies including income tax, royalties, foreign trade and investment and
government approval of lease and license transfers and other regulatory matters. Changes in government policy, laws and regulations could
affect Valeura’s operations and financial condition. Changes in the land tenure regulations associated with the New Petroleum Law are in the
early years of implementation and the full effect of these changes remains uncertain. Failure to comply with such regulations may result in
enforcement actions, including orders issued by regulatory or judicial authorities causing operations to cease, which could affect the
company’s business, financial condition and operations.
Threat - Exploration Production and Development Risks
Oil and gas exploration and production in the future may involve unprofitable efforts, not only from dry wells but also from producing wells,
when they are not commercially viable. The combination of technology and recovery costs may be higher than revenue earned from
production. Valeura’s operations could be affected by the risks related to exploration, production and development. Operational risks such as
unexpected formations or pressure, bow-outs and fire, which could result in loss of life and damage to properties, would cause production
delays and permanent well shut downs. However, production can be increased with effective operations but production delays cannot be
avoided. This could affect the company's revenue.
Threat - Fluctuations in Oil and Gas Prices
Valeura ’s operations could be affected by the fluctuations in oil and natural gas prices. Oil prices are dependent on various factors beyond
the company’s control, including supply of and demand for oil; weather conditions; and political conditions, among others. According to the
US Energy Information Administration’s (EIA’s) Short Term Energy Outlook 2017, the average WTI crude oil price was US$48.67/bbl in 2015
and US$43.33/bbl in 2016 and is expected to average US$53.46/bbl in 2017 and US$56.18/bbl in 2018. The Brent Crude Oil prices are
expected to reach US$54.54/bbl in 2017 and US$57.18/bbl in 2018 compared to average price of US$43.74/bbl in 2016. The fluctuation in the
price were due to recent production gains from producers outside the Organization of the Petroleum Exporting Countries (OPEC), including
Russia, the UK, and Brazil, and the continued resilience of onshore US producers which applied downward pressure on crude oil prices. The
average price of natural gas according to Henry Hub was US$2.6 per thousand cubic feet (/Mcf) in 2016, which was expected to reach
US$3.54/Mcf in 2017 and US$3.81/Mcf in 2018. The fluctuation in the price was due to increasing capacity for natural gas-fired electric
generation, growing domestic natural gas consumption, and new export capabilities.
NOTE:
* Sector average represents top companies within the specified sector
The above strategic analysis is based on in-house research and reflects the publishers opinion only

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Valeura Energy Inc. - Key Competitors

Valeura Energy Inc., Key Competitors
Name Headquarters Revenue (US$ m)
Athabasca Oil Corporation Canada 593
Imperial Oil Ltd Canada 19,201
Perenco Holdings United Kingdom 46
Tiway Turkey Limited Turkey
Turkish Petroleum International Company Ltd Turkey

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Section 3 – Company Financial Ratios

Financial Ratios - Capital Market Ratios
Valeura Energy Inc., Ratios based on current share price
Key Ratios 29-Jun-2018
Enterprise Value/Sales 26.06

Enterprise Value/Total Assets 3.68
Note: Above ratios are based on share price as of 29-Jun-2018, the above ratios are absolute numbers

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Financial Ratios - Annual Ratios

Valeura Energy Inc., Annual Ratios
Key Ratios Unit/Currency 2013 2014 2015 2016 2017
Equity Ratios
EPS (Earnings per Share) CAD -0.25 0.02 -0.01 -0.10 -0.12
Book Value per Share CAD 1.31 1.35 1.30 1 0.75
Cash Value per Share CAD 0.11 0.10 0.12
Profitability Ratios
Gross Margin % 81.32 86.85 87.96 84.12 65.10
Operating Margin % -78.74 11.80 -2 -29.60 -74.91
Net Profit Margin % -96.04 6.30 -3.02 -43.31 -66.15
Profit Markup % 435.24 660.66 730.58 529.61 186.57
PBT Margin (Profit Before Tax) % -87.56 11.20 0.56 -45.16 -85.23
Return on Equity % -23.06 1.75 -0.75 -10.38 -15.29
Return on Capital Employed % -16.03 2.68 -0.39 -5.81 -12.41
Return on Assets % -18.01 1.37 -0.56 -8.02 -9.33
Return on Fixed Assets % -17.35 3 -0.42 -8.12 -12.99
Return on Working Capital % -210.17 25.39 -5.14 -20.37 -277.55
Growth Ratios
Sales Growth % -18.31 18.51 -13.82 -24.57 -9.81
Operating Income Growth % -114.63
EBITDA Growth % -27.94 -88.02 -263.12
Net Income Growth % -141.26

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Valeura Energy Inc., Annual Ratios (Cont...1)

EPS Growth % -151.59
Working Capital Growth % -71.83 46.97 -27.79 181.55 -83.25
Cost Ratios
Operating Costs (% of Sales) % 178.74 88.20 102 129.60 174.91
Administration Costs (% of Sales) % 41.06 27.50 37.24 41 40.05
Liquidity Ratios
Current Ratio Absolute 1.89 3.46 2.21 5.79 1.26
Quick Ratio Absolute 1.89 3.46 2.21 5.79 1.24
Cash Ratio Absolute 0.85 1.45 1.16 0.47 0.83
Leverage Ratios
Net Debt to Equity Absolute -0.09 -0.08 -0.09 0.03 0.20
Efficiency Ratios
Asset Turnover Absolute 0.19 0.22 0.18 0.19 0.14
Fixed Asset Turnover Absolute 0.22 0.26 0.21 0.28 0.18
Inventory Turnover Absolute 17.62
Current Asset Turnover Absolute 1.26 1.53 1.41 0.57 0.75
Capital Employed Turnover Absolute 0.24 0.28 0.25 0.24 0.23
Working Capital Turnover Absolute 2.67 2.15 2.57 0.69 3.71
Revenue per Employee CAD 792,188
Net Income per Employee CAD -524,000

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Capex to Sales % 147.76 52.27 70.81 67.85 270.15
R&D to Sales % 73.06 0.35 5.58

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Performance Chart
Valeura Energy Inc., Performance Chart (2013 - 2017)
Financial Performance
The company reported revenues of (Canadian Dollars) CAD14.1 million for the fiscal year ended December 2016 (FY2016), a decrease of
24.6% over FY2015. The operating loss of the company was CAD4.2 million in FY2016, compared to an operating loss of CAD0.4 million in
FY2015. The net loss of the company was CAD6.1 million in FY2016, compared to a net loss of CAD0.6 million in FY2015.
The company reported revenues of CAD2.7 million for the first quarter ended March 2017, a decrease of 12.2% over the previous quarter.

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Financial Ratios - Interim Ratios

Valeura Energy Inc., Interim Ratios
Key Ratios Unit/Currency Mar-2017 Jun-2017 Sep-2017 Dec-2017 Mar-2018
Interim EPS (Earnings per Share) CAD 0.03 0.01 -0.07 0.01 0.03
Book Value per Share CAD 0.89 0.90 0.79 0.75 1.28
Gross Margin % 77.35 58.79 62.03 64.52 65.14
Operating Margin % -103.01 -73.19 -75.87 -52.77 -79.16
Net Profit Margin % -74.41 -16.25 -142.76 -28.59 -80.92
Profit Markup % 341.54 142.65 163.40 181.86 186.84
PBIT Margin (Profit Before Interest & Tax) % -464.16
PBT Margin (Profit Before Tax) % -126.03 -69.79 -99.07 -52.80 -74.18
Operating Costs (% of Sales) % 203.01 173.19 175.87 152.77 179.16
Administration Costs (% of Sales) % 65.15 44.36 30.44 25.42 50.22
Interest Costs (% of Sales) % 1.55
Net Debt to Equity Absolute 0.09 0.15 0.05 0.20 0.53
Interest Coverage Ratio Absolute 29,977.11

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Financial Ratios - Ratio Charts

Valeura Energy Inc., Ratio Charts
EPS Operating Margin
Return on Equity Return on Assets
Current Ratio

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Section 4 – Company’s Mergers & Acquisitions, Capital Raising and Alliances

Valeura Energy Inc., Transactions by Year, 2012 to YTD 2018
Note: Deals include all announced deals from 2011 onwards, deal values included wherever disclosed. GlobalData
Above data is extracted from GlobalData’s Deals and Alliances Profile.
Valeura Energy Inc. reported one deal worth $47.88 million in YTD 2018. The company’s deal volume increased from one deal in 2016 to four
deals in 2017.
YEAR No. of Deals Deal value ($m)
2012 1 15.38
2013 0 NA
2014 2 NA
2015 0 NA
2016 1 8.29
2017 4 71.90
YTD 2018 1 47.88
Note: Deals include all announced deals from 2011 onwards, deal values included wherever disclosed.Above data is extracted GlobalData
from GlobalData’s Deals and Alliances Profile.

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Valeura Energy Inc., Transactions by Type, 2012 to YTD 2018
Note: Deals include all announced deals from 2011 onwards GlobalData
Valeura Energy Inc.’s deals activity has been reportedly focusing on asset transactions with five deals during the period 2012 to YTD 2018.

Deal type No. of Deals Deal Value (US$ million)
Asset Transactions 5 51
Equity Offerings 3 71.55
Acquisition 1 20.90

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Valeura Energy Inc., Transactions by Region, 2012 to YTD 2018
Valeura Energy Inc., deals activity has been reportedly focusing on Europe with five deals worth $71.90 million during the
period 2012 to YTD 2018.
Region No. of Deals Deal Value (US$ million)
Europe 5 71.90
North America 4 71.55

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Valeura Energy Inc., Recent Transactions Summary
Deal Date Deal type Deal Status Deal Headline Deal Value (US $
million
01-Mar-2018 Equity Offerings Completed Valeura Completes Public Offering Of Shares For 47.88
US$47.8 Million
22-Jun-2017 Asset Transactions Completed Statoil Completes Acquisition Of Additional 10% 3.00
Stake In Deep Formations Rights On TBNG JV Lands In
Turkey From Valeura Energy For US$3 Million
24-Feb-2017 Acquisition Completed Valeura Energy Completes Acquisition Of Thrace 20.90
Basin Natural Gas From TransAtlantic Petroleum For
US$20.9 Million
06-Jan-2017 Asset Transactions Completed Statoil Holding Completes Acquisition Of 50% Interest 36.00
In Deep Formations On Banarli Licenses In Turkey
From Valeura Energy
06-Jan-2017 Asset Transactions Completed Statoil Completes Acquisition Of 40% Stake In Deep 12.00
Formations Rights On TBNG JV Lands In Turkey From
Valeura Energy For US$12 Million
03-Nov-2016 Equity Offerings Completed Valeura Energy Completes Private Placement Of 8.28
Subscription Receipts For US$8.3 Million
30-Sep-2014 Asset Transactions Completed Valeura Energy Sells Nine Oil And Gas Properties In
Alberta
28-Feb-2014 Asset Transactions Completed Valeura Energy Sells 27.5% Interest In Two Karakilise
Licenses In Southeast Turkey
10-Oct-2012 Equity Offerings Completed Valeura Energy Completes Public Offering Of Shares 15.38
For US$15.4 Million

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Acquisition
Valeura Energy Completes Acquisition Of Thrace Basin Natural Gas From TransAtlantic
Petroleum For US$20.9 Million
Valeura Energy Completes Acquisition Of Thrace Basin Natural Gas From TransAtlantic Petroleum For US$20.9 Million
Deal Type Acquisition Deal Sub Type 100% Acquisition
Deal in Brief
Valeura Energy Inc., an oil and gas company, through its wholly-owned subsidiary Valeura Energy Netherlands B.V., completed the
acquisition of Thrace Basin Natural Gas (Turkiye) Corporation (TBNG), a gas exploration and production company, from TransAtlantic
Worldwide, Ltd., a wholly-owned subsidiary of TransAtlantic Petroleum Ltd., an oil and gas company, for a cash consideration of
approximately US$20.9 million (MM), subject to post-closing adjustments. The transaction has an effective date of March 31, 2016. Of the
total consideration, TransAtlantic agreed to escrow US$3.1 MM for 30 days to satisfy any agreed upon purchase price adjustments.Valeura
funded the consideration through the proceeds raised from the sale of 50% interest in the deep formations on the Banarli exploration
licenses in Thrace Basin, northwest Turkey, 40% stake in the deep formations in Thrace Basin, Turkey, and through equity offering.TBNG
owns 41.5% interest in several discoveries (TBNG lands) in the Thrace Basin, Turkey. As of December 31, 2015, TBNG has net proved
reserves (1P) of 1,226 mbbls and proved plus probable reserves (2P) of 3,641 mbbls. The net production from the TBNG lands is
approximately 426.66 boed.In a separate transaction, on January 6, 2017, Statoil ASA completed the acquisition of a 40% stake in the deep
formations below 2,500 meters depth on certain TBNG JV lands located in Thrace Basin, Turkey, from Valeura, for a cash consideration of
US$12 MM.Following the transaction, Valeura owns 81.5% interest and becomes operatorship in the TBNG lands, while Pinnacle Turkey
Inc. will continue to own 18.5% in the TBNG lands.Cormark Securities, Inc. acted as financial advisor, while Torys LLP acted as legal advisor
to Valeura in the transaction. The acquisition enables Valeura to strengthen its position in the TBNG lands. TransAtlantic intends to use the
proceeds from the sale to fund drilling operations in its Southeast Turkey oilfields.Jim McFarland, president and CEO of Valeura, said,
“Closing of these strategic transactions is the culmination of many months of transactional work to transform Valeura to the operator of its
core shallow gas business, increase its working interest in that business and bring onboard a large and well-respected partner to help fund
the exploration for a deep, basin-centered gas play in the Thrace Basin, an exciting, high impact concept we have championed for several
years. We are very pleased with this reset for our business in Turkey. As our efforts now turn to operations to build on this new
foundation, we are funded, organized and poised to ramp-up the shallow gas drilling program, grow production and expect to spud the
first deep exploration well at Banarli in Q2 2017. I would also like to welcome more than 50 TBNG employees to the Valeura group who will
have a key role to play in executing our new business plan in Turkey.”N. Malone Mitchell, chairman and CEO of TransAtlantic, said,
“Valeura has been a great partner, and we are pleased to see the transaction completed. We anticipate the success of their further
development of the associated licenses.”The transaction implies values of US$48,985.14 per boe of daily production, US$17.05 per boe of
1P reserves, and US$5.74 per boe of 2P reserves.Deal historyCompleted: On February 24, 2017, Valeura completed the acquisition of
TBNG, from TransAtlantic, for a cash consideration of approximately US$20.9 MM, subject to post-closing adjustments.Update: On
December 30, 2016, the Ministry of Energy and Natural Resources of the Republic of Turkey have approved the proposed
transaction.Announced: On October 13, 2016, Valeura entered into a share purchase agreement to acquire TBNG, from TransAtlantic, for a
cash consideration of approximately US$18.5 MM.Planned: On May 15, 2016, TransAtlantic intends to sell TBNG.
Deal Rationale
The acquisition enables Valeura to strengthen its position in the TBNG lands.
Deal Information
Deal Status Completed
Announced Date 13-Oct-2016

Completed Date 24-Feb-2017
% Acquired 100
Deal Financials
Deal Value (US$ m) 20.90
Deal Payment
Cash (US$ m) 20.90
Companies Information
Acquirer Company Information
Company Name Valeura Energy Inc.
Business Description

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Thrace Basin to the west of Istanbul that extends to the borders of Greece and Bulgaria. Besides upstream operations, the company owns
gas gathering and sales infrastructure to market natural gas to end users directly. Valeura is headquartered in Calgary, Alberta, Canada.
Vendor Company Information
Company Name TransAtlantic Petroleum Ltd
TransAtlantic Petroleum Ltd. (TransAtlantic) is an upstream energy company that acquires, develops, explores for, and produces crude oil
and natural gas. It holds interests in developed and undeveloped oil and natural gas properties in Turkey and Bulgaria. The company
operates onshore exploration licenses and onshore production leases in Southeastern and Northwestern regions of Turkey. TransAtlantic’s
majority of oil production is from Southeastern Turkey which includes Arpatepe, Bahar, Goksu and Selmo oil fields in the southwest of the
Turkish portion of the North Arabian Basin. The company produces natural gas from Thrace Basin which is located in the northwestern
Turkey close to Istanbul province. TransAtlantic is headquartered in Addison, Texas, the US.
Target Company Information
Company Name Thrace Basin Natural Gas Parent Valeura Energy Inc.
Turkiye Corporation
Thrace Basin Natural Gas Türkiye Corporation is engaged in the drilling activity for natural gas pipelines and for new discoveries. The
company is headquartered in Turkey.
Advisor Information
Company Being Advised Legal Advisor
Valeura Energy Inc. Torys LLP
Company Being Advised Financial Advisor
Valeura Energy Inc. Cormark Securities Inc
Source: GlobalData

74
Asset Transactions
Statoil Completes Acquisition Of Additional 10% Stake In Deep Formations Rights On TBNG
JV Lands In Turkey From Valeura Energy For US$3 Million
Statoil Completes Acquisition Of Additional 10% Stake In Deep Formations Rights On TBNG JV Lands In Turkey From Valeura Energy For
US$3 Million
Deal Type Asset Transactions
Deal in Brief
Statoil ASA, an integrated energy company, through its wholly-owned subsidiary Statoil Banarli Turkey B.V., completed the acquisition of
an additional 10% stake in the deep formations below 2,500 meters depth on certain TBNG JV lands (West Thrace lands) located in Thrace
Basin, Turkey, from Valeura Energy Inc., an oil and gas company, for a cash consideration of US$3 million (MM).The TBNG JV lands include
two exploration licenses and three production leases in Thrace Basin.Earlier, on January 6, 2017, Statoil completed the acquisition of a 40%
stake in the deep formations on certain TBNG JV lands located in Thrace Basin from Valeura Energy, for a cash consideration of US$12 MM.
Following the completion of the transaction, Statoil holds 50% participating interest in the TBNG JV lands. Torys LLP acted as legal advisor
to Valeura in the transaction. The acquisition enables Statoil to strengthen its position in the TBNG JV lands.Deal historyCompleted: On
June 22, 2017, Statoil completed the acquisition of an additional 10% stake in the deep formations below 2,500 meters depth on certain
TBNG JV lands located in Thrace Basin, Turkey, from Valeura Energy US$3 MM.Announced: On March 10, 2017, Statoil entered into a sale
and purchase agreement to acquire an additional 10% stake in the deep formations below 2,500 meters depth on certain TBNG JV lands
located in Thrace Basin, Turkey, from Valeura Energy US$3 MM.Planned: On October 13, 2016, Statoil intends to acquire an additional 10%
stake in the deep formations below 2,500 meters depth on certain TBNG JV lands located in Thrace Basin, Turkey, from Valeura Energy
US$3 MM.
Deal Rationale
The acquisition enables Statoil to strengthen its position in the TBNG JV lands.
Deal Information
Announced Date 10-Mar-2017
Completed Date 22-Jun-2017

% Acquired 10
Deal Financials
Deal Value (US$ m) 3
Deal Payment
Cash (US$ m) 3
Company Name Equinor ASA
Equinor ASA (Equinor), formerly known as Statoil ASA is an independent upstream oil and gas company. The company explores for,
develops and produces oil and gas from its assets across the world, and trades crude oil and natural gas. The company operates assets in
Norwegian Continental Shelf (NCS), which includes the North Sea, Norwegian Sea and Barents Sea. It has assets in various other countries,
which include Algeria, Angola, Azerbaijan, Brazil, Canada, Libya, Nigeria, Russia, the UK, the US and Venezuela. The company operates
refineries, gas processing plants, an LNG plant, a methanol plant and crude oil terminals. It also has interests in various pipeline assets for
the transportation of the oil and gas it produces. The company has operational presence worldwide. Statoil is headquartered in Stavanger,
Norway.
Asset Information

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Deep Formations Rights On TBNG JV Lands - Turkey

Asset Description The deep formations below 2,500 meters depth on certain TBNG JV lands are located in Thrace Basin,
Turkey. The TBNG JV lands include two exploration licenses and three production leases in Thrace
Basin.
Advisor Information
Source: GlobalData

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Statoil Holding Completes Acquisition Of 50% Interest In Deep Formations On Banarli

Licenses In Turkey From Valeura Energy
Statoil Holding Completes Acquisition Of 50% Interest In Deep Formations On Banarli Licenses In Turkey From Valeura Energy
Deal in Brief
Statoil Holding Netherlands B.V., a wholly-owned subsidiary of Statoil ASA, an integrated energy company, completed the acquisition of a
50% interest in the deep formations on the Banarli exploration licenses located in Thrace Basin, northwest Turkey, from Corporate
Resources B.V., a wholly-owned subsidiary of Valeura Energy Inc., an oil and gas company.The licenses cover an area of approximately
133,840 gross acres in the Thrace Basin, northwest Turkey.Under terms of the agreement, to earn the interest, Statoil invested in an
exploration program that includes payments and carried costs of at least US$36 million (MM). Statoil funded the exploration program in
the three phases as follows:In Phase one, Statoil paid Valeura US$6 MM as a contribution to back costs incurred on the licenses and will
pay US$10 MM for the Phase one commitment directed to the drilling, evaluating, completing, fracing and testing of a Phase one well to be
drilled to the greater of 4,000 m or a depth that intersects the upper 450 m of the Teslimkoy formation, with a target spud date by first
quarter 2017. In Phase two, Statoil will pay no less than US$10 MM for the Phase two commitments directed to acquiring 3D seismic over
the licenses at a minimum equivalent cost. In Phase three, Statoil will pay no less than US$10 MM for the Phase three commitments
directed to drilling a Phase three well based on the same parameters as the Phase one well.If Statoil elects to exit after Phase one, it will
pay a penalty of US$10 MM and surrender its interest in the licenses back to Valeura. At that point, Statoil would have invested a minimum
of US$26 MM. If Statoil elects to exit after Phase two, it will pay a penalty of US$5 MM and surrender its interest in the licenses back to
Valeura. At that point, Statoil would have invested a minimum of US$31 MM.Valeura will operate the deep exploration program during the
earning phase under the agreement. Valeura retains a 100% interest in the shallow formations in the Banarli licenses. Torys LLP acted as
legal advisor to Valeura in the transaction.The transaction enables Statoil to increase its oil and gas assets base.Jim McFarland, president
and CEO of Valeura, said, "Closing of these transformational transactions with Statoil is an exciting milestone for Valeura, which paves the
way to spud the first 4,000 metre exploration well in Q1 2017 under the Banarli Farm-in, funded by Statoil, targeting a deep, over-
pressured, basin-centered gas play that has the potential to be another game-changer for Valeura. In addition, we now have the financial
capacity to proceed with our planned 2017 shallow gas drilling program in the Thrace Basin, which is expected to commence in February
on the TBNG JV lands at the Dogu Atakoy-3 location where approvals and site preparation are already complete.”Deal historyCompleted:
On January 6, 2017, Statoil Holding completed the acquisition of a 50% interest in the deep formations on the Banarli exploration licenses
located in Thrace Basin, northwest Turkey, from Corporate Resources.Update 2: On December 30, 2016, the Ministry of Energy and Natural
Resources of the Republic of Turkey approved the proposed transaction.Announced: On August 19, 2016, Statoil Holding executed the
definitive agreement to acquire a 50% interest in the deep formations on the Banarli exploration licenses located in Thrace Basin,
northwest Turkey, from Corporate Resources.Update 1: On August 2, 2016, Statoil Holding and Corporate Resources extended the timeline
for the completion of the definitive agreements from July 29, 2016 to August 19, 2016.Planned: On May 15, 2016, Statoil Holding entered
into a binding letter agreement to acquire a 50% interest in the deep formations on the Banarli exploration licenses located in Thrace
Basin, northwest Turkey, from Corporate Resources.
Deal Rationale
The transaction enables Statoil to increase its oil and gas assets base.
Deal Information
Announced Date 19-Aug-2016
Completed Date 06-Jan-2017
% Acquired 50
Deal Financials
Deal Value - Estimated
Minimum Value (US$ m) 36
Company Name Statoil Holding Netherlands B.V. Parent Equinor ASA


77
Asset Information
Banarli Licenses - Turkey
Asset Description The licenses cover an area of approximately 133,840 gross acres in the Thrace Basin, northwest Turkey.
Advisor Information
Source: GlobalData

78
Statoil Completes Acquisition Of 40% Stake In Deep Formations Rights On TBNG JV Lands In
Statoil Completes Acquisition Of 40% Stake In Deep Formations Rights On TBNG JV Lands In Turkey From Valeura Energy For US$12
Million
Deal in Brief
Statoil ASA, an integrated energy company, through its wholly-owned subsidiary Statoil Banarli Turkey B.V., completed the acquisition of a
40% stake in the deep formations below 2,500 meters depth on certain TBNG JV lands located in Thrace Basin, Turkey, from Valeura Energy
Inc., an oil and gas company, for a cash consideration of US$12 million (MM).The TBNG JV lands include two exploration licenses and three
production leases in Thrace Basin.Torys LLP acted as legal advisor to Valeura in the transaction. The transaction enables Statoil to increase
its gas assets base in Turkey.Jim McFarland, president and CEO of Valeura, said, “Closing of these transformational transactions with Statoil
is an exciting milestone for Valeura, which paves the way to spud the first 4,000 metre exploration well in Q1 2017 under the Banarli Farm-
in, funded by Statoil, targeting a deep, over-pressured, basin-centered gas play that has the potential to be another game-changer for
Valeura. In addition, we now have the financial capacity to proceed with our planned 2017 shallow gas drilling program in the Thrace Basin,
which is expected to commence in February on the TBNG JV lands at the Dogu Atakoy-3 location where approvals and site preparation are
already complete.”Deal historyCompleted: On January 6, 2017, Statoil completed the acquisition of a 40% stake in the deep formations on
certain TBNG JV lands located in Thrace Basin from Valeura Energy, for a cash consideration of US$12 MM.Update: On December 30, 2016,
the Ministry of Energy and Natural Resources of the Republic of Turkey approved the proposed transaction.Announced: On October 13,
2016, Statoil entered into a sale and purchase agreement to acquire a 40% stake in the deep formations on certain TBNG JV lands located
in Thrace Basin from Valeura Energy, for a cash consideration of US$12 MM.
Deal Rationale
The transaction enables Statoil to increase its gas assets base in Turkey
Deal Information

% Acquired 40
Deal Financials
Deal Payment
Cash (US$ m) 12
Norway.
Asset Information

79
Basin.
Advisor Information
Source: GlobalData

80
Valeura Energy Sells Nine Oil And Gas Properties In Alberta

Deal in Brief
Valeura Energy Inc., an oil and gas company, sold its interests in nine oil and gas properties in Alberta, Canada.The properties have net
production of approximately 43 boed in the first quarter of 2014.
Deal Information
Completed Date 30-Sep-2014

Asset Information
Nine Oil And Gas Properties - Alberta
Asset Description The nine oil and gas properties are located in Alberta, Canada. The properties have net
Source: GlobalData

81
Valeura Energy Sells 27.5% Interest In Two Karakilise Licenses In Southeast Turkey
Deal in Brief
Valeura Energy Inc., an oil and gas company, sold its 27.5% interest in licenses 2674 and 2677 in Karakilise, southeast Turkey.The licenses
include two wells targeting the Bedinan and Mardin formations with current production of less than 10 bd.
Deal Information

% Acquired 27.50
Asset Information
Two Karakilise Licenses - Southeast Turkey
Asset Description The licenses 2674 and 2677 are located in Karakilise, southeast Turkey. The licenses include
two wells targeting the Bedinan and Mardin formations with current production of less than
10 bd.
Source: GlobalData

82
Equity Offerings
Valeura Completes Public Offering Of Shares For US$47.8 Million
Deal Type Equity Offerings Deal Sub Type Secondary Offering
Deal in Brief
Valeura Energy Inc, an oil and gas company, completed the public offering of 10,527,000 shares, at a price of C$5.7 (US$4.54) per share, for
gross proceeds of approximately C$60 million (MM) (US$47.88 MM). The offering was upsized from 8,772,000 to 10,527,000 shares.GMP
FirstEnergy and Cormark Securities Inc. acted as underwriters, while Torys LLP acted as legal advisor to the company for the offering. The
company intends to use net proceeds from the offering to fund the continued appraisal of its basin-centered gas play in Turkey and for
general corporate purposes.Deal historyCompleted: On March 1, 2018, Valeura Energy completed the public offering of 10,527,000 shares,
at a price of C$5.7 (US$4.54) per share, for gross proceeds of approximately C$60 MM (US$47.88 MM).Announced: On February 8, 2018,
Valeura Energy agreed to issue 10,527,000 shares, at a price of C$5.7 (US$4.54) per share, for gross proceeds of approximately C$60 MM
(US$47.88 MM), in a public offering.
Deal Rationale
The company intends to use net proceeds from the offering to fund the continued appraisal of its basin-centered gas play in Turkey and for
general corporate purposes.
Deal Information
Announced Date 08-Feb-2018

Completed Date 01-Mar-2018
Deal Financials
Deal Value (CAD million) 60 Deal Value (US$ m) 47.88
Shares Issued 10,527,000
Offer Price (Local) 5.70
Offer Price (US$) 4.55
Advisor Information
Company Being Advised Under Writer
GMP FirstEnergy
Source: GlobalData

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Valeura Energy Completes Private Placement Of Subscription Receipts For US$8.3 Million
Deal Type Equity Offerings Deal Sub Type PIPE
Deal in Brief
Valeura Energy Inc., an oil and gas company, completed the private placement of 14,629,000 subscription receipts, at a price of C$0.75
(US$0.57) per receipt, for gross proceeds of C$10.97 million (MM) (US$8.28 MM). The placement was upsized from 10 MM to 14,629,000
receipts. The subscription receipts are subject to a four-month holding period.Each subscription receipt entitles the holder to receive one
share of the company, at no additional consideration, upon the closing of the acquisition by the company of Thrace Basin Natural Gas
(Turkiye) Corporation (TBNG) from TransAtlantic Worldwide, Ltd.Cormark Securities, Inc., GMP Securities Ltd. and FirstEnergy Capital Corp.
acted as underwriters, while Torys LLP acted as legal advisor to the company for the placement. The company intends to use the proceeds
from the placement to partially fund the TBNG acquisition.Deal historyCompleted: On November 3, 2016, Valeura Energy completed the
private placement of 14,629,000 subscription receipts, at a price of C$0.75 (US$0.57) per receipt, for gross proceeds of C$10.97 MM
(US$8.28 MM).Update: On October 14, 2016, Valeura Energy upsized the private placement of 14,629,000 subscription receipts, at a price
of C$0.75 (US$0.57) per receipt, for gross proceeds of C$10.97 MM (US$8.28 MM).Announced: On October 13, 2016, Valeura Energy
agreed to issue 10 MM subscription receipts, at a price of C$0.75 (US$0.57) per receipt, for gross proceeds of approximately C$7.5 MM
(US$5.66 MM).
Deal Rationale
The company intends to use the proceeds from the placement to partially fund the TBNG acquisition.
Deal Information
Completed Date 03-Nov-2016

Deal Financials
Deal Value (CAD million) 10.97 Deal Value (US$ m) 8.28
Advisor Information
Valeura Energy Inc. FirstEnergy Capital Corp
Cormark Securities Inc
GMP Securities Ltd.
Share Price Information
Share Price Before 30 Days 0.71
(US$)
Share Price Before 1 Day (US$) 0.72
Financial Information (Valeura Energy Inc.)
(Trailing Twelve Months Ended 31-Dec-2015)
Number of Employees 17
Financial Ratios Information
EV/Revenues 2.58
EV/EBITDA 5.36

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EV/Total Assets 0.48

Cash Value Per Share (US$) 0.09
Net Assets Per Share Ratio (US$) 0.94
Book Value Per Share (US$) 0.94
Source: GlobalData

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Valeura Energy Completes Public Offering Of Shares For US$15.4 Million

Deal in Brief
Valeura Energy Inc., an oil and gas exploration and production company, completed the bought deal public offering of 11.5 million shares,
at a price of CAD1.3 ($1.34) per share, for gross proceeds of CAD14.95m ($15.38m). In addition, the company granted underwriters a 30-
day option to purchase up to additional 1,725,000 shares to cover over-allotments, if any.Cormark Securities Inc., National Bank Financial
Inc., Canaccord Genuity Corp., FirstEnergy Capital Corp., and Jennings Capital Inc. acted as underwriters, Norton Rose Fulbright LLP acted as
legal advisor to the company for the offering.The company intends to use the proceeds from the offering to fund for its capital program,
including continued field development and exploration operations in Turkey and for general corporate purposes.The transaction implies
deal value of $37,784.41 per boe of daily production.Deal historyCompleted: On October 10, 2012, Valeura completed the bought deal
public offering of 11.5 million shares, at a price of CAD1.3 ($1.34) per share, for gross proceeds of CAD14.95m ($15.38m).Announced: On
September 17, 2012, Valeura agreed to issue 11.5 million shares at a price of CAD1.3 ($1.34) per share, for gross proceeds of CAD14.95m
($15.38m), in a bought deal public offering.
Deal Rationale
Valeura Energy intends to use the proceeds from the offering to fund for its capital program, including continued field development and
exploration operations in Turkey and for general corporate purposes.
Deal Information
Announced Date 17-Sep-2012
Completed Date 10-Oct-2012

Deal Financials
Advisor Information
Valeura Energy Inc. Norton Rose Fulbright LLP
Valeura Energy Inc. Canaccord Genuity Group Inc.
FirstEnergy Capital Corp
National Bank Financial Inc
Jennings Capital, Inc.
(US$)
(Trailing Twelve Months Ended 30-Jun-2012)
EV/Revenues 2.21
EV/EBITDA 9.08

86

Source: GlobalData

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Section 5 – Company’s Recent Developments

Jun 28, 2018: Valeura Provides Operations Update, Basin Centered Gas Accumulation
Appraisal Program Begins
Valeura Energy Inc. (Valeura) is pleased to provide an operations update concerning its Basin Centered Gas Accumulation (“BCGA”) appraisal
program, in the Thrace basin of Turkey.
"Major contracts and regulatory approvals are in place and well operations are about to begin,commented Sean Guest, President and CEO,
"We have developed a definitive program to appraise the BCGA and the team is excited to return to active operations.
Yamalik-1
The Company's plan for the Yamalik-1 well remains intact. Equipment, including a snubbing rig and a production test unit, will start arriving on
location in the first week of July 2018, with well operations expected to begin the week thereafter. The objective is to drill out the existing
plugs in the well to allow for a comingled test from all eight frac'ed intervals. Valeura is then planning to immediately tie-in the well to the
Company-owned production facilities via a new pipeline which is nearing completion. Tie-in will allow for gas sales and long-term testing.
Appraisal Drilling
Valeura has obtained all land permitting and regulatory approvals to begin operations on Inanli-1, the first BCGA appraisal well. Construction
of the well location is expected to commence in July 2018, followed by mobilization of the drilling rig to the site in August 2018 and spud of
the well in September 2018.
The Inanli-1 location is approximately 6 km to the north-east of Yamalik-1 and is designed to be drilled to a depth of 5,000 m. This is
approximately 800 m deeper than Yamalik-1 which stopped drilling while still within an overpressured gas column. Given the deeper total
depth, Valeura expects the well will extend the proven gas column, which would then increase gas volumes in the DeGolyer and
MacNaughton external resource report released on February 6, 2018, which attributed 10.1 trillion cubic feet of estimated unrisked mean
prospective resources of natural gas including 236 MMbbls of condensate to Valeura's working interest of the BCGA.
Results from Inanli-1 can be expected around late November 2018 given the significant coring and data acquisition currently planned for the
well. Assuming the well is successful, it will be frac'ed, tested and tied into the Company's sales facilities to maximize technical data collection.
The costs of Inanli-1 will be carried by Statoil Banarli Turkey B.V. (now referred to as "Equinorfollowing the Statoil's recent name change), and
will complete Equinor's earning obligations under the Banarli farmout agreement.
Valeura and its partner Equinor plan to drill two additional appraisal wells. The newly-acquired 3D seismic data is being used to select optimal
drilling locations so as to optimally delineate the BCGA play. The two wells are planned to be drilled in a continuous sequence immediately
following Inanli-1.

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May 09, 2018: Valeura Announces First Quarter 2018 Results and Updates on Progress for
Appraisal Activities
Valeura Energy Inc. is pleased to report the following highlights of its financial and operating results for Q1 2018:
the Company released the DeGolyer and MacNaughton external resource report onFebruary 6, 2018 (the "D&M Resource Report"), which
attributed 10.1 trillion cubic feet ("Tcf") of estimated unrisked mean prospective resources of natural gas (5.2 Tcf risked), which includes 236
MMbbls of condensate, to Valeura's working interest of the basin centered gas accumulation ("BCGA") discovered with the Yamalik-1 well
the Company closed a $60 million (gross) bought deal financing on March 1, 2018 which will fund Valeura's 2018 and 2019 capital program,
including the appraisal of the BCGA
the Company's shallow gas production was cash flow positive in Q1 2018and
BOTAS, who own and operate Turkey's crude oil and natural gas pipeline grid, increasedTurkey's reference natural gas price by almost 25%
with increases on January 1 and April 1, 2018. The Company's realised gas price is subject to exchange rate variations, such that in Canadian
dollars, the realised price for April 2018 was 17% higher than Q4 2017.
Valeura Energy Inc. (CNW Group/Valeura Energy Inc.)
"This was a transformative quarter for Valeura," said Sean Guest, President and CEO, "Our external resource report confirmed the world-class
scale of the unconventional gas resource we discovered in Turkey and we raised funds to see the Company through a definitive appraisal
program."
"Our balance sheet is in excellent shape, and planning is now in full swing for the work program ahead. In addition, we are encouraged by the
recent changes in Turkey's gas reference price, which help to confirm the long-term value proposition for our basin centered gas
accumulation."
Valeura has made progress toward its key BCGA appraisal activities. The Yamalik-1 well tie-in and long-term testing is on track for early Q3
2018 operations. Related pipeline approvals have been received and construction is now under way. The first of three appraisal wells, Inanli-
1, is planned to spud in late Q3 2018.
Also subsequent to quarter end, the Company completed processing newly acquired 3D seismic data and information has been merged into
the existing dataset. Interpretation is in progress and will form part of the planning process for additional appraisal wells.
FINANCIAL AND OPERATING RESULTS SUMMARY
On March 1, 2018, the Company closed a bought deal financing for $60.0 million (gross) that resulted in the issuance of 10,527,000 common
shares. This financing yielded $55.4 million in net proceeds to the Company which is reflected in the increased net working capital surplus and
the cash position at the end of Q1 2018.
Net petroleum and natural gas sales in Q1 2018 averaged 859 BOE/d, which was 17% lower than Q4 2017 and 6% higher than the same period
last year. While Valeura continues to undertake low cost workover activities across its conventional gas fields, and will drill one shallow
conventional well in Q2 2018, the Company is focusing its technical and drilling efforts on appraisal of its BCGA play.
Adjusted funds flow for Q1 2018 was an inflow of $0.5 million compared to an outflow of $2.9 million for the same period in 2017. Adjusted
funds flow for Q1 2017 was negatively impacted by expenses related to the TBNG acquisition and the Banarli farm-in, including transaction
costs, income taxes and realized foreign exchange losses. Income tax related to these transactions continued into Q4 2017. These were one-
time expenses that did not recur in Q1 2018, and combined with the effect of higher volumes and prices, the Company generated positive
adjusted funds flow for the quarter.
Net loss from operations was $2.4 million for Q1 2018, compared to a loss of $1.0 million in Q4 2017 and a loss of $2.0 million in Q1 2017.
The net loss is due to non-cash items including depletion and depreciation, accretion on decommissioning liabilities, share based
compensation and deferred tax expense.

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2018 OUTLOOK
Valeura is fully focused on appraising and de-risking its BCGA discovered by the Yamalik-1 well. The objective of the 2018 and 2019 work
program is to demonstrate that over-pressured gas is pervasive across Valeura's Thrace Basin lands and to show that commercial flow rates
can be achieved. The key activities to support this objective are the tie-in and long-term testing of the Yamalik-1 well and a three well
appraisal program.
Further testing of Yamalik-1 remains on schedule with activity planned to commence in early Q3 2018. Appropriate test equipment has been
acquired in North America and is currently being mobilized to Turkey. Once this equipment arrives in Turkey, the Yamalik-1 testing program
can resume. Pipeline approval to tie the Yamalik-1 well in to Valeura's gas marketing infrastructure is in place and construction is underway.
The line will be commissioned in advance, so gas flaring during the testing phase can be reduced and eliminated for the long term test.
The first well in the appraisal drilling program will be Inanli-1. The well will be drilled 6 km to the north-east of the Yamalik-1 discovery well, in
an area with high quality 3D seismic imaging. Inanli-1 is being designed to test the vertical extent of the BCGA, which includes planning to drill
to a depth of 5,000m.
Preliminary locations for the second and third wells have been identified, and will be confirmed based on interpretation of the new Karaca 3D
seismic data acquired in 2017. Final processing of this seismic survey and merging with Valeura's existing 3D datasets is complete and these
data are being interpreted now.
The delineation drilling campaign is on schedule to commence in late Q3 2018 and the three wells will be drilled back-to-back. Each well is
expected to take about two to two and half months to drill. Assuming that the well is successful, after the rig has completed drilling
operations, the well will then be fraced and production tested. Procurement activities for the rig and the required equipment are in progress
with long lead items having been ordered and a rig contract is anticipated to be signed in Q2 2018. The Inanli-1 well drilling and testing
program will be fully funded by Valeura's joint interest partner, Statoil, and will complete their earning obligations under the Banarli farm-in
agreement.
The Company will drill one shallow gas well in Q2 2018 in one of the West Thrace licenses. The Karanfiltepe-7 well will target a conventional
fault-bounded trap and will be drilled to approximately 1,450m. The well must be spudded prior to June 27, 2018 to maintain the license in
good standing.
In all its activities, the Company remains committed to continuing its safe operations and ensuring that operational and administrative
functions are conducted in the most cost-efficient way.

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Apr 18, 2018: Valeura Announces Increased 2018 Natural Gas Prices, Lyle Martinson
Appointed As Chief Operating Officer
Valeura Energy Inc. (Valeura) is pleased to announce an increase in the sales price of its natural gas production in Turkey.
Boru Hatlari ile Petrol Tasima Anonim Sirketi ("BOTAS"), who own and operate Turkey's crude oil and natural gas pipeline grid, has announced
an increase of 10% in Turkey's reference natural gas price, effective April 1, 2018. This comes less than three months after the last increase of
14%, which was effective January 1, 2018. When currency exchange rate changes are incorporated, the Company expects to report first
quarter 2018 realized gas prices of C$7.37 per thousand cubic feet, which is an increase of 11.5% from the fourth quarter in 2017. Actual price
realizations for the second quarter 2018 will be dependent on the Turkish Lira exchange rate.
"These price increases by BOTAS help to keep the value of domestic Turkish gas broadly in line with European natural gas prices," commented
Sean Guest, President and CEO. "Valeura expects to continue to realize strong dollar-denominated revenue from our production in Turkey,
and more importantly, it also increases our confidence in the long-term value of our major unconventional Basin-Centered Gas Accumulation
(the "BCGA") in Turkey's Thrace Basin."
The Company is preparing for a major appraisal phase of its unconventional gas discovery in Turkey, which has been evaluated by DeGolyer
and MacNaughton to hold 10.1 trillion cubic feet of estimated working interest unrisked mean prospective resources of natural gas as of
December 31, 2017. The appraisal program will include drilling three additional deep delineation wells, the first of which will start drilling in
the third quarter of this year, fracing, and long-term production testing through the Company's gathering and processing infrastructure.
In preparation for this appraisal program, which Valeura will operate, the Company is also making adjustments to its organization to ensure
operations are conducted in the most safe and efficient manner. The Company is pleased to announce that Lyle Martinson has been
promoted to the role of Chief Operating Officer. Lyle has been with the Company since its founding as the VP Operations and is a professional
engineer with more than 39 years of management, operations, and engineering experience in the oil and gas industry internationally and in
Canada. Sean Guest commented, "I have no doubt that Lyle's level-headed demeanor and steadfast commitment to safe and efficient
operations will be a great benefit as we press forward with operations to appraise the BCGA."

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Feb 06, 2018: Valeura Announces Prospective Resources For Unconventional Basin-
Centered Gas Prospect
Valeura Energy Inc. ("Valeura" or the "Corporation") is pleased to announce summary results of an independent evaluation of its prospective
resources in the Thrace Basin of Turkey prepared by DeGolyer and MacNaughton ("D&M") of Dallas, Texas in its report dated February 6, 2018
(the "D&M Resources Report"). Highlights of the D&M Resources Report are as follows:
10.1 Tcf of estimated working interest unrisked mean prospective resources of natural gas, which includes 236 MMbbl of condensateand
5.2 Tcf of estimated working interest risked mean prospective resources of natural gas, which includes 165 MMbbl of condensate.
Valeura's CEO, Sean Guest, said "We are pleased to now have an independent evaluation that supports Valeura's thesis that the Thrace Basin
may hold a very large unconventional, basin-centered natural gas-condensate resource. Valeura has been maturing this play for almost five
years and these efforts culminated in the drilling of the Yamalik-1 natural gas-condensate discovery in 2017 with our partner Statoil. While
Valeura is confident that natural gas is pervasive in these deep formations, we recognise that we are in the early phases of exploration. More
drilling and testing will be required to prove that the gas will flow at commercial rates, and to refine the large uncertainty around recoverable
gas and condensate. Valeura and Statoil are committed to progressing the work required to further evaluate this unconventional prospect.
We are currently working to tie-in the Yamalik-1 discovery well to Valeura's gas production network to allow for further testing and long-term
production and sales. Additionally, Statoil and Valeura are planning a three-well delineation drilling and testing program which is expected to
commence in Q3 2018."
2017 YEAR-END UNCONVENTIONAL PROSPECTIVE RESOURCES SUMMARY
The D&M Resources Report was prepared using the guidelines outlined in the Canadian Oil and Gas Evaluation Handbook ("COGEH") and in
accordance with NI 51-101 and is valid atDecember 31, 2017. D&M evaluated the unconventional prospective resources attributable to the
Teslimkoy/Kesan basin-centered gas prospect on Valeura's lands in the Thrace Basin ofTurkey. The working interest lands included comprise
the deep formations (generally below2,500 m depth) on the Corporation's Banarli licenses (50% working interest), TBNG JV West Thrace lands
(31.5% working interest), and TBNG JV South Thrace lands (81.5% working interest).
The D&M evaluation benefited from the Yamalik-1 natural gas-condensate discovery, which was recently drilled and tested on the Banarli
licenses. Yamalik-1 discovered an approximate 1,300 m column of natural gas and condensate in over-pressured reservoirs below 2,900 m in
the Teslimkoy and Kesan formations. The well was drilled to 4,196 m, fracture stimulated and production tested in Q4 2017. As announced on
December 27, 2017, four production tests from eight frac stages in the Kesan formation yielded a 24-hour aggregate test rate of 2.9 MMcf/d.
Extensive coring and wireline logging information was also captured in the well.
Yamalik-1 was the first well to be extensively facture stimulated in the basin-centered gas prospect in the Thrace Basin. However, well data
from seven other legacy wells drilled in the prospective area to depths up to 4,050 m also indicate over-pressured natural gas below
approximately 2,500 m and were available for D&M's evaluation. Only one of these legacy wells (Yayli-1) was fracture stimulated with a small
two-stage frac at a depth of approximately 2,800 m.
The broad range of recoverable gas from 3.2 to more than 20 Tcf is a function of the uncertainty in the various components of the
assessment including recovery factor. There has been very limited stimulation and production testing from the over-pressured Teslimkoy and
Kesan formations in the Thrace Basin, and as yet there is no production data. To determine potential recovery factors, D&M have utilized their
experience in analogous basins. All of Valeura's prospective resources were sub-classified into the project maturity subclass of 'prospect'.
D&M has assigned a chance of discovery of 70%. This high chance is driven by: (1) the hundreds of legacy wells drilled in the Thrace Basin
which support the geological model for the Teslimkoy and Kesan formations(2) the over-pressured natural gas which was encountered and
tested at Yamalik-1, and (3) the seven legacy wells surrounding the basin which all encountered over-pressured gas below 2,500 m.
D&M has assigned a chance of development of the natural gas prospective resources of approximately 74%, which is a product of the
probability of threshold economic field size and probability of development. This high chance of development reflects that existing hydraulic
fracturing technology is being applied, well depths and costs are not expected to be excessive, sales pipeline infrastructure already exists in
the area and there are ready domestic markets inTurkey for domestic natural gas and condensate sales. This results in an overall chance of
commerciality of 51.1% which is the product of chance of discovery and chance of development.
Understanding of the extent of this basin-centered gas prospect in the Thrace Basin and its potential commerciality is in the early stages of
exploration and appraisal. There are a number of positive and negative factors which are driving large uncertainty. The key positive factors
include:

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Design work is underway for the production facilities and gathering pipeline to tie-in the Yamalik-1 well to Valeura's existing gathering sales
pipeline infrastructure to enable a long-term production test and natural gas and condensate sales from the well at an anticipated cost of
approximately US$3 MM (gross). First sales from Yamalik-1 are targeted for Q2 2018.
Valeura and Statoil are planning a delineation drilling program comprising three wells expected to commence in Q3 2018 and extend into
2019. The first well in this program will be the second and final earning well under Phase 3 of the Banarli Farm-in to be fully funded by Statoil.
The follow-up delineation drilling program will benefit from the new Karaca 3D seismic in terms of finalizing drilling locations, correlating the
seismic to the Yamalik-1 well results and targeting sweet-spots in the basin-centered gas prospect.
It is expected that the follow-up delineation wells will be drilled to approximately 5,000 mgiven good potential to extend the column of
hydrocarbon-bearing sands. The Yamalik-1 well was drilled to 4,196 m, the limit of the rig capability and well completion, but the base of the
well was still in gas-bearing sands that were successfully flow tested.
Valeura's existing infrastructure and customer base is expected to be capable of handling sales of more than 35 MMcf/d compared to current
sales through the system of less than 10 MMcf/d, thereby providing the opportunity for early production from any future delineation wells.
Turkey is a captive natural gas market given that 99% of its natural gas demand is served by imports. This provides an attractive marketing
opportunity for a domestic natural gas producer. As Valeura's natural gas production volumes potentially grow beyond the limit of its owned
infrastructure, there are multiple take-away opportunities. These include: a potential to tie-in to a pipeline owned by Bori Hatlari ile Petrol
Tasima Anonim Sirketi ("BOTAS") just north of the Banarli landsa tie-in to another BOTAS interconnector pipeline traversing Banarli and
connected to an export line to Greeceand sales to the local gas distributor who currently offtakes gas from the BOTAS pipeline to the north.
Natural gas prices in Turkey are strong. Valeura's average natural gas price realization in Q4 2017 was approximately CAD$6.61/Mcf. On
January 1, 2018, the reference natural gas price set by BOTAS was increased by 14%.
Negative factors with respect to the estimate of prospective resources include:
The basin-centered gas prospect is in the early exploration and delineation cycle with very sparse well control and very limited fracture
stimulation and testing data.
There is no long-term well production performance from the basin-centered prospect to establish a production type curve specific to the
prospect, thereby requiring use of analogue information at this time to establish development plans and to confirm the chance of
commerciality.
Recovery efficiencies are uncertain given the absence of site specific long-term well production performance data in the basin-centered gas
prospect.
The limited deep drilling carried out in the Thrace Basin provides poor visibility on future costs to drill, frac and complete deep development
wells to exploit the basin-centered gas prospect and the associated impact on the chance of commerciality.
Although oil and gas activity has been underway for many decades in the Thrace Basin area, as activity levels increase, timelines may increase
to achieve government and local landowner approvals.
RESERVES UPDATE
For completeness, the Corporation also announces an update on its proved plus probable (2P) gross reserves attributed to its properties in
the Thrace Basin of Turkey. The Corporation has completed an internal assessment (non-independent) which estimates 2P gross reserves of
7.8 MMboe effective December 31, 2017. This represents a significant increase in reserves relative to the reported year-end 2016 and is
attributed to the TBNG acquisition which occurred after the year-end 2016 report. The Corporation expects that the related 2P net present
value of future net revenue before-tax for year-end 2017 will be similar to year-end 2016 as the increase in reserves from the TBNG
acquisition is expected to be mostly offset by a reduction in the forecast gas price.
D&M are currently preparing their independent evaluation of the Corporation's reserves atDecember 31, 2017. This information will be
released in the normal course in March 2018 in conjunction with the release of the 2017 Annual Information Form.

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Jan 16, 2018: TransAtlantic Petroleum Announces Engagement Of Financial Advisor To

Market Company And Provides Updates On Drilling Program & Prospects In Thrace Basin
TransAtlantic Petroleum Ltd. (TransAtlantic Petroleum) announces the formation of a strategic committee of the board of directors and
engagement of a financial advisor to market the Company and explore strategic alternatives to increase shareholder value.
In addition, the Company provides an update on the Company's previously announced drilling program and the Company's evaluation of its
prospects in the Thrace Basin.
Strategic Committee
The Company has formed a strategic committee of the board of directors, headed by Mel Riggs, in order to conduct a marketing process of
the Company. N. Malone Mitchell, 3rd, Chairman and Chief Executive Officer of the Company, stated, "We believe it is time to go forward
with a strategy to market the Company so that it can pursue a stronger capital structure for future development.The strategic committee has
engaged Tudor Pickering Holt & Co. to act as financial advisor. In addition, the Company's legal counsel, Akin Gump Strauss Hauer & Feld LLP,
will be advising the Company in this process.
There is no assurance that the strategic alternatives process will result in the Company completing a sale of the Company or its assets. Except
as described below, the Company does not intend to make any further announcements regarding strategic alternatives unless and until a final
decision has been made by its board of directors. The Company will provide a management presentation and investor update in the first two
weeks of February. At that time, the Company will provide further views on the timeline of this process.
Update on Drilling Program and 3-D Seismic Program
As previously disclosed, on November 28, 2017, DenizBank A.S. (the "Lender) entered into an additional $20.4 million term loan (the "2017
Term Loan) with the Turkish branch of TransAtlantic Exploration Mediterranean International Pty Ltd ("TEMI), a subsidiary of the Company
under the Company's current credit agreement with the Lender. The 2017 Term Loan is in addition to the Company's term loan currently
outstanding with the Lender, as described in the Company's previous periodic reports filed with the Securities and Exchange Commission.
With receipt of proceeds from the 2017 Term Loan, the Company has launched a new drilling program. The Company has executed a drilling
contract with Viking International Ltd. and is currently in the process of mobilizing Rig I-34 from southwest Turkey to the Company's Selmo
81H2 location. The Company estimates that the rig mobilization will be completed and the well will spud in the first week of February 2018
dependent on weather and other conditions. The Company has identified a number of additional well locations to follow.
The Company has acquired approximately 116 square miles of new 3D seismic data during the summer of 2017 as an extension to the
Company's existing 3D seismic coverage in the Molla Area of southeast Turkey. The new 3D seismic data is being processed with anticipated
completion in April 2018. The new 3D seismic data is being merged with the Company's existing seismic data to create one continuous 3D
seismic survey across all of the Company's acreage in the Molla Area.
Update on the Evaluation of Prospects in the Thrace Basin
The Company is continuing to evaluate its prospects in the Thrace Basin in Turkey in light of the recent positive production test results at the
Yamalik-1 exploration well operated by Valeura with their partner Statoil. The Yamalik-1 exploration well is directly adjacent to the Company's
120,000 net acres in the Thrace Basin of which the Company believes approximately 50,000 net acres (100% WI, 87.5% NRI) is analogous to
the Valeura and Statoil acreage.

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Jan 15, 2018: Valeura Provides Operational Update and Announces Board Changes
Valeura Energy Inc. ("Valeura") is pleased to provide an update of operational results for Q4 2017 and the status of the Yamalik-1 well
operations. The Corporation is also pleased to announce the addition of Mr. Russell Hiscock to the board of directors of the Corporation (the
"Board") and the appointment of Mr. Tim Marchant as the Chair of the Board.
FRAC AND TEST EQUIPMENT RELEASED FROM YAMALIK-1 WELL
The Corporation has temporarily suspended testing operations on the Yamalik-1 well and has released the fracing
and testing equipment after accomplishing the primary objectives of the testing. The Yamalik-1 well testing program
was designed to demonstrate that fracing would allow gas to flow to surface from these deep, tight reservoirs, and
without the production of formation water. Both of these factors are key components to demonstrate the presence of
a basin-centred gas accumulation. The production testing results have exceeded expectations. The 24-hour aggregate
production test rate of 2.9 million cubic feet per day ("MMcf/d") from the four production tests in the Kesan
formation was better than modelled. Additionally, the gas was at a higher pressure than expected and the gas flowed
with a significant amount of condensate (with a test data range of 20 to 70 barrels per MMcf).
Valeura stated in its press release on December 27, 2017 that it would attempt to mill out all of the plugs in the well
that were required for the multi-stage fracing operations and if successful, perform a commingled test. In that press
release, Valeura advised of its concern about the limitations of the third-party production test equipment and its
ability to cope with any flowback during this milling operation given the combination of high-pressure gas,
condensate, frac sand and milling debris. This concern was realised while milling the first plug as the surface test
equipment became plugged. The attempted milling operation has not compromised the wellbore or the fraced
reservoirs, and both remain in a state expected to be suitable for testing, tie-in and production. This type of post-frac
clean-out operation is standard in North America.
The Corporation is currently proceeding with engineering and design work to enable Yamalik-1 to be tied into its
gas gathering and sales network. When the pipeline and surface equipment are ready, the Corporation plans to clean
out the well with fit-for-purpose milling and testing equipment. The well would then be further tested and placed on
production through smaller diameter production tubing which should improve the production of natural gas and
condensate from the well, and allow for a better understanding of the performance of the fraced reservoirs. While
the Corporation is targeting to recommence operations by the end of Q1, this timing may be delayed if it is
determined that the high-pressure gas necessitates the use of special completion equipment with a longer
procurement time.
Based on the current cost estimates up until release of the test equipment, the testing operations completed to date

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are expected to be on the budget of US$10.3 million. Under the previously announced Banarli Farm-in Agreement,
Statoil is responsible for all of these testing costs up to 110% of the agreed budget.
Q4 2017 OPERATIONAL HIGHLIGHTS AND SUBSEQENT DEVELOPMENTS
Net petroleum and natural gas sales in Q4 2017 averaged approximately 1,038 barrels of oil equivalent per day
("boe/d"), which was up approximately 1% from Q3 2017 reflecting additions from four well workovers, offset by
natural declines.
December 2017 exit net sales were 929 boe/d compared to earlier guidance of 1,000 to 1,100 boe/d. This shortfall
was due to a decision to defer execution of two well re-entry fracs in the Tekirdag area to late December given the
high activity levels in support of the Yamalik-1 testing program. The two re-entry fracs were successfully completed
in the Kayi-14 and Baglik-1wells in normally-pressured, tight gas sands in the Teslimkoy formation.
A single stage frac was completed in the Kayi-14 well over a depth interval from 1,195 to 1,248 metres. The well
has been on-stream since December 27, 2017 and has produced at an average restricted rate of 0.6 MMcf/d (gross)
through a 22/64" to 26/64" choke over the past 16-day period.
A two-stage frac was completed in the Baglik-1 well on December 28, 2017 over a depth interval from 846 to 938
metres. The well has been on-stream since January 8, 2018 and has produced at an average restricted rate of 1.0
MMcf/d (gross) through a 20/64" to 24/64" choke over the past 4-day period.
Both of these wells are currently on-stream and contributing to the Corporation's gas sales.
BOTAS REFERENCE GAS PRICE UP 14% EFFECTIVE JANUARY 1, 2018
The Corporation's average natural gas price realization in Q4 2017 was approximately CAD$6.61 per thousand
cubic feet ("MCF"), down 5% from Q3 2017 due to weakening of the Turkish Lira ("TL") which is the pricing basis
for Turkish gas sales.
In a positive development, the reference natural gas price in Turkey set by Bori Hatlari ile Petrol Tasima Anonim
Sirketi ("BOTAS") was increased by approximately 14% effective January 1, 2018 to 0.8 TL per cubic meter, or
approximately CAD$7.50/Mcf at the current exchange rate of 3.0 TL/CAD$ (which is subject to change over time).
The Corporation's average natural gas price realizations have historically been at a 2 to 4% discount to the BOTAS
reference price.
RUSSELL HISCOCK APPOINTED TO BOARD AND TIM MARCHANT BECOMES BOARD CHAIR
Mr. Hiscock is the President and Chief Executive Officer of the CN Investment Division (Montreal), which manages

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one of the largest corporate pension funds in Canada. Mr. Hiscock has many years of equity portfolio management
experience in both the Canadian and international stock markets, with particular emphasis on the oil and gas sector.
He is a past Chairman of the Pension Investment Association of Canada (PIAC). Mr. Hiscock holds a Bachelor of
Mathematics degree from the University of Waterloo, a Master of Arts degree in Economics from the University of
Western Ontario and an MBA from the University of Toronto. He is a Certified Chartered Financial Analyst and a
Certified Management Accountant. Mr. Hiscock will serve as a member of the Audit Committee and the
Governance and Compensation Committee of the Board.
Tim Marchant stated, "We welcome Russell Hiscock to Valeura Energy. His deep experience of global investment
markets will be a valuable addition to the Board."
Mr. Tim Marchant has been appointed as Chair of the Board replacing Mr. William T. Fanagan, who requested for
health reasons to step down as Chair. Mr. Fanagan will continue to serve on the Board as a director and as the Chair
of the Audit Committee. The Corporation would like to thank Mr. Fanagan for his dedication and service to the
Corporation as Board Chair since the Corporation's inception.

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Jan 02, 2018: Valeura Announces Completion Of CEO Succession Plan

Valeura Energy Inc. ("Valeura" or the "Corporation") is pleased to announce the appointment of Sean Guest as the Chief Executive Officer of
the Corporation effective January 1, 2018.
The appointment of Sean is the final step of the Corporation's CEO succession plan announced on October 19, 2017. Sean was hired as the
Chief Operating Officer of the Corporation in May 2017 and assumed the role of President of the Corporation on October 19, 2017. Sean
replaces Jim McFarland who has retired from executive duties but will continue to serve on the Board and provide consulting services to the
Corporation.

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Dec 27, 2017: Valeura reports production testing progress (Test 4) at Yamalik-1 well
Valeura Energy has reported that the fourth production test in the Kesan formation at the Yamalik-1 exploration well in Turkey ("Test 4") has
been completed with positive results. The results of the three earlier production tests in the Kesan formation were announced on November
27, 2017, December 11, 2017 and December 18, 2017, respectively.
Two slick-water fracs were carried out in Test 4 to access approximately 66 metres of indicated net gas pay over a depth interval from 3,320
to 3,461 metres. The well was produced for a total of 41 hours. Over the final 24 hours of the test, the well was produced at an average
restricted rate of approximately 0.4 million cubic feet per day ("MMcf/d") of natural gas. This result increases the aggregate 24-hour tested
production rate from the four completed tests to approximately 2.9 MMcf/d.
Condensate production in the range of 30 to 50 barrels per MMcf was observed in Test 4. As in Test 2 and Test 3, the condensate
measurement is subject to considerable uncertainty given the nature of the testing protocol and the short duration of the testing.
Test 4 completes the planned production testing of the well. However in a change from earlier plans, the Corporation now plans to mill out
the bridge and flow-through plugs in the well and flow all of the intervals in a commingled fashion within the 5.5 inch production casing string.
There are some limitations with the surface testing equipment that may not enable this planned clean-out and commingled production
testing operation to be completed at this time. If so, the well will be suspended until such time as it can be tied into the natural gas-gathering
system in the area. This tie-in is planned for late Q1 2018 subject to partner approvals on funding. At that time, it is expected that the well will
be cleaned out with fit-for-purpose testing equipment and placed on production through smaller diameter production tubing, which should
facilitate flow-back of the remaining frac fluids and ongoing production of natural gas and condensate from the well.

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Dec 18, 2017: Valeura reports production testing progress (Test 3) at Yamalik-1 Well
Valeura Energy has reported that the third of four planned production tests in the Kesan formation at the Yamalik-1 exploration well in Turkey
(Test 3) has been completed with positive results. The results of the first production test (Test 1) and the second production test (Test 2) were
announced on November 27, 2017 and December 11, 2017, respectively.
to 3,635 metres. The well was produced for a total of 37 hours. Over the final 24 hours of stable flow, the well was produced at an average
restricted rate of approximately 0.9 million cubic feet per day ("MMcf/d") of natural gas. This rate compares to the final 24-hour rate of 0.8
MMcf/d in both Test 1 and Test 2.
Condensate production in the range of 20 to 30 barrels per MMcf was observed in Test 3. The condensate measurement is subject to
considerable uncertainty given the nature of the testing protocol and the short duration of the testing.
The Yamalik-1 testing program is continuing and it is expected that a bridge plug will be set above the Test 3 interval prior to executing a
planned two-stage frac in the fourth test interval at a mid-point depth of approximately 3,400 metres

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Dec 11, 2017: Valeura Updates Production Testing Progress At Yamalik-1 Well
Valeura Energy Inc. ("Valeura" or the "Corporation") is pleased to report that the second of four planned production tests in the Kesan
formation at the Yamalik-1 exploration well in Turkey ("Test 2") has been completed with positive results. The results of the first production
test ("Test 1") were announced on November 27, 2017.
to 3,968 metres. After establishing steady flow, the well was produced continuously for 39 hours. Over the final 24 hours of the test the well
was produced at an average restricted rate of approximately 0.8 million cubic feet per day ("MMcf/d") of natural gas. A similar final 24-hour
natural gas rate was achieved in Test 1.
The initial production rate for several hours from Test 2 was higher than the initial rate measured in Test 1. However, surface pressure
measurements suggest that several hours into Test 2, there was a failure of downhole equipment that appears to have obstructed production
for the remainder of the test period, including the final 24-hour test rate noted above. Condensate production in the range of 30 to 40 barrels
per MMcf was observed in this test. The condensate measurement is subject to considerable uncertainty given the nature of the testing
protocol and the short duration of the testing.
The Yamalik-1 testing program is continuing and a bridge plug has been set above the second test interval prior to executing a planned two-
stage frac in the third test interval at a depth of approximately 3,550 metres.

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Nov 27, 2017: Valeura Announces Positive Interim Production Test Results And Confirms
Natural Gas And Condensate Discovery At Yamalik-1 Well
Valeura Energy Inc. ("Valeura" or the "Corporation") is pleased to report positive interim production test results at the Yamalik-1 exploration
well in Turkey and to confirm Yamalik as a natural gas and condensate discovery.
Yamalik-1 is the first deep exploration well drilled under Phase 1 of the Banarli farm-in agreement with its partner Statoil Banarli Turkey B.V.
and is the Corporation's first test of the deep, basin-centred gas potential in the Thrace Basin of northwest Turkey. The well was drilled
through over-pressured formations below 2,500 metres to a total drilled depth of 4,196 metres. A comprehensive 60-day testing program
commenced in early November 2017 comprising four planned production tests with two frac stages per test interval (eight stages in total),
starting at the bottom of the well.
The first of the four planned production tests has been successfully completed in the Kesan formation. Two slick-water fracs were completed
in the first production test interval to access approximately 15 metres of indicated net gas pay over a depth interval from 3,996 to 4,147
metres. After establishing steady flow, the well was produced continuously for 44 hours through a range of choke sizes and was concluded on
November 25, 2017. Over the final 24 hours of the test the well was produced at an average restricted rate of approximately 0.8 million cubic
feet per day ("MMcf/d") of natural gas and 60 to 70 barrels per day of 56o API gravity condensate (70 to 80 barrels per MMcf). At the end of
the test, the well was still cleaning up.
This 44-hour flow period for the first production test was viewed as sufficient for preliminary internal evaluation purposes. As disclosed
previously, if the aggregate production tests are sufficiently positive, it is planned to tie-in Yamalik-1 to Valeura's existing pipeline and facility
infrastructure to enable a long term production test and to generate gas and liquids sales.
The estimated initial bottom hole pressure in the well is in the range of 10,700 to 11,200 pounds per square inch ("psi") based on a
preliminary analysis of a diagnostic fracture injection test carried out in advance of the first stage frac. This pressure is higher than estimated
from mud weights during drilling and represents a pressure gradient from surface of 0.80 to 0.84 psi/ft (18.1 to 19.0 kilopascals per metre) or
85 to 94% higher than a normal water pressure gradient.
Although the Corporation had previously advised that aggregate test results would be disclosed at the end of the test program after all four
planned production tests were completed, these interim production test results have exceeded expectations and are viewed as material to
the Corporation. The results are also encouraging given that this first production test was in the deepest and lowest porosity test interval.
Additionally, the test only accessed approximately 10% of the planned total net pay to be production tested in the well. The condensate
content of the gas was also much higher than expected and is a significant value addition to any future on-stream sales.
These positive interim production test results have increased the likelihood that Yamalik-1 will be tied in at the conclusion of the testing
program. Accordingly, the Corporation is commencing engineering and design work to be positioned for a timely tie-in. Any future sales from
Yamalik-1 will benefit from strong commodity prices in Turkey. In Q3 2017, the Corporation's realized prices for natural gas and liquids were
$6.98 per thousand cubic feet and $65.16 per barrel, respectively.
The Yamalik-1 testing program is continuing and a bridge plug has been set above the first test interval prior to executing a planned two-stage
frac in the second test interval at a depth of approximately 3,950 metres.

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Nov 14, 2017: Valeura Announces Third Quarter 2017 Financial And Operating Results And
Commencement Of Yamalik-1 Testing Program
Valeura Energy Inc. ("Valeura" or the "Corporation") is pleased to report highlights of its unaudited financial and operating results for the
three and nine month periods ended September 30, 2017 and an update on subsequent developments, including the commencement of the
Yamalik-1 Testing Program and implementation of an orderly CEO succession plan.
"We are pleased to report that the completion, multi-stage fracing and flow testing program for the Yamalik-1 well (the "Yamalik-1 Testing
Program") is now underway", said Jim McFarland, Chief Executive Officer. "The Yamlik-1 well will provide the first substantive evaluation of
the potential of a basin-centered gas play in the Thrace Basin. As such, we are at the front-end of what is expected to be a steep learning
curve going by industry's experience in developing other unconventional resource plays. We had a good start to the evaluation with positive
drilling results in the Yamalik-1 well. The testing program will provide critical information on reservoir properties and flow capability of the
deep over-pressured tight gas sands encountered in the well. In parallel a third party resource assessment is underway which will frame for
the first time the potential size of the basin-centered gas play in the Thrace Basin", added McFarland.
Q3 2017 RESULTS AND SUBSEQUENT DEVELOPMENTS AT A GLANCE
Yamalik-1 Testing Program underway
Net sales 1,024 boe/d
Funds flow from operations $1.2 million
Working capital surplus $5.5 million
Natural gas price realization $6.98/Mcf
Operating netback $22.66/boe
Exploration & development capital expenditures $5.0 million
Sean Guest to succeed Jim McFarland as CEO on his retirement December 31, 2017
OPERATIONAL HIGHLIGHTS
Net petroleum and natural gas sales in Turkey in Q3 2017 averaged 1,024 barrels of oil equivalent per day ("boe/d"), which was up 10% from
Q2 2017 reflecting additions from new drill wells and workovers, partially offset by natural declines. Net sales were up 51% from Q3 2016
reflecting the acquisition of Thrace Basin Natural Gas (Turkiye) Corporation ("TBNG"), which closed on February 24, 2017 (the "TBNG
Acquisition"), and additions from new drills and workovers, partially offset by natural declines. Net sales in Q3 2017 included 6.1 million cubic
feet per day ("MMcf/d") of natural gas, representing more than 98% of net petroleum and natural gas sales.
Current net sales are approximately 1,100 boe/d.
Banarli Deep Exploration Program
The Yamalik-1 Testing Program commenced in early November 2017 and is expected to extend over a period of approximately 60 days.
Yamalik-1 is the first deep exploration well under Phase 1 of the Banarli farm-in agreement with Statoil Banarli Turkey B.V. ("Statoil") (the
"Banarli Farm-in") and was drilled to a depth of 4,196 metres. Interpretation of the extensive drilling and wireline logging data from the
Yamalik-1 well provided further positive indicators of the potential for a basin-centered gas play in the Thrace Basin of Turkey.
The Yamalik-1 Testing Program has been designed to reflect the positive drilling results and extent of net pay identified on wireline logs. As
the first deep well to be extensively tested in pursuit of a basin-centered gas play in the Thrace Basin, the program is targeting to
systematically assess reservoir properties and flow capability of several high-graded intervals with varying reservoir quality representing, in

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aggregate, less than half of the net pay measured in the well. The program is expected to include four production tests with two frac stages
per test interval (eight stages in total).
The estimated all-in cost of the Yamalik-1 Testing Program is US$10.3 million, to be funded 100% by Statoil up to a cap of 110% of the budget.
This level of cost is reflective of the extensive and detailed information gathering and is not expected to be representative of cost in a
development well.
If the aggregate flow test results are sufficiently positive, it is planned to tie-in Yamalik-1 to Valeura's existing pipeline and facility
infrastructure to enable a long-term production test, while at the same time generating additional natural gas sales.
Two frac stages in the first flow test interval in the Kesan formation below 4,000 metres are expected to be completed this week. The
Corporation plans to report aggregate flow test results at the conclusion of the testing program after all eight planned frac stages have been
completed.
The Karaca 3D seismic program under Phase 2 of the Banarli Farm-in commenced on June 18, 2017 and the acquisition step was completed on
September 20, 2017 within the planned timeline and budget. Statoil is required to fully fund US$10 million on 3D seismic acquisition and
processing under Phase 2. Approximately 500 square kilometres of 3D seismic has been acquired. This increases Valeura's 3D seismic
coverage on its acreage in the Thrace Basin to more than 1,300 square kilometres.
Processing of the new 3D seismic is underway and should be completed late in Q1 2018. An initial fast-track processing step will provide
preliminary data before year-end 2017 to support planning for the 2018 deep drilling program. This drilling program is expected to include the
Phase 3 well under the Banarli Farm-in.
The Karaca 3D seismic will also be used by Valeura to build on its portfolio of shallow gas prospects.
Valeura has commissioned DeGolyer and MacNaughton ("D&M") of Dallas, Texas to provide a resource assessment (the "D&M Resource
Assessment") under the Canadian Oil and Gas Evaluation Handbook and in accordance with National Instrument 51-101, Standards of
Disclosure For Oil and Gas Activitiesfor the potential basin-centered gas play underlying Valeura's significant acreage position in the Thrace
Basin. The D&M Resource Assessment will be timed to incorporate the results from the Yamalik-1 Testing Program.
TBNG JV and Banarli Shallow Gas Drilling and Workover Program
Upon assuming operatorship of the TBNG JV, Valeura put a renewed emphasis on well workovers to mitigate natural declines. To date the
Corporation has completed 29 workovers on the TBNG JV lands and three on the Banarli licences, including eight workovers in total in Q3
2017.
Valeura has completed its planned 2017 shallow gas drilling campaign, which included five wells on the TBNG JV lands and one well on the
Banarli licences. In summary, three of these wells Dogu Atakoy-3, Dogu Kilavuzlu-2 and Koseilyas-2 were cased and tied-in and are currently
producing. Two other wells Sariyer-1 and Aydinkoy-1 were cased but tested insufficient natural gas volumes to justify tie-in. These two wells
remain under evaluation. A sixth well Karaevli-6 was unsuccessful and was plugged and abandoned.
FINANCIAL HIGHLIGHTS

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Funds flow from operations of $1.2 million in Q3 2017 was up 21% from Q2 2017 due to higher volumes, lower net general and administrative
expenses and lower operating costs, partially offset by lower natural gas price realizations and higher realized foreign exchange losses. Funds
flow from operations in Q3 2017 was up 9% from Q3 2016 due to higher volumes and lower transaction costs, partially offset by lower natural
gas price realizations, higher operating costs and higher realized foreign exchange losses. (See discussion below regarding non-IFRS
measures).
Exploration and development capital expenditures were $5.0 million in Q3 2017, up 24% and 62% from Q2 2017 and Q3 2016, respectively,
due to higher drilling and workover expenditures.
The net working capital surplus at September 30, 2017 was $5.5 million including cash of $3.0 million(excludes restricted cash of $3.4 million).
The average natural gas price realization in Turkey of $6.98 per thousand cubic feet ("Mcf") in Q3 2017 was down 5% from Q2 2017 due to
some weakening in the value of the Turkish Lira, and down 25% from Q3 2016 due to a 10% reduction in the BOTAS Reference Price (in
Turkish Lira) effective October 1, 2016 and a decline in the value of the Turkish Lira.
The average operating netback of $22.66 per boe in Q3 2017 was up marginally from Q2 2017 due to lower unit operating costs and lower
unit royalties, partially offset by lower natural gas price realizations, and down 41% from Q3 2016 due to lower natural gas price realizations
and higher unit operating costs, partially offset by lower unit royalties. The operating netbacks for 2017 are well below the forecasted average
operating netback of $35.00 per boe due to lower natural gas price realizations, which have been negatively impacted by a further
devaluation of the Turkish Lira, and higher operating costs.
EXECUTIVE CHANGES
As announced previously, a seamless transition of executive leadership of the Corporation is progressing.Sean Guest, who was hired as
Valeura's Chief Operating Officer in May 2017, has assumed the additional role of President and will become President and CEO upon the
retirement of Jim McFarland on December 31, 2017. Mr. McFarland will remain as CEO in the interim period and will continue to serve on the
board of directors and provide consulting services to the Corporation.
OUTLOOK
The Corporation continues to believe that the deep basin-centered gas play in the Thrace Basin provides the most significant upside potential
in its asset portfolio in Turkey. Results from the Yamalik-1 Testing Program will be important in shedding additional light on this potential. The
Corporation holds participating interests of 31.5% (West Thrace lands) to 50% (Banarli licences post Statoil earning) in the deep rights in
almost 0.2 million gross acres of land that are prospective for a basin-centered gas play. The D&M Resource Assessment will also provide the
first measure of this play potential and help frame the upside for shareholders.
Preliminary plans to further delineate the basin-centered gas play in 2018 are being developed. Under the Banarli Farm-in, Statoil must drill,
complete and test one additional deep well to earn its 50% interest in the deep rights on the Banarli licences.
The Corporation also believes there is a meaningful shallow gas business in the Thrace Basin and remains focused on developing a viable
exploitation plan that incorporates well workovers and re-completions, drilling and selective fracing programs. Valeura operates and holds
interests in 0.5 million gross acres of land. Following the closing of the TBNG Acquisition in early 2017, Valeura holds participating interests of
81.5% (TBNG JV lands) to 100% (Banarli licences) in the shallow rights on these lands. The 2018 shallow gas drilling program will be
determined once the new Karaca 3D seismic is integrated with the lessons learned from the shallow gas drilling and tight gas fracing programs
over the past six years.
The Corporation's outlook for 2017 exit rate net sales remains unchanged from earlier guidance, with a target range of 1,000 to 1,100 boe/d
on the basis of a 7% reduction in the 2017 capital program to $12 to $13 million (net). In Q4 2017, the Corporation is planning to carry out re-
entry fracs in two wells on the TBNG JV South Thrace lands targeting normally pressured tight gas formations. This frac program builds on the
extensive tight gas frac program carried out by the TBNG JV in the 2011 to 2015 period.

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The Corporation will remain committed to safe operations and ensuring that operational and administrative functions are conducted in the
most cost efficient way, with targeted cost reductions in the 2018 budget.
The Corporation does not expect to provide guidance on its 2018 work program and budget until Q1 2018, pending the results of the Yamalik-
1 Testing Program and its impact on further deep drilling under the Banarli Farm-in, the reset of the shallow gas drilling inventory and further
discussion with partners.

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Oct 17, 2017: Valeura Announces Yamalik-1 Testing Program And Operational Update
Valeura Energy Inc. ("Valeura" or the "Corporation") is pleased to announce agreement with Statoil Banarli Turkey B.V. ("Statoil") on the
scope and budget for the completion, multi-stage fracing and flow testing program for the Yamalik-1 well (the "Yamalik-1 Testing Program").
The well is the first deep exploration well under Phase 1 of the Banarli farm-in agreement with Statoil (the "Banarli Farm-in") and was drilled
to a depth of 4,196 metres. Interpretation of the extensive drilling and wireline logging data from the Yamalik-1 well provided further positive
indicators of the potential for a basin-centred gas play in the Thrace Basin of Turkey. Valeura currently holds interests in a large land position
of 0.5 million gross acres in the Thrace Basin, of which approximately 0.2 million gross acres may be prospective for this play. Equipment is
currently being mobilized to the Yamalik-1 well site and the Yamalik-1 Testing Program is expected to commence during November 2017.
YAMALIK-1 TESTING PROGRAM AGREED
the first deep well to be extensively tested in pursuit of a basin-centered gas play in the Thrace Basin, the program is targeting to maximize
information on reservoir properties and flow capability of several high-graded intervals.
The key elements of the program are as follows:
Four production tests are planned with two frac stages per test interval (eight stages in total)
The duration of the Yamalik-1 Testing Program is expected to be approximately 60 days
development well.
If the aggregate flow test results are sufficiently positive, it is planned to tie-in the well to Valeura's existing pipeline and facility infrastructure
to enable a long-term production test, while at the same time generating additional natural gas sales.
RECORDING COMPLETED ON BANARLI 3D SEISMIC PROGRAM
Under Phase 2 of the Banarli Farm-in, Statoil is required to fully fund US$10 million on 3D seismic acquisition and processing.
The recording stage of the Karaca 3D seismic program under Phase 2 commenced on June 18, 2017 and was completed on September 20,
2017 within the planned timeline and budget. Approximately 500 square kilometres of 3D seismic has been acquired. This increases Valeura's
3D seismic coverage on its acreage in the Thrace Basin to more than 1,300 square kilometres.
Processing of the new 3D seismic is underway and should be completed late in Q1 2018. However, faster processing approaches are being
assessed, which would provide early preliminary data to support planning for the 2018 deep drilling program. This program is expected to
include the Phase 3 well under the Banarli Farm-in.
The new 3D seismic will also be used by Valeura to build on its portfolio of shallow gas prospects.
RESOURCE ASSESSMENT FOR BASIN-CENTERED GAS PLAY UNDERWAY
Given the positive results from the Yamalik-1 well, Valeura has commissioned DeGolyer and MacNaughton ("D&M") of Dallas, Texas to
provide a resource assessment under the Canadian Oil and Gas Evaluation Handbook and in accordance with National Instrument 51-101,
Standards of Disclosure For Oil and Gas Activities for the potential basin-centered gas play underlying Valeura's significant acreage position in
the Thrace Basin. D&M has been Valeura's independent reserves evaluator since the Corporation was formed. Completion of this resource
assessment will be timed to incorporate the results from the Yamalik-1 Testing Program.
OUTLOOK
The Corporation has always viewed the deep basin-centered gas play as providing the most significant upside potential in its asset portfolio.
The Yamalik-1 Testing Program will be important in shedding additional light on this potential. Preliminary plans to further delineate the
basin-centered gas play in 2018 are being developed. Under the Banarli Farm-in, Statoil must drill, complete and test one additional deep well
to earn its 50% interest in the deep rights on the Banarli licences.

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The Corporation continues to believe there is a meaningful conventional shallow gas business in the Thrace Basin where it holds interests in
0.5 million gross acres of land. Following the acquisition of Thrace Basin Natural Gas (Turkiye) Corporation ("TBNG") in early 2017, Valeura
holds participating interests of 81.5 to 100% in the shallow rights on these lands. In Q3 2017, Valeura's conventional shallow gas business
delivered net petroleum and natural gas sales averaging 1,024 barrels of oil equivalent per day (99% natural gas), up almost 10% from Q2
2017. The 2018 conventional drilling program will be determined once the new Karaca 3D seismic is integrated with the lessons learned from
the shallow gas drilling and tight gas fracing programs over the past six years.
In managing the business, the Corporation remains committed to safe operations and ensuring that operational and administrative functions
are conducted in the most cost efficient way.
Turkey remains a very attractive place to do business, with a competitive fiscal and royalty regime. There is a ready domestic market for any
increased natural gas sales as Turkey has experienced some of the fastest growth in energy demand since 2010 among OECD countries and
currently imports more than 99% of its consumption. Natural gas prices are about double those in North America with Valeura's natural gas
price realization being $6.98 per thousand cubic feet in Q3 2017.

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Aug 10, 2017: Valeura Announces Second Quarter 2017 Financial And Operating Results
three and six month periods ended June 30, 2017 and an update on subsequent developments.
"We are very excited about the drilling results at the Yamalik-1 deep exploration well, which have exceeded our expectations in terms of the
extent of over-pressure, gas saturations and net pay, based on the drilling and wireline log analysis", said Jim McFarland, President and Chief
Executive Officer. "We are working diligently with Statoil to design a fulsome completion, multi-stage fracing and testing program and to
begin execution by early Q4 2017. In the meantime, the new 500 square kilometre 3D seismic program funded by Statoil is progressing well
with target completion of the recording phase by early in Q4 2017. Discussions are also underway with Statoil on the program for 2018. Under
the Banarli farm-in agreement (the "Banarli Farm-in"), Statoil Banarli Turkey B.V. ("Statoil") must drill, complete and test a second deep
exploration well to earn 50% in the deep rights, with Valeura retaining 50%.
"The planned seven well shallow gas drilling program in 2017 is nearing completion with five wells drilled to date, all of which have been
cased. While production additions in aggregate from these new wells are below expectations, two of the wells were commitment wells which
are expected to hold the shallow and deep rights on the West Thrace lands.
Our extensive workover program in 2017 has delivered strong results and has been decisive in mitigating natural declines. We plan to pause
the shallow gas drilling program after the sixth planned well, Karaevli-6, in order to assess drilling results and well performance to date,
refresh the prospect portfolio and seek required government approvals for any new locations. This pause also provides us with financial
flexibility in the event the pace of the deep program with Statoil is accelerated in 2018, based on the positive deep drilling results to date",
adds McFarland.
- Yamalik-1 deep exploration well drilled with positive evaluation results
- Net sales 934 boe/d
- Funds flow from operations $1.0 million
- Working capital surplus $8.6 million
- Natural gas price realization $7.34/Mcf
- Operating netback $22.38/boe
- Exploration & development capital expenditures $4.0 million
TRANSACTIONAL HIGHLIGHTS
- An affiliate of Valeura closed the sale of an additional 10% participating interest in the deep rights on the West Thrace lands in the Thrace
Basin of Turkey to Statoil on June 22, 2017 for US$3 million ($4.0 million) (the "Subsequent West Thrace Deep Rights Sale"), following receipt
of Turkish government approvals.
- Net petroleum and natural gas sales in Turkey in Q2 2017 averaged 934 barrels of oil equivalent per day ("boe/d"), which was up 16% from
Q1 2017 reflecting the acquisition of Thrace Basin Natural Gas (Turkiye) Corporation ("TBNG"), which closed on February 24, 2017 (the "TBNG
Acquisition"). Net sales were unchanged from Q2 2016, with additions from the TBNG Acquisition, well workovers and one new drill being
offset by natural declines. Net sales in Q2 2017 included 5.6 million cubic feet per day ("MMcf/d") of natural gas, representing more than 99%
of net petroleum and natural gas sales.
- Current net sales are approximately 1,100 boe/d reflecting additions from workovers and new drills, partially offset by natural declines.

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- The first deep exploration well, Yamalik-1, under the Phase 1 of the Banarli Farm-in with its partner Statoil, was spudded on May 13, 2017
and was rig released on July 22, 2017. The well was operated by Valeura and drilled to a total depth of 4,196 metres and has been cased and
left in a state ready for completion and production testing. The estimated well cost at rig release was within budget despite the additional
time required to drill 200 metres deeper and acquire additional core based on positive drilling results. Under the Banarli Farm-in, Statoil is
funding the drilling of Yamalik-1 on a 100% basis up to a cap of 110% of the budgeted cost.
- Yamalik-1 was designed as the Corporation's first test of the deep, basin-centred gas potential in the Thrace Basin. The key objectives of this
well were to prove the presence of reservoir rock, confirm that the encountered reservoirs are over-pressured, and to demonstrate that there
are significant sections of the reservoirs which are gas-saturated.
- Encouraging gas shows were encountered while drilling the objective section in Yamalik-1 and, based on the drilling data, the well is over-
pressured below approximately 2,900 metres down to the total drilled depth of 4,196 metres. Interpreted pressures were up to 0.79 pounds
per square inch per foot (17.9 kilopascals per metre) or 82% higher than a normal water gradient. Interpretation of the extensive wireline
logging data acquired in the objective section indicates the well has exceeded the criteria to proceed further with the completion and to test
potential zones with hydraulic stimulation. As the well was drilled in an area with no structural closure, the over-pressures and the indicated
pervasive gas saturation in the well are positive indicators of the potential for a basin-centred gas play.
- Further analysis of the Yamalik-1 well logs and 130 metres of new core data is progressing to finalize the design and cost estimate for the
completion and testing program, which is expected to commence by early Q4 2017. Commerciality of the Yamalik-1 well will be determined
after the completion and testing program.
- The Karaca 3D seismic program under Phase 2 of the Banarli Farm-in is also well underway, with more than 180 square kilometres recorded
to date out of a planned scope of approximately 500 square kilometres. The survey is expected to be completed by early Q4 2017 with Statoil
funding 100% of the agreed budget of US$10 million. Valeura is also the operator of the seismic program.
- Upon assuming operatorship of the TBNG JV, Valeura put a renewed emphasis on well workovers to mitigate natural declines. To date the
Corporation has completed 27 workovers which have essentially offset natural declines in the production base.
- Valeura has to date also drilled and cased five of the planned seven shallow gas wells budgeted for 2017, of which three wells are on-stream,
one well has been completed but remains under evaluation and a fifth well is preparing to complete and test. Two of these wells, Dogu
Atakoy-3 drilled in Q1 2017 and Sariyer-1 drilled in Q2 2017, were commitment wells that are expected to hold the shallow and deep rights on
the West Thrace lands.
- In Q2 2017 the second well in the 2017 program, Dogu Kilavuzlu-2, located on the TBNG JV lands at South Thrace (Valeura 81.5%
participating interest) was spudded on May 22, 2017 and drilled to a total depth of 1,260 metres and cased. The well is tied-in and has been
on-stream since June 30, 2017. The well is currently producing at a rate of approximately 0.1 MMcf/d (gross).
- The third well in the program, Sariyer-1, located on the TBNG JV lands at West Thrace (Valeura 81.5% participating interest) was spudded on
June 7, 2017 and drilled to a total depth of 2,420 metres and cased. The most attractive zone at a depth of 2,050 metres was perforated and
on a short six-hour test, flowed at a rate of approximately 20 barrels of oil and 460 barrels of water per day. This liquids discovery is under
review, including correlations with another offsetting small oil producer Bati Kazanci-4. (See advisories below regarding well-test flow rates).
- The fourth well in the program, Koseilyas-2, located on the TBNG JV lands at South Thrace (Valeura 81.5% participating interest) was
spudded on July 6, 2017 and drilled to depth of 1,107 metres and cased. The well is tied-in and has been on-stream since August 9, 2017. The
well is currently producing at a rate of approximately 0.9 MMcf/d (gross).
- The fifth well in the program, Aydinkoy-1, located on the Banarli licences (Valeura 100% participating interest) was spudded on July 19, 2017
and drilled to a total depth of 2,821 metres and cased. Preparations are underway to complete and test the well.
- The Corporation expects to spud the sixth shallow gas well in the 2017 program at Karaevli-6 on the South Thrace lands (Valeura 81.5%
participating interest) with a target depth of 1,100 metres.
- Funds flow from operations was $1.0 million in Q2 2017 compared to funds flow used in operations of $2.9 million in Q1 2017 reflecting the
absence of non-recurring expenses associated with the TBNG Acquisition, which closed in Q1 2017. Funds flow from operations in Q2 2017

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was down 54% from Q2 2016 due to lower natural gas price realizations and higher operating costs (operational employee bonuses and non-
recurring maintenance expense), partially offset by lower royalties.
- Exploration and development capital expenditures were $4.0 million in Q2 2017, up 107% and 25% from Q1 2017 and Q2 2016, respectively,
- Dispositions of $4.0 million in Q2 2017 reflect the funds received from Statoil for the Subsequent West Thrace Deep Rights Sale.
- The net working capital surplus at June 30, 2017 was $8.6 million, including cash of $9.9 million (excludes restricted cash of $3.6 million).
- The average natural gas price realization in Turkey of $7.34 per thousand cubic feet ("Mcf") in Q2 2017 was up 4% from Q1 2017 due to
some strengthening in the value of the Turkish Lira, and down 22% from Q2 2016 due to a 10% reduction in the BOTAS Reference Price (in
- The average operating netback of $22.38 per boe in Q2 2017 was down 22% from Q1 2017 due to higher unit operating costs (reflecting
non-recurring expense) and higher unit royalties, partially offset by higher natural gas price realizations, and down 48% from Q2 2016 due to
lower natural gas price realizations and higher unit operating costs, partially offset by lower unit royalties. The operating netbacks for 2017
are well below the forecasted average operating netback of $35.00 per boe due to lower natural gas price realizations, which have been
negatively impacted by a further devaluation of the Turkish Lira, and higher operating costs. (See discussion below regarding non-IFRS
measures).
2017 OUTLOOK
Given the positive drilling results on the Yamalik-1 well, the completion, multi-stage fracing and testing program is expected to proceed under
the Banarli Farm-in and commence by early Q4 2017. The recording phase of the Statoil funded Karaca 3D seismic program is expected to be
completed by early in Q4 2017 with processing to follow. Completion of these programs would fulfill Phase 1 and 2 of the Banarli Farm-in. To
earn 50% in the deep rights, Statoil would need to commit to Phase 3, which requires the drilling, completion and testing of a second deep
well with a minimum depth of 4,000 metres and a minimum investment of US$10 million. Discussions are underway with Statoil to develop
the plan for the joint venture in 2018, including the number of wells to drill, complete and test, including potential post-earning drilling.
The Corporation plans to spud the sixth well in the 2017 shallow gas drilling program at Karaevli-6 on the TBNG JV lands in late August 2017,
following which the program will be paused to assess results to date, refresh the portfolio and seek government approvals for new drilling
locations. The Corporation is looking forward to early interpreted results from the new 500 square kilometre Karaca 3D seismic program,
which should be available in Q1 2018. This new seismic is expected to add to the shallow gas prospect and lead inventory on the Banarli
licences and West Thrace lands.

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Jul 24, 2017: Valeura Announces Rig Release From Yamalik-1 Well And Positive Evaluation
Results
Valeura Energy Inc. ("Valeura" or the "Corporation") is pleased to announce that the first deep exploration well, Yamalik-1, under Phase 1 of
the Banarli farm-in agreement (the "Banarli Farm-in") with its partner Statoil Banarli Turkey B.V. ("Statoil"), has completed drilling and the drill
rig has been released.
The well was drilled to a total depth of 4,196 metres and has been cased and left in a state ready for completion and production testing. The
estimated well cost at rig release is within budget. Under the Banarli Farm-in, Statoil is funding the drilling of Yamalik-1 on a 100% basis up to
a cap of 110% of the budgeted cost.
Yamalik-1 was designed as the Corporation's first test of the deep, basin-centred gas potential in the Thrace Basin of northwest Turkey. The
key objectives of this well were to prove the presence of reservoir rock, confirm that the encountered reservoirs are over-pressured, and to
demonstrate that there are significant sections of the reservoirs which are gas-saturated. Encouraging gas shows were encountered while
drilling the objective section and, based on the drilling data, the well is over-pressured below approximately 2,900 metres down to the total
drilled depth of 4,196 metres. Interpretation of the extensive wireline logging data acquired in the objective section indicates the well has
exceeded the criteria to proceed further with the completion and to test potential zones with hydraulic stimulation. As the Yamalik-1 well was
drilled in an area with no structural closure, the over-pressures and the indicated pervasive gas saturation in the well are positive indicators of
the potential for a basin-centred gas play in the Thrace Basin.
Valeura is currently working with Statoil to design the completion, multi-stage fracing and testing program. Further analysis of the Yamalik-1
well logs and 130 metres of new core data is in progress in order to finalize the design and cost estimate for the completion and testing. It is
expected that the completion and testing program will commence late in the third quarter of 2017. Under the Banarli Farm-in, Statoil will pay
100% of the completion and testing program up to a cap of 110% of the agreed budget. Commerciality of the Yamalik-1 well will be
determined after the completion and testing program.
After the testing of Yamalik-1 is complete, the Corporation anticipates having improved data to assess the extent of the resources in the
tested formations. The Corporation will then work with its partner Statoil to determine potential future work programs for continued
delineation of the basin-centered gas play.
In further advancement of the Banarli Farm-in, Statoil is proceeding with Phase 2 of the farm-in agreement, which comprises the acquisition
of 3D seismic across the Banarli Farm-in lands and parts of the West Thrace lands not currently covered with 3D seismic. Shooting of the
seismic has already commenced, with more than 76 square kilometres recorded to date out of a planned scope of approximately 500 square
kilometres. The survey is expected to be completed by early in the fourth quarter of 2017 with Statoil funding 100% of the agreed budget of
US$10 million.

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Section 6 – Appendix
The data and analysis within this report is driven by GlobalData.
GlobalData gives you key information to drive sales, investment and deal making activity in your business.
Our coverage includes 200,000 + reports on 185,000+ companies (including 150,000+ private) across 200+ countries and 29 industries. The
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Methodology
GlobalData company reports are based on a core set of research techniques which ensure the best possible level of quality and accuracy of
data. The key sources used include:
• Company Websites
• Company Annual Reports
• SEC Filings
• Press Releases
• Proprietary Databases
Currency Codes
Currency Code Currency
CAD Canadian Dollars

GlobalData
Units
Unit Expanded
MMbbl Million barrels

MMtpa Million metric tonnes per annum
bcf Billion cubic feet
mmscm Million standard cubic meters
MMcf Million cubic feet
M3 Cubic meters
GlobalData
Ratio Definitions
Capital Market Ratios
Capital Market Ratios measure investor response to owning a company's stock and also the cost of issuing stock.
Price/Earnings (P/E) ratio is a measure of the price paid for a share relative to the annual income earned
Price/Earnings Ratio per share. It is a financial ratio used for valuation: a higher P/E ratio means that investors are paying more
(P/E) for each unit of income, so the stock is more expensive compared to one with lower P/E ratio. A high P/E
suggests that investors are expecting higher earnings growth in the future compared to companies with a
lower P/E. Price per share is as of previous business close, and EPS is from latest annual report.

113
Calculation: Price per Share / Earnings per Share

Enterprise Enterprise Value/EBITDA (EV/EBITDA) is a valuation multiple that is often used in parallel with, or as an
Value/Earnings before alternative to, the P/E ratio. The main advantage of EV/EBITDA over the PE ratio is that it is unaffected by a
Interest, Tax, company's capital structure. It compares the value of a business, free of debt, to earnings before interest.
Depreciation & Price per share is as of previous business close, and shares outstanding last reported. Other items are from
Amortization latest annual report.
(EV/EBITDA) Calculation: (Market Cap + Debt + Preferred Stock - Cash & Cash Equivalents) / (Net Income +
Interest + Tax + Depreciation + Amortization)
Enterprise Value/Sales (EV/Sales) is a ratio that provides an idea of how much it costs to buy the company's
sales. EV/Sales is seen as more accurate than Price/Sales because market capitalization does not take into
Enterprise Value/Sales account the amount of debt a company has, which needs to be paid back at some point. Price per share is
as of previous business close, and shares outstanding last reported. Other items are from latest annual
report.
Calculation: (Market Cap + Debt + Preferred Stock - Cash & Cash Equivalents) / Sales
Enterprise Value/Operating Profit measures the company's enterprise value to the operating profit. Price
Enterprise
per share is as of previous business close, and shares outstanding last reported. Other items are from latest
Value/Operating Profit
annual report.
Calculation: (Market Cap + Debt + Preferred Stock - Cash & Cash Equivalents) / Operating Income
Enterprise Value/Total Assets measures the company's enterprise value to the total assets. Price per share
Enterprise Value/Total
is as of previous business close, and shares outstanding last reported. Other items are from latest annual
Assets
report.
Calculation: (Market Cap + Debt + Preferred Stock - Cash & Cash Equivalents) / Total Assets
Dividend Yield shows how much a company pays out in dividends each year relative to its share price. In
Dividend Yield
the absence of any capital gains, the dividend yield is the return on investment for a stock.
Calculation: Annual Dividend per Share / Price per Share
GlobalData
Equity Ratios
These ratios are based on per share value.

Earnings per share (EPS) is the portion of a company's profit allocated to each outstanding share of
Earnings per Share (EPS) common stock. EPS serves as an indicator of a company's profitability.
Calculation: Net Income / Weighted Average Shares
Dividend per Share Dividend is the distribution of a portion of a company's earnings, decided by the board of
directors, to a class of its shareholders.
Dividend Cover Dividend cover is the ratio of company's earnings (net income) over the dividend paid to shareholders.
Calculation: Earnings per share / Dividend per share
Book Value per Share measure used by owners of common shares in a firm to determine the level of safety
Book Value per Share
associated with each individual share after all debts are paid accordingly.
Calculation: (Shareholders Equity - Preferred Equity) / Outstanding Shares
Cash Value per Share is a measure of a company's cash (cash & equivalents on the balance sheet) that is
Cash Value per Share
determined by dividing cash & equivalents by the total shares outstanding.
Calculation: Cash & equivalents / Outstanding Shares
GlobalData
Profitability Ratios are used to assess a company's ability to generate earnings, based on revenues generated or resources used. For

114
most of these ratios, having a higher value relative to a competitor's ratio or the same ratio from a previous period is indicative that
the company is doing well.
Gross margin is the amount of contribution to the business enterprise, after paying for direct-fixed and
Gross Margin direct-variable unit costs.
Calculation: {(Revenue-Cost of revenue) / Revenue}*100
Operating Margin Operating Margin is a ratio used to measure a company's pricing strategy and operating efficiency.
Calculation: (Operating Income / Revenues) *100
Net Profit Margin is the ratio of net profits to revenues for a company or business segment - that shows
Net Profit Margin how much of each dollar earned by the company is translated into profits.
Calculation: (Net Profit / Revenues) *100
Profit Markup Profit Markup measures the company's gross profitability, as compared to the cost of revenue.
Calculation: Gross Income / Cost of Revenue
PBIT Margin (Profit Profit Before Interest & Tax Margin shows the profitability of the company before interest expense &
Before Interest & Tax) taxation.
Calculation: {(Net Profit+Interest+Tax) / Revenue} *100
PBT Margin (Profit

Profit Before Tax Margin measures the pre-tax income over revenues.
Before Tax)
Calculation: {Income Before Tax / Revenues} *100
Return on Equity measures the rate of return on the ownership interest (shareholders' equity) of the
Return on Equity common stock owners.
Calculation: (Net Income / Shareholders Equity)*100
Return on Capital Employed is a ratio that indicates the efficiency and profitability of a company's capital
Return on Capital investments. ROCE should always be higher than the rate at which the company borrows; otherwise any
Employed increase in borrowing will reduce shareholders' earnings.
Calculation: EBIT / (Total Assets – Current Liabilities)*100
Return on Assets is an indicator of how profitable a company is relative to its total assets, the ratio
Return on Assets measures how efficient management is at using its assets to generate earnings.
Calculation: (Net Income / Total Assets)*100
Return on Fixed Assets measures the company's profitability to its fixed assets (property, plant &
Return on Fixed Assets equipment).
Calculation: (Net Income / Fixed Assets) *100
Return on Working Return on Working Capital measures the company's profitability to its working capital.
Capital
Calculation: (Net Income / Working Capital) *100
GlobalData
Cost Ratios
Cost ratios help to understand the costs the company is incurring as a percentage of sales.
Operating costs (% of Operating costs as percentage of total revenues measures the operating costs that a company incurs
Sales) compared to the revenues.
Calculation: (Operating Expenses / Revenues) *100
Administration costs (% Administration costs as percentage of total revenue measures the selling, general and administrative
of Sales) expenses that a company incurs compared to the revenues.
Calculation: (Administrative Expenses / Revenues) *100

115
Interest costs (% of Interest costs as percentage of total revenues measures the interest expense that a company incurs
Calculation: (Interest Expenses / Revenues) *100
GlobalData
Liquidity Ratios
Liquidity ratios are used to determine a company's ability to pay off its short-terms debts obligations. Generally, the higher the value
of the ratio, the larger the margin of safety that the company possesses to cover short-term debts. A company's ability to turn short-
term assets into cash to cover debts is of the utmost importance when creditors are seeking payment. Bankruptcy analysts and
mortgage originators frequently use the liquidity ratios to determine whether a company will be able to continue as a going concern.
Current Ratio measures a company's ability to pay its short-term obligations. The ratio gives an idea of the
company's ability to pay back its short-term liabilities (debt and payables) with its short-term assets (cash,
Current Ratio inventory, receivables). The higher the current ratio, the more capable the company is of paying its
obligations. A ratio under 1 suggests that the company would be unable to pay off its obligations if they
came due at that point.
Calculation: Current Assets / Current Liabilities
Quick Ratio Quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets.
Calculation: (Current Assets - Inventories) / Current Liabilities
Cash ratio is the most stringent and conservative of the three short-term liquidity ratio. It only looks at the
most liquid short-term assets of the company, which are those that can be most easily used to pay off
Cash Ratio current obligations. It also ignores inventory and receivables, as there are no assurances that these two
accounts can be converted to cash in a timely matter to meet current liabilities.
Calculation: {(Cash & Bank Balance + Marketable Securities) / Current Liabilities)}
GlobalData
Leverage Ratios
Leverage ratios are used to calculate the financial leverage of a company to get an idea of the company's methods of financing or to
measure its ability to meet financial obligations. There are several different ratios, but the main factors looked at include debt, equity,
assets and interest expenses.
Debt to Equity Ratio is a measure of a company's financial leverage. The debt/equity ratio also depends on
Debt to Equity Ratio the industry in which the company operates. For example, capital-intensive industries tend to have a higher
debt-equity ratio.
Calculation: Total Liabilities / Shareholders Equity
Debt to capital ratio gives an idea of a company's financial structure, or how it is financing its operations,
along with some insight into its financial strength. The higher the debt-to-capital ratio, the more debt the
company has compared to its equity. This indicates to investors whether a company is more prone to using
Debt to Capital Ratio
debt financing or equity financing. A company with high debt-to-capital ratios, compared to a general or
industry average, may show weak financial strength because the cost of these debts may weigh on the
company and increase its default risk.
Calculation: {Total Debt / (Total assets - Current Liabilities)}
Interest Coverage Ratio is used to determine how easily a company can pay interest on outstanding debt,
Interest Coverage Ratio
calculated as earnings before interest & tax by interest expense.
Calculation: EBIT / Interest Expense
GlobalData
Efficiency Ratios

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Efficiency ratios measure a company's effectiveness in various areas of its operations, essentially looking at maximizing its use of
resources.
Fixed Asset Turnover ratio indicates how well the business is using its fixed assets to generate sales. A
higher ratio indicates the business has less money tied up in fixed assets for each currency unit of sales
Fixed Asset Turnover revenue. A declining ratio may indicate that the business is over-invested in plant, equipment, or other
fixed assets.
Calculation: Net Sales / Fixed Assets
Asset turnover ratio measures the efficiency of a company's use of its assets in generating sales revenue to
Asset Turnover the company. A higher asset turnover ratio shows that the company has been more effective in using its
assets to generate revenues.
Calculation: Net Sales / Total Assets
Current Asset Turnover Current Asset Turnover indicates how efficiently the business uses its current assets to generate sales.
Calculation: Net Sales / Current Assets
Inventory Turnover ratio shows how many times a company's inventory is sold and replaced over a period.
Inventory Turnover A low turnover implies poor sales and, therefore, excess inventory. A high ratio implies either strong sales
or ineffective buying.
Calculation: Cost of Goods Sold / Inventory
Working Capital Turnover is a measurement to compare the depletion of working capital to the generation
Working Capital of sales. This provides some useful information as to how effectively a company is using its working capital
Turnover to generate sales.
Calculation: Net Sales / Working Capital
Capital Employed Capital employed turnover ratio measures the efficiency of a company's use of its equity in generating sales
Turnover revenue to the company.
Calculation: Net Sales / Shareholders Equity
Capex to Sales ratio measures the company's expenditure (investments) on fixed and related assets'
Capex to sales effectiveness when compared to the sales generated.
Calculation: (Capital Expenditure / Sales) *100
Net income per Net income per Employee looks at a company's net income in relation to the number of employees they
Employee have. Ideally, a company wants a higher profit per employee possible, as it denotes higher productivity.
Calculation: Net Income / No. of Employees
Revenue per Employee measures the average revenue generated per employee of a company. This ratio is
Revenue per Employee most useful when compared against other companies in the same industry. Generally, a company seeks the
highest revenue per employee.
Calculation: Revenue / No. of Employees
Efficiency Ratio is used to calculate a bank's efficiency. An increase means the company is losing a larger
Efficiency Ratio percentage of its income to expenses. If the efficiency ratio is getting lower, it is good for the bank and its
shareholders.
Calculation: Non-interest expense / Total Interest Income
GlobalData
Notes
• Financial information of the company is taken from the most recently published annual reports or SEC filings
• The financial and operational data reported for the company is as per the industry defined standards
• Revenue converted to USD at average annual conversion rate as of fiscal year end
About GlobalData
GlobalData is one of the world’s leading providers of company operational data and strategic analysis, providing detailed information on tens
of thousands of companies globally. Our highly qualified team of Analysts, Researchers, and Solution Consultants use proprietary data sources
and various tools and techniques to gather, analyze and represent the latest and the most reliable information essential for businesses to

117
sustain a competitive edge. Data is continuously updated and revised by large teams of research experts, so that it always reflects the latest
events and information. With a large dedicated research and analysis capability, GlobalData employs rigorous primary and secondary research
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sources and does not necessarily represent the views of the company profiled.
The facts of this report are believed to be correct at the time of publication but cannot be guaranteed. Please note that the findings,
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118
Garett Ursu, CFA , (403) 750-7221, gursu@cormark.com
Michael Mueller, P.Geo., Associate , (403) 750-7210, mmueller@cormark.com
MORNING MEETING NOTES

JUNE 29, 2018
Recommendation: Buy

Valeura Energy Inc. (VLE-TSX)
Target Price: $12.50 Yamalik-1 Test On Track For Mid-July With First
Inanli-1 Results Expected In Late November
Current Price $4.67 Target $12.50 Unless otherwise denoted, all figures shown in C$
52 Wk High $8.27 Proj. Return 168%
52 Wk Low $0.43 Basic Sh. (O/S) 83.7 Event:
NAV $0.82 FD Sh. (O/S) 91.0
Valeura updated operations in Turkey.
P/NAV 5.7x Mngt. & Dir. 3.4
Net Debt - 18E (MM) -$39.4 - Pct. of basic 4% Impact:
D/EBITDA - 18E NA Mkt. Cap. (MM) $391
DPS NA Float (MM) $375 Neutral to slightly positive
Dividend Yield NA EV (MM) $351
Commentary:
Fiscal YE Dec. 2017A 2018E 2019E
Production (BOE/d) Q1 807 859 A 1,150 Yesterday Valeura confirmed that the Yamalik-1 discovery well tie-in and long-term
Q2 934 713 1,550 testing program remains on track for next month with North American testing
Q3 1,024 792 1,740 equipment arriving in country during the first week of July. Well operations (milling
Q4 1,038 933 1,850 out plugs, flowing frac fluid, etc.) will begin the week thereafter with tie-in panned
FY 952 825 1,575 immediately after that. The pipeline to tie-in Yamalik-1 into Valeura’s gas facilities is
% Gas 99% 92% 87% nearing completion. We expect a 30-day test rate as early as late August or early
Growth -5% -23% 87% September, a material milestone and catalyst for the name.
CFPS Q1 ($0.04) $0.01 A $0.02
The first BCGA appraisal well to be carried by Equinor (Statoil) under the Banarli
Q2 $0.01 $0.01 $0.03
farm-in (Inanli-1) will be drilled to a target TVD of 5,000 m 6 km to the northeast of
Q3 $0.02 $0.01 $0.04
Q4 ($0.01) $0.02 $0.04
Yamalik within an area of 3D seismic coverage with increased natural fracturing. All
Diluted ($0.02) $0.04 $0.13
permitting and regulatory approvals have been obtained to begin operations on
NYMEX WTI (US$/Bbl) $306.43 $344.11 $345.38
Inanli-1 with well construction to begin next month. Mobilization of the rig is
EV/EBITDA 85.9x 33.4x
expected in August with spudding in September. Results from Inanli-1 are expected
EV/BOE/d $426,198 $239,194
in late November.
The locations of two additional appraisal wells to be funded equally by Valeura and
Equinor will be chosen based on newly acquired 3D seismic with the wells to spud
in sequence immediately after Inanli-1.
With the presidential and parliamentary elections in Turkey now complete and
relative political stability returning to the country, we expect investor interest to
once again focus Valeura’s news flow from the field. We also look for a potential
adjustment to the BOTAS natural gas reference price in early July to further confirm
Turkey as a superior price and operating environment for producing companies.
Investment Conclusion:
With increasing news flow beginning near term and continuing through 2019 we
continue to value Valeura’s massive emerging gas resource materially above the
current stock price. We maintain our Buy rating and $12.50 target (91.6x 2019
EV/EBITDA) on Valeura and continue to encourage investors to aggressively
accumulate the stock before testing of Yamalik-1 and spudding of Inanli-1.
Source: BigCharts.com, June 28, 2018

During the past twenty-four months, Cormark Securities Inc., either on its own or as a
syndicate member, participated in the underwriting of securities for Valeura Energy Inc.
Our disclosure statements are located on the second last page of this report
119
Garett Ursu, CFA, (403) 750-7221, gursu@cormark.com

JUNE 29, 2018
Figure 1: Thrace Basin BCGA (Deep) Drilling
Source: Company reports
Figure 2: Thrace Basin Activity Timeline
120
Garett Ursu, CFA, (403) 750-7221, gursu@cormark.com

JUNE 29, 2018
121
JUNE 29, 2018
We, Garett Ursu and Michael Mueller, hereby certify that the views expressed in this research report accurately reflect our personal views about the
subject company(ies) and its (their) securities. We also certify that we have not been, and will not be receiving direct or indirect compensation in
exchange for expressing the specific recommendation(s) in this report.
RECOMMENDATION TERMINOLOGY
Cormark’s recommendation terminology is as follows:
Top Pick our best investment ideas, the greatest potential value appreciation
Buy expected to outperform its peer group
Market Perform expected to perform with its peer group
Reduce expected to underperform its peer group
Our ratings may be followed by "(S)" which denotes that the investment is speculative and has a higher degree of risk associated with it.
Additionally, our target prices are set based on a 12-month investment horizon.
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122
Bi-Monthly Research report: Valeura Energy
Thursday, June 28, 2018
Last Updated: Monday, May 07, 2018
Valeura Energy (VLE)

Ten-bagger Valeura Energy
soars 597% Fig 3: Financials Summary
Valeura Energy Inc., Canada's 32nd largest Oil & Gas - Dec Dec Dec
Year ended
Exploration & Production company by market cap, 2017 2016 2015
soared CAD4.0 (or 597.0%) in the past year to close at Sales (USD M) 10.6 11.2 14
CAD4.67. Compared with the S&P/TSX 60 Index which has
Pretax (USD) (8.1M) (4.8M) 78,207.9
risen 6.5% over the same period, this is a relative price
increase of 590.5%. A ten-bagger, the value of CAD1,000 Net (USD) (6.3M) (4.6M) (422,623.
invested five years ago is CAD10,736 [vs CAD1,379 for the 4)
S&P/TSX 60 Index], for a capital gain of CAD9,736. The EPS (CAD) (0.12) (0.1) (0.01)
average annualised return to shareholders [TSR or Total
Net profit deteriorated from -US$4.6 million in 2016 to -US$6.3
Shareholder Return] has been 60.8% in the past five years.
The average daily turnover of shares in the past year was million in 2017. Earnings Per Share (EPS) deteriorated from -
CAD1.9 million (US$1.4 million). 10.0c to -12.0c.
Company Overview In this Report:

Highlights: Page
Figure 1: Activities Summary 1
Analysis 2
Valeura Energy Inc together with subsidiaries explores,
develops and produces petroleum and natural gas in Turkey Period-based Shareholder Returns 4
and Western Canada. Price Volume Dynamics 6
Further details can be found at News 11
http://www.valeuraenergy.com
Financials 15
Business Sector Energy - Fossil Fuels
Peer Group Analysis 23
Industry Group Oil & Gas
Board and Management 27
Industry Oil & Gas Exploration and
Production Index and Glossary 29
Activity Oil & Gas Exploration and
Production - NEC Note also:
Economic Sector Energy Section Headers and Figures are mapped as Bookmarks in the PDF
menu (left, top)
Fig 2: Stock Summary

Shares Outstanding 85,662,154
Sector Oil & Gas - Exploration &
Production
Market Cap CAD400 million (US$300.1
million)
TSR (5 yrs) 60.8%
52-Week Range 42.50c-CAD8.27
Relative Strength (3 mo) 87
ISIN CA9191444020
PermID 4296387239
www.BuySellSignals.com Index and Glossary at end of this Report.

123
Analysis
Introduction with Trends

Bearish Signals
We are currently bullish on this stock in the
short-term based on technical indicators, but • The Moving Average Convergence Divergence (MACD)
are more bearish in the long-term based on indicator of 12-day Exponential Moving Average (EMA)
fundamental metrics of 4.48 minus the 26-day EMA of 4.54 is negative
What makes us most bullish on the stock is the suggesting a bearish signal.
following: • The Price/MAP 200 of 1.32 for Valeura Energy is lower
• It has outperformed 77% of the market in the past 6 than the Price/MAP 200 for the S&P/TSX 60 Index of 1.04.
months.
• The price to 50-day EMAP ratio is 1.0, a bullish indicator.
Overvaluation:
The 50-day EMAP has increased to CAD4.59.
• Price/Sales of 27.8 versus sector average of 1.2 and
However, there are some reasons why we remain market average of 0.4.
bearish on the stock for the long-term:
• The Price to Book of 7.3 higher than average of 0.8 for
• The Price to Book of 7.3 higher than average of 0.8 for
the Oil & Gas - Exploration & Production sector and 0.5
for the Total Canadian Market. We estimate the shares
for the Total Canadian Market. We estimate the shares
are trading at a current year Price to Book of 7.9 and a
forward year Price to Book of 8.5.
• The Q Ratio, defined by James Tobin as MCap divided
• The Q Ratio, defined by James Tobin as MCap divided
by Total Assets, is 4.5. Compared with the rest of the
by Total Assets, is 4.5. Compared with the rest of the
market the stock is overvalued and ranks in the bottom
market the stock is overvalued and ranks in the bottom
quartile of stocks by value of Q Ratio.
quartile of stocks by value of Q Ratio.
Other Bearish Signals:

Bullish Signals
• In the Canadian market of 1,855 stocks and 100 units
Fig 5: Quarterly Revenue & Net
traded today, the stock has a 6-month relative strength
Income
of 77 indicating it has outperformed 77% of the market.
Undervaluation:
• The average annual compound return on the share
price in the last 5 years was 60.8%, exceeding the
average annual compound return on the S&P/TSX 60
Index of 6.6%.
Other Bullish Signals:
Fig 4: Bullish Indicators

Description Value Rank In Canada
Price/MAP200 1.32 In Top 8%
Quarterly Revenue for December to March 2018 was CAD3.4
Turnover in CAD138.1 million In Top 9%
Quarter million, up 11.6% from CAD3 million in the previous
corresponding period. Quarterly Net profit for December to
Price Change % (3 2.2 In Top Quartile
mo) March 2018 was -CAD2.4 million, a deterioration from -CAD2
million in the previous corresponding period.
MCap $US300.1 million In Top Quartile
Relative Strength 77 In Top Quartile
(6 mo)
www.BuySellSignals.com Page 2
124
Analysis (continued)
The stock has a score of merely 2 out of 9 set

by Joseph Piotroski [pass mark >=5 ]: Fig 8: Other Listings
Positive operating cashflow; good quality of earnings Exchange RIC Avg. Daily Volume
[operating cashflow exceeds net income]. Volume % of Total
Primary Exchange (Canada)
Fig 6: Bearish Indicators Toronto VLE.TO 498,184 97.94
Description Value Rank In Canada Other Listings
Price to Book 7.3 In Bottom Quartile United States
Value OTC Pink - 31,940 2.06
Total 100.00
Note
Fig 9: Analyst Recommendations
• It is at a discount of 43.5% to the 12-month high of
CAD8.27 on 07 Feb, 2018. It is also at a premium of Date Brokerage Action Rating
998.8% to the 12-month low of 42.50c on 13 Oct, 2017. 30-May Cormark Raises -
Standard Deviation (SD):SD is a statistical measure of Target
deviation from the mean. The SD of 8.2% gives it a percentile
rank of 88 meaning that 88% of stocks in the Canadian
market are less volatile than this stock.
Fig 7: Global Rank [out of 47,625

stocks]
Description Value Rank Quartile
MCap (US$ M) 300.1 15,658 Second
Total Assets (US$ M) 67.5 27,024 Third
Revenue (US$ M) 10.5 31,600 Third
Net Profit (US$ M) (6.3) 37,722 Bottom
Return on Equity % (15.3) 34,215 Third
Net Profit Margin % (59.7) 35,384 Third
Price to Book 7.1 31,843 Third
PV$1000 (1Year) US$* 6,923 103 Top
US$* Change (1Year) 568.4 93 Top
%
Rel Strength 6 Mo 51 23,331 Second
(US$)
* 1 year ago CAD 1 = USD 0.76; Jun 28, 2018: CAD 1 = USD
0.75
125
Period-based Shareholder Returns
PAST QUARTER
Valeura Energy jumps 17% in past quarter
Valeura Energy Inc. (TSX:VLE), has jumped 67.0c (or 16.8%) in the past quarter to close at CAD4.67 today. Compared with the
S&P/TSX 60 Index which rose 61.7 points (or 6.9%) in the past quarter, this represented a relative price increase of 9.9%.
The stock fell 35 times (54.7% of the time) and rose 29 times (45.3% of the time). The aggregate volume was 0.9 times average
trading of 509,853 shares. The value of CAD1,000 invested 3 months ago is CAD1,168 [vs CAD1,076 for the S&P/TSX 60 Index] for
a capital gain of CAD168.
YEAR-TO-DATE
Valeura Energy lifts 7% in 2018
Valeura Energy Inc. (TSX:VLE), lifted 32.0c (or 7.4%) year-to-date (YTD) in 2018 to close at CAD4.67 today. Compared with the
S&P/TSX 60 Index which has risen 0.1% YTD, this is a relative price increase of 7.2%.
Fig 10: PRESENT VALUE OF CAD1000 INVESTED IN THE PAST [3 Mo, 1 Yr, 3
Yrs]
PVCAD1,000 3 mo ago 1 yr ago 3 yrs ago
VLE.TSX CAD1,168 CAD8,193
Oil & Gas - Exploration & CAD1,188 CAD1,169 CAD1,027
Production sector
S&P/TSX 60 Index CAD1,076 CAD1,060 CAD1,110
Fig 11: Moving Annual Return

Based on a dynamic start date of 5 years ago, the Moving
Annual Return has been positive in 4 of the last 5 years. An
investment a year ago in VLE would have produced a return
of 597.0%.
Annual Return
VLE Close (CAD) %
Jun 28 4.67 597.0
1 Yr ago 0.67 (46.4)
2 Yrs ago 1.25 119.3
3 Yrs ago 0.57 14.0
4 Yrs ago 0.5 14.9
Close 5 years ago 43.0c
126
Period-based Shareholder Returns (continued)
Fig 12: Annualised Period-based Total Shareholder Returns [TSR %]

TSR % 1 yr 3 yrs 5 yrs
VLE.TSX 597 100.2 60.8
Fig 13: PRESENT VALUE OF CAD1000 INVESTED 5 YEARS AGO

• The present value of CAD1,000 (PV1000) invested five
years ago in Valeura Energy is CAD10,736, for a capital
gain of CAD9,736.
• 5 years Multiplier in CAD = 10.736x
• Compound Annual Growth Rate (CAGR) in CAD = 60.8%
Fig 14: PRESENT VALUE OF USD1000 INVESTED 5 YEARS AGO

• The present value of USD1,000 (PV1000) invested five
years ago in Valeura Energy is $US8,448, for a capital
gain of $US7,448.
• 5 years ago CAD 1 equalled USD 0.9538
• 5 years Multiplier in USD = 8.448x
• Compound Annual Growth Rate (CAGR) in USD = 53.2%
127
Price Volume Dynamics (Past quarter)

Fig 15: The Best 3 weeks Fig 16: The Worst 3 weeks
Mon-Fri Change S&P/TSX RPC % Vol Ind Mon-Fri Change S&P/TSX RPC % Vol Ind
% 60 [1 is % 60 [1 is
index avg] index avg]
Change Change
% %
Apr 09-13 26.5 0.2 26.4 1.8 May 21-25 -14 -0.6 -13.4 0.9
Apr 23-27 11.8 1.6 10.2 1.2 Apr 16-20 -9.6 1.3 -10.8 1
Jun 18-22 6.1 1 5.1 0.6 May 14-18 -6.3 1.1 -7.4 1
Fig 17: Weekly Price Change (%) and Volume Index (Last 3 months)
Price increase fuelled by above average Volume Price increase on below average Volume
Price decrease fuelled by above average Volume Price decrease on below average Volume
Price unchanged on above average Volume Price unchanged on below average Volume
Untraded
In the last 13 weeks the share price was up 16.8%. It rose in 6/13 weeks. Of the 6 weeks, the stock rose on above average
volume in 3 weeks.
128
Price Volume Dynamics (continued)
Fig 18: Price Volume Trend: Trailing Quarter
Valeura Energy hit a 3-month high of CAD5.82 on Apr 12 and a 3-month low of CAD3.97 on Jun 12.
Fig 19: Fibonacci Retracement
129
Fig 20: Trailing 3 months Fig 21: Trailing Price Change %

Turnover US$103.6 million 3-Year price change of 719.3% for VLE outperformed the
Volume 28,706,355 change of 11.1% in the S&P/TSX 60 index for a relative price
change of 708.2%.
Volume Index (1 is avg) 0.9
Price Change % Quarter Year 3 Years
VLE 16.8 597 719.3
Sector* 18.8 18.2 2.7
S&P/TSX 60 index 6.9 6.5 11.1
* Oil & Gas - Exploration & Production
Volatility Fig 23: YTD Comparison Stock

The stock traded between a 52-week low of 42.50c and a Sector Index (%)
high of CAD8.27. The average daily volatility of 6.6% places
the stock in the 1st quartile in the market meaning it is highly
volatile.
Fig 22: Price High Low Close
Valeura Energy Inc. has increased 32.0c (7.4%) Year-to-

Date (YTD). Compared with the S&P/TSX 60 index which
rose 1.47 points (0.1%), the YTD relative price change was
7.2%.
Fig 24: Relative Strength
130
Fig 25: Price/Moving Avg Price Fig 26: Turnover Rate & Period
[P/MAP200]
Fig 27: CAD1 buys USD 0.75 today: Appreciation of USD from 0.86
twenty-eight years ago
Fig 28: Year-on-Year Comparison (Trailing year - ended 31 May)

2018 2017 2016 2015 2014 2013
Price 31 May (CAD) 4.54 0.79 1.17 0.6 0.57 0.54
% Price Change 474.7 -32.5 95 5.3 5.6
Avg Daily Volume 446,520 74,569 116,292 110,610 107,788 57,677
VWAP (CAD) 4.07 0.97 0.73 0.46 0.52 0.69
Turnover Period 10 mo 3 yrs 2 mo 3 yrs 2 mo 2 yrs 9 mo 2 yrs 4 mo 35 yrs 11 mo
Price Range (CAD) 0.42 - 8.27 0.62 - 1.44 0.35 - 1.22 0.3 - 0.71 0.27 - 0.78 0.49 - 0.9
Index Change % 4.9 10.4 -6.2 4.6 15.2
Relative Price Change % 469.8 -42.9 101.2 0.7 -9.6
In the past 5 years average daily volume has jumped 674.2% from 57,677 shares to 446,520 shares. Turnover period has
decreased from 35 years 11 months to 10 months.
131

Stock Exchange Listings
Primary Exchange and Year-to-date (YTD)
Aggregate Volume
+Toronto: VLE.TSX year-to-date volume is 75,063,378; volume
94.13% of aggregate. Average daily volume is 595,741.
Year-to-date (YTD) Volume Weighted Average Price (VWAP):
CAD5.0.
Other listings and Year-to-date (YTD) Aggregate Volumes
+OTC Pink: PNWRF.PINKSHEETS year-to-date volume is
4,680,867; volume 5.87% of aggregate. Average daily
volume is 38,368.
Year-to-date (YTD) VWAP: $US4.0.
Using the current exchange rate of USD1 equals 1.3333CAD,
the shares are at a 6.7% premium to the year-to-date VWAP
on Toronto.
+YTD Aggregate volume: there were 79,744,245 shares of
Valeura Energy worth CAD406.3 million traded year-to-date.
132
Regulatory Announcements
Fig 29: Changes in Board (TTM) Fig 30: Management Issues

May 10: Valeura Announces Voting Results from AGM
Appointments Canada NewsWire
CALGARY, May 10, 2018
Designation Name Effective
CALGARY, May 10, 2018 - Valeura Energy Inc. ("Valeura" or
date
the "Corporation") (TSX: VLE) is pleased to provide the voting
Chairman Russell Hiscock 12 Jan results from its annual and special meeting of shareholders
Director Russell Hiscock 12 Jan held on May 10, 2018.
Shareholders voted on and approved the following
COO Lyle Martinson 18 Apr proposals: (1) the appointment of KPMG LLP as the auditors
of the Corporation; (2) the election of the directors of the
Corporation; (3) the approval of the amended and restated
Resignations shareholders rights plan; and (4) the adoption of amended
and restated by-law no.
Designation Name Effective For more details click here.
date
CEO James McFarland 31 Dec,
2017 Fig 31: Exchange Activity
President James McFarland 31 Dec,
2017 February 08: IIROC Trading Halt - VLE
Canada NewsWire
Director James McFarland 31 Dec, TORONTO, Feb. 8, 2018
2017 TORONTO, Feb. 8, 2018 - The following issues have been
halted by IIROC:
April 18: Valeura Energy appoints Chief Operating Company: Valeura Energy Inc.
Officer TSX Symbol: VLE
Valeura Energy has appointed Lyle Martinson as Chief Reason: Single-Stock Circuit Breaker
Operating Officer. The effective date is Wednesday, April 18. Halt Time (ET): 9:34:35 AM
For more details click here. IIROC can make a decision to impose a temporary
suspension (halt) of trading in a security of a publicly-listed
January 12: Valeura Energy appoints Chairman company.
Valeura Energy has appointed Russell Hiscock as Chairman. For more details click here.
The effective date is Friday, January 12.
For more details click here. February 08: IIROC Trade Resumption - VLE
Canada NewsWire
January 12: Valeura Energy appoints Director TORONTO, Feb. 8, 2018
Valeura Energy has appointed Russell Hiscock as a Director. TORONTO, Feb. 8, 2018 - Trading resumes in:
The effective date is Friday, January 12. Company: Valeura Energy Inc.
For more details click here. TSX Symbol: VLE
Resumption (ET): 9:39:35 AM
October 19 2017: Valeura Announces Executive IIROC can make a decision to impose a temporary
Changes suspension (halt) of trading in a security of a publicly-listed
CALGARY, Oct.19, 2017 /CNW/ - Valeura Energy Inc. company. Trading halts are implemented to ensure a fair
("Valeura" or the "Corporation") (TSX: VLE) Chairman of the and orderly market.
board of directors, Bill Fanagan, announced today that Co- For more details click here.
founder, President and Chief Executive Officer, Jim
McFarland, will be retiring as an executive of the Corporation February 08: IIROC Trade Halt - Valeura Energy Inc.
effective December 31, 2017. Toronto, Ontario--(Newsfile Corp. - February 8, 2018) - The
For more details click here. following issues have been halted by IIROC:
Source: TMX Group
For more details click here.
133
Regulatory Announcements (continued)

November 14 2017: Valeura Announces Third Quarter
Fig 32: Financial Results 2017 Financial and Operating Results and
Commencement of the Yamalik-1 Testing Program
announcements Canada NewsWire CALGARY, Nov. 14, 2017 /NOT FOR
DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR
May 09: Valeura Announces First Quarter 2018 Results DISSEMINATION IN THE UNITED STATES/ CALGARY, Nov. 14,
and Updates on Progress for Appraisal Activities 2017 /CNW/ - Valeura Energy Inc. ("Valeura" or the
Canada NewsWire "Corporation") (TSX: VLE) is pleased to report highlights of its
CALGARY, May 9, 2018 unaudited financial and operating results for the three and
CALGARY, May 9, 2018 - Valeura Energy Inc. (TSX:VLE) nine month periods ended September 30, 2017 and an
("Valeura" or the "Company") is pleased to report the update on subsequent developments, including the
following highlights of its financial and operating results for Q1 commencement of the Yamalik-1 Testing Program and
2018: implementation of an orderly CEO succession plan.
the Company released the DeGolyer and MacNaughton For more details click here.
external resource report on February 6, 2018 (the "D&M
Resource Report"), which attributed 10.1 trillion cubic feet
("Tcf") of estimated unrisked mean prospective resources of
natural gas (5.2 Tcf risked), which includes 236 MMbbls of
Fig 33: Funding/Capital
condensate, to Valeura's working interest of the basin
March 01: Valeura Announces Closing of $60 Million
centered gas accumulation ("BCGA") discovered with the
Bought Deal Financing
Yamalik-1 well;the Company closed a $60 million (gross)
Canada NewsWire
bought deal financing on March 1, 2018 which will fund
CALGARY, March 1, 2018
Valeura's 2018 and 2019 capital program, including the
/NOT FOR DISTIRBUTION TO U.S. NEWSWIRE SERVICES OR FOR
appraisal of the BCGA;the Company's shallow gas
DISSEMINATION IN THE U.S./
production was cash flow positive in Q1 2018; andBOTAS,
CALGARY, March 1, 2018 - Valeura Energy Inc. ("Valeura" or
who own and operate Turkey's crude oil and natural gas
the "Corporation") (TSX: VLE) has completed its previously
pipeline grid, increased Turkey's reference natural gas price
announced public offering of common shares (the "Shares")
by almost 25% with increases on January 1 and April 1, 2018.
for gross proceeds of $60,003,900 (the "Offering").
March 20: Valeura Announces Fourth Quarter 2017 February 08: Valeura Announces Increase to Previously
Financial and Operating Results and Year-End 2017 Announced Bought Deal Financing to $60 Million
Reserves NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR
Canada NewsWire
DISSEMINATION IN THE U.S.
CALGARY, March 20, 2018
CALGARY, Alberta, Feb. 08, 2018 -- Valeura Energy Inc.
CALGARY, March 20, 2018 - Valeura Energy Inc. (TSX:VLE)
("Valeura" or the "Corporation") (TSX:VLE) is pleased to
("Valeura" or the "Company") is pleased to report highlights of
announce that, in connection with its previously announced
its financial and operating results for Q4 2017, and for the
bought deal financing, Valeura and the syndicate of
year ended December 31, 2017 and the activity plan for
underwriters led by GMP FirstEnergy and including Cormark
2018.
Securities Inc.
Valeura closed key transformative deals in Q1 2017 to
purchase Thrace Basin Natural Gas ("TBNG"), and to partner
with Statoil for the exploration of the deep, unconventional February 08: Valeura Announces $50 Million Bought
potential of its Thrace Basin lands.The Yamalik-1 gas- Deal Financing
condensate discovery well was drilled to 4,196 m and NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR
encountered a 1,300 m (gross) column of highly DISSEMINATION IN THE U.S.
overpressured gas that demonstrated the presence of an CALGARY, Alberta, Feb. 08, 2018 -- Valeura Energy Inc.
unconventional, Basin Centered Gas Accumulation ("BCGA") ("Valeura" or the "Corporation") (TSX:VLE) is pleased to
in the Thrace Basin. announce that it has entered into an agreement with a
For more details click here. syndicate of underwriters to purchase, on a "bought deal"
basis, 8,772,000 common shares ("Common Shares") of
Valeura at a price of $5.70 per Common Share for gross
proceeds of approximately $50.0 million (the "Offering").
134
Press Releases
June 28: Valeura Provides an Operations Update, Basin February 06: Valeura Announces Prospective
Centered Gas Accumulation Appraisal Program Begins Resources for Unconventional Basin-Centered Gas
Canada NewsWire Prospect
CALGARY, June 28, 2018 Canada NewsWire
CALGARY, June 28, 2018 - Valeura Energy Inc. (TSX:VLE) CALGARY, Feb. 6, 2018
("Valeura" or the "Company") is pleased to provide an /NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE
operations update concerning its Basin Centered Gas SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/
Accumulation ("BCGA") appraisal program, in the Thrace CALGARY, Feb. 6, 2018 - Valeura Energy Inc. ("Valeura" or the
basin of Turkey. "Corporation") (TSX: VLE) is pleased to announce summary
"Major contracts and regulatory approvals are in place and results of an independent evaluation of its prospective
well operations are about to begin," commented Sean resources in the Thrace Basin of Turkey prepared by DeGolyer
Guest, President and CEO, "We have developed a definitive and MacNaughton ("D&M") of Dallas, Texas in its report
program to appraise the BCGA and the team is excited to dated February 6, 2018 (the "D&M Resources Report").
return to active operations." For more details click here.
January 15: Valeura Energy: Corporate Presentation
May 30: VALEURA PROVIDES ADDITIONAL TECHNICAL Valeura Energy: Positioned for Material Growth
DETAIL ON ITS BASIN CENTERED GAS ACCUMULATION AT  Valeura (TSX: VLE) Canada-based company
ITS INVESTOR DAY producing gas in NW Turkey
Valeura Energy Inc. (TSX:VLE) ( " Valeura " or the " Company "  Internationally-experienced management team
) announces that it will be hosting an Investor Day today, with proven delivery of value to shareholders
where the management team will share their insight into  Turkey is very attractive for gas production
doing business in Turkey, the geologic background of the − Excellent fiscal terms - 12.5% royalty and 20% tax
Basin Centered Gas Accumulation ("BCGA") and related For more details click here.
development considerati ons, and a preview of the
Company's upcoming operations. January 02: Valeura Announces Completion of CEO
For more details click here. Succession Plan
Canada NewsWire
May 29: Valeura Provides Additional Technical Detail CALGARY, Jan. 2, 2018
on its Basin Centered Gas Accumulation at its Investor /NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE
Day SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/
Canada NewsWire CALGARY, Jan. 2, 2018 /CNW/ - Valeura Energy Inc.
CALGARY, May 29, 2018 ("Valeura" or the "Corporation") (TSX: VLE) is pleased to
CALGARY, May 29, 2018 - Valeura Energy Inc. (TSX:VLE) announce the appointment of Sean Guest as the Chief
("Valeura" or the "Company") announces that it will be Executive Officer of the Corporation effective January 1,
hosting an Investor Day today, where the management 2018.
team will share their insight into doing business in Turkey, the For more details click here.
geologic background of the Basin Centered Gas
Accumulation ("BCGA") and related development December 27 2017: Valeura Updates Production
considerations, and a preview of the Company's upcoming Testing Progress (Test #4) at the Yamalik-1 Well
operations. Canada NewsWire
"Engaging with investors, analysts, and advisors is a real CALGARY, Dec. 27, 2017
pleasure for our management team," commented Sean /NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE
Guest, President and CEO. SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/
For more details click here. CALGARY, Dec. 27, 2017 /CNW/ - Valeura Energy Inc.
("Valeura" or the "Corporation") (TSX: VLE) is pleased to report
March 01: Scott Lamacraft Announces Change in that the fourth production test in the Kesan formation at the
Ownership Interest of Valeura Energy Inc. Yamalik-1 exploration well in Turkey ("Test #4") has been
Canada NewsWire completed with positive results.
TORONTO, March 1, 2018 For more details click here.
TORONTO, March 1, 2018 - Scott Lamacraft announces that
his along with his joint actor's (collectively, the "Lamacraft
Group") ownership interest in Valeura Energy Inc. ("VALEURA")
has decreased below 10%. Mr. Lamacraft last filed an early
warning report on January 7, 2015, at which time the
Lamacraft Group owned and controlled approximately 14.7
% of the issued and outstanding shares of VALEURA (the
"Shares") on a non-diluted basis.
135
Press Releases (continued)

December 18 2017: Valeura Updates Production
Testing Progress (Test #3) at the Yamalik-1 Well
Canada NewsWire
CALGARY, Dec. 18, 2017
/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE
SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/
CALGARY, Dec. 18, 2017 /CNW/ - Valeura Energy Inc.
that the third of four planned production tests in the Kesan
formation at the Yamalik-1 exploration well in Turkey ("Test
#3") has been completed with positive results.

Testing Progress at the Yamalik-1 Well
Canada NewsWire
that the second of four planned production tests in the Kesan
formation at the Yamalik-1 exploration well in Turkey ("Test
#2") has been completed with positive results.
November 27 2017: Valeura Announces Positive Interim

Production Test Results and Confirms Natural Gas and
Condensate Discovery at the Yamalik-1 well
Canada NewsWire
CALGARY, Nov. 27, 2017
CALGARY, Nov. 27, 2017 /CNW/ - Valeura Energy Inc.
positive interim production test results at the Yamalik-1
exploration well in Turkey and to confirm Yamalik as a natural
gas and condensate discovery.
Yamalik-1 is the first deep exploration well drilled under Phase
1 of the Banarli farm-in agreement with its partner Statoil
Banarli Turkey B.V.
136
Financials
VLE 2017 Annual Report: Key Parameters
FY2017 Annual Report: Valeura Energy reports Loss of CAD8.4m ($US6.7m)

Valeura Energy (TSX:VLE) reported loss for the year-ended 31 December 2017 of CAD8.4m ($US6.7m).
Major changes compared with previous year:
Favourable Changes:
• Administration expenses to Sales down from 36.1% to 32.8%
• Total non-current assets to Total Assets up from 67.5% to 81.3%
• Fixed Assets to Total Assets up from 66.3% to 77.6%
• Cash to Total Assets up from 2.6% to 12.4%
Unfavourable Changes:
• Loss of CAD8.4m ($US6.7m)
• EBIT Margin of -77.0%
• Sales and marketing expenses to Sales up from 2.6% to 3.3%
• Total liabilities to Total assets up 69.6% from 0.2 to 0.4
• Current ratio down 78.2% from 5.8 to 1.3
• Working capital to total assets down from 26.9% to 3.8%
• Total current assets to Total Assets down from 32.5% to 18.7%
• Current Debtors to Total Assets down from 6.1% to 4.5%
• Net tangible assets per share down 23.8% from CAD1.01 (US74.9c) to CAD0.77 (US61.5c)
Note:
• EPS steady at -12.0c (-US9.55c)
• Total revenue to total assets steady at 0.2
• Depreciation to Sales up from 49.9% to 64.3%
Annual
Company Name : Valeura Energy Inc.(VLE)
December 31 2017 2016 2017 2016 Change

Description CAD m CAD m $US m $US m (%)
Sales Revenue 14 14.9 11.2 11.1 Down 5.8
EBIT (10.8) (6.3) (8.6) (4.7) Deterioration 70.2
Pre-Tax Profit/(Loss) (10.8) (6.3) (8.6) (4.7) Deterioration 70.2
Profit/(Loss) after (8.4) (6.1) (6.7) (4.5) Deterioration 37.8
Tax
Working Capital 3.4 20.4 2.7 15.2 Down 83.2
Current Assets 16.8 24.7 13.4 18.4 Down 32
Shareholders' Funds 54.8 58.6 43.6 43.6 Down 6.5
Total Assets 89.9 75.9 71.5 56.5 Up 18.4
Operating Cash 3.9 6.3 3.1 4.7 Down 38.8
Flow
Net Assets 54.8 58.6 43.6 43.6 Down 6.5
Net Tangible Assets 54.8 58.6 43.6 43.6 Down 6.5
Auditor KPMG LLP
137
Financials (continued)
Per Share figures
December 31 2017 2016 2017 2016 Change (%)
Description c c US c US c -
Sales 19.8 25.6 15.7 19 Down 22.6
EBIT (15.2c) (10.9c) (12.1c) (8.1c) Deterioration 39.8
Total Assets 126.7 130.3 100.8 97 Down 2.8
Net Tangible Assets 77 101 61.5 74.9 Down 23.8
EPS Final (12c) (10c) (9.5c) (7.4c) Deterioration 20
December 31 2017 2016 Change (%)

Performance Ratios
Return on Equity (%) (15.3) (10.4) Deterioration 47.1
Return on Assets (%) (9.3) (8) Deterioration 16.3
Total Liabilities/Total Assets 0.4 0.2 Up 69.6
Current Ratio 1.3 5.8 Down 78.2
Common Size Ratios by Assets %
Total non-current assets to 81.3 67.5 Up 20.5
Total Assets
Fixed Assets to Total Assets 77.6 66.3 Up 17.1
Total current assets to Total 18.7 32.5 Down 42.5
Assets
Cash to Total Assets 12.4 2.6 Up 373.6
Current Debtors to Total 4.5 6.1 Down 25.8
Assets
Common Size Ratios by Sales %
Depreciation to Sales 64.3 49.9 Up 28.8
Administration expenses to 32.8 36.1 Down 9.1
Sales
Sales and marketing expenses 3.3 2.6 Up 27.4
to Sales
Tax expenses to Sales (17.2) (1.7) Down 885.6
Profit before tax to Sales (77.0) (42.6) Down 80.8
Currency Conversion (December 31, 2017): $US1 = CAD1.26

138
Fig 34: Five-Year History (All figures in CAD)

Net profit for FY2017 was -CAD8.4 million, a deterioration from -CAD6.1 million in FY2016. EPS for FY2017 was -12.0c, a
deterioration from -10.0c in FY2016.
Description (December 31) 2017 2016 2015 2014 2013
Income Statement
Sales (M) 14 14.9 18.6 22.1 21.9
EBITDA (M) (1.8) 1.1 9.1 12.6 (7.3)
Depreciation (M) 9 7.4 9 10.2 8.1
EBIT (10.8 M) (6.3 M) 104,000 2.4 M (15.4 M)
Profit before tax (10.8 M) (6.3 M) 104,000 2.4 M (16 M)
Tax (2.4 M) (260,000) 666,000 1.3 M (1.4 M)
Net profit (8.4 M) (6.1 M) (562,000) 1.4 M (17.5 M)

EPS (0.12) (0.1) (0.01) 0.02 (0.3)
Balance Sheet
Equity Share Capital (M) 54.8 58.6 75.3 78 76
Retained Earnings (M) (79.5) (71.2) (59.1) (11.7) (65.9)
Total Assets (M) 89.9 75.9 101.2 99.2 97.3
Current Asset (M) 16.8 24.7 13.3 14.1 14.5
Fixed Asset (M) 69.7 50.3 86.8 53.9 52.8
Working Capital (M) 3.4 20.4 (12.7) 10 6.8
Cash Flow
Operating Cash Flow (M) 3.9 6.3 11.7 12.4 12
Investing Cash Flow (M) (5.4) (11.2) (11) (13) (34.2)
VLE Q1 2018 Financial Results as reported
Quarterly Report Q1 2018: Valeura Energy reports 6.9% sequential fall in quarterly Revenue
Valeura Energy (TSX:VLE), reported total revenue of CAD3.4m ($US2.6m) for the quarter-ended 31 March 2018, down 6.9%
from the previous quarter and up 11.6% from the year-earlier period.
Financial statements as reported.
(In CAD Thousand, except per share data and shares outstanding)
Fig 35: Q1 2018 VLE Income Statement as reported

Description CAD Thousand CAD Thousand
Mar 31 2018 2017 Change %
Revenue
Petroleum and natural gas sales 3,469 3,088 Up 12.3
Royalties -460 -399 Deterioration 15.3
Other income 365 335 Up 9.0
139
3,374 3,024 Up 11.6
Expenses
Production 1,049 609 Up 72.2
General and administrative 1,335 1,656 Down 19.4
Transaction Costs 287 918 Down 68.7
Accretion on decommissioning liabilities 521 282 Up 84.8
Foreign exchange loss 215 954 Down 77.5
Share-based compensation 176 96 Up 83.3
Depletion and depreciation 2,023 1,898 Up 6.6
5,606 6,413 Down 12.6
Loss for the period before income taxes -2,232 -3,389 Reduced 34.1
Income taxes
Current tax expense 83 1,120 Down 92.6
Deferred tax expense (recovery) 120 -2,508 Recovery
Net loss -2,435 -2,001 Deterioration 21.7
Other comprehensive loss
Currency translation adjustments -780 -1,678 Improved 53.5
Comprehensive loss -3,215 -3,679 Improved 12.6
Net loss per share
Basic and diluted -3.0c -3.0c Steady
Weighted average number of shares outstanding 76,657,000 64,208,000 Up 19.4
(thousands)
Fig 36: Q1 2018 VLE Balance Sheet as reported

Mar 31, 2018 Dec 31, 2017 Change %
Assets
Current Assets
Cash 56,899 11,108 Up 412.2
Accounts receivable 5,708 4,052 Up 40.9
Prepaid expenses and deposits 1,473 1,381 Up 6.7
Inventory 246 251 Down 2.0
64,326 16,792 Up 283.1
License Deposit 161 164 Down 1.8
Restricted Cash 3,081 3,173 Down 2.9
Exploration and evaluation assets 7,774 7,642 Up 1.7
Property plant and equipment 56,085 62,101 Down 9.7
131,427 89,872 Up 46.2
Liabilities and Shareholders' Equity
Current Liabilities
Accounts payable and accrued liabilities 5,802 13,371 Down 56.6
Decommissioning obligations 15,896 19,206 Down 17.2
Deferred taxes 2,541 2,470 Up 2.9
24,239 35,047 Down 30.8
140
Shareholders' Equity
Share capital 202,096 146,694 Up 37.8
Contributed surplus 20,033 19,857 Up 0.9
Accumulated other comprehensive loss -32,963 -32,183 Deterioration 2.4
Deficit -81,978 -79,543 Deterioration 3.1
107,188 54,825 Up 95.5
131,427 89,872 Up 46.2
Fig 37: Q1 2018 VLE Cash Flow as reported

Mar 31 2018 2017 Change %
Cash was provided by (used in):
O perating activities:
Net loss for the period -2,435 -2,001 Deterioration 21.7
Accretion on decommissioning liabilities 521 282 Up 84.8
Unrealized foreign exchange loss (gain) 140 -650 Recovery
Deferred tax expense (recovery) 120 -2,508 Recovery
Decommissioning costs incurred -25 -3 Deterioration 733.3
Change in non-cash working capital -4,455 3,327 Deterioration
Cash provided by (used in) operating activities -3,935 441 Deterioration
Financing activities:
Share Issuance 60,004 10,972 Up 446.9
Share Issuance Costs -4,602 -862 Deterioration 433.9
Cash provided by financing activities 55,402 10,110 Up 448.0
Investing activities:
TBNG Acquisition cash purchase price -21,450
West Thrace Deep Rights Sale 14,868
Statoil Farm-in Proceeds 7,447
Exploration and evaluation expenditures -293 -341 Improved 14.1
Property and equipment expenditures -581 -1,591 Improved 63.5
Change in Restricted Cash 91 -3,393 Recovery
Change in non-cash working capital -4,972 -3,535 Deterioration 40.7
Cash used in investing activities -5,755 -7,995 Improved 28.0
Foreign exchange gain on cash held in foreign currencies 79 1,217 Down 93.5
Net change in cash 45,791 3,773 Up 1,113.6
Cash beginning of period 11,108 1,987 Up 459.0
Cash end of period 56,899 5,760 Up 887.8
141
VLE 2017 Financial Results as reported (Annual)
FY2017 Annual Report: Valeura Energy Revenue down 5.8%

Valeura Energy (TSX:VLE) reported total revenue for the year-ended 31 December 2017 of CAD14.0m ($US11.2m), down 5.8%
from CAD14.9m ($US11.1m) in the previous year.
Fig 38: 2017 VLE Income Statement as reported

Dec 31 2017 2016 Change %
Revenue
Petroleum and natural gas sales 14,646 16,155 Down 9.3
Royalties -1,971 -2,102 Improved 6.2
Other Income 1,363 846 Up 61.1
14,038 14,899 Down 5.8
Expenses
Production 4,423 2,232 Up 98.2
Transaction costs 1,160 859 Up 35.0
Accretion on decommissioning liabilities 1,779 876 Up 103.1
7,362 3,967 Up 85.6
Foreign exchange loss 2,671 3,032 Down 11.9
Exploration and EvaluationImpairment 707 1,048 Down 32.5
24,841 21,245 Up 16.9
Loss for the period before income taxes -10,803 -6,346 Deterioration 70.2
Income taxes
Current tax expense 2,371
Deferred tax recovery -4,790 -260 Deterioration
1,742.3
-2,419 -260 Deterioration 830.4
Currency translation adjustments -6,019 -11,511 Improved 47.7
Net loss per share
Basic and diluted -12.0c -10.0c Deterioration 20.0
(thousands)
142
Fig 39: 2017 VLE Balance Sheet as reported
Dec 31 2017 2016 Change %
Assets
Current Assets
Cash 11,108 1,987 Up 459.0
Accounts receivable 4,052 4,601 Down 11.9
4,052 4,601 Down 11.9
Prepaid expenses and deposits 1,381 1,465 Down 5.7
Inventory 251
Assets held for sale 16,635
16,792 24,688 Down 32.0
Licence deposits 164 922 Down 82.2
Restricted Cash 3,173
3,337 922 Up 261.9
Exploration and evaluation assets 7,642 14,258 Down 46.4
Property plant and equipment 62,101 36,022 Up 72.4
69,743 50,280 Up 38.7
73,080 51,202 Up 42.7
89,872 75,890 Up 18.4
Current Liabilities
Accounts payable and accrued liabilities 13,371 4,267 Up 213.4
13,371 4,267 Up 213.4
Decommissioning obligations 19,206 8,132 Up 136.2
Deferred taxes 2,470 4,885 Down 49.4
21,676 13,017 Up 66.5
35,047 17,284 Up 102.8
Share capital 146,694 136,586 Up 7.4
54,825 58,606 Down 6.5
89,872 75,890 Up 18.4
Fig 40: 2017 VLE Cash Flow as reported

Dec 31 2017 2016 Change %
Operating activities:
Net loss for the year -8,384 -6,086 Deterioration 37.8
143
Exploration and Evaluation expense 707
Impairment 1,048
Unrealized foreign exchange loss (gain) -12 2,583 Deterioration
Transaction Costs 65
Deferred tax expense (recovery) -4,790 -260 Deterioration
1,742.3
Decommissioning costs incurred -270
Change in non-cash working capital 5,329 246 Up 2,066.3
Cash provided by operating activities 3,854 6,294 Down 38.8
Share issuance 10,972
Share issuance costs -864
10,108
Proceeds from stock option exercises 437
Cash provided by financing activities 10,108 437 Up 2,213.0
Statoil Farm-in proceeds 7,447
Property and equipment expenditures -5,873 -84 Deterioration
6,891.7
Exploration and evaluation expenditures -6,918 -9,451 Improved 26.8
-12,791 -9,535 Deterioration 34.1
Change in restricted cash -3,173
Change in non-cash working capital 5,754 -1,677 Recovery
Foreign exchange gain (loss) on cash held in foreign 531 -505 Recovery
currencies
Net change in cash 9,121 -4,986 Recovery
Cash beginning of year 1,987 6,973 Down 71.5
Cash end of year 11,108 1,987 Up 459.0
Margins %
Dec 31 2017 2016
EBITDA Margin -12.7 7.3
Earnings from Cont. Ops. Margin -77 -42.6
Net Income Margin -59.7 -40.8
144
Peer Group Analysis & Ranking

Fig 41: Global Peer Group Analysis (all figures in USD)
Name Relative Str. MCap PV $1000 Revenue Net Profit Total Assets
(6 mo) (1 yr)
Panhandle Oil and Gas Class A 54 321.3M 819.6 46.3M 3.5M 206.7M
(PHX)
Isramco (ISRL) 80 321M 1,079.4 66.1M (24.3M) 108.8M
Hascol Petroleum (HASCOL) 84 310.8M 928.0
Keiyo Gas (9539) 74 307.3M 1,276.7 761M 38.8M 986.9M
Valeura Energy (VLE) 51 300.1M 6,923.2 10.5M (6.3M) 67.5M
Natural Gas Services (NGS) 50 299.7M 917.8 67.7M 19.9M 298.3M
Basic Energy Services (BAS) 16 298.8M 478.6 813M (123.4M) 768.2M
National Refinery (NRL) 57 294.2M 568.9 889.7M 66.2M 504.9M
Leucrotta Exploration (LXE) 85 293.2M 1,024.8 19.2M (6.2M) 235.1M
Global Peer Group Analysis (continued)

Code Country Code Last Price P/S P/Book Turnover Rate % Disc to 52-w
(%) Hi
PHX US $US19.15 7.1 2.8 47.9 22.4
ISRL US $US118.10 4.7 8.7 12.6
HASCOL PK PKR313.0 22.0 4.9
9539 JP JPY3,100.0 0.4 1.9 9.8
VLE CA CAD4.67 27.8 7.3 96.3 43.5
NGS US $US22.90 4.5 1.2 70.4 21.5
BAS US $US11.31 0.4 809.3 60.7
NRL PK PKR447.0 0.3 59.8 41.7
LXE CA CAD1.95 15.3 1.3 17.9 8.0
Fig 42: Global Peer Group - Price Performance
145
Peer Group Analysis & Ranking (continued)
Fig 43: Global Peer Group - Total Shareholder Return [TSR in USD]
Fig 44: Compare and Sort: Valeura Energy vs Oil & Gas - Exploration &
Production sector
Company Name Code MCap 52-W 52-W Rel. Str 6- PV$1000 P/NTA P/E Yield
(USD, M) High Low Mo 1 year (%)
Valeura Energy VLE 300 8.3 0.4 77 6,970 7.3 -
For Company searches, or for sorting by stocks and variables, an interactive version of current day's Table is
available here
146
Fig 45: BuySellSignals Fundamentals Valuation Table: Valeura Energy vs

Canadian Market
Canadia Lowest
- VLE Rank Rank 1 Rank 2 Rank 3
n Avg Rank
P/Earnings 3.1x - 77 1.6x 1.6x 1.6x -
QMX IGO CHN
Price/Net Tangible Assets 0.5x 7.3x 1248 0.1x 0.1x 0.1x -

AQN.PR.D LB.PR.J IAG.PR.G
Discount to 52-Wk High (%) 2.9 43.5 1065 97.4 96.6 96 0.04
NVCN NNA SGX ELF.PR.G
Premium to 52-Wk Low (%) 87.3 998.8 2509 0.1 0.4 0.4 4400
LNR BNS NGD COBC
Market Cap CAD 1.3 B 400 M 448 142.6 B 139.8 B 92.5 B 56,926
RY TD BNS MBI
Revenue CAD 4.9 B 14 M 1097 105.8 B 105.8 B 57.6 B 116
MFC MFC.PR.O BAM.A BLOX
EBITDA Margin 16.6 (12.7) 1172 88.96 88.5 88.4 (89.995)

DF PSK IDR.UN CTX
Values in bracket are negative.
147
Fig 46: Independent Rating

+ BSS/News Bites:
Valeura Energy Inc. is placed 4/2088 in BSS News Bites'
ranking of Canadian performers in the past year, a percentile
ranking of 100.
Fig 47: Long-Term Fundamental

Ranking: 2 out of 5
Valeura Energy is ranked number 33 out of 309 listed oil & gas
- exploration & production companies [that traded today] in
Canada with a market capitalization of CAD400 million
(US$300.1 million).
In the oil & gas - exploration & production companies it has
the 104th highest total assets and 89th highest revenues.
Stocks are scored on a set of

parameters reflecting
fundamental analytical tools
involving valuation, size and
financial performance. They
are ranked according to the
average values of those
parameters. The highest
ranking is 5 and the lowest
ranking is 1.
148
Board and Management & creation of shareholder value
Fig 48: Board of Directors Fig 49: Profiles

Yrs Since Russell Hiscock
Name Designation Appointment Chairman & Director
Creation of shareholder value in Valeura Energy:
Russell Hiscock Chairman, Director - Since appointment as Director: The present value of
Steve Bjornson Chief Financial Officer 8 Yrs CAD1,000 invested on the appointment date of January 12,
2018 at close price of CAD3.84 is CAD1,216, for a capital gain
Jim McFarland Director - of CAD216.
Guest Sean Director - Steve Bjornson
William Thomas Director 8 Yrs CFO
Fanagan Steve Bjornson is a chartered accountant with more than 27
years of finance, business development, strategic planning
Tim Marchant Director 3 Yrs and tax experience, operating in Canada, France, and
Trinidad. In this period, he successfully negotiated 15 public
Abdel Badwi Independent Director 8 Yrs
and private merger and acquisitions. He was previously the
Claudio Independent Director 8 Yrs interim-CEO of Northern Hunter Energy Inc., a predecessor
Ghersinich company of Valeura Energy Inc. He has held the position of
CFO at Vermilion Resources Ltd., Clear Energy Inc. and
Ronald Royal Independent Director 8 Yrs Sound Energy Trust. In addition, Mr. Bjornson is a past director
of Bulldog Oil & Gas Inc., Bulldog Resources, and Aventura
Lyle Martinson Chief Operating -
Energy.
Officer
Education: Bachelor of Commerce, University of Calgary,
Lyle Martinson Vice President - 1983; Chartered Accountant, Alberta, 1987.
Date of appointment: April 09, 2010
In the last 5 years the average annualized return to
shareholders was 60.8%. The present value of CAD1,000
(PV1000) invested 5 years ago is now CAD10,736, a gain of
CAD9,736.
William Thomas Fanagan

Director
CAD9,736.
149

(continued)
Tim Marchant Guest Sean
Director Director
Dr. Guest (Ph.D., Geology) has been working internationally
in the oil and gas industry for more than 25 years. Prior to
joining Valeura, he was the CEO of two private junior
companies. Bukit Energy is a Calgary-based startup focused
on Indonesia, and Pexco Energy holds production and
exploration assets in Australia-Asia region and East Africa.
Dr. Tim Marchant holds a Ph.D in Geology and has more than During his tenure, Pexco was producing ~10,000 boepd from
35 years of senior executive experience in the oil and gas its assets in Indonesia and Australia. While running Pexco, he
industry in Canada and internationally, with extensive resided in Jakarta, Indonesia and oversaw the company's
experience in international operations and foreign growth first operated development of an oil field in Sumatra. The
strategies. In a career that spanned 29 years with Amoco company also expanded their gas production in Australia
and BP, he held senior executive positions in Canada and a with the development of a new offshore gas field and
number of countries in the Middle East including Egypt, Saudi upgrades and debottlenecking of the associated onshore
Arabia, Abu Dhabi and Kuwait. Dr. Marchant is currently gas plant. Prior to his CEO roles, he also worked for Woodside
Adjunct Professor of Strategy and Energy Geopolitics at the in Australia and Libya, and for Shell in the Netherlands,
Haskayne School of Business, University of Calgary. He also Australia and Malaysia. He started his career with
serves as a non-executive director of Vermilion Energy Inc. Schlumberger working in Egypt. Education: B.Sc. Geological
and Cub Energy Inc. Engineering, Queen's University, 1985; Ph.D. Geological
Creation of shareholder value in Valeura Energy: Sciences, 1993.
Since appointment as Director: The present value of
CAD1,000 invested on the appointment date of April 15, 2015 Ronald Royal
at close price of 71.0c is CAD6,577, for a capital gain of Independent Director
CAD5,577. Ron Royal is a professional engineer with more than 36 years
of experience with Imperial Oil Limited and ExxonMobil's
Jim McFarland international upstream affiliates. Prior to retiring in 2007, he
Director was President & General Manager of Esso Chad and resided
Jim McFarland is professional engineer with more than 45 in N'Djamena, Chad from 2002 to 2007. During this period, he
years of broad experience in the oil and gas industry in oversaw the development of the Chad Development
Canada and internationally in both large integrated oil and Project, one of the oil industry's largest investments in Sub-
gas companies and smaller listed E&P companies. Most Sahara Africa. Previously, he was General Manager &
recently, he co-founded and was the past President & CEO Production Manager of Esso REP in France. He currently
of Valeura Energy Inc. until his retirement on December 31, serves as a Director of Oando Energy Resources Inc., and
2017, and prior to that, co-founded and was President & CEO Gran Tierra Energy Inc. In the past, he has served on the
of Verenex Energy Inc., which was active in Libya. He has Board of Directors of Caracal Energy Inc., Esso REP, Esso
served in other senior executive roles as Managing Director Chad, Tchad Oil Transportation Company, and Cameroon
of Southern Pacific Petroleum NL in Australia and President & Oil Transportation Company. In 2003, he was awarded the
COO of Husky Oil Limited, and held a number of Vice title "Chevalier de l'Ordre National du Chad" for his
Presidential roles in his earlier 23-year career with Imperial Oil contribution to the economic development of Chad.
Limited and other ExxonMobil affiliates in Canada, the USA Creation of shareholder value in Valeura Energy:
and Western Europe. He is currently a director of MEG Energy Year of appointment: 2010
Corp. and Pengrowth Energy Corporation, serves on the In the last 5 years the average annualized return to
Program Committee of the World Petroleum Council and is a shareholders was 60.8%. The present value of CAD1,000
past director of Verenex Energy Inc., Vermilion Energy Trust, (PV1000) invested 5 years ago is now CAD10,736, a gain of
Aventura Energy Inc., Southern Pacific Petroleum NL and CAD9,736.
Central Pacific Minerals NL. In 2003 he was awarded the
Australian Centenary Medal for "outstanding service through
business and commerce".
150

(continued)
Claudio Ghersinich Lyle Martinson
Independent Director Chief Operating Officer & Vice President
Claudio Ghersinich is an independent businessman and Lyle Martinson is a professional engineer with more than 39
professional engineer with more than 31 years of oil and gas years of management, operations, and engineering
experience. He is President and CEO of Carrera Investments experience in the oil and gas industry in Canada and
Corp. (an investment company). He is a co-founder and internationally. Most recently, he held the position of Drilling
former Executive VP and VP Business Development of and Operations Manager for Verenex Energy Area 47 Libya
Vermilion Energy Trust. He has also served on the Board of Limited, based in Tripoli. Prior to joining Verenex, he had a
Directors of various public companies including Verenex successful 28-year career with Chevron Corporation in
Energy Inc., Vermilion Energy Trust, Aventura Energy Inc., Canada, the US Gulf of Mexico, California, Australia, and
Bulldog Energy Inc., Bulldog Resources Inc., and Pegasus Oil Indonesia, including 22 years in leadership roles managing
and Gas Inc., as well as several private and non-profit organizations and projects of varying size and complexity. In
organizations. These companies have operated assets in his last assignment with Chevron, he was Manager of Well
Canada, Europe, Libya, Trinidad, Argentina, and Australia. Engineering and Operations at Chevron Canada Resources.
Creation of shareholder value in Valeura Energy: He has experience with both onshore and offshore
Year of appointment: 2010 operations, gas production, light oil and heavy oil
In the last 5 years the average annualized return to production, EOR projects and exploratory well drilling. Lyle is
shareholders was 60.8%. The present value of CAD1,000 a member of the Association of Professional Engineers and
(PV1000) invested 5 years ago is now CAD10,736, a gain of Geoscientists of Alberta (APEGA). Education: B.Sc. Civil
CAD9,736. Engineering, University of Saskatchewan, 1978.
Abdel Badwi
Independent Director
Abby Badwi is an international energy executive and
professional geologist with more than 36 years of experience
in the exploration, development and production of oil and
gas fields in North America, South America, Europe, Asia, and
the Middle East. He is currently Vice Chairman of Bankers
Petroleum Ltd., an oil and gas company with heavy oil
operations in Albania, where he previously served as
President and CEO from 2008 to 2013. He is also executive
chairman of Americas Petrogas Inc., interim CEO and
director of ArPetrol Ltd., and director of Kuwait Energy
(Private). Prior to these roles, he served as President, CEO,
and director of Rally Energy Corp. which had heavy oil
operations in Egypt and other assets in Pakistan and
Canada, and which was sold in 2007. He has been an officer
and director of several Canadian public and private
companies.
Year of appointment: 2010
CAD9,736.
151
Index
Section 1. Valeura Energy (VLE) 1

Company Overview 1
Figure 1: Activities 1
Fig 2: Stock Summary 1
Fig 3: Financials Summary 1
Section 2. Analysis 2
Introduction with Trends 2
Bullish Signals 2
Fig 4: Bullish Indicators 2
Bearish Signals 2
Fig 5: Quarterly Revenue & Net Income 2
Fig 6: Bearish Indicators 3
Fig 7: Global Rank [out of 47,625 stocks] 3
Fig 8: Other Listings 3
Fig 9: Analyst Recommendations 3
Section 3. Period-based Shareholder Returns 4

Fig 10: PRESENT VALUE OF CAD1000 INVESTED IN THE PAST [3 Mo, 1 Yr, 3 Yrs] 4
Fig 11: Moving Annual Return 4
Fig 12: Annualised Period-based Total Shareholder Returns [TSR %] 5
Fig 13: PRESENT VALUE OF CAD1000 INVESTED 5 YEARS AGO 5
Fig 14: PRESENT VALUE OF USD1000 INVESTED 5 YEARS AGO 5
Section 4. Price Volume Dynamics (Past quarter) 6

Fig 15: The Best 3 weeks 6
Fig 16: The Worst 3 weeks 6
Fig 17: Weekly Price Change (%) and Volume Index (Last 3 months) 6
Fig 18: Price Volume Trend: Trailing Quarter 7
Fig 19: Fibonacci Retracement 7
Fig 20: Trailing 3 months 8
Fig 21: Trailing Price Change % 8
Volatility 8
Fig 22: Price High Low Close 8
Fig 23: YTD Comparison Stock Sector Index (%) 8
Fig 24: Relative Strength 8
Fig 25: Price/Moving Avg Price [P/MAP200] 9
Fig 26: Turnover Rate & Period 9
Fig 27: CAD1 buys USD 0.75 today: Appreciation of USD from 0.86 twenty-eight years ago 9
Fig 28: Year-on-Year Comparison (Trailing year - ended 31 May) 9
Stock Exchange Listings 10
Section 5. Regulatory Announcements 11

Fig 29: Changes in Board (TTM) 11
Appointments 11
Resignations 11
Fig 30: Management Issues 11
Fig 31: Exchange Activity 11
Fig 32: Financial Results announcements 12
Fig 33: Funding/Capital 12
152
Index (continued)
Section 6. Press Releases 13
Section 7. Financials 15
Fig 34: Five-Year History (All figures in CAD) 17
VLE Q1 2018 Financial Results as reported
Fig 35: Q1 2018 VLE Income Statement as reported 17
Fig 36: Q1 2018 VLE Balance Sheet as reported 18
Fig 37: Q1 2018 VLE Cash Flow as reported 19
Fig 38: 2017 VLE Income Statement as reported 20
Fig 39: 2017 VLE Balance Sheet as reported 21
Fig 40: 2017 VLE Cash Flow as reported 21
Section 8. Peer Group Analysis & Ranking 23

Fig 41: Global Peer Group Analysis (all figures in USD) 23
Fig 42: Global Peer Group - Price Performance 23
Fig 43: Global Peer Group - Total Shareholder Return [TSR in USD] 24
Fig 44: Compare and Sort: Valeura Energy vs Oil & Gas - Exploration & Production sector 24
Fig 45: BuySellSignals Fundamentals Valuation Table: Valeura Energy vs Canadian Market 25
Fig 46: Independent Rating 26
Fig 47: Long-Term Fundamental Ranking: 2 out of 5 26
Section 9. Board and Management & creation of shareholder value 27

Names, Positions, Biographies, Performance
Fig 48: Board of Directors 27
Fig 49: Profiles 27
153
Glossary
Annual Return (Fig 11): Capital Gain/Loss from n Years Ago to n-1 Years Ago:
Dividends Paid In a 12-Month Period/Price at the Beginning of the Capital Gain or Loss over 1 Year/Price 1 Year Ago (%)
Period + Capital Gain or Loss over 1 Year/Price 1 Year Ago (%)
Current Ratio: EBIT Margin :
Current Assets/Current Liabiliites (times) Earnings Before Interest and Tax/Revenue (%)
Moving Average Price (n periods) (Fig 4, 25): PVCAD1000 (Fig 9, 10, 13, 14):
Sum of Prices for each Period/Number of Periods Present value of CAD1000 invested 1 year/'n' years ago
Price Close/Moving Avg Price (Fig 4, 25): Price/Earnings (Fig 45):
Latest Price/Moving Average Price Share Price/Earnings Per Share (times)
Price/NTA (Fig 6, 7, 42): Price/Sales (Fig 42):
Closing Share Price/Net Tangible Assets Per Share (times) Share Price/Sales Per Share (times)
Relative Price Change [RPC] (Fig 28): Relative Strength (n-th Period) (Fig 4, 24, 2, 7, 41):
Relative price change is price change of stock with respect to Price close today/Price close 'n' periods ago, then ranked by
Benchmark Index percentile within the entire market.
Return on Assets: Return on Equity (Shareholders' Funds) (Fig 7):
Net Profit/Total Assets (%) Net Profit/Net Assets (%)
TSR (Fig 12, 43, 2): TTM (Fig 29):
TSR is expressed as an annualized rate of return for shareholders after Trailing 12 Months
allowing for capital appreciation and dividends
Total Liabilities/Total Assets: Turnover (Fig 4, 20):
Total Liabilities/Total Assets Last Price * Volume
Turnover Period (Fig 28): Turnover Rate (Fig 42, 26):
Time Period required for trading all Outstanding Shares Canadian Dollar value of annual trading volume as a percentage of
market capitalisation
Volume Index (VI) (Fig 17, 20): Volume Weighted Average Price (VWAP) (Fig 28):
Number of shares traded in the period/Average number of shares The Volume Weighted Average Price (VWAP) is the summation of
traded for the period turnover divided by total volume in the same period.
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154
Company FundamentalsCompany Fundamentals\Company Profile
A Wright Investors' Service Research

Report:
Valeura Energy Inc. 177 West Putnam Avenue

Greenwich, Connecticut 06830-5203
U.S.A.
COMPANY PROFILE
Figures in Canadian Dollars
Wright Quality Rating:LANN Key Data
Valeura Energy Inc. is a Canada-based company engaged in the exploration, Ticker:

development and production of petroleum and natural gas in Turkey. The Company is VLE
focused on its natural gas operations in the Thrace Basin in northwest Turkey. The
Thrace Basin is located in an area west of Istanbul and extending to the borders 2017 Sales:
with Greece and Bulgaria. The TBNG-PTI JV lands are located in the Thrace Basin.
12,675,000
Natural gas is produced from both conventional and unconventional (tight gas)
sandstone reservoirs in onshore leases and licenses on the TBNG-PTI JV lands. The
Thrace Basin also includes Banarli exploration licenses. The Company also holds Major Industry:
interests in minor properties, including production leases at Edirne in the Thrace Oil, Gas, Coal & Related
Basin. The natural gas production from the Edirne production leases is sold Services
domestically to a wholesale gas marketer. The Company holds interest in
approximately five exploration licenses in the Anatolian Basin located around the city Sub Industry:
of Gaziantep in southeast Turkey. Crude Oil & Natural Gas
Stock Chart Officers Producers
Chairman
Dr. Timothy R. Marchant Country:
Canada
President & Chief Executive
Dr. Sean Guest Currency:
Canadian Dollars
Chief Operating Officer
Lyle A. Martinson
Fiscal Year Ends:
December
Chief Financial Officer
Stephen E. Bjornson
Employees
16
Exchanges:
VEN
Share Type:
Stock Price (6/8/2018): 4.27

Market Capitalization:
Recent stock performance
365,777,398
1 Week -2.7%
4 Weeks -18.7%
13 Weeks -21.7% Total Shares
52 Weeks 469.3% Outstanding:
85,662,154
Earnings / Dividends (as of 3/31/2018)
Earnings Dividends
Closely Held Shares:
Most Recent Qtr -0.03 0.00 9,674,674
Last 12 Months -0.12 0.00
Ratio Analysis
155
Price / Earnings Ratio N/A Dividend Yield 0.00%
Price / Sales Ratio 28.86 Payout Ratio N/A
Price / Book Ratio 5.95 % Held by Insiders 11.29%
Address
Suite 1200 202 - 6th Avenue SW Phone
CALGARY ALBERTA T2P 2R9 +1 403 237-7102
CANADA Home Page
http://www.valeuraenergy.com
156
Company Fundamentals\Comparative Business Analysis
Comparative Business Analysis: Valeura Energy Inc.

Report Date: June 16, 2018
Company Description
Valeura Energy Inc. is a Canada-based company engaged in the exploration, development and production of
petroleum and natural gas in Turkey. The Company is focused on its natural gas operations in the Thrace Basin in
northwest Turkey. The Thrace Basin is located in an area west of Istanbul and extending to the borders with
Greece and Bulgaria. The TBNG-PTI JV lands are located in the Thrace Basin. Natural gas is produced from both
conventional and unconventional (tight gas) sandstone reservoirs in onshore leases and licenses on the TBNG-
PTI JV lands. The Thrace Basin also includes Banarli exploration licenses. The Company also holds interests in
minor properties, including production leases at Edirne in the Thrace Basin. The natural gas production from the
Edirne production leases is sold domestically to a wholesale gas marketer. The Company holds interest in
approximately five exploration licenses in the Anatolian Basin located around the city of Gaziantep in southeast
Turkey.
Competitor Analysis
Valeura Energy Inc. operates in the Crude petroleum and natural gas sector. This analysis compares Valeura
Energy Inc. with three other companies: Corridor Resources, Inc. (2017 sales of 7.28 million Canadian Dollars
[US$5.63 million] ), Crown Point Ventures Ltd (13.70 million Canadian Dollars [US$10.59 million] ), and Jura
Energy Corp (11.99 million Canadian Dollars [US$9.26 million] ).
Sales Analysis
During the first quarter of 2018, sales at Valeura Energy Inc. totalled C$3.01 million. This is an increase of 11.9%
from the C$2.69 million in sales at the company during the first quarter of 2017. Valeura Energy Inc. reported
sales of C$12.68 million (US$9.80 million) for the year ending December of 2017. This represents a decrease of
9.8% versus 2016, when the company's sales were C$14.05 million.
Recent Sales at Valeura Energy Inc.

22 22
19 19
14
13
2012 2013 2014 2015 2016 2017

(Figures in Millions of Canadian Dollars)
Valeura Energy Inc. currently has 16 employees. With sales of C$12.68 million (US$9.80 million) , this equates to
sales of US$612,203 per employee. The sales per employee levels at the three comparable companies vary
greatly, from US$250,345 to US$1,512,750, as shown in the following table. Some of the variation may be due to
the way each of these companies counts employees (and if they count subcontractors, independent
contractors, etc).
Sales Comparisons (Fiscal Year ending 2017)

Sales Sales Sales/
Company (mlns) Growth Emp (US$) Largest Region
Valeura Energy Inc. 12.675 -9.8% 612,203 N/A
Corridor Resources, Inc. 7.280 -45.1% 562,598 N/A
Crown Point Ventures Ltd 13.702 -9.4% 1,512,750 N/A
Jura Energy Corp 11.986 66.1% 250,345 N/A
Recent Stock Performance
157
In recent years, this stock has performed terribly. In 2008, the stock traded as high as C$12.00, versus C$4.27
on 6/8/2018. (In 2008, the stock retreated significantly from its high, and by the end of the year was at
C$1.40). During each of the previous 4 years, this stock has increased in value (at the end of 2013, the stock
was at C$0.30). The stock price has more than doubled recently: For the 52 weeks ending 6/8/2018, the
stock of this company was up 469.3% to C$4.27. During the past 13 weeks, the stock has fallen 21.7%. During
the 12 months ending 3/31/2018, the company has experienced losses totalling C$0.12 per share. This company
is currently trading at 28.86 times sales. This is at a much higher ratio than all three comparable companies,
which are trading between 0.35 and 12.79 times sales. Valeura Energy Inc. is trading at 5.95 times book value.
The company's price to book ratio is significantly higher than that of all three comparable companies, which are
trading between 0.24 and 0.79 times book value.
Summary of company valuations (as of 6/8/2018).

Price/ Price/ 52 Wk
Company P/E Book Sales Pr Chg
Valeura Energy Inc. N/A 5.95 28.86 469.30%
Corridor Resources, Inc. 4.3 0.79 12.79 110.00%
Crown Point Ventures Ltd N/A 0.42 1.20 -16.67%
Jura Energy Corp N/A 0.24 0.35 N/A
The market capitalization of this company is C$365.78 million (US$282.67 million) . The capitalization of the
floating stock (i.e., that which is not closely held) is C$324.47 million (US$250.75 million) .
Dividend Analysis
This company has paid no dividends during the last 12 months. The company also reported losses during the
previous 12 months. The company has not paid any dividends during the previous 6 fiscal years.
Profitability Analysis
On the C$12.68 million in sales reported by the company in 2017, the cost of goods sold totalled C$6.91 million,
or 54.5% of sales (i.e., the gross profit was 45.5% of sales). This gross profit margin is lower than the company
achieved in 2016, when cost of goods sold totalled 22.1% of sales. Valeura Energy Inc.'s 2017 gross profit
margin of 45.5% was lower than all three comparable companies (which had gross profits in 2017 between 50.1%
and 62.0% of sales). The company's earnings before interest, taxes, depreciation and amorization (EBITDA) were
C$690,000.00 , or 5.4% of sales. This EBITDA margin is worse than the company achieved in 2016, when the
EBITDA margin was equal to 36.9% of sales. The three comparable companies had EBITDA margins that were all
higher (between 12.5% and 42.2%) than that achieved by Valeura Energy Inc.. In 2017, earnings before
extraordinary items at Valeura Energy Inc. were -C$8.38 million, or -66.1% of sales. This profit margin is lower
than the level the company achieved in 2016, when the profit margin was -43.3% of sales. The company has
reported losses before extraordinary items for each of the past 3 years. (2015 was the last year the
company reported profits from ordinary operations, when it reported C$1.36 million in earnings). The company's
return on equity in 2017 was -14.3%. This was significantly worse than the -8.1% return the company achieved
in 2016. (Extraordinary items have been excluded).
Profitability Comparison
Gross Earnings
Profit EBITDA before
Company Year Margin Margin extras
Valeura Energy Inc. 2017 45.5% 5.4% -66.1%
Valeura Energy Inc. 2016 77.9% 36.9% -43.3%
Corridor Resources, Inc. 2017 62.0% 12.5% 243.7%
Crown Point Ventures Ltd 2017 50.1% 21.1% -14.6%
Jura Energy Corp 2017 56.5% 42.2% -14.3%
During the first quarter of 2018, Valeura Energy Inc. reported a loss per share of C$0.03. The company also
reported losses during the first quarter of 2017, of C$0.03 per share.
Inventory Analysis
158
As of December 2017, the value of the company's inventory totalled C$251,000.00 . Since the cost of goods sold
was C$6.91 million for the year, the company had 13 days of inventory on hand (another way to look at this is to
say that the company turned over its inventory 27.5 times per year).
Financial Position
As of December 2017, the accounts receivable for the company were C$4.05 million, which is equivalent to 117
days of sales. This is an improvement over the end of 2016, when Valeura Energy Inc. had 120 days of sales in
accounts receivable.
Financial Positions
Days Days
Company Year AR Inv.
Valeura Energy Inc. 2017 117 13
Corridor Resources, Inc. 2017 197 20
Crown Point Ventures Ltd 2017 50 80
Jura Energy Corp 2017 107 N/A
159
Company Fundamentals\Summary Analysis
SUMMARY ANALYSIS: Valeura Energy Inc.

Per Share- Canadian Dollars
Value Ratios Equity Capital Earnings Dividends

Year Price
Fiscal Yr Market Price/ Price/ % % Profit Book 12 Month % 12 Month

Ends: Price Earnings Book Dividend Earned Rate Value Earnings % Payout Dividends
December Last Ratio Ratio Yield Growth (ROE) Begin Yr Per Share Change Ratio Per Share
2009 2.00 n/c 0.6 0.0% -60.9% -60.9% 3.40 -2.07 n/c n/c 0.00
2010 3.70 n/c 2.5 0.0% -39.2% -39.2% 1.47 -0.58 n/c n/c 0.00
2011 1.54 n/c 0.8 0.0% -25.0% -25.0% 1.81 -0.45 n/c n/c 0.00
2012 0.92 n/c 0.4 0.0% -15.7% -15.7% 2.06 -0.32 n/c n/c 0.00
2013 0.30 n/c 0.2 0.0% -18.0% -18.0% 1.68 -0.30 n/c n/c 0.00
2014 0.38 16.2 0.3 0.0% 1.8% 1.8% 1.31 0.02 n/c 0.0% 0.00
2015 0.66 n/c 0.5 0.0% -0.7% -0.7% 1.35 -0.01 n/c n/c 0.00
2016 0.95 n/c 0.7 0.0% -8.0% -8.0% 1.30 -0.10 n/c n/c 0.00
2017 4.35 n/c 4.3 0.0% -11.8% -11.8% 1.00 -0.12 n/c n/c 0.00
6/8/2018 4.27 n/c 5.9 0.0% n/a n/a 0.75 -0.12 n/c n/c 0.00
160
Company Fundamentals\Sales Analysis
SALES ANALYSIS: Valeura Energy Inc.
Figures in actual amounts of Canadian Dollars
Earnings before
Interest,
Taxes, Depreciation,
and After Tax Income
Cost of Amortization before Extraordinary
Sales Goods Sold (EBITDA) Charges and Credits Employees
Amount Amount Amount Amount After Tax

in Year-to- in in in Sales Income
actual year actual % of actual % of actual % of Per Per
Year amounts Growth amounts Sales amounts Sales amounts Sales Number Employee Employee
2008 1,465,000 68.4% 630,323 43.0% 185,677 12.7% 184,991 12.6% n/a n/a n/a
- -
2009 372,561 -74.6% 689,808 185.2% -964,868 -9,832,687 n/a n/a n/a
259.0% 2,639.2%
-
2010 3,000,000 705.2% 5,000,000 166.7% -6,000,000 -9,000,000 -300.0% n/a n/a n/a
200.0%
-
2011 14,985,380 399.5% 6,384,623 42.6% -6,430,394 -42.9% -105.3% n/a n/a n/a
15,776,432
-
2012 22,330,000 49.0% 5,903,000 26.4% -7,170,000 -32.1% -71.2% 18 1,240,556 -883,611
15,905,000
- -
2013 19,144,000 -14.3% 17,284,000 90.3% -9,954,000 -52.0% -91.5% 13 1,472,615
17,518,000 1,347,538
2014 21,618,000 12.9% 2,917,000 13.5% 13,280,000 61.4% 1,362,000 6.3% 16 1,351,125 85,125
2015 18,630,000 -13.8% 3,070,000 16.5% 9,100,000 48.8% -562,000 -3.0% 17 1,095,882 -33,059
2016 14,053,000 -24.6% 3,108,000 22.1% 1,090,000 7.8% -6,086,000 -43.3% 14 1,003,786 -434,714
2017 12,675,000 -9.8% 6,909,000 54.5% -1,778,000 -14.0% -8,384,000 -66.1% 16 792,188 -524,000
161
Company Fundamentals\Price Analysis
PRICE ANALYSIS: Valeura Energy Inc.

High Low Closing Quarterly 12 months

Quarter Price Price Price %Change %Change
2009 Jan - Mar 2.700 1.500 2.100 n/a n/a
Apr - Jun 3.000 1.500 1.900 -9.5% n/a
Jul - Sep 2.200 1.550 2.100 10.5% n/a
2010 Jan - Mar 7.500 3.250 7.300 n/a 247.6%
Apr - Jun 9.500 3.600 4.100 -43.8% 115.8%
Jul - Sep 4.200 2.700 3.700 -9.8% 76.2%
Oct - Dec 4.800 3.500 3.700 0.0% n/a
2011 Jan - Mar 5.700 3.400 4.500 21.6% -38.4%
Apr - Jun 4.800 2.300 2.450 -45.6% -40.2%
Jul - Sep 3.000 1.600 1.600 -34.7% -56.8%
Oct - Dec 1.940 1.200 1.540 -3.8% -58.4%
2012 Jan - Mar 2.890 1.540 1.970 27.9% -56.2%
Apr - Jun 2.110 1.180 1.480 -24.9% -39.6%
Jul - Sep 1.680 1.200 1.270 -14.2% -20.6%
Oct - Dec 1.270 0.700 0.920 -27.6% -40.3%
2013 Jan - Mar 1.150 0.860 0.880 -4.3% -55.3%
Apr - Jun 0.930 0.400 0.420 -52.3% -71.6%
Jul - Sep 0.500 0.310 0.425 1.2% -66.5%
Oct - Dec 0.435 0.270 0.295 -30.6% -67.9%
2014 Jan - Mar 0.780 0.295 0.640 116.9% -27.3%
Apr - Jun 0.700 0.500 0.550 -14.1% 31.0%
Jul - Sep 0.570 0.325 0.330 -40.0% -22.4%
Oct - Dec 0.450 0.300 0.380 15.2% 28.8%
2015 Jan - Mar 0.700 0.355 0.550 44.7% -14.1%
Apr - Jun 0.710 0.500 0.530 -3.6% -3.6%
Jul - Sep 0.570 0.355 0.415 -21.7% 25.8%
Oct - Dec 0.660 0.360 0.660 59.0% 73.7%
2016 Jan - Mar 0.830 0.600 0.680 3.0% 23.6%
Apr - Jun 1.440 0.600 1.240 82.4% 134.0%
Jul - Sep 1.250 0.800 0.850 -31.5% 104.8%
Oct - Dec 1.150 0.810 0.950 11.8% 43.9%
162
2017 Jan - Mar 1.000 0.630 0.680 -28.4% 0.0%
Apr - Jun 0.850 0.620 0.700 2.9% -43.5%
Jul - Sep 0.720 0.485 0.485 -30.7% -42.9%
Oct - Dec 5.020 0.425 4.350 796.9% 357.9%
2018 Jan - Mar 8.270 3.300 4.140 -4.8% 508.8%
6/8/2018 4.270 -21.7% 469.3%
163
Company Fundamentals\Earnings & Dividends Analysis
EARNINGS AND DIVIDENDS ANALYSIS: Valeura Energy Inc.
Fiscal Year Ends in December
Earnings Per Share Dividends Per Share
12 Months Quarterly Reported Earnings 12 Months Quarterly Reported Dividends

Fiscal % Q1 Q2 Q3 Q4 % Q1 Q2 Q3 Q4 %
Years Earnings Change Mar. Jun. Sep. Dec. Dividends Change Mar. Jun. Sep. Dec. Payout
2007 -0.73 n/c n/a n/a n/a n/a n/a n/c 0.00 0.00 0.00 0.00 0.0%
2008 0.05 n/c n/a n/a n/a n/a n/a n/c 0.00 0.00 0.00 0.00 0.0%
2009 -2.07 n/c n/a n/a n/a n/a n/a n/c 0.00 0.00 0.00 0.00 0.0%
2010 -0.58 n/c n/a n/a n/a n/a n/a n/c 0.00 0.00 0.00 0.00 0.0%
2011 -0.45 n/c n/a n/a n/a n/a n/a n/c 0.00 0.00 0.00 0.00 0.0%
2012 -0.32 n/c n/a n/a n/a n/a n/a n/c 0.00 0.00 0.00 0.00 0.0%
2013 -0.30 n/c -0.01 -0.04 -0.08 -0.17 0.00 n/c n/a n/a n/a 0.00 0.0%
2014 0.02 n/c 0.01 0.01 -0.00 0.01 0.00 n/c 0.00 0.00 0.00 0.00 0.0%
2015 -0.01 n/c 0.00 -0.01 -0.00 0.00 0.00 n/c 0.00 0.00 0.00 0.00 0.0%
2016 -0.10 n/c -0.02 -0.01 -0.02 -0.05 0.00 n/c 0.00 0.00 0.00 0.00 0.0%
2017 -0.12 n/c -0.03 -0.01 -0.07 -0.01 0.00 n/c 0.00 0.00 0.00 0.00 0.0%
2018 n/a n/c -0.03 n/a n/a n/a n/a n/c 0.00 n/a n/a n/a n/c
164
Financial Statement AnalysesFinancial Statement Analyses\Balance Sheet - Annual
Annual Balance Sheet - (Actual Values): Valeura Energy Inc.
All figures in millions of Canadian Dollars.
Fiscal Year 2017 2016 2015 2014 2013
Fiscal Year End Date 12/31/2017 12/31/2016 12/31/2015 12/31/2014 12/31/2013
Assets
Total Assets 90 76 101 99 97
Total Current Assets 17 25 13 14 14
Cash & Short Term
11 2 7 6 7
Investments
Cash 11 2 7 6 7
Short Term
Investments
Receivables (Net) 4 5 5 8 8
Inventories -Total 0 0 0 0 0
Raw Materials 0 0 0 0
Work in Process 0 0 0 0
Finished Goods 0 0 0 0
Progress Payments &
0 0 0 0 0
Other
Prepaid Expenses
Other Current Assets 1 18 1 0 0
Long Term Receivables 0 0 0 0 0
Investment in Associated
0 0 0 0 0
Companies
Other Investments 3 0 0 0 0
Property Plant and
114 92 129 119 120
Equipment - Gross
Accumulated Depreciation 45 42 42 35 37
Property Plant and
70 50 87 84 83
Equipment – Net
Other Assets 0 1 1 1 0
Deferred Charges 0 0 0 0 0
165
Tangible Other Assets 0 1 1 1 0
Intangible Other Assets 0 0 0 0 0
Total Assets 90 76 101 99 97
Liabilities & Shareholders'
Equity
Total Liabilities &
90 76 101 99 97
Total Current Liabilities 13 4 6 4 8
Accounts Payable 13 4 6 4 8
Short Term Debt &
Current Portion of Long Term 0 0 0 0 0
Debt
Accrued Payroll
Income Taxes Payable
Dividends Payable
Other Current Liabilities 0 0 0 0 0
Long Term Debt 0 0 0 0 0
Long Term Debt Excluding
0 0 0 0 0
Capitalized Leases
Capitalized Lease
0 0 0 0 0
Obligations
Provision for Risks and
19 8 13 11 9
Charges
Deferred Income 0 0 0 0 0
Deferred Taxes 2 5 6 6 5
Deferred Taxes - Credit 2 5 6 6 5
Deferred Taxes - Debit
Other Liabilities 0 0 0 0 0
Total Liabilities 35 17 26 21 21
Non-Equity Reserves 0 0 0 0 0
Minority Interest 0 0 0 0 0
Preferred Stock 0 0 0 0 0
166
Common Equity 55 59 75 78 76
Total Liabilities &
90 76 101 99 97
167
Financial Statement Analyses\Balance Sheet - Annual - Common Size
Annual Balance Sheet - (Common Size): Valeura Energy Inc.
Figures are expressed as Percent of Total Assets.
Total Assets are in millions of Canadian Dollars.
Fiscal Year 2017 2016 2015 2014 2013
Assets
Total Assets 89.9 75.9 101.2 99.2 97.3
Total Current Assets 18.7% 32.5% 13.1% 14.2% 14.9%
Cash & Short Term
12.4% 2.6% 6.9% 6.0% 6.7%
Investments
Cash 12.4% 2.6% 6.9% 6.0% 6.7%
Short Term
Investments
Receivables (Net) 4.5% 6.1% 5.2% 8.0% 7.7%
Inventories -Total 0.3% 0.0% 0.0% 0.0% 0.0%
Raw Materials 0.0% 0.0% 0.0% 0.0%
Work in Process 0.0% 0.0% 0.0% 0.0%
Finished Goods 0.0% 0.0% 0.0% 0.0%
Progress Payments &
0.3% 0.0% 0.0% 0.0% 0.0%
Other
Prepaid Expenses
Other Current Assets 1.5% 23.9% 1.0% 0.3% 0.5%
Long Term Receivables 0.0% 0.0% 0.0% 0.0% 0.0%
0.0% 0.0% 0.0% 0.0% 0.0%
Companies
Other Investments 3.5% 0.0% 0.0% 0.0% 0.0%
Property Plant and
127.3% 121.2% 127.6% 120.2% 123.4%
Equipment - Gross
Accumulated Depreciation 49.7% 54.9% 41.8% 35.1% 38.3%
Property Plant and
77.6% 66.3% 85.8% 85.1% 85.1%
Equipment – Net
Other Assets 0.2% 1.2% 1.1% 0.7% 0.0%
168
Deferred Charges 0.0% 0.0% 0.0% 0.0% 0.0%
Tangible Other Assets 0.2% 1.2% 1.1% 0.7% 0.0%
Intangible Other Assets 0.0% 0.0% 0.0% 0.0% 0.0%
Total Assets 100.0% 100.0% 100.0% 100.0% 100.0%
Equity
Total Liabilities &
89.9 75.9 101.2 99.2 97.3
Total Current Liabilities 14.9% 5.6% 5.9% 4.1% 7.9%
Accounts Payable 14.9% 5.6% 5.9% 4.1% 7.9%
Short Term Debt &
Current Portion of Long Term 0.0% 0.0% 0.0% 0.0% 0.0%
Debt
Accrued Payroll
Dividends Payable
Other Current Liabilities 0.0% 0.0% 0.0% 0.0% 0.0%
Long Term Debt 0.0% 0.0% 0.0% 0.0% 0.0%
0.0% 0.0% 0.0% 0.0% 0.0%
Capitalized Leases
Capitalized Lease
0.0% 0.0% 0.0% 0.0% 0.0%
Obligations
21.4% 10.7% 13.3% 11.1% 9.1%
Charges
Deferred Income 0.0% 0.0% 0.0% 0.0% 0.0%
Deferred Taxes 2.7% 6.4% 6.4% 6.2% 4.9%
Deferred Taxes - Credit 2.7% 6.4% 6.4% 6.2% 4.9%
Other Liabilities 0.0% 0.0% 0.0% 0.0% 0.0%
Total Liabilities 39.0% 22.8% 25.6% 21.4% 21.9%
Non-Equity Reserves 0.0% 0.0% 0.0% 0.0% 0.0%
Minority Interest 0.0% 0.0% 0.0% 0.0% 0.0%
169
Preferred Stock 0.0% 0.0% 0.0% 0.0% 0.0%
Common Equity 61.0% 77.2% 74.4% 78.6% 78.1%
Total Liabilities &
100.0% 100.0% 100.0% 100.0% 100.0%
170
Financial Statement Analyses\Balance Sheet - Annual - Year-Year % Change
Balance Sheet - (Year to Year Percent Change): Valeura Energy Inc.
Figures are the Percent Changes from the Prior Year.
Fiscal Year 2017 2016 2015 2014 2013
Assets
Total Assets 18.4% -25.0% 2.1% 1.9% -22.6%
Cash & Short Term
459.0% -71.5% 17.6% -9.0% -77.6%
Investments
Cash 459.0% -71.5% 17.6% -9.0%
Short Term Investments
Receivables (Net) -11.9% -13.2% -33.1% 5.1% 9.8%
Inventories -Total
Raw Materials
Work in Process
Finished Goods
Progress Payments &
Other
Prepaid Expenses
Other Current Assets -92.4% 1,735.7% 256.0% -38.3% 2.3%
Current Assets - Total -32.0% 86.2% -6.1% -2.6% -60.1%
Long Term Receivables
Companies
Other Investments
Property Plant and
24.4% -28.8% 8.3% -0.7% 2.4%
Equipment - Gross
Accumulated Depreciation 7.2% -1.5% 21.6% -6.6% 33.5%
Property Plant and
38.7% -42.1% 2.8% 2.0% -7.4%
Equipment – Net
Other Assets -82.2% -19.9% 78.4%
Deferred Charges
171
Tangible Other Assets -82.2% -19.9% 78.4%
Intangible Other Assets
Total Assets 18.4% -25.0% 2.1% 1.9% -22.6%
Equity
Total Liabilities &
18.4% -25.0% 2.1% 1.9% -22.6%
Accounts Payable 213.4% -29.0% 47.3% -46.8% -36.6%
Short Term Debt & Current
Portion of Long Term Debt
Accrued Payroll
Dividends Payable
Other Current Liabilities
Current Liabilities - Total 213.4% -29.0% 47.3% -46.8% -36.6%
Long Term Debt
Capitalized Leases
Capitalized Lease
Obligations
136.2% -39.6% 22.2% 24.6% -6.4%
Charges
Deferred Income
Deferred Taxes -49.4% -24.7% 6.1% 27.4% -30.0%
Deferred Taxes - Credit -49.4% -24.7% 6.1% 27.4%
Deferred Tax Liability in
Untaxed Reserves
Other Liabilities
Total Liabilities 102.8% -33.4% 22.4% -0.4% -25.0%
Non-Equity Reserves
Minority Interest
172
Preferred Stock
Preferred Stock Issued for
ESOP
ESOP Guarantees -
Preferred Issued
Common Equity -6.5% -22.1% -3.5% 2.6% -21.9%
Total Liabilities &
18.4% -25.0% 2.1% 1.9% -22.6%
173
Financial Statement Analyses\Balance Sheet - Annual - Five-Year Averages
Balance Sheet - (5 Year Averages): Valeura Energy Inc.
Figures in millions of Canadian Dollars.
Fiscal Year 2017 2016 2015 2014 2013
Assets
Total Assets 92.7 99.9 108.8 96.3 78.1
Cash & Short Term
6.5 10.1 14.5 17.0 17.0
Investments
Cash 6.5
Short Term Investments
Receivables (Net) 5.9 6.4 8.4 7.8 6.2
Inventories -Total 0.1 0.0 0.0 0.0 0.0
Raw Materials
Work in Process
Finished Goods
Progress Payments &
0.1
Other
Prepaid Expenses
Other Current Assets 4.2 4.1 0.5 0.3 0.3
Current Assets - Total 16.7 20.6 23.4 25.1 23.5
Long Term Receivables 0.0
0.0 0.0 0.0 0.0 0.0
Companies
Other Investments 0.6 0.0 0.0 0.0 0.0
Property Plant and
115.0 115.5 116.3 95.7 74.6
Equipment - Gross
Accumulated Depreciation 40.2 36.8 31.2 24.7 20.1
Property Plant and
74.8 78.7 85.1 71.0 54.5
Equipment – Net
Other Assets 0.6 0.5 0.4 0.2 0.1
Deferred Charges 0.0
174
Tangible Other Assets 0.6
Intangible Other Assets 0.0 0.0 0.0 0.1 0.1
Total Assets 92.7 99.9 108.8 96.3 78.1
Equity
Total Liabilities &
92.7 99.9 108.8 96.3 78.1
Accounts Payable 7.1 6.8 7.8 7.1 6.4
Short Term Debt & Current
0.0 0.0 0.0 0.0 0.0
Portion of Long Term Debt
Accrued Payroll
Dividends Payable
Other Current Liabilities 0.0 0.0 0.0 0.0 0.0
Current Liabilities - Total 7.1 6.8 7.8 7.1 6.4
Long Term Debt 0.0 0.0 0.0 0.0 0.0
0.0 0.0 0.0 0.0 0.0
Capitalized Leases
Capitalized Lease
0.0 0.0 0.0 0.0 0.0
Obligations
12.1 10.2 10.0 7.4 5.3
Charges
Deferred Income 0.0
Deferred Taxes 5.0 5.8 6.5
Deferred Taxes - Credit 5.0
Deferred Tax Liability in
Untaxed Reserves
Other Liabilities 0.0 0.0 0.0 0.0 0.0
Total Liabilities 24.2 22.8 24.4 19.7 15.7
Non-Equity Reserves 0.0
Minority Interest 0.0 0.0 0.0 0.0 0.0
175
Preferred Stock 0.0 0.0 0.0 0.0 0.0
Preferred Stock Issued for
ESOP
ESOP Guarantees -
Preferred Issued
Common Equity 68.5 77.0 84.4 76.6 62.4
Total Liabilities &
92.7 99.9 108.8 96.3 78.1
176
Financial Statement Analyses\Balance Sheet - Interim
Interim Balance Sheet - (Actual Values): Valeura Energy Inc.
Fiscal Period End Date 03/31/2018 12/31/2017 09/30/2017 06/30/2017 03/31/2017
Assets
Total Assets 131 90 96 102 100
Total Current Assets 64 17 18 20 22
Cash & Short Term
57 11 3 10 6
Investments
Receivables (Net) 6 4 13 8 9
Inventories - Total 0 0 1 0 0
Prepaid Expenses
Other Current Assets 1 1 2 3 7
0 0 0 0 0
Companies
Property Plant and
110 114 122 116
Equipment - Gross
Accumulated Depreciation 46 45 45 42
Property Plant and
64 70 74 78 75
Equipment – Net
Other Assets 3 3 4 4 4
Intangible Other Assets 0 0 0 0 0
Total Assets 131 90 96 102 100
Equity
Total Liabilities &
131 90 96 102 100
Total Current Liabilities 6 13 13 12 10
Accounts Payable 6 13 13 12 10
Short Term Debt &
Current Portion of Long Term 0 0 0 0 0
Debt
177
Other Current Liabilities 0 0 0 0 0
Long Term Debt 0 0 0 0 0
0 0 0 0 0
Capitalized Leases
Capitalized Lease
0
Obligations
Deferred Taxes 3 2 5 4 5
Deferred Taxes - Credit 3 2 5 4 5
Other Liabilities 16 19 20 21 19
Total Liabilities 24 35 38 36 35
Non-Equity Reserves 0 0 0 0 0
Preferred Stock 0 0 0 0 0
Common Equity 107 55 58 66 65
Total Liabilities &
131 90 96 102 100
178
Financial Statement Analyses\Balance Sheet - Interim - Common Size
Interim Balance Sheet - (Common Size): Valeura Energy Inc.
Figures are expressed as Percent of Total Assets.
Total Assets are in millions of Canadian Dollars.
Assets
Total Assets 131.4 89.9 96.0 101.7 99.9
Cash & Short Term
43.3% 12.4% 3.1% 9.7% 5.8%
Investments
Receivables (Net) 4.3% 4.5% 13.3% 7.5% 8.9%
Inventories - Total 0.2% 0.3% 1.0% 0.0% 0.0%
Prepaid Expenses
0.0% 0.0% 0.0% 0.0% 0.0%
Companies
Property Plant and
83.4% 127.3% 120.3% 116.5%
Equipment - Gross
Accumulated Depreciation 34.8% 49.7% 43.8% 41.8%
Property Plant and
48.6% 77.6% 77.2% 76.5% 74.6%
Equipment – Net
Other Assets 2.5% 3.7% 3.7% 3.7% 3.6%
Intangible Other Assets 0.0% 0.0% 0.0% 0.0% 0.0%
Total Assets 100.0% 100.0% 100.0% 100.0% 100.0%
Equity
Total Liabilities &
131.4 89.9 96.0 101.7 99.9
Total Current Liabilities 4.4% 14.9% 13.4% 11.3% 10.1%
Accounts Payable 4.4% 14.9% 13.4% 11.3% 10.1%
Short Term Debt &
Current Portion of Long Term 0.0% 0.0% 0.0% 0.0% 0.0%
Debt
179
Other Current Liabilities 0.0% 0.0% 0.0% 0.0% 0.0%
Long Term Debt 0.0% 0.0% 0.0% 0.0% 0.0%
0.0% 0.0% 0.0% 0.0% 0.0%
Capitalized Leases
Capitalized Lease
0.0%
Obligations
Deferred Taxes 1.9% 2.7% 5.3% 3.8% 5.3%
Deferred Taxes - Credit 1.9% 2.7% 5.3% 3.8% 5.3%
Non-Equity Reserves 0.0% 0.0% 0.0% 0.0% 0.0%
Preferred Stock 0.0% 0.0% 0.0% 0.0% 0.0%
Common Equity 81.6% 61.0% 60.4% 64.5% 65.2%
Total Liabilities &
100.0% 100.0% 100.0% 100.0% 100.0%
180
Financial Statement Analyses\Income Statement - Annual
Annual Income Statement - (Actual Values): Valeura Energy Inc.
Fiscal Year 2017 2016 2015 2014 2013
Net Sales or Revenues 13 14 19 22 19
Cost of Goods Sold 7 3 3 3 17
Depreciation, Depletion &
9 7 9 10 8
Amortization
Gross Income -3 4 7 8 -7
Selling, General &
5 6 7 6 7
Administrative Expenses
Other Operating Expenses 0 0 0 0 0
Operating Expenses - Total 21 16 19 19 33
Operating Income -8 -2 -0 3 -14
Extraordinary Credit - Pretax 0 0 0 0
Extraordinary Charge - Pretax 1 2 0 0 3
Non-Operating Interest
Income
Reserves -
Increase/Decrease
Pretax Equity in Earnings 0 0 0 0 0
Other Income/Expense - Net -1 -2 0 1 -1
Earnings before Interest,
Taxes, Depreciation & -2 1 9 13 -10
Amortization (EBITDA)
Earnings before Interest &
-11 -6 0 3 -18
Taxes(EBIT)
Interest Expense on Debt
Interest Capitalized 0 0 0 0 0
Pretax Income -11 -6 0 2 -19
Income Taxes -2 -0 1 1 -1
181
Equity in Earnings 0 0 0 0 0
After Tax Other
0 0 0 0 0
Income/Expense
Discontinued Operations 0 0 0 0 0
Net Income before
Extraordinary Items/Preferred -8 -6 -1 1 -18
Dividends
Extraordinary Items &
0 0 0 0 0
Gain/Loss Sale of Assets
Preferred Dividend
0 0 0 0 0
Requirements
Net Income after Preferred
Dividends - available to -8 -6 -1 1 -18
Common
182
Financial Statement Analyses\Income Statement - Annual - Common Size
Annual Income Statement - (Common Size): Valeura Energy Inc.
Figures are expressed as Percent of Net Sales or Revenues.
Net Sales or Revenues are in millions of Canadian Dollars.
Fiscal Year 2017 2016 2015 2014 2013
Net Sales or Revenues 12.7 14.1 18.6 21.6 19.1
Cost of Goods Sold 54.5% 22.1% 16.5% 13.5% 90.3%
71.2% 52.9% 48.3% 47.2% 43.9%
Amortization
Gross Income -25.7% 25.0% 35.2% 39.3% -34.1%
Selling, General &
40.0% 41.0% 37.2% 27.5% 39.1%
Other Operating Expenses 0.0% 0.0% 0.0% 0.0% 0.0%
Operating Expenses - Total 165.8% 116.0% 102.0% 88.2% 173.3%
Operating Income -65.8% -16.0% -2.0% 11.8% -73.3%
Extraordinary Credit - Pretax 0.0% 0.0% 0.0% 0.0%
Extraordinary Charge - Pretax 9.2% 13.6% 0.0% 0.0% 17.2%
Income
Reserves -
Increase/Decrease
Pretax Equity in Earnings 0.0% 0.0% 0.0% 0.0% 0.0%
Other Income/Expense - Net -10.3% -15.6% 2.6% 2.4% -5.4%
Taxes, Depreciation & -14.0% 7.8% 48.8% 61.4% -52.0%
-85.2% -45.2% 0.6% 14.2% -95.8%
Taxes(EBIT)
Interest Capitalized 0.0% 0.0% 0.0% 0.0% 0.0%
Pretax Income -85.2% -45.2% 0.6% 11.2% -98.8%
Income Taxes -19.1% -1.9% 3.6% 6.2% -7.3%
183
Equity in Earnings 0.0% 0.0% 0.0% 0.0% 0.0%
After Tax Other
0.0% 0.0% 0.0% 0.0% 0.0%
Income/Expense
Discontinued Operations 0.0% 0.0% 0.0% 1.3% 0.0%
Net Income before
Extraordinary Items/Preferred -66.1% -43.3% -3.0% 6.3% -91.5%
Dividends
0.0% 0.0% 0.0% 0.0% 0.0%
Preferred Dividend
0.0% 0.0% 0.0% 0.0% 0.0%
Requirements
Dividends - available to -66.1% -43.3% -3.0% 6.3% -91.5%
Common
184
Financial Statement Analyses\Income Statement - Year-Year % Change
Income Statement - (Year to Year Percent Change): Valeura Energy Inc.
Figures are the Percent Changes from the Prior Year.
Fiscal Year 2017 2016 2015 2014 2013
Net Sales or Revenues -9.8% -24.6% -13.8% 12.9% -14.3%
Cost of Goods Sold 122.3% 1.2% 5.2% -83.1% 192.8%
Depreciation, Depletion & Amortization 21.4% -17.3% -11.9% 21.6% -19.7%
- -
Gross Income -46.5% -22.7%
192.9% 209.5%
Selling, General & Administrative Expenses -11.9% -16.9% 16.7% -20.6% -62.3%
Other Operating Expenses
Operating Expenses - Total 28.8% -14.2% -0.3% -42.5%
-
Operating Income
114.6%
Extraordinary Credit - Pretax
-
Extraordinary Charge - Pretax -39.2% -2.3%
100.0%
Non-Operating Interest Income
Reserves - Increase/Decrease
Pretax Equity in Earnings
-
Other Income/Expense - Net -558.3% -8.8%
483.0%
Earnings before Interest, Taxes, -
-88.0% -31.5%
Depreciation & Amortization (EBITDA) 263.1%
-
Earnings before Interest & Taxes(EBIT) -96.6%
6,201.9%
-
Interest Expense on Debt 14.4%
100.0%
Interest Capitalized
-
Pretax Income -95.7%
6,201.9%
Income Taxes -139.0% -50.0%
Minority Interest
185
Equity in Earnings
After Tax Other Income/Expense
-
Discontinued Operations
100.0%
Net Income before Extraordinary -
Items/Preferred Dividends 141.3%
Extraordinary Items & Gain/Loss Sale of
Assets
Preferred Dividend Requirements
Net Income after Preferred Dividends - -
available to Common 141.3%
186
Financial Statement Analyses\Income Statement - Five-Year Averages
Income Statement - (5 Year Averages): Valeura Energy Inc.
Figures in millions of Canadian Dollars.
Fiscal Year 2017 2016 2015 2014 2013
Cost of Goods Sold 6.7 6.5 7.1 7.5 7.1
Depreciation, Depletion & Amortization 8.8 9.1 9.6 8.4 8.4
Gross Income 1.8 3.6 2.6 0.3 -3.4
Selling, General & Administrative Expenses 6.2 9.2 10.6 10.1 9.0
Other Operating Expenses 0.0
Operating Expenses - Total 21.7
-
Operating Income -4.5 -5.7 -8.1 -9.9
12.6
Extraordinary Credit - Pretax
Extraordinary Charge - Pretax 1.3 1.7 1.7 1.7 1.7
Non-Operating Interest Income
Reserves - Increase/Decrease
Pretax Equity in Earnings 0.0 0.0 0.0 0.0 0.0
Other Income/Expense - Net -0.7 -0.4 -0.0 -0.1 -0.2
Earnings before Interest, Taxes, Depreciation & Amortization
2.3 1.3 -0.2 -3.3 -6.1
(EBITDA)
- -
Earnings before Interest & Taxes(EBIT) -6.5 -7.8 -9.8
11.7 14.5
Interest Expense on Debt 0.2 0.2 0.2 0.2 0.1
Interest Capitalized 0.0
- - -
Pretax Income -6.7 -8.1
10.1 11.9 14.6
Income Taxes -0.4 -0.3 -0.3 -0.5 -1.0
Equity in Earnings 0.0 0.0 0.0 0.0 0.0
After Tax Other Income/Expense 0.0
Discontinued Operations 0.1
187
- -
Net Income before Extraordinary Items/Preferred Dividends -6.2 -7.7 -9.7
11.4 13.6
Extraordinary Items & Gain/Loss Sale of Assets 0.0 0.0 0.0 0.0 0.0
Preferred Dividend Requirements 0.0 0.0 0.0 0.0 0.0
- -
Net Income after Preferred Dividends - available to Common -6.2 -7.7 -9.7
11.4 13.6
188
Financial Statement Analyses\Income Statement - Interim
Interim Income Statement - (Actual Values): Valeura Energy Inc.
Net Sales or Revenues 3 3 3 3 3
Cost of Goods Sold 2 2 2 2 1
2 3 2 2 2
Amortization
Gross Income -1 -1 -1 -1 -0
Selling, General &
2 1 1 1 2
Other Operating Expenses 0 0 0 0 0
Operating Expenses - Total
Operating Income -2 -2 -2 -2 -2
Extraordinary Credit - Pretax 0 0 0 0 0
Extraordinary Charge - Pretax 0 0 0 0 1
Income
Reserves -
Increase/Decrease
Pretax Equity in Earnings 0 0 0 0 0
Other Income/Expense - Net 0 -0 -1 0 -1
Taxes, Depreciation &
Taxes(EBIT)
Pretax Income -2 -2 -3 -2 -3
Income Taxes 0 -1 2 -2 -1
Equity in Earnings 0 0 0 0 0
189
After Tax Other
Income/Expense
Discontinued Operations 0 0 0 0 0
Net Income before
Extraordinary Items/Preferred -2 -1 -5 -1 -2
Dividends
0 0 0 0 0
Preferred Dividend
0 0 0 0 0
Requirements
Dividends - available to -2 -1 -5 -1 -2
Common
190
Financial Statement Analyses\Income Statement - Interim - Common Size
Interim Income Statement - (Common Size): Valeura Energy Inc.
Figures are expressed as Percent of Net Sales or Revenues.
Net Sales or Revenues are in millions of Canadian Dollars.
Cost of Goods Sold 52.2% 51.5% 71.4% 57.4% 33.1%
67.2% 75.9% 68.4% 70.0% 70.6%
Amortization
Gross Income -19.4% -27.3% -39.8% -27.3% -3.7%
Selling, General &
50.2% 25.4% 30.4% 44.4% 65.2%
Other Operating Expenses 0.0% 0.0% 0.0% 0.0% 0.0%
Operating Expenses - Total
Operating Income -69.6% -52.8% -70.2% -71.7% -68.9%
Extraordinary Credit - Pretax 0.0% 0.0% 0.0% 0.0% 0.0%
Extraordinary Charge - Pretax 9.5% 0.0% 5.6% 1.5% 34.1%
Income
Reserves -
Increase/Decrease
Pretax Equity in Earnings 0.0% 0.0% 0.0% 0.0% 0.0%
Other Income/Expense - Net 5.0% -0.0% -23.2% 3.4% -23.0%
Taxes, Depreciation &
Taxes(EBIT)
Pretax Income -74.2% -52.8% -99.1% -69.8% -126.0%
Income Taxes 6.7% -24.2% 43.7% -53.5% -51.6%
191
Equity in Earnings 0.0% 0.0% 0.0% 0.0% 0.0%
After Tax Other
Income/Expense
Discontinued Operations 0.0% 0.0% 0.0% 0.0% 0.0%
Net Income before
Extraordinary Items/Preferred -80.9% -28.6% -142.8% -16.2% -74.4%
Dividends
0.0% 0.0% 0.0% 0.0% 0.0%
Preferred Dividend
0.0% 0.0% 0.0% 0.0% 0.0%
Requirements
Dividends - available to -80.9% -28.6% -142.8% -16.2% -74.4%
Common
192
Financial Statement Analyses\Sources of Capital - Net Change
Sources of Capital: Valeura Energy Inc.
Currency figures are in millions of Canadian Dollars.
Year to year % changes pertain to reported Balance Sheet values.
Fiscal Year 2017 2016 2015 2014 2013
Total Capital 54.8 58.6 75.3 78.0 76.0
Percent of Total Capital
Short Term Debt 0.0% 0.0% 0.0% 0.0% 0.0%
Long Term Debt 0.0% 0.0% 0.0% 0.0% 0.0%
Preferred Stock 0.0% 0.0% 0.0% 0.0% 0.0%
Retained Earnings -145.1% -121.4% -78.5% -75.1% -78.8%
Common Equity 100.0% 100.0% 100.0% 100.0% 100.0%
Total Capital 100.0% 100.0% 100.0% 100.0% 100.0%
Year to Year Net Changes
Short Term Debt 0.0 0.0 0.0 0.0 0.0
Long Term Debt 0.0 0.0 0.0 0.0 0.0
Other Liabilities 0.0 0.0 0.0 0.0 0.0
Total Liabilities 17.8 -8.7 4.7 -0.1 -7.1
Preferred Stock 0.0 0.0 0.0 0.0 0.0
Retained Earnings -8.4 -12.1 -0.6 1.4 -11.5
Common Equity -3.8 -16.7 -2.7 2.0 -21.4
Total Capital -3.8 -16.7 -2.7 2.0 -21.4
Year to Year Percent
Changes
Short Term Debt
Long Term Debt
193
Other Liabilities
Total Liabilities 102.8% -33.4% 22.4% -0.4% -25.0%
Minority Interest
Preferred Stock
Retained Earnings
Common Equity -6.5% -22.1% -3.5% 2.6% -21.9%
Total Capital -6.5% -22.1% -3.5% 2.6% -21.9%
Total Liabilities & Common
Equity
Total Liabilities 35.0 17.3 26.0 21.2 21.3
Net Change in Liabilities as
50.7% -50.1% 18.3% -0.4% -33.3%
% of Total Liabilities
Common Equity 54.8 58.6 75.3 78.0 76.0
Net Change in Common
Equity as -6.9% -28.4% -3.6% 2.5% -28.1%
% of Common Equity
Cash Flow
Operating Activities 3.9 6.3 11.7 12.4 12.0
Financing Activities 10.1 0.4 0.0
Investing Activities 5.4 11.2 11.0 13.0 34.2
194
Financial Ratio AnalysesFinancial Ratio Analyses\Accounting Ratios
Accounting Ratios: Valeura Energy Inc.
Fiscal Year 2017 2016 2015 2014 2013
Receivables Turnover 3.1 3.1 3.5 2.7 2.5
Receivables - Number of
124.6 128.6 129.5 130.4 137.2
Days
Inventory Turnover 55.1
Inventory - Number of Days 6.6
Gross Property, Plant &
0.1 0.2 0.1 0.2 0.2
Equipment Turnover
Net Property, Plant &
0.2 0.3 0.2 0.3 0.2
Equipment Turnover
Amortization
7.9% 8.1% 7.0% 8.6% 7.0%
% of Gross Property, Plant &
Equipment
Amortization 1.6 -1.6 -1.2 1.8 -2.1
Year to Year Change
Amortization 21.4% -17.3% -11.9% 21.6% -19.7%
Year to Year % Change
195
Financial Ratio Analyses\Asset Utilization
Asset Utilization: Valeura Energy Inc.
Figures are expressed as the ratio of Net Sales.
Net Sales are in millions of Canadian Dollars.
Fiscal Year 2017 2016 2015 2014 2013
Net Sales 12.7 14.1 18.6 21.6 19.1
Cash & Cash Equivalents 87.6% 14.1% 37.4% 27.4% 34.0%
Short-Term Investments
Accounts Receivable 32.0% 32.7% 28.4% 36.6% 39.3%
Inventories 2.0% 0.0% 0.0% 0.0% 0.0%
Total Long Term Receivables
25.0% 0.0% 0.0% 0.0% 0.0%
& Investments
Long Term Receivables 0.0% 0.0% 0.0% 0.0% 0.0%
Investments in Associated
0.0% 0.0% 0.0% 0.0% 0.0%
Companies
Other Investments 25.0% 0.0% 0.0% 0.0% 0.0%
Property, Plant & Equipment -
902.7% 654.4% 693.1% 551.4% 627.1%
Gross
Accumulated Depreciation 352.5% 296.6% 227.2% 161.0% 194.7%
Property Plant & Equipment -
550.2% 357.8% 465.9% 390.4% 432.4%
Net
Other Assets 1.3% 6.6% 6.2% 3.0% 0.0%
Total Assets 709.0% 540.0% 543.3% 458.7% 508.1%
196
Financial Ratio Analyses\Employee Efficiency
Employee Efficiency: Valeura Energy Inc.
Values per Employee are in Canadian Dollars.
Fiscal Year 2017 2016 2015 2014 2013
Employees 16 14 17 16 13
Values per Employee
Sales 792,188 1,003,786 1,095,882 1,351,125 1,472,615
Net Income -524,000 -434,714 -33,059 85,125 -1,347,538
Cash Earnings -75,313 432,000 599,118 865,063 784,846
Working Capital 213,813 1,458,643 426,647 627,750 525,692
Total Debt 0 0 0 0 0
Total Capital 3,426,563 4,186,143 4,427,118 4,872,688 5,844,692
Total Assets 5,617,000 5,420,714 5,953,647 6,197,813 7,482,538
Year to Year % Change per
Employee
Employees 14.3% -17.6% 6.3% 23.1% -27.8%
Sales -21.1% -8.4% -18.9% -8.2% 18.7%
Net Income -138.8%
Cash Earnings -117.4% -27.9% -30.7% 10.2% 20.0%
Working Capital -85.3% 241.9% -32.0% 19.4% -61.0%
Total Debt
Total Capital -18.1% -5.4% -9.1% -16.6% 8.1%
Total Assets 3.6% -9.0% -3.9% -17.2% 7.1%
197
Financial Ratio Analyses\Fixed Charges Coverage
Fixed Charges Coverage: Valeura Energy Inc.
Fiscal Year 2017 2016 2015 2014 2013
EBIT/Total Interest Expense 4.7 -32.2
EBIT/Net Interest 4.7 -32.2
EBIT/(Total Interest Exp +
4.7 -32.2
Pfd Div)
EBIT/Dividends on Common
Shares
EBIT/(Dividends on Common
+ Pfd)
EBITDA/Total Interest
20.4 -17.5
Expense
EBITDA/Net Interest 20.4 -17.5
EBITDA/(Total Interest Exp +
20.4 -17.5
Pfd Div)
EBITDA/Dividends on Com
Shares
EBITDA/(Dividends on Com +
Pfd)
198
Financial Ratio Analyses\Leverage Analysis
Leverage Analysis: Valeura Energy Inc.
Fiscal Year 2017 2016 2015 2014 2013
Long Term Debt % of EBIT 0.0% 0.0%
Long Term Debt % of
0.0% 0.0% 0.0%
EBITDA
Long Term Debt % of Total
0.0% 0.0% 0.0% 0.0% 0.0%
Assets
Long Term Debt % of Total
0.0% 0.0% 0.0% 0.0% 0.0%
Capital
Long Term Debt % of Com
0.0% 0.0% 0.0% 0.0% 0.0%
Equity
Total Debt % of EBIT 0.0% 0.0%
Total Debt % of EBITDA 0.0% 0.0% 0.0%
Total Debt % of Total Assets 0.0% 0.0% 0.0% 0.0% 0.0%
Total Debt % of Total Capital 0.0% 0.0% 0.0% 0.0% 0.0%
Total Debt % of Total Capital
0.0% 0.0% 0.0% 0.0% 0.0%
& Short Term Debt
Total Debt % of Common
0.0% 0.0% 0.0% 0.0% 0.0%
Equity
Minority Interest % of EBIT 0.0% 0.0%
Minority Interest % of EBITDA 0.0% 0.0% 0.0%
Minority Interest % of Total
0.0% 0.0% 0.0% 0.0% 0.0%
Assets
Minority Interest % of Total
0.0% 0.0% 0.0% 0.0% 0.0%
Capital
Minority Interest % of Com
0.0% 0.0% 0.0% 0.0% 0.0%
Equity
Preferred Stock % of EBIT 0.0% 0.0%
Preferred Stock % of EDITDA 0.0% 0.0% 0.0%
Preferred Stock % of Total
0.0% 0.0% 0.0% 0.0% 0.0%
Assets
199
0.0% 0.0% 0.0% 0.0% 0.0%
Capital
0.0% 0.0% 0.0% 0.0% 0.0%
Equity
Common Equity % of Total
61.0% 77.2% 74.4% 78.6% 78.1%
Assets
Common Equity % of Total
100.0% 100.0% 100.0% 100.0% 100.0%
Capital
Total Capital % of Total
61.0% 77.2% 74.4% 78.6% 78.1%
Assets
Capital Expenditure % of
270.1% 67.9% 70.8% 52.3% 140.9%
Sales
Fixed Assets % of Common
127.2% 85.8% 115.3% 108.3% 108.9%
Equity
Working Capital % of Total
6.2% 34.8% 9.6% 12.9% 9.0%
Capital
Dividend Payout 0.0% 0.0% 0.0% 0.0% 0.0%
Funds From Operations % of
Total Debt
200
Financial Ratio Analyses\Liquidity Analysis
Liquidity Analysis: Valeura Energy Inc.
Fiscal Year 2017 2016 2015 2014 2013
Total Current Assets % Net
132.5% 175.7% 71.2% 65.3% 75.7%
Sales
Cash % of Current Assets 66.2% 8.0% 52.6% 42.0% 44.9%
Cash & Equivalents % of
66.2% 8.0% 52.6% 42.0% 44.9%
Current Assets
Quick Ratio 1.1 1.5 2.0 3.4 1.8
Receivables % of Current
24.1% 18.6% 40.0% 56.1% 52.0%
Assets
Receivable Turnover -
124.6 128.6 129.5 130.4 137.2
number of days
Inventories % of Current
1.5% 0.0% 0.0% 0.0% 0.0%
Assets
Inventory Turnover - number
6.6
of days
Inventory to Cash &
15,931.8
Equivalents - number of days
Receivables % of Total
4.5% 6.1% 5.2% 8.0% 7.7%
Assets
Current Ratio 1.3 5.8 2.2 3.5 1.9
Total Debt % of Total Capital 0.0% 0.0% 0.0% 0.0% 0.0%
Funds from Operations % of
-9.0% 141.7% 169.6% 339.4% 133.2%
Current Liabilities
Long Term Debt
Total Debt
-2.2% 10.3% 13.5% 17.8% 13.4%
Total Capital
Cash Flow (in milllions of
Canadian Dollars)
Operating Activities 3.9 6.3 11.7 12.4 12.0
201
Financing Activities 10.1 0.4 0.0
Investing Activities 5.4 11.2 11.0 13.0 34.2
202
Financial Ratio Analyses\Per-Share Ratios
Per Share Data: Valeura Energy Inc.
Figures are expressed as per unit of respective shares.
Figures are in Canadian Dollars.
Fiscal Year 2017 2016 2015 2014 2013
Sales 0.17 0.24 0.32 0.37 0.33
Operating Income -0.11 -0.04 -0.01 0.04 -0.24
Pre-tax Income -0.15 -0.11 0.00 0.04 -0.33
Net Income (Continuing
-0.11 -0.10 -0.01 0.02 -0.30
Operations)
Net Income Before Extra
-0.11 -0.10 -0.01 0.02 -0.30
Items
Extraordinary Items 0.00 0.00 0.00 0.00 0.00
Net Income After
-0.11 -0.10 -0.01 0.02 -0.30
Extraordinary Items
Net Income Available to
-0.12 -0.10 -0.01 0.02 -0.30
Common Shares
Fully Diluted Earnings -0.12 -0.10 -0.01 0.02 -0.30
Common Dividends 0.00 0.00 0.00 0.00 0.00
Cash Earnings -0.02 0.10 0.18 0.24 0.18
Book Value 0.75 1.00 1.30 1.35 1.31
Retained Earnings -1.09 -1.22 -1.02 -1.01 -1.03
Assets 1.23 1.30 1.75 1.71 1.68
203
Financial Ratio Analyses\Profitability Growth
Profitability Analysis: Valeura Energy Inc.
Currency figures are in Canadian Dollars.
Fiscal Year 2017 2016 2015 2014 2013
Gross Income Margin -25.7% 25.0% 35.2% 39.3% -34.1%
Operating Income Margin -65.8% -16.0% -2.0% 11.8% -73.3%
Pretax Income Margin -85.2% -45.2% 0.6% 11.2% -98.8%
EBIT Margin -85.2% -45.2% 0.6% 14.2% -95.8%
Net Income Margin -66.1% -43.3% -3.0% 6.3% -91.5%
Return on Equity - Total -14.8% -9.1% -0.7% 1.8% -20.2%
Return on Invested Capital -14.8% -9.1% -0.7% 2.2% -19.6%
Return on Assets -10.1% -6.9% -0.6% 1.7% -15.2%
Asset Turnover 0.1 0.2 0.2 0.2 0.2
Financial Leverage 0.0% 0.0% 0.0% 0.0% 0.0%
Interest Expense on Debt 0 0 0 651,000 569,000
Effective Tax Rate 640.4% 55.0%
Cash Flow % Sales -9.5% 43.0% 54.7% 64.0% 53.3%
Selling, General &
Administrative Expenses % of 40.0% 41.0% 37.2% 27.5% 39.1%
Sales
Research & Development
Expense
Operating Income Return On
-6.5% -22.1% -3.5% 2.6% -21.9%
Total Capital
204
Wright Quality Rating AnalysesWright Quality Rating Analyses\Investment Acceptance
Wright Quality Rating - Investment Acceptance: Valeura Energy Inc.
Currency figures are in millions of U.S. Dollars.
Wright Quality Rating

LANN
Investment Acceptance Rating LANN
Total Market Value of Shares Outstanding - Three Year Average 135
- Current Year 341
Public Market Value (Excludes Closely Held) - Three Year Average 119
- Current Year 301
Trading Volume - Three Year Average 142
- Current Year 367
Turnover Rate - Three Year Average 104.6%
- Current Year 90.8%
VEN
Number of Institutional Investors 0

Number of Shareholders
Closely Held Shares as % of Total Shares Outstanding 11.8%
205
Wright Quality Rating Analyses\Financial Strength
Wright Quality Rating - Financial Strength: Valeura Energy Inc.
Wright Quality Rating L ANN
Financial Strength Rating L ANN
Total Shareholders' Equity (Millions of U.S. Dollars) 83
Total Shareholders' Equity as % Total Capital 100.0%
Preferred Stock as % of Total Capital 0.0%
Long Term Debt as % of Total Capital 0.0%
Long Term Debt (Millions of Canadian Dollars) 0
Lease Obligations (Millions of Canadian Dollars) 0
Long Term Debt including Leases (Millions of Canadian Dollars) 0
Total Debt as % of Total Capital 0.0%
Fixed Charge Coverage Ratio: Pretax Income to Interest Expense & Preferred
0.0
Dividends
Fixed Charge Coverage Ratio: Pretax Income to Net Interest Income & Preferred
0.0
Dividends
Quick Ratio (Cash & Receivables / Current Liabilities) 10.8
Current Ratio (Current Assets / Current Liabilities) 11.1
206
Wright Quality Rating Analyses\Profitability & Stability
Wright Quality Rating - Profitability & Stability: Valeura Energy Inc.
Wright Quality Rating LA NN
Profitability & Stability Rating LA NN
Profit Rate of Earnings on Equity Capital - Time-Weighted Normal -10.7%
- Basic Trend 2.1%
Cash Earnings Return on Equity - Time-Weighted Average 9.3%
- Basic Trend -2.4%
Cash Earnings Return on Equity - Stability Index 51.5%
Return On Assets (Time-Weighted Average) -5.4%
Pre-Tax Income as % of Total Assets (Time-Weighted Average) -6.7%
Operating Income as % of Total Assets (Time-Weighted Average) -5.6%
Operating Income as % of Total Capital (Adjusted Rate) -7.1%
Pre-Tax Income as % of Total Assets (Time-Weighted Average) -6.7%
Operating Income as % of Total Assets (Time-Weighted Average) -5.6%
Operating Income as % of Total Capital (Adjusted Rate) -7.1%
207
Wright Quality Rating Analyses\Corporate Growth
Wright Quality Rating - Corporate Growth: Valeura Energy Inc.
Figures are expressed on a Per Share Basis.
Wright Quality Rating LAN N

Growth Rating LAN N
Normal Earnings Growth 0.0%
Cash Earnings Growth -25.0%
Cash Earnings Stability Index 73.2%
Earned Equity Growth 0.0%
Dividend Growth 0.0%
Operating Income Growth 0.0%
Assets Growth -12.7%
Sales/Revenues Growth -15.4%
208
Industry OverviewIndustry Overview\Wright Industry Averages - Overview
Wright Industry Averages Reports
Introduction
The following pages are comprised of seven reports which contain averages for the companies in the Energy
(Global) sector. The primary source of the data contained in these reports is the Worldscope® Database. The
“averages” reports are compiled from the fundamental data compiled on the companies which make up this
industry.
Industry Averages - Report Types
● Sales Analysis
● Income Statement
● Balance Sheet
● Sources of Capital
● Leverage Analysis Ratios
● Per Share Data Ratios
● Profitability Analysis Ratios
The Wright Industry Averages Reports are compiled on a fiscal year basis. Companies ending their fiscal year
in January are grouped with the prior year’s reports. The values for 2012 for example are contributed by
those companies that ended their fiscal year after 31 January 2012 and prior to 1 February 2013. The values
shown for all reports are presented in U.S. dollars.
Data Compilation Steps
All companies in the industry with more than $1 million (U.S.) in net sales were included. Currency items in
the financial statements were converted to U.S. dollars using an average exchange rate for each fiscal year. A
sum (aggregate value) was computed for all financial statement items by totaling the values reported by each
company in the industry sector. Industry Average report values were computed by dividing the aggregate
value by the number of companies reporting.
Per share ratios were computed by using in the numerator a specific value that represents the aggregate sum
for all companies in the industry divided by the aggregate value of the average number of appropriate
common shares for each company.
Most companies in the industry reported Operating Income along with the major components that go into the
calculation of Operating Income. For the minority of companies that did not report all underlying cost
components those components were derived, where possible, utilizing the reported items. For example, if
Cost of Goods Sold was not reported it was derived on a company-specific basis from the other reported
items (i.e. Sales, Gross Income and Depreciation, Depletion & Amortization). The derived value was then
included in the calculation of the industry average.
209
Industry Financial Statement AnalysesIndustry Financial Statement Analyses\Summary Analysis
Summary Analysis: Energy Industry Averages (Global)
Figures are expressed on a Per Share Basis in U.S. Dollars.
Fiscal Year 2017 2016 2015 2014 2013 2012
Market Prices
High 3.58 2.51 2.76 3.24 3.41 3.40
Low 1.91 1.45 1.55 2.03 2.33 2.35
Average 2.75 1.98 2.16 2.64 2.87 2.87
Last 2.39 2.20 1.82 2.45 2.89 2.81
Value Ratios
High Price / Earnings 33.5 276.1 24.2 15.5 13.5
Low Price / Earnings 17.9 159.4 15.2 10.6 9.3
Average Price / Earnings 25.7 217.8 19.7 13.0 11.4
Last Price / Earnings 22.3 242.1 18.3 13.1 11.1
Average Price / Book Value 1.6 1.3 1.4 1.4 1.4 1.4
Last Price / Book Value 1.4 1.4 1.2 1.3 1.4 1.4
Dividends / Average Price (Dividend Yield) 2.8% 3.0% 3.3% 3.4% 3.2% 3.0%
Dividends / Last Price (Dividend Yield) 3.2% 2.7% 3.9% 3.7% 3.2% 3.1%
Common Equity
Earned Equity Growth 2.0% -3.3% -7.6% 2.1% 6.2% 8.5%

Return on Equity 8.0% 0.6% -3.8% 6.4% 10.7% 12.9%
Book Value 1.74 1.58 1.55 1.89 2.10 2.06
Common Shares (in millions)
Common Shares Outstanding 1,970.9 1,822.4 1,782.8 1,726.0 1,727.7 1,727.2
Common Shares Used to Compute EPS 1,970.9 1,822.4 1,782.8 1,726.0 1,727.7 1,727.2
Common Stock Earnings
Earnings per Share 0.11 0.01 -0.07 0.13 0.22 0.25
Percent Change 1,077.4% -151.5% -39.2% -12.9% -14.5%
Income Tax Rate 29.5% 63.5% -1.0% 43.2% 37.3% 39.3%
Common Stock Dividends
Dividends per Share 0.08 0.06 0.07 0.09 0.09 0.09

Percent Change 29.6% -15.9% -21.0% -2.2% 5.5% 13.4%
Total Common Dividends (in millions of US$) 152.8 109.0 126.8 155.4 159.0 150.7
210
Dividends / Earnings (% Payout) 72.4% 657.6% 67.3% 41.8% 34.5%
Capital Expenditure (in millions of US$) 488.9 417.2 555.0 741.9 803.3 784.2
Sales
Sales (in millions of US$) 5,176.8 3,854.7 4,404.3 6,262.9 7,087.9 7,242.0
Percent Change 34.3% -12.5% -29.7% -11.6% -2.1% 3.3%
Sales per Share 2.63 2.12 2.47 3.63 4.10 4.19
Percent Change 24.2% -14.4% -31.9% -11.6% -2.2% 3.8%
211
Industry Financial Statement Analyses\Sales Analysis
Sales Analysis: Energy Industry Averages (Global)
Figures are expressed in thousands of U.S. Dollars. Values per Employee are in U.S. Dollars.
Fiscal Year 2017 2016 2015 2014 2013 2012
Sales 5,176,808 3,854,716 4,404,294 6,262,923 7,087,901 7,241,958
Percent Change 34.3% -12.5% -29.7% -11.6% -2.1% 3.3%
Cost of Goods Sold 3,717,009 2,761,034 3,262,823 4,776,103 5,301,033 5,584,002
Percent of Sales 71.8% 71.6% 74.1% 76.3% 74.8% 77.1%
Earnings before Interest, Taxes,
Depreciation & Amortization 803,401 494,402 344,212 814,977 1,026,219 1,091,118
(EBITDA)
Percent of Sales 15.5% 12.8% 7.8% 13.0% 14.5% 15.1%
211,120 16,579 -122,921 231,052 380,288 436,498
Dividends - available to Common
Percent of Sales 4.1% 0.4% -2.8% 3.7% 5.4% 6.0%
Employees 8,047 7,544 7,353 7,596 7,911 8,012
Sales per Employee 643,317 510,959 598,993 824,541 895,989 903,924
Net Income per Employee 26,236 2,198 -16,718 30,419 48,073 54,483
212
Industry Financial Statement Analyses\Income Statement
Income Statement - (Actual Values): Energy Industry Averages (Global)
All figures in millions of U.S. Dollars.
Fiscal Year 2017 2016 2015 2014 2013 2012
Net Sales or Revenues 5,176.8 3,854.7 4,404.3 6,262.9 7,087.9 7,242.0
Cost of Goods Sold 3,717.0 2,761.0 3,262.8 4,776.1 5,301.0 5,584.0
Depreciation, Depletion & Amortization 423.3 380.4 428.7 397.3 390.2 360.1
Other Costs -5.5 -7.3 -19.5 -6.3 -1.7 0.3
Gross Income 1,042.0 720.5 732.2 1,095.9 1,398.3 1,297.6
Selling, General & Administrative Expenses 313.0 269.4 276.3 321.0 357.9 300.7
Other Operating Expenses 351.9 274.9 251.5 300.1 434.5 320.0
Operating Expenses - Total 4,805.2 3,685.8 4,219.4 5,794.4 6,483.7 6,564.8
Operating Income 377.2 176.2 204.4 474.8 605.9 676.9
Extraordinary Credit - Pretax 28.2 34.0 25.5 33.3 9.3 28.1
Extraordinary Charge - Pretax 91.9 144.6 349.5 141.6 78.4 88.2
Non-Operating Interest Income 17.4 14.6 14.2 13.9 15.8 18.1
Reserves - Increase/Decrease 0.0 0.0 0.0 0.0 -4.0 -0.0
Pretax Equity in Earnings 18.6 10.1 10.2 12.2 26.1 18.1
Other Income/Expense - Net -37.2 -31.7 -30.6 -33.8 -56.3 -83.1
Earnings before Interest, Taxes, Depreciation &
803.4 494.4 344.2 815.0 1,026.2 1,091.1
Earnings before Interest & Taxes(EBIT) 386.2 121.7 -64.6 425.0 638.4 732.3
Interest Expense on Debt 94.9 83.5 77.1 74.3 75.4 71.1
Interest Capitalized 13.0 10.4 11.0 13.1 13.2 14.4
Pretax Income 304.9 49.1 -130.5 365.5 577.0 679.5
Income Taxes 89.9 31.2 1.4 157.8 215.3 267.3
Minority Interest 25.3 15.8 5.1 13.7 17.8 22.6
Equity in Earnings 26.1 14.5 18.4 33.4 35.6 43.2
After Tax Other Income/Expense -1.0 -0.8 -0.0 -0.8 -0.3 -0.1
Discontinued Operations -1.7 2.0 -2.6 6.3 2.4 4.6
Net Income before Extraordinary Items/Preferred
213.0 17.9 -121.1 233.0 381.6 437.3
Dividends
Extraordinary Items & Gain/Loss Sale of Assets 19.2 0.2 -0.0 0.5 0.0 0.2
Preferred Dividend Requirements 1.9 1.3 1.8 1.9 1.3 0.8
213
Net Income after Preferred Dividends - available to
211.1 16.6 -122.9 231.1 380.3 436.5
Common
214
Industry Financial Statement Analyses\Balance Sheet
Balance Sheet - (Actual Values): Energy Industry Averages (Global)
All figures in millions of U.S. Dollars.
Fiscal Year 2017 2016 2015 2014 2013 2012
Assets
Total Assets 7,614.0 6,583.0 6,463.3 7,279.8 7,748.1 7,482.6
Cash & Short Term Investments 631.3 554.6 563.6 596.4 554.8 579.9
Cash 385.5 337.5 296.5 298.5 322.9 336.6
Short Term Investments 245.8 217.1 267.1 297.8 231.9 243.2
Receivables (Net) 658.5 534.4 541.9 726.1 851.0 866.3
Inventories -Total 431.3 350.1 337.3 431.4 529.2 542.3
Raw Materials 164.1 136.9 125.9 156.7 191.5 175.7
Work in Process 65.3 50.6 51.1 65.2 71.5 58.5
Finished Goods 220.1 173.5 171.4 225.1 268.5 295.1
Progress Payments & Other -18.3 -10.8 -11.1 -15.6 -2.3 13.1
Prepaid Expenses 29.9 31.2 31.2 41.9 47.3 31.6
Other Current Assets 87.4 62.5 63.7 73.5 93.9 107.9
Current Assets - Total 1,835.4 1,530.8 1,536.1 1,870.8 2,074.1 2,127.2
Long Term Receivables 78.2 72.3 65.6 70.4 76.4 108.5
Investment in Associated Companies 427.0 354.8 329.8 352.3 368.0 359.3
Other Investments 158.4 137.8 123.0 135.1 120.3 151.5
Property Plant and Equipment - Gross 8,331.0 7,336.5 7,105.9 7,298.4 7,361.8 6,907.7
Accumulated Depreciation 3,843.4 3,381.7 3,226.5 2,987.2 2,865.8 2,780.6
Property Plant and Equipment – Net 4,487.6 3,954.9 3,884.5 4,314.1 4,496.6 4,123.3
Other Assets 624.4 530.0 522.1 534.6 606.0 607.3
Deferred Charges 72.6 54.6 61.0 58.3 73.5 111.2
Tangible Other Assets 104.7 100.4 108.0 103.1 142.0 103.1
Intangible Other Assets 446.9 374.8 353.1 372.3 393.7 407.1
Total Assets 7,614.0 6,583.0 6,463.3 7,279.8 7,748.1 7,482.6
Liabilities & Shareholders' Equity
Total Liabilities & Shareholders' Equity 7,614.0 6,583.0 6,463.3 7,279.8 7,748.1 7,482.6
Accounts Payable 550.1 437.6 411.5 563.7 662.6 662.5
215
Short Term Debt & Current Portion of Long Term
406.1 350.9 365.1 395.2 419.3 382.1
Debt
Accrued Payroll 25.5 21.4 19.8 23.7 21.6 23.4
Income Taxes Payable 48.4 36.2 37.1 60.2 81.7 98.1
Dividends Payable 5.9 5.2 5.3 5.3 7.5 10.6
Other Current Liabilities 503.7 414.4 420.3 478.9 488.0 479.0
Current Liabilities - Total 1,538.3 1,264.2 1,258.0 1,525.6 1,679.4 1,655.4
Long Term Debt 1,608.3 1,497.0 1,508.0 1,470.2 1,384.8 1,251.3
Long Term Debt Excluding Capitalized Leases 1,483.6 1,407.0 1,405.8 1,383.6 1,284.9 1,148.9
Capitalized Lease Obligations 124.6 90.0 102.2 86.6 99.9 102.4
Provision for Risks and Charges 393.8 351.7 342.9 364.1 349.2 342.8
Deferred Income 6.3 5.8 5.3 5.3 5.3 28.2
Deferred Taxes 184.0 186.6 199.7 293.7 343.4 335.4
Deferred Tax Liability in Untaxed Reserves 0.0 0.0
Other Liabilities 188.8 184.3 172.0 152.1 155.6 134.3
Total Liabilities 3,920.9 3,490.9 3,487.2 3,812.4 3,919.3 3,747.5
Non-Equity Reserves 0.0 -0.0 -0.1 -0.4 0.4 0.7
Preferred Stock 18.2 13.0 10.9 8.5 7.5 13.8
Preferred Stock Issued for ESOP 0.0 0.0 0.0 0.0 0.0 0.0
ESOP Guarantees - Preferred Issued 0.0 0.0
Common Equity 3,424.9 2,874.9 2,771.2 3,266.1 3,635.4 3,553.7
Total Liabilities & Shareholders' Equity 7,614.0 6,583.0 6,463.3 7,279.8 7,748.1 7,482.6
216
Industry Financial Statement Analyses\Sources of Capital
Sources of Capital: Energy Industry Averages (Global)
Currency figures are in millions of U.S. Dollars.
Year to year % changes pertain to reported Balance Sheet values.
Fiscal Year 2017 2016 2015 2014 2013 2012
Actual Values
Total Capital 5,302.7 4,589.1 4,484.2 4,937.6 5,197.9 4,986.0

Long Term Debt 1,608.3 1,497.0 1,508.0 1,470.2 1,384.8 1,251.3
Preferred Stock 18.2 13.0 10.9 8.5 7.5 13.8
Common Equity 3,424.9 2,874.9 2,771.2 3,266.1 3,635.4 3,553.7
Percent of Total Capital
Long Term Debt 30.3% 32.6% 33.6% 29.8% 26.6% 25.1%
Minority Interest 4.7% 4.5% 4.3% 3.9% 3.6% 3.3%
Preferred Stock 0.3% 0.3% 0.2% 0.2% 0.1% 0.3%
Common Equity 64.6% 62.6% 61.8% 66.1% 69.9% 71.3%
Total Capital 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
Year to Year Net Changes (in millions of U.S.
Dollars)
Long Term Debt 111.2 -11.0 37.8 85.4 133.5 117.8

Preferred Stock 5.3 2.1 2.4 0.9 -6.3 1.2
Common Equity 550.0 103.7 -494.9 -369.4 81.8 174.6
Total Capital 713.6 104.9 -453.5 -260.2 211.9 314.0
Year to Year Percent Changes
Long Term Debt 7.4% -0.7% 2.6% 6.2% 10.7% 10.4%

Minority Interest 23.0% 5.2% 0.5% 3.5% 12.0% 14.5%
Preferred Stock 40.6% 19.1% 28.7% 12.2% -45.4% 9.5%
Common Equity 19.1% 3.7% -15.2% -10.2% 2.3% 5.2%
Total Capital 15.5% 2.3% -9.2% -5.0% 4.2% 6.7%
Total Liabilities & Common Equity
Total Liabilities 3,920.9 3,490.9 3,487.2 3,812.4 3,919.3 3,747.5
Net Change in Liabilities as
11.0% 0.1% -9.3% -2.8% 4.4% 4.5%
% of Total Liabilities
217
Common Equity 3,424.9 2,874.9 2,771.2 3,266.1 3,635.4 3,553.7
Net Change in Common Equity as
16.1% 3.6% -17.9% -11.3% 2.2% 4.9%
% of Common Equity
Cash Flow
Operating Activities 662.5 496.1 592.3 771.3 819.9 802.2
Financing Activities -162.3 -52.4 -22.4 7.6 12.7 46.1
Investing Activities 494.6 418.7 569.7 744.5 828.2 798.2
218
Industry Financial Ratio AnalysesIndustry Financial Ratio Analyses\Leverage Analysis
Leverage Analysis: Energy Industry Averages (Global)
Fiscal Year 2017 2016 2015 2014 2013 2012
Long Term Debt % of EBIT 416.5% 1,230.2% 346.0% 216.9% 170.9%
Long Term Debt % of EBITDA 200.2% 302.8% 438.1% 180.4% 134.9% 114.7%
Long Term Debt % of Total Assets 21.1% 22.7% 23.3% 20.2% 17.9% 16.7%
Long Term Debt % of Total Capital 30.3% 32.6% 33.6% 29.8% 26.6% 25.1%
Long Term Debt % of Com Equity 47.0% 52.1% 54.4% 45.0% 38.1% 35.2%
Total Debt % of EBIT 521.5% 1,518.6% 439.0% 282.6% 223.1%
Total Debt % of EBITDA 250.7% 373.8% 544.2% 228.9% 175.8% 149.7%
Total Debt % of Total Assets 26.5% 28.1% 29.0% 25.6% 23.3% 21.8%
Total Debt % of Total Capital 38.0% 40.3% 41.8% 37.8% 34.7% 32.8%
Total Debt % of Total Capital & Short Term
38.0% 40.3% 41.8% 37.8% 34.7% 32.8%
Debt
Total Debt % of Common Equity 58.8% 64.3% 67.6% 57.1% 49.6% 46.0%
Minority Interest % of EBIT 65.1% 167.9% 45.5% 29.2% 22.8%
Minority Interest % of EBITDA 31.3% 41.3% 56.4% 23.7% 18.2% 15.3%
Minority Interest % of Total Assets 3.3% 3.1% 3.0% 2.7% 2.4% 2.2%
Minority Interest % of Total Capital 4.7% 4.5% 4.3% 3.9% 3.6% 3.3%
Minority Interest % of Com Equity 7.3% 7.1% 7.0% 5.9% 5.1% 4.7%
Preferred Stock % of EBIT 4.7% 10.7% 2.0% 1.2% 1.9%
Preferred Stock % of EDITDA 2.3% 2.6% 3.2% 1.0% 0.7% 1.3%
Preferred Stock % of Total Assets 0.2% 0.2% 0.2% 0.1% 0.1% 0.2%
Preferred Stock % of Total Capital 0.3% 0.3% 0.2% 0.2% 0.1% 0.3%
Preferred Stock % of Total Equity 0.5% 0.5% 0.4% 0.3% 0.2% 0.4%
Common Equity % of Total Assets 45.0% 43.7% 42.9% 44.9% 46.9% 47.5%
Common Equity % of Total Capital 64.6% 62.6% 61.8% 66.1% 69.9% 71.3%
Total Capital % of Total Assets 69.6% 69.7% 69.4% 67.8% 67.1% 66.6%
Capital Expenditure % of Sales 9.4% 10.8% 12.6% 11.8% 11.3% 10.8%
Fixed Assets % of Common Equity 131.0% 137.6% 140.2% 132.1% 123.7% 116.0%
Working Capital % of Total Capital 5.6% 5.8% 6.2% 6.9% 7.6% 9.5%
Dividend Payout 72.4% 657.6% -103.2% 67.3% 41.8% 34.5%
Funds From Operations % of Total Debt 35.2% 26.9% 29.3% 40.6% 46.8% 53.4%
219
Industry Financial Ratio Analyses\Per-Share Data
Per Share Data: Energy Industry Averages (Global)
Figures are expressed as per unit of respective shares.
Figures are in U.S. Dollars.
Fiscal Year 2017 2016 2015 2014 2013 2012
Sales 2.63 2.12 2.47 3.63 4.10 4.19
Operating Income 0.19 0.10 0.11 0.28 0.35 0.39
Pre-tax Income 0.15 0.03 -0.07 0.21 0.33 0.39
Net Income (Continuing Operations) 0.15 0.03 -0.05 0.17 0.26 0.30
Net Income Before Extra Items 0.11 0.01 -0.07 0.13 0.22 0.25
Extraordinary Items -0.00 -0.00 -0.00 0.00 0.00 0.00
Net Income After Extraordinary Items 0.12 0.01 -0.07 0.14 0.22 0.25
Net Income Available to Common Shares 0.11 0.01 -0.07 0.13 0.22 0.25
Fully Diluted Earnings 0.11 0.01 -0.07 0.13 0.22 0.25
Common Dividends 0.08 0.06 0.07 0.09 0.09 0.09
Cash Earnings 0.36 0.27 0.31 0.44 0.49 0.50
Book Value 1.74 1.58 1.55 1.89 2.10 2.06
Retained Earnings 1.22 1.14 1.16 1.46 1.60 1.48
Assets 3.86 3.61 3.63 4.22 4.48 4.33
220
Industry Financial Ratio Analyses\Profitability Analysis
Profitability Analysis: Energy Industry Averages (Global)
Currency figures are in U.S. Dollars.
Fiscal Year 2017 2016 2015 2014 2013 2012
Gross Income Margin 20.1% 18.7% 16.6% 17.5% 19.7% 17.9%
Operating Income Margin 7.3% 4.6% 4.6% 7.6% 8.5% 9.3%
Pretax Income Margin 5.9% 1.3% -3.0% 5.8% 8.1% 9.4%
EBIT Margin 7.5% 3.2% -1.5% 6.8% 9.0% 10.1%
Net Income Margin 4.5% 0.5% -2.8% 3.7% 5.4% 6.0%
Return on Equity - Total 8.0% 0.6% -3.8% 6.4% 10.7% 12.9%
Return on Invested Capital 5.0% 0.4% -2.5% 4.5% 7.6% 9.3%
Return on Assets 3.5% 0.3% -1.7% 3.0% 5.1% 6.1%
Asset Turnover 0.7 0.6 0.7 0.9 0.9 1.0
Financial Leverage 58.8% 64.3% 67.6% 57.1% 49.6% 46.0%
Interest Expense on Debt 94,925,977 83,474,626 77,075,059 74,283,398 75,395,295 71,130,246
Effective Tax Rate 29.5% 63.5% -1.0% 43.2% 37.3% 39.3%
Cash Flow % Sales 13.7% 12.9% 12.5% 12.1% 11.9% 12.0%
Selling, General &
Administrative Expenses % 6.0% 7.0% 6.3% 5.1% 5.1% 4.2%
of Sales
Research & Development
0.3% 0.3% 0.3% 0.2% 0.2% 0.2%
Expense % of Sales
Operating Income Return
15.5% 2.3% -9.2% -5.0% 4.2% 6.7%
On Total Capital
221
Wright Quality Rating OverviewWright Quality Rating Overview\Explanation of Wright Quality Rating
Wright Quality Rating®

Since 1970, Wright Investors' Service has rated all of the companies in its database (when there is
sufficient information available). The Wright Quality Rating, measures the overall investment quality
of a company.
Wright Quality Ratings are based on numerous individual measures of quality, grouped into four
principal components: (1) Investment Acceptance (i.e. stock liquidity), (2) Financial Strength, (3)
Profitability & Stability, and (4) Growth. The ratings are based on established principles using 5-6
years of corporate record and other investment data.
The ratings consist of three letters and a number. Each letter reflects a composite qualitative
measurement of numerous individual standards which may be summarized as follows:
A = Outstanding; B = Excellent; C = Good; D = Fair; L = Limited; N = Not Rated.
The number component of the Quality Rating is also a composite measurement of the annual
corporate growth, based on earnings and modified by growth rates of equity, dividends, and sales
per common share. The Growth rating may vary from 0 (lowest) to 20 (highest). (See sample Quality
Rating below.)
Example:
Wright Quality Rating: BAC8
Investment Acceptance B Excellent
Financial Strength A Outstanding
Profitability & Stability C Good
Growth 8
The highest quality rating assigned by Wright is AAA20. This rating would be assigned to a
company that has a large and broad base of shareholders, an outstanding balance sheet and strong
and stable profitability. The company would also have experienced superior growth over the past
several years.
The Wright Quality Rating assigned to a company also takes into consideration country and industry
variations. If there is not sufficient information available, the quality rating will not be assigned or an
“N” (not-rated) will be applied for that particular quality criteria.
Copyright ©2000-2018. Distributed by Wright Investors' Service, Inc. All Rights Reserved. Except for
quotations by established news media. No pages in this report may be reproduced, stored in a retrieval
system, or transmitted for commercial purposes, in any form or by any means, electronic, mechanical,
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registered trademark of The Winthrop Corporation.
Information is believed reliable, but accuracy, completeness and opinions are not guaranteed. This report is
provided for general information only, is not to be considered investment advice, and should not be relied
upon for investment decisions. This report is provided “as is,” without warranty of any kind, express or
implied, including, but not limited to warranties of merchantability, fitness for a particular purpose or non-
infringement.
222
*Reporting period is f rom 2018-03-31(the Last Quarter ("LQ") statement) to 2018-06-07.
Valeura Energy
Current (C$) f m LQ (C$) f m LQ (%) LQ (C$)
Ticker: VLE
Country: CA
Close price 0.70 0.00 0.00% 0.70
Currency: CAD Exchange: TOR Buy

Industry: Oil & Gas Exploration and Production T arget price 7.39 0.4 5 ▲ 6.4 8% 6.94
Valeura Energy Inc together with subsidiaries explores, develops and produces petroleum and natural gas in Turkey and Western Canada.
Ratios Current f rom LQ Last Quarter ("LQ")

MA18 MA36
Close price 0.70 0.70
Target price 7.39
0.8
High 0.70 0.70
Low 0.67 0.67
0.75 Beta -2.21 ▲ -2.21
Market cap - ▲ -
0.7
Volume(1wk) - - 0
0.65 P/S ratio 22.03x ▲ 17.16x
P/E ratio -36.33x ▲ -4 1.4 0x
0.6
P/B ratio 5.64 x ▲ 4 .11x
DPS yield - -
EV/EBITDA -26.85x ▼ 4 3.81x
6/12 6/19 6/26
(Unit：C$)
Headline
Created at Type Title
none
Rating and Target Price (Unit：C$) Analyst projections(2018) (Unit：C$)

Target price Consensus vs.last yr High Low Participants
Revenue 0M - 0M 0M 0
Buy 7.39 EPS 0.00 - 0.00 0.00 0
DPS 0.00 - 0.00 0.00 0
Last Quart er Weight
Income Statement Summary (Unit：MC$)
Valuat ion analysis 2013 2014 2015 2016 2017
Overvalued Overvalued Revenue 18 21 19 14 14
+37% Operating income -14 2 - - -
T arget price 1.38 1.31
Net income -17 1 0 -6 -8
Analyst s consensus 25M
Outperform Outperf orm

+63% 0
T arget price 11.00 10.33
Ret ail consensus
- - 2013 2014 2015 2016 2017
-
T arget price - - T ot al revenue Operat ing income Net income
Analysts' opinion and projec tions in this Report are supplied by S &P Global Market Intelligenc e LLC. T he c om pany profile and other c om pany- related inform ation are c o- owned between Minkabu, Inc . and
PK Clean Pte Ltd, a BuyS ellS ignals Group c om pany. T his Report is intended to be used for inform ation and referenc e purposes only, and does not c onstitute a solic itation, or an offer to m ake an investm ent
in, or to purc hases or sell, any spec ific investm ent produc ts. T he inform ation in this Report m ay c ontain projec tions, opinions, assum ptions, estim ates and forec asts relating to future business perform anc e
and events. Minkabu Group m akes no warranty regarding the ac c urac y or reliability of suc h projec tions, opinions, assum ptions, estim ates or forec asts, and has no liability for any dam age of any kind
arising out of relianc e on suc h inform ation. For m ore details, please refer to the Disc laim er on the last page of this Report.
Copyright ( C ) MINKABU GROUP All rights reserved.
223
Valeura Energy
Ticker: VLE Exchange: TOR
Valuation analysis
based on Target price Potential LQ(2018-03-31)
Overvalued P/B ratio 1.38C$ +98.34% Overvalued
based on Target price
P/B ratio 1.31C$
Overall results Recent figures (3 monthes) (Unit：C$)

Valeura Energy is considered overvalued in both of its historical (KPI: Curr. Ø Max. Min.
P/B ratio) and peer (KPI: P/S ratio) comparison analysis. As a result, this Price 0.70 0.69 0.70 0.68
stock is theref ore currently considered 'overvalued'. However Valeura Volume 19,500 18,150 19,500 16,800
Energy would be considered 'undervalued' if its price declined below
Market cap 35M 4 3M 51M 35M
C$1.38. Disclaimer: The f act that Valeura Energy is considered
"overvalued" by the analysis does not mean that its price will decline in the f uture. Monitor the net assets and other related f igures of Valeura
Energy closely and keep an eye on its external environment when making your investment decision.
Sales Prof it BookValue Dividend Cash-f low

（P/S ratio）（P/E ratio）（P/B ratio）（DPS yield）（EV/EBITDA）
Valuation analysis 22.03x -36.33x 5.64 x - -26.85x
Result overvalued overvalued
Historical comparison Average 7.35x -31.27x 1.79x - 20.30x
Importance Low Low High Low Low
Result overvalued overvalued
Average 3.82x - 4 .00x - -
Adjusted 3.82x - 4 .00x - -
Peer comparison Correlation 0.09 - - - -
All stocks in the All stocks in the All stocks in the All stocks in the All stocks in the
Comparison
world world world world world
Importance High Low Low Low Low
Historical comparison
Currently, Valeura Energy is considered 'overvalued' by the valuation because its P/B ratio is higher than its historical average.
Peer comparison
On the other hand, the P/S ratio of this stock tends to have a high correlation with the average of all listed companies worldwide. As a result, many
investors may estimate the trend of its sales by comparing the company with sales trends of all listed companies worldwide.As a result, Valeura
Energy is currently considered 'overvalued' based on its peer comparison analysis because its P/S ratio is higher than the average P/S ratio of all
listed companies worldwide.
Analysts consensus
Target price Potential LQ(2018-03-31)
Outperform 11.00C$ +1,471.42% Outperform
Target price
10.33C$
2017-12-31 2018-03-31 Current Valuation

Outperf orm Outperf orm Outperf orm Based on analyst projections
1.5 Consensus Low High Domestic(Ø) Global(Ø)
Number of Opinions
P/S ratio - 2.72x 2.72x - -

1
P/E ratio - 0.00x 0.00x - -
0.5
Based on last year's results
Valeura Energy Domestic(Ø) Global(Ø)
0
2017-12-31 2018-03-31 Curre nt P/S ratio 22.03x 4 .27x 4 .06x
P/E ratio -36.33x 35.54 x 28.25x
Buy Out perf o rm Ho ld Underperf o rm Sell
224
Valeura Energy
Industry average (domestic): Oil & Gas Exploration and Production w/Top 3 market cap
Rating & Valuation (Unit：C$)
Canadian Natural
Suncor Energy Imperial Oil
Valeura Energy Resources Domestic(Ø)
[SU/CA] [IMO/CA]
[CNQ/CA]
Close price 0.70 37.89 37.4 2 37.80 -
Rating Overvalued Overvalued Undervalued Undervalued -
Valuation analysis Target price 1.38 4 1.60 4 5.97 4 4 .70 -
Potential +98.34 % +9.80% +22.85% +18.27% -
Rating Outperf orm Outperf orm Outperf orm Hold -
Analysts consensus Target price 11.00 56.76 55.58 4 2.19 -
Potential +1,4 71.4 2% +4 9.80% +4 8.53% +11.61% -
Rating - - - - -
Retail consensus Target price - - - - -
Potential - - - - -
Market cap 373M 85,822M 54 ,061M 35,186M 709M
EnterpriseValue 362M 83,221M 75,4 89M 39,198M 1,4 58M
last FY (norm.) -36.33x 19.60x 21.57x 73.62x 35.54 x
P/E ratio
projected - - - - -
last FY 22.03x 2.71x 3.10x 1.22x 4 .27x
PSR
projected - - - - -
EV/EBITDA(LFT) -203.81x 7.07x 8.68x 13.84 x 13.86x
Fundamentals
Canadian Natural
Valeura Energy Suncor Energy Imperial Oil Domestic(Ø)
Resources
last FY 14 M 32,176M 16,651M 29,4 24 M 54 3M
Sales projected 0M 38,102M 21,900M 37,806M 34 2M
vs last FY - - - - -
last FY -10M 5,916M 2,873M 582M 232M
Income bef ore tax projected 0M 4 ,903M 3,139M 2,273M 239M
vs last FY - - - - -
EBITDA(LFY) -1M 11,763M 8,690M 2,832M 385M
Book value(LFY) 54 M 4 5,383M 31,653M 24 ,4 35M 569M
100
50
-50
-100
-150
-200
-250
P/E(LFY) P/E(Proje cte d) P/S(LFY) P/S(Proje cte d) EV/EBITDA(LFT)
Valeura Energy Suncor Energy Canadian Nat ural Resources Imperial Oil Domest ic(Ø)
225
Valeura Energy
Industry average (worldwide): Oil & Gas Exploration and Production Market cap Top3
Rating & Valuation (Unit：C$)
Medco Energi Surya Esa Perkasa Rukun Raharja
Valeura Energy Global(Ø)
[MEDC/ID] [ESSA/ID] [RAJA/ID]
Close price 0.70 0.10 0.02 0.06 -
Rating Overvalued - Overvalued - -
Valuation analysis Target price 1.38 - 0.01 - -
Potential +98.34 % - -50.70% - -
Rating Outperf orm - - - -
Analysts consensus Target price 11.00 - - - -
Potential +1,4 71.4 2% - - - -
Rating - - - - -
Retail consensus Target price - - - - -
Potential - - - - -
Market cap 373M 27,134 ,867M 5,74 9,911M 3,913,313M 12,989M
EnterpriseValue 362M 27,134 ,629M 5,750,570M 3,913,354 M 113,736M
last FY (norm.) -36.33x - - - 28.25x
P/E ratio
projected - - - - -
last FY 22.03x - 6.83x 1.16x 4 .06x
PSR
projected - - - - -
EV/EBITDA(LFT) -203.81x 0.00x 853,380.54 x 268,797.36x 20.61x
Fundamentals
Valeura Energy Medco Energi Surya Esa Perkasa Rukun Raharja Global(Ø)
last FY 14 M 1,113M 4 3M 24 2M 4 ,801M
Sales projected 0M 0M 0M 0M 4 ,013M
vs.last yr - - - - -
last FY -10M - 5M 14 M 524 M
Income bef ore tax projected 0M 0M 0M 0M 1,04 4 M
vs.last yr - - - - -
EBITDA(LFY) -1M - 6M 14 M 1,002M
Book value(LFY) 54 M 1,632M 153M 89M 2,358M
1 000k
800k
600k
400k
200k
0k
-200k
P/E(LFY) P/E(Proje cte d) P/S(LFY) P/S(Proje cte d) EV/EBITDA(LFT)
Valeura Energy Medco Energi Surya Esa Perkasa Rukun Raharja Global(Ø)
226
Valeura Energy
Financials(FullYear)
Income statement (Unit：MC$)
2013/12 2014 /12 2015/12 2016/12 2017/12
Revenue 18 21 19 14 14
Total revenue 18 21 19 14 14
Cost of revenue total 3 2 - - -
Gross prof it 14 18 - - -
Selling general administrative expenses
7 5 10 5 5
total
Research and development 13 0 - 1 0
Depreciation amortization 8 10 8 7 9
Unusual expense income 0 0 0 3 2
Total operating expense 32 19 10 10 13
Operating income -14 2 - - -
Interest income or expense net non
-2 -0 - - -
operating
Other net 0 0 - - -
Income bef ore tax -15 2 0 -6 -10
Income tax total -1 1 0 -0 -2
Income af ter tax -14 1 -0 - -
Net income bef ore extra items -14 1 - - -
Total extraordinary items -2 0 - - -
Net income -17 1 -0 -6 -8
Diluted net income -17 1 -0 -6 -8
Income available to common excl extra
-14 1 - - -
items
Income available to common incl extra
-17 1 -0 -6 -8
items
Diluted weighted average shares 57 57 57 - -
Balance sheet summary (Unit：MC$)

2013/12 2014 /12 2015/12 2016/12 2017/12
Cash and equivalents 6 5 - - -
Cash and short term investments 6 5 6 1 11
Accounts receivable trade net 7 7 5 4 4
Total receivables net 7 7 5 4 4
Total inventory - - - - 0
Prepaid expenses 0 0 0 1 1
Other current assets total - - - 16 -
Total current assets 14 14 13 24 16
Property plant equipment total gross 90 88 - - -
Accumulated depreciation total -37 -34 - - -
Property plant equipment total net 82 84 86 50 69
Other long term assets total - 0 1 0 3
Total assets 97 99 101 75 89
Accounts payable - - 6 4 13
Payable accrued 7 4 - - -
Total current liabilities 7 4 25 4 13
Def erred income tax 4 6 6 4 2
Other liabilities total 8 11 - 8 19
Total liabilities 21 21 25 17 35
Additional paid in capital 11 12 13 19 19
Retained earnings or accumulated
-59 -58 -59 -71 -79
def icit
Other equity total -11 -11 -14 -26 -32
Total equity 75 77 75 58 54
227
Total liabilities and shareholders equity 97 99 101 75 89
Total debt 0 0 13 - -
Cash flow summary (Unit：MC$)

2013/12 2014 /12 2015/12 2016/12 2017/12
Net income starting line -17 1 -0 -6 -8
Depreciation depletion 8 10 8 7 9
Def erred taxes -1 1 0 -0 -4
Non cash items 20 0 0 0 0
Changes in working capital 2 -1 -2 0 -17
Cash f rom operating activities 12 12 11 6 3
Capital expenditures -26 -11 -13 -9 -12
Other investing cash f low items total -7 -1 2 -1 7
Cash f rom investing activities -34 -13 -11 -11 -5
Issuance or retirement of stock net - - - - 10
Cash f rom f inancing activities - - - 0 10
Foreign exchange ef f ects -0 0 0 -0 0
Net change in cash -22 -0 1 -4 9
150M
100M
50M
2013 2014 2015 2016 2017
T ot al Asset s T ot al Liabilit ies
228
Valeura Energy
Financials(Interim)
Income statement (Unit：MC$)
2017-1Q 2017-2Q 2017-3Q 2017-4 Q 2018-1Q
[2017-03-31] [2017-06-30] [2017-09-30] [2017-12-31] [2018-03-31]
Revenue - 6 3 7 -
Total revenue 3 6 3 7 3
Gross prof it 3 - - - 3
Selling general administrative expenses
1 6 2 2 1
total
Research and development - - 0 - -
Depreciation amortization 1 4 2 4 2
Unusual expense income 0 - 1 - 0
Total operating expense 1 8 3 5 1
Operating income - - -3 - -
Income bef ore tax -3 -5 -3 -5 -2
Income tax total 1 -3 1 0 0
Income af ter tax - -2 -4 - -
Net income -2 -2 -4 -5 -2
Diluted net income -2 -2 -4 -5 -2
Income available to common incl extra
-2 -2 -4 -5 -2
items
Diluted weighted average shares - 68 73 - -
Balance sheet summary (Unit：MC$)

2017-1Q 2017-2Q 2017-3Q 2017-4 Q 2018-1Q
[2017-03-31] [2017-06-30] [2017-09-30] [2017-12-31] [2018-03-31]
Cash and short term investments 11 9 2 11 56
Accounts receivable trade net 4 7 - 4 5
Total receivables net - 7 12 4 -
Total inventory 0 - 0 0 0
Prepaid expenses 1 2 1 1 1
Total current assets 16 20 18 16 64
Property plant equipment total net 7 77 74 69 7
Other long term assets total 3 3 3 3 3
Total assets 89 101 95 89 131

Accounts payable 13 11 12 13 5
Other current liabilities total - 24 25 - -
Total current liabilities - - - 13 -
Def erred income tax 2 - - 2 2
Other liabilities total 19 - - - 15
Total liabilities 35 36 37 35 24
Additional paid in capital 19 19 19 19 20
Retained earnings or accumulated
-79 -73 -78 - -81
def icit
Other equity total -32 -26 -29 -32 -32
Total equity 54 65 57 54 107
Total liabilities and shareholders equity 89 101 95 89 131
Cash flow summary (Unit：MC$)

2017-1Q 2017-2Q 2017-3Q 2017-4 Q 2018-1Q
[2017-03-31] [2017-06-30] [2017-09-30] [2017-12-31] [2018-03-31]
Net income starting line -2 -2 -4 -8 -2
Depreciation depletion 1 4 2 9 2
Def erred taxes -2 -3 1 -4 0
Non cash items 0 0 0 0 0
Changes in working capital - - - -17 -
229
Cash f rom operating activities 0 -0 -2 3 -3
Capital expenditures -0 -5 -4 -12 -0
Other investing cash f low items total -7 3 1 7 -5
Cash f rom investing activities -7 -2 -3 -5 -5
Issuance or retirement of debt net 10 - - 10 60
Cash f rom f inancing activities 10 10 - 10 55
Foreign exchange ef f ects 1 1 - 0 0
Net change in cash 3 7 -0 9 45
150M
100M
50M
2017-1Q 2017-2Q 2017-3Q 2017-4Q 2018-1Q
T ot al Asset s T ot al Liabilit ies
230
Valeura Energy
Corporate profile
Company profile
Valeura Energy Inc together with subsidiaries explores, develops and produces petroleum and natural gas in Turkey
Business summary
and Western Canada.
Financials Summary <table> <tr><td>Year ended</td><td>Dec 2017</td><td>Dec

2016</td><td>Dec 2015</td></tr> <tr><td>Sales (USD
M)</td><td>10.8</td><td>11.5</td><td>14 .3</td></tr>
<tr><td>Pretax (USD)</td><td>(8.3M)</td><td>
Financial summary (4 .9M)</td><td>80,084 .9</td></tr> <tr><td>Net (USD)</td><td>
(6.5M)</td><td>(4 .7M)</td><td>(4 32,766.4 )</td></tr> <tr><td>EPS
(CAD)</td><td>(0.12)</td><td>(0.1)</td><td>(0.01)</td></tr> </table>
+++++Net prof it deteriorated f rom -US$4 .7 million in 2016 to -US$6.5 million in 2017. +++++Earnings Per Share (EPS)
deteriorated f rom -10.0c to -12.0c.
Homepage http://www.valeuraenergy.com
Address 202 - 6th Avenue S.W, Suite 1200, Calgary, AB, CA, T2P 2R9 CALGARY AB
Public contact Chief Financial Of f icer Stephen Bjornson
Phone number 4 03-2375535
Contact phone number
Contact email kcampbell@valeuraenergy.com
Management
Rank Name Position Since Age
1 Russell Hiscock Chairman, Director 2018-1-12
2 Steve Bjornson Chief Financial Of f icer 2010-4 -9
3 Tim Marchant Director 2015-4 -15
William Thomas
4 Director 2010-4 -9
Fanagan
5 Russell Hiscock Chairman, Director 2018-1-12
6 Jim McFarland Director
7 Guest Sean Director
8 Abdel Badwi Independent Director
9 Ronald Royal Independent Director
10 Claudio Ghersinich Independent Director
Chief Operating Of f icer, Vice President, Vice President Operation, Vice President of
11 Lyle Martinson 2018-4 -18
Operation
Chief Operating Of f icer, Vice President, Vice President Operation, Vice President of
12 Lyle Martinson
Operation
On December 31, 2016 Valeura Energy had - Employees.
231
Valeura Energy
Historical charts
M3 chart Historical data (Unit：C$)

High Low Volume
MA18 MA36
During - - -
Target price 7.39
Y1 chart Historical data (Unit：C$)

High Low Volume
MA18 MA36
During - - -
Target price 7.39
0.8
0.75
0.7
0.65
0.6
6/12 6/19 6/26
Y5 chart
MA18 MA36
Target price 7.39
0.5
2013/9 2014/1 2014/5 2014/9 2015/1 2015/9 2016/1 2016/5 2016/9 2017/1 2017/5
232
Valeura Energy
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233
Valeura Energy Inc. (VLE)
Financial and Strategic SWOT Analysis Review

Published: June 2018
234
Company Snapshot
Suite 1200, 202 - 6th Avenue South
Phone +1 403 2377102 Revenue 14.10 (million CAD)
West
Calgary, AB Fax +1 403 2377103 Net Profit -8.38 (million CAD)
T2P 2R9 Website www.valeuraenergy.com Employees NA
VLE [Toronto Stock
Canada Exchange Industry Oil & Gas
Exchange]
Company Overview
Thrace Basin to the west of Istanbul that extends to the borders of Greece and Bulgaria. Besides upstream operations, the company
owns gas gathering and sales infrastructure to market natural gas to end users directly. Valeura is headquartered in Calgary, Alberta,
Canada.
Key Executives SWOT Analysis
Name Title Valeura Energy Inc., SWOT Analysis
Bill Fanagan Chairman Strengths Weaknesses
Jim McFarland Chief Executive Officer
Increasing Net Working Capital Declining Production
Claudio Ghersinich Director
Substantial Reserve Base
Ron Royal Director
Tim Marchant Director
Source: Annual Report, Company Website, Primary and Secondary Opportunities Threats
Share Data Demand: Oil & Petroleum Government Regulations
Products
Valeura Energy Inc. Exploration Production and
Share Price (CAD) as on 31-May- 4.54 Strategic Agreement Development Risks
2018
EPS (CAD) -0.12
Market Cap (million CAD) 362 GlobalData
Enterprise Value (million CAD) 305

Shares Outstanding (million) 86
Financial Performance Recent Developments
May 09,2018 Valeura Announces First Quarter 2018 Results
and Updates on Progress for Appraisal Activities
Apr 18,2018 Valeura Announces Increased 2018 Natural Gas
Prices, Lyle Martinson Appointed As Chief
Operating Officer
Feb 06,2018 Valeura Announces Prospective Resources For
Unconventional Basin-Centered Gas Prospect
Jan 16,2018 TransAtlantic Petroleum Announces
Engagement Of Financial Advisor To Market
Company And Provides Updates On Drilling
Research, GlobalData Program & Prospects In Thrace Basin
GlobalData

235
Table of Contents
Table of Contents ............................................................................................................................................................................... 3
List of Tables.................................................................................................................................................................................. 5
List of Figures ................................................................................................................................................................................ 5
Section 1 - About the Company ......................................................................................................................................................... 6
Valeura Energy Inc. - Key Facts .......................................................................................................................................................... 6
Valeura Energy Inc. - Key Employees ................................................................................................................................................. 7
Valeura Energy Inc. - Key Employee Biographies ............................................................................................................................... 8
Valeura Energy Inc. - Major Products and Services ........................................................................................................................... 9
Valeura Energy Inc. - History ............................................................................................................................................................ 10
Valeura Energy Inc. - Company Statement ...................................................................................................................................... 11
Valeura Energy Inc. - Locations And Subsidiaries ............................................................................................................................ 14
Head Office.................................................................................................................................................................................. 14
Other Locations & Subsidiaries ................................................................................................................................................... 14
Section 2 – Company Analysis.......................................................................................................................................................... 15
Valeura Energy Inc. - Business Description ...................................................................................................................................... 15
Valeura Energy Inc. - Corporate Strategy......................................................................................................................................... 16
Valeura Energy Inc. - SWOT Analysis ............................................................................................................................................... 17
SWOT Analysis - Overview ............................................................................................................................................................... 17
Valeura Energy Inc. - Strengths ........................................................................................................................................................ 17
Valeura Energy Inc. - Weaknesses ................................................................................................................................................... 18
Valeura Energy Inc. - Opportunities ................................................................................................................................................. 19
Valeura Energy Inc. - Threats ........................................................................................................................................................... 20
Valeura Energy Inc. - Key Competitors ............................................................................................................................................ 21
Section 3 – Company Financial Ratios ............................................................................................................................................. 22
Financial Ratios - Capital Market Ratios .......................................................................................................................................... 22
Financial Ratios - Annual Ratios ....................................................................................................................................................... 23
Performance Chart........................................................................................................................................................................... 26
Financial Performance ..................................................................................................................................................................... 26
Financial Ratios - Interim Ratios ...................................................................................................................................................... 27
Financial Ratios - Ratio Charts.......................................................................................................................................................... 28
Section 4 – Company’s Mergers & Acquisitions, Capital Raising and Alliances ............................................................................... 29
Valeura Energy Inc., Transactions by Year, 2012 to YTD 2018 .................................................................................................... 29
Valeura Energy Inc., Transactions by Type, 2012 to YTD 2018 ................................................................................................... 30
Valeura Energy Inc., Transactions by Region, 2012 to YTD 2018 ................................................................................................ 31
Valeura Energy Inc., Recent Transactions Summary........................................................................................................................ 32
Acquisition ....................................................................................................................................................................................... 33
Valeura Energy Completes Acquisition Of Thrace Basin Natural Gas From TransAtlantic Petroleum For US$20.9 Million ............ 33
Asset Transactions ........................................................................................................................................................................... 35
Statoil Completes Acquisition Of Additional 10% Stake In Deep Formations Rights On TBNG JV Lands In Turkey From Valeura
Energy For US$3 Million................................................................................................................................................................... 35
Statoil Holding Completes Acquisition Of 50% Interest In Deep Formations On Banarli Licenses In Turkey From Valeura Energy 37
Statoil Completes Acquisition Of 40% Stake In Deep Formations Rights On TBNG JV Lands In Turkey From Valeura Energy For
US$12 Million ................................................................................................................................................................................... 39
Valeura Energy Sells Nine Oil And Gas Properties In Alberta .......................................................................................................... 41
Valeura Energy Sells 27.5% Interest In Two Karakilise Licenses In Southeast Turkey ..................................................................... 42
Equity Offerings ............................................................................................................................................................................... 43
Valeura Completes Public Offering Of Shares For US$47.8 Million ................................................................................................. 43
Valeura Energy Completes Private Placement Of Subscription Receipts For US$8.3 Million .......................................................... 44
Valeura Energy Completes Public Offering Of Shares For US$15.4 Million ..................................................................................... 46
Section 5 – Company’s Recent Developments................................................................................................................................. 48
May 09, 2018: Valeura Announces First Quarter 2018 Results and Updates on Progress for Appraisal Activities ......................... 48
Apr 18, 2018: Valeura Announces Increased 2018 Natural Gas Prices, Lyle Martinson Appointed As Chief Operating Officer ..... 50

236
Feb 06, 2018: Valeura Announces Prospective Resources For Unconventional Basin-Centered Gas Prospect .............................. 51
Jan 16, 2018: TransAtlantic Petroleum Announces Engagement Of Financial Advisor To Market Company And Provides Updates
On Drilling Program & Prospects In Thrace Basin ............................................................................................................................ 53
Jan 15, 2018: Valeura Provides Operational Update and Announces Board Changes .................................................................... 54
Jan 02, 2018: Valeura Announces Completion Of CEO Succession Plan .......................................................................................... 57
Dec 27, 2017: Valeura reports production testing progress (Test 4) at Yamalik-1 well .................................................................. 58
Dec 18, 2017: Valeura reports production testing progress (Test 3) at Yamalik-1 Well .................................................................. 59
Dec 11, 2017: Valeura Updates Production Testing Progress At Yamalik-1 Well ............................................................................ 60
Nov 27, 2017: Valeura Announces Positive Interim Production Test Results And Confirms Natural Gas And Condensate Discovery
At Yamalik-1 Well ............................................................................................................................................................................. 61
Nov 14, 2017: Valeura Announces Third Quarter 2017 Financial And Operating Results And Commencement Of Yamalik-1
Testing Program ............................................................................................................................................................................... 62
Oct 17, 2017: Valeura Announces Yamalik-1 Testing Program And Operational Update ............................................................... 66
Aug 10, 2017: Valeura Announces Second Quarter 2017 Financial And Operating Results ............................................................ 68
Jul 24, 2017: Valeura Announces Rig Release From Yamalik-1 Well And Positive Evaluation Results ............................................ 71
Jun 22, 2017: Valeura Announces Closing Of Subsequent West Thrace Deep Rights Sale To Statoil And Operational Update ..... 72
Section 6 – Appendix ....................................................................................................................................................................... 73
Methodology ............................................................................................................................................................................... 73
Ratio Definitions .......................................................................................................................................................................... 73
About GlobalData ........................................................................................................................................................................ 77
Contact Us ................................................................................................................................................................................... 78
Disclaimer .................................................................................................................................................................................... 78

237
List of Tables
Valeura Energy Inc., Key Facts ........................................................................................................................................................... 6
Valeura Energy Inc., Key Employees .................................................................................................................................................. 7
Valeura Energy Inc., Key Employee Biographies ................................................................................................................................ 8
Valeura Energy Inc., Major Products and Services............................................................................................................................. 9
Valeura Energy Inc., History ............................................................................................................................................................. 10
Valeura Energy Inc., Subsidiaries ..................................................................................................................................................... 14
Valeura Energy Inc., Key Competitors.............................................................................................................................................. 21
Valeura Energy Inc., Ratios based on current share price ............................................................................................................... 22
Valeura Energy Inc., Annual Ratios .................................................................................................................................................. 23
Valeura Energy Inc., Interim Ratios .................................................................................................................................................. 27
Valeura Energy Inc., Recent Transactions Summary ........................................................................................................................ 32
Currency Codes ................................................................................................................................................................................ 73
Units ................................................................................................................................................................................................. 73
Capital Market Ratios....................................................................................................................................................................... 73
Equity Ratios .................................................................................................................................................................................... 74
Profitability Ratios............................................................................................................................................................................ 74
Cost Ratios ....................................................................................................................................................................................... 75
Liquidity Ratios................................................................................................................................................................................. 76
Leverage Ratios ................................................................................................................................................................................ 76
Efficiency Ratios ............................................................................................................................................................................... 76
List of Figures
Valeura Energy Inc., Performance Chart (2013 - 2017) ................................................................................................................... 26
Valeura Energy Inc., Ratio Charts ..................................................................................................................................................... 28

238
Section 1 - About the Company

Valeura Energy Inc. - Key Facts
Valeura Energy Inc., Key Facts
Corporate Address Suite 1200, 202 - 6th Avenue Ticker Symbol, Exchange VLE [Toronto Stock Exchange]
South West , Calgary, AB, T2P
2R9, Canada
Telephone +1 403 2377102 No. of Employees NA
Fax +1 403 2377103 Fiscal Year End December
URL www.valeuraenergy.com Revenue (in USD Million) 10.6
Industry Energy and Utilities Revenue (in CAD Million) 14.1
Locations Turkey

239
Valeura Energy Inc. - Key Employees

Valeura Energy Inc., Key Employees
Name Job Title Board Level Since Age
Bill Fanagan Chairman Executive Board

Jim McFarland Chief Executive Officer, President Executive Board
Claudio Ghersinich Director Non Executive Board

Ron Royal Director Non Executive Board
Tim Marchant Director Non Executive Board
Russell Hiscock Director Non Executive Board 2018
Barry Wihak Vice President Business Senior Management
Development
Steve Bjornson Chief Financial Officer Senior Management
Donald Shepherd Vice President Engineering Senior Management
Lyle Martinson Vice President Operations Senior Management
Rob Sadownyk Vice President Exploration Senior Management
Stephanie Stimpson Secretary Senior Management
Lyle Martinson Chief Operating Officer Senior Management 2018

240
Valeura Energy Inc. - Key Employee Biographies

Valeura Energy Inc., Key Employee Biographies
Mr. Bill Fanagan is the Chairman of Valeura . Prior to this, he served as the
Bill Fanagan
Chairman of Verenex Energy Inc from 2004 to 2009. Mr. Fanagan also served as
Job Title: Chairman
President and Chief Executive Officer of Gulf Indonesia Resources Limited from
1998 to 2001.
Mr. Jim McFarland is the Chief Executive Officer, President and Director of
Jim McFarland Valeura. Prior to this, he served as President and Chief Executive Officer,
Job Title: Chief Executive Officer, President Director and co-founder of Verenex Energy. He also served as Managing
Director of Southern Pacific Petroleum and President and Chief Operating
Board Level: Executive Board Officer of Husky Oil.
Mr. Steve Bjornson is the Chief Financial Officer of Valeura . Prior to this, he
Steve Bjornson
served as Chief Financial Officer of Vermilion Resources, Clear Energy and Sound
Job Title: Chief Financial Officer
Energy. In addition, Mr. Bjornson was Director of Bulldog Oil & Gas Inc., Bulldog
Resources, and Aventura Energy.
Mr.Lyle Martinson has been the Chief Operating Officer of the company since
Lyle Martinson
2018. Prior to this, he served the Company since its founding as the VP
Job Title: Chief Operating Officer
Operations and is a professional engineer with more than 39 years of
management, operations, and engineering experience in the oil and gas
industry internationally and in Canada.
Since: 2018

241
Valeura Energy Inc. - Major Products and Services

Valeura is an oil and gas exploration company. Key products offered by the company include the following:
Valeura Energy Inc., Major Products and Services

Products:
Crude Oil
Natural Gas

242
Valeura Energy Inc. - History

Valeura Energy Inc., History
2017 Acquisitions/Mergers/Takeovers In February, the company acquired Thrace Basin Natural Gas Turkiye
Corporation.
2016 Contracts/Agreements In May, Corporate Resources of Valeura Energy signed an agreement with
Statoil for a farm out on Banarli licences in Turkey.
2016 Contracts/Agreements In October, TransAtlantic Petroleum signed a share purchase agreement with
Valeura Energy Netherlands for the sale of its subsidiary, Thrace Basin
Natural Gas Corporation.
2016 Financing Agreements In November, Valeura Energy raised US$8.3 million through Private
placement of subscription receipts.
2016 Financing Agreements In October, Valeura Energy executed definitive agreements for three
transactions in Turkey from TransAtlantic Petroleum, which valued US$18.5
million.
2016 Oil/Gas Discovery In January, Valeura Energy made a natural gas discovery with its first
exploration well, Bati Gurgen-1, on its 100% owned and operated Banarli
licenses in Turkey’s Thrace basin.
2016 Regulatory Approval In December, the company received an approval from Ministry of Energy and
Natural Resources of the Republic of Turkey for its transformational
transactions which include Banarli Farm-in, the West Thrace Deep Rights Sale
and the TBNG Acquisition.
2012 Other In June, the company was awarded two new exploration licenses on 100%
working interest basis in southeast Turkey by the General Directorate of
Petroleum Affairs of the Republic of Turkey.
2011 Acquisitions/Mergers/Takeovers In June, Valeura Energy Inc.acquired natural gas production and land from
TransAtlantic Worldwide Ltd for US$57.3 million.
2011 Asset Purchase In June, the company announced acquisition of natural gas production in
Turkey of approximately 10.0 MMcf/d and 588,719 net acres of land in the
Thrace and Anatolian basins.
2010 Incorporation/Establishment The company was founded.

243
Valeura Energy Inc. - Company Statement
A statement from the management discussion and analysis of the company is given below. The statement has been taken from the company's
2016 Management’s Discussion and Analysis report.
The Company
Valeura and its subsidiaries are currently engaged in the exploration, development and production of petroleum and natural gas in Turkey.
Valeura’s shares are traded on the Toronto Stock Exchange ("TSX") under the trading symbol "VLE". Valeura was established in 2010 to grow
internationally through opportunistic acquisitions of producing assets with exploitation and exploration upside in selected countries in regions
of interest, which included the Mediterranean Basin. The Company completed its first international transaction in Turkey during 2010 and
since that time has executed a number of other transactions and won several new exploration licence awards in the country.
As at December 31, 2016, the Company held an interest in 21 exploration licences and production leases comprising approximately 0.63
million gross acres (0.31 million net acres) primarily in the Thrace Basin (87% of net lands) of northwest Turkey. The assets in the Thrace Basin
include a 100 percent working interest in two exploration licences in an early exploration and production stage (the "Banarli Licences"), a 40
percent working interest in 14 production leases and exploration licences under a joint venture with an established natural gas production
and marketing business (the "TBNG JV") and a 35 percent working interest in three production leases with mature shallow gas production
operations (the Edirne Leases"). The Thrace Basin lands have both conventional shallow gas exploration and development potential and
unconventional tight gas potential. The tight gas play is in early-stage development after more than four years of activity aimed at de-risking
the play. Some of these lands are also believed to have potential for a basin-centered gas play in over-pressured formations below
approximately 2,500 metres.
Turkish Operations
TBNG JV
The TBNG JV lands provide cash flow to the Company from sales of natural gas production in the Thrace Basin, interests in 293,670 gross acres
of onshore land (117,468 net) as at December 31, 2016, and exposure to a significant unconventional tight gas opportunity in the Thrace
Basin. The lands encompass twelve production leases and two exploration licences, all located onshore, following the conversion process to
the new petroleum law. As at December 31 2016, applications by the TBNG JV for one new exploration licence and two production leases
remained under review by the General Directorate of Petroleum Affairs ("GDPA") of the Republic of Turkey. In February 2017, the TBNG JV
was awarded the two production leases that were under application. Natural gas is currently produced from approximately 85 wells (gross) on
the TBNG JV lands. Approximately 65 percent of the natural gas produced from the TBNG JV lands in Q4 2016 was conventional shallow gas
from sandstone reservoirs in the Danismen and Osmancik formations at a depth of 500 to 1,500 metres. The gas, which is composed primarily
of methane, is gathered, dehydrated and compressed in owned facilities and distributed on an owned sales line network directly to more than
55 light industry customers.
TBNG Acquisition
On February 24, 2017, the Company’s wholly-owned affiliate, Valeura Energy (Netherlands) B.V completed the acquisition of 100 percent of
the shares of its joint venture partner in the TBNG JV, Thrace Basin Natural Gas (Turkiye) Corporation ("TBNG"), for US$22 million in cash
effective March 31, 2016 (the "TBNG Acquisition"), which after preliminary closing adjustments was reduced to a cash payment of US$20.9
million (which includes US$3.1 million held in escrow pending final reconciliation of the closing statement of adjustments). The Company’s
participating interest in the shallow rights on the TBNG JV Lands has increased to 81.5 percent and Valeura has become the operator.
Acquiring operatorship allows Valeura to accelerate the early ramp-up of exploration and development activities on the TBNG JV lands, with
the initial priority on spudding up to four shallow commitment wells on the West Thrace lands by late June 2017, of which one commitment
well was completed in February 2017.
West Thrace Deep Rights Sale
On January 6, 2017, the Company’s wholly-owned affiliate, Corporate Resources B.V ("CRBV") completed the sale and purchase agreement
(the "West Thrace Deep Rights Sale") with Statoil Banarli Turkey B.V. ("Statoil"), a whollyowned affiliate of Statoil ASA, to sell Valeura’s 40
percent participating interest in the deep formations below approximately 2,500 metres depth on certain TBNG JV lands, including two
exploration licenses and the three production leases (the "West Thrace lands"), for cash consideration of US$12 million which was received in
early January. Following the closing of the West Thrace Deep Rights Sale and the TBNG Acquisition, CRBV entered into a sale and purchase
agreement with Statoil on March 10, 2017 to sell an additional 10 percent participating interest in the deep formations below approximately
2,500 metres depth on the West Thrace lands, for cash consideration of US$3.0 million (the "Subsequent West Thrace Deep Rights Sale").
Upon the closing of the Subsequent West Thrace Deep Rights Sale, Valeura retains a 31.5 percent participating interest and Statoil acquires a
50 percent participating interest in the deep formations on the West Thrace lands. Valeura will retain an 81.5 percent participating interest in
the shallow formations on the West Thrace lands and an 81.5 percent participating interest in all formations on the other TBNG JV Lands. The

244
Subsequent West Thrace Deep Rights Sale is contingent on Turkish government approval for the associated licence interest transfer. Closing
of this transaction is expected in Q2 2017.
Banarli Licences
On April 8, 2013, the Company announced that it had been awarded the Banarli Licence 5104 on a 100 percent basis. This licence originally
covered an area of 118,598 gross acres near the centre and deepest part of the Thrace Basin and had a four-year initial term. The Company
shot 93 kilometres of new 2D seismic in June 2013 to complement more than 300 kilometres of vintage 2D seismic on this licence. During Q2
2015, the GDPA approved the Company's application to convert the Banarli licence under the new petroleum law to two new contiguous
exploration licences encompassing an area of 133,840 gross acres. The clock on the initial term of the licences has been re-started and has
also been extended to five years ending on June 27, 2020. During the initial five-year term, the Company will be required to complete, in
aggregate on the two licences, 152 square kilometres of 3D seismic and drill three wells, including a 2,000 metre well in each of year one and
year two and a 3,800 metre well in year four. As at December 31, 2016, the Company had already completed the 3D seismic commitment and
two of the three-well drilling commitments. Following the successful conversion of the Banarli licences in 2015 and the late 2014 drilling
success just south of the Banarli licences on the TBNG JV lands at Gurgen-1, Valeura shifted its corporate strategy to focus on exploration for
both shallow conventional gas and deeper unconventional tight gas at Banarli. As an initial step, Valeura acquired 152 square kilometres of 3D
seismic in the second quarter of 2015 and merged this with the 3D seismic at Osmanli and Tekirdag providing an interpreted data set covering
more than 580 square kilometres. Valeura subsequently drilled two vertical exploration wells at Banarli in November and December 2015. A
third exploration well was drilled in June 2016. The first of these exploration wells Bati Gurgen-1 was drilled to a depth of 2,735 metres into
the top of the Teslimkoy member of the Mezardere formation, with the primary target being conventional gas in the Osmancik formation. The
relatively tight Teslimkoy member was first evaluated with a diagnostic fracture injection test which confirmed that the Teslimkoy member is
over-pressured. However the net pay encountered to this depth in the Teslimkoy member was not sufficient to warrant a frac. Therefore
approximately 12 metres of net pay was initially completed in the Osmancik formation at a depth of approximately 1,500 metres and the well
was tied-in to a TBNG JV dehydration facility located about 3 kilometres away. Gas sales commenced from the Bati Gurgen-1 well on March
12, 2016. The gas is being sold to the TBNG JV, which in turn distributes the gas to its existing customer base.
The second exploration well Yayli-1 was drilled to a depth of 2,914 metres, penetrating an attractive interval in the Osmancik formation with
shallow gas potential. The well also penetrated multiple over-pressured, tighter stacked sands in the Teslimkoy member. Diagnostic fracture
injection tests on several intervals confirmed that the Teslimkoy formation in the Yayli-1 well is over-pressured to the same extent as
encountered in the Bati Gurgen-1 well. Two fracs have been completed in the Yayli-1 well and extensively evaluated to provide important
calibration data to assist in evaluating the potential of a basin-centered gas play below 2,500 metres on the Banarli licences and certain TBNG
JV lands. The Company subsequently plugged off the Teslimkoy and moved uphole to complete and test 13 metres of indicated net pay in
shallower conventional sands in the Osmancik formation at a depth of 1,800 metres. Five intervals in the Osmancik formation were
perforated and simultaneously tested yielding initial short term production rates of more than 1.0 MMcf/d but with high associated water
production. Production logging indicated that the water production appeared to be sourced primarily from one of the lower perforated
intervals but attempts to isolate and plug-off water production and achieve a sustainable gas flow rate were not successful. As at the date of
this MD&A, the well remains shut-in. On June 19, 2016 the third exploration well Bati Gurgen-2 was spudded and was drilled to a true vertical
depth of 2,226 metres. The wellbore penetrated well developed sands in both the Danismen and Osmancik formations but these sands were
25 to 29 metres deeper than expected and appeared to be wet on logs. As a result, a sidetrack drilling operation was carried out targeting
sands in the Osmancik formation in a higher structural position at a bottom-hole location approximately 360 metres west of the initial
bottom-hole location. The sidetrack well was drilled and cased to a true vertical depth of 1,857 metres in the Osmancik formation. The well
was placed onstream on September 26, 2016 as a producer from approximately 8.0 metres of conventional stacked sands in the Osmancik
formation at a depth of 1,640 metres.
Banarli Farm-in
On January 6, 2017, the Company closed the farm-in agreement for the exploration of the deeper formations below approximately 2,500
metres on the Company’s 100 percent owned and operated Banarli exploration licences in accordance with the farm-in agreement between
CRBV and Statoil (the "Banarli Farm-in"). Under the Banarli Farm-in, Statoil will have the option to earn a 50 percent interest in the deep
formations on the Banarli Licences by investing in an exploration program that includes payments and carried costs of at least US$36 million.
The actual amount invested by Statoil to earn its 50 percent interest may be higher based on the actual agreed costs of the three-phase work
program, which includes two deep wells and new 3D seismic. Valeura will operate the deep exploration program during the earning phase of
the Banarli Farm-in and retains a 100 percent interest in the shallow formations in the Banarli exploration licences. Valeura has received
US$6.0 million for up-front payments as a contribution to back costs incurred on the Banarli licences.
Turkish Political Events

On July 15, 2016, an attempted coup by elements of the Turkish military was put down by the government. This event and the aftermath have
not affected the Company’s ability to conduct drilling and production operations in the Thrace Basin and no delays or security issues have
been experienced. The impact so far has been a further devaluation in the Turkish Lira, sovereign debt ratings downgrades and a state of
emergency declaration which was extended to April 19, 2017. The current situation in Turkey has resulted in a 24 percent devaluation of the
Turkish Lira against the Canadian Dollar during 2016. The Company will continue to monitor conditions, including the safety of personnel and

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operations, the security situation generally, impact on the Turkish Lira and banking facilities, impact on our joint venture partners and any
changes in offtakes by our natural gas customers. The preparation of financial statements in conformity with IFRS requires management to
make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities,
income and expenses. The ability to make reliable estimates is further complicated when the political, economic and security situation is
uncertain. Management has based its estimates with respect to the Company’s operations in Turkey on information available up to the date
of this MD&A.
The situation in Turkey remains uncertain and significant changes could occur which could materially impact the assumptions and estimates
made in this MD&A. Changes in assumptions are recognized in the financial statements prospectively. There can be no assurance that the
Company will be able to maintain operations in a normal manner in the future.
Outlook
The Company is planning a capital expenditure program of $13 to 15 million (net) in 2017 focussed entirely on the shallow gas business. This
level of spending is contingent on closing the Subsequent West Thrace Deep Rights Sale, and some stabilization of the Turkish Lira exchange
rate and the BOTAS Reference Price (denominated in Turkish Lira). The capital program is expected to include drilling of up to seven wells
(gross) in the shallow formations on the TBNG JV lands and Banarli Licences, targeting 2017 exit rate sales of approximately 1,500 boe/d. This
outlook is lower than earlier preliminary projections due to delays in completing the inter-linked transformational transactions, including the
Banarli Farm-in, the West Thrace Deep Rights Sale, the TBNG Acquisition and the Offering, reflecting a longer than expected Turkish
government approval process. The Company also expects that the Banarli Farm-in program, fully funded by Statoil and operated by Valeura,
will commence with the spudding of a deep exploration well in Q2 217 under Phase 1 of the Banarli Farm-in and the start of the 3D seismic
acquisition in Q3 2017 under Phase 2.

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Valeura Energy Inc. - Locations And Subsidiaries

Head Office
Valeura Energy Inc.
Suite 1200
202 - 6th Avenue South West
Calgary
AB
T2P 2R9
Canada
Tel: +1 403 2377102
Fax: +1 403 2377103
Other Locations & Subsidiaries
Valeura Energy Inc., Subsidiaries
Thrace Basin Natural Gas Turkiye Corporation Pinnacle Turkey Inc

Turkey
Turan Günes Boulevard
89. Sok. 14 / 4
ANKARA
Turkey
Url: www.thracebasin.com.tr
Northern Hunter Energy Inc. Valeura Energy (Netherlands) Cooperatief UA

Suite 650-1015 Netherlands
4 Street SW
Calgary
AB
T2R 1J4
Canada
Url: www.nhenergyinc.com

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Section 2 – Company Analysis

Valeura Energy Inc. - Business Description
Valeura Energy Inc. (Valeura) is an upstream oil and gas company that explores for, develops and produces petroleum and natural gas in
Turkey. The company has operations in Thrace Basin in northwest Turkey and the Anatolian Basin in southeast Turkey. It has subsidiaries in
Canada and the Netherlands, with branches operating in Turkey. As of December 2016, the company had interest in 21 exploration licenses
and production leases which comprises approximately 0.53 million gross acres in the Thrace Basin in northwest Turkey and the Anatolian
Basin in southeast Turkey.
Valeura produces almost 99% of its natural gas in Turkey from the Thrace Basin, which is in an area west of Istanbul and extending to the
borders of Greece and Bulgaria. As of December 2016, it had 16 leases with gross acreage of 344,781. The Thrace Basin lands have
conventional shallow gas exploration and development potential and unconventional tight gas potential. Its holdings in the Thrace Basin
include TBNG JV Licences & Leases, Banarli licenses, and Edirne leases.
The company produces natural gas from both unconventional (tight gas) sandstone and conventional reservoirs in the licenses and the leases
of the TBNG JV. It produces conventional shallow gas from approximately 53 wells in Danismen and Osmancik formations. The gas is
composed primarily of methane. The company sells directly to approximately 55 commercial and end user customers. In FY2016, the company
reported average sales of 3.0 million cubic feet per day (MMcf/d) of net gas sales and 5 bbl/d net oil and natural gas liquids (NGLs).
Valeura holds two leases and licenses in Banarli. The exploration license covers an area of 133,840 gross acres near the Thrace Basin. In
FY2016, Valeura reported average of 1.8 MMcf/d gas sales and 4 bbl/d NGLS. The company operates three licenses in Edirne covering an area
of 49,883 gross acres. In FY2016, gas sales from the Edirne assets averaged 0.01 MMcf/d net of gas.
The assets in the Anatolian Basin include two exploration licenses with oil potential. The TBNG JV acquisition included 26% non-operating
working interest in lands in the Gaziantep area in the Anatolian Basin. In January 2017, the company relinquished licenses in the basin.
As of December 2016, it had 4,704 Mboe of gross proved plus probable reserves and 1,567 gross proved reserves. In FY2016, the company
reported production of 292 Mboe.

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Valeura Energy Inc. - Corporate Strategy

Valeura focuses on growing its business in Turkey, particularly its natural gas operations in the Thrace Basin, where natural gas prices remain
robust and prospects and potential impact increased with early exploration success in its Banarli licenses.Inline with this it focuses developing
low risk shallow gas business through TBNG JV lands and Banarli Licences; explore for deep, basin-centered gas accumulation play ;and further
expand in Thrace Basin.

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Valeura Energy Inc. - SWOT Analysis

SWOT Analysis - Overview
Valeura Energy Inc. (Valeura) is an upstream oil and gas company. It explores for, develops and produces petroleum and natural gas in Turkey.
Substantial reserve base, increasing net working capital are the major strengths of the company. Decreased production remains a cause for
concern. New agreements, potential growth for unconventional oil and gas and demand for oil and petroleum products could provide growth
opportunities . However, it could face challenges due to stringent government regulations, exploration production and development risks and
oil and gas prices.
Valeura Energy Inc. - Strengths

Strength - Increasing Net Working Capital
Valeura reported increase in its net working capital during FY2016, which has strengthened its short term operations. In FY2016, the
company’s net working capital increased 181.55% to CAD 20.42 million from CAD 7.25 million in FY2015. The increase in its net working
capital was due to 86.2% increase in its total current assets to CAD 24.69 million in FY2016 from CAD13.26 million in FY2015. In FY2016, its
current and quick ratios increased to 5.79 and 5.79 from 2.21 and 2.21 in FY2015.
Strength - Substantial Reserve Base
Valeura has most of its crude oil and natural gas reserves in Turkey in the Thrace Basin area, which is to the west of Istanbul. It also has a small
proportion of the crude oil reserves in the Anatolian Basin in eastern Turkey. As of December 2016, it had 4,704 Mboe of gross proved plus
probable reserves and 1,567 gross proved reserves. At the production of 292 Mboe in FY2016 the company has reseverve life of
approximately seven years.

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Valeura Energy Inc. - Weaknesses

Weakness - Declining Production
Valeura reported decline in its total production in FY2015, which affected its performance. In FY2016, the company reported 69.77% decline
in its total production to 292 boe/d from 966 boe/d. The decline in total production was due to 15.6% decrease in natural gas production,
which fell to 1,736 Mcf/d in FY2016 from 5,745 Mcf/d in FY2015. The presence of mature licenses in its production portfolio also contributed
to the decline. As of December 2016, Valeura had 35% working interest in three production leases with mature shallow gas production
operations in Thrace Basin. Its Edirne license is a mature asset and currently provides only small sales volumes of less than 50 Mcf/d (net).

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Valeura Energy Inc. - Opportunities

Opportunity - Demand: Oil & Petroleum Products
Valeura could strengthen its business with the expected increase in demand for oil and petroleum products across the world. According to
World Oil Outlook (WOO) 2016, long-term demand for oil is expected to increase to 109.4 millions of barrels per day (MMbbl/d) by 2040.
Developing countries will continue to lead this growth, which would increase to 25 MMbbl/d over the period, to reach 66.1 MMbbl/d by
2040. Eurasia also would expand from 5.3 MMbbl/d to 6.0 MMbbl/d by 2040. The demand in the OECD region is expected to decrease to 37.3
MMbbl/d by the end of the forecast period. The demand in India and China accounted for 16% of the total demand in 2015. This percentage is
set to increase to 25% by 2040. According to WOO 2016, the demand for oil stood at 93 MMbbl/d in 2015 and is expected to increase to 109.4
MMbbl/d by 2040. The demand for diesel and gasoline is expected to increase to 33.2 MMbbl/d and 28 MMbbl/d, respectively, by 2040. The
demand for middle distillates is expected to increase by 42.6 MMbbl/d. This accounts for around 60% of the overall growth in demand for all
liquid products. The OECD is forecast to account for 34% and developing countries 60% of global demand for oil and petroleum products.
Opportunity - Strategic Agreement
The company's various collaborations and agreements help expand its reach and facilitate its organic growth. In August 2016, Valeura
announced that its wholly-owned affiliate, Corporate Resources B.V. (CRBV) entered an agreement with Statoil Holding Netherlands B.V.
(Statoil) a wholly-owned affiliate of Statoil ASA. The agreement is for the exploration of the deeper formations below approximately 2,500
meters where over-pressure is expected in Valeura's two 100% owned and operated Banarli exploration licenses in the Thrace Basin of
Turkey. Under the agreement, Statoil would need to invest at least US$36 million in three phases to earn 50% interest below 2,500 meter in
Banarli licenses, while the company retains 100% interest above 2,500 meters. The company will operate shallow and deep programs during
the Statoil earning phase. Partnering with Statoil will enable the company to explore the potential of its assets and develop its tight gas
resources.
Opportunity - Potential Growth for Unconventional Oil and Gas
With the petroleum industry turning to unconventional sources of oil and gas, Valeura can take advantage by increasing its contract portfolio
and revenue. Unconventional sources have the potential to add significant amounts to the world’s energy supplies. According to the forecast
of the US Energy Information Administration (EIA), the annual growth rate of unconventional production will be above the annual growth rate
of conventional production. According to the EIA’s forecast, by 2035, the world’s total conventional production is expected to be around 97.1
million barrels per day (MMbbl/d), whereas the unconventional production would be around 14.6 MMbbl/d. Currently, the share of
unconventional oil is around 5%, which is expected to increase to approximately 13% of the world’s oil production. Certain of the
unconventional sources include oil sands, CBM, tight gas, and shale gas.

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Valeura Energy Inc. - Threats

Threat - Government Regulations
The company’s operations are subject to extensive regulation under federal, state and local statutes, rules, regulations and laws. Oil and gas
exploration and production is a political issue and results in higher risk of direct government intervention. Such intervention can extend, in
certain jurisdictions, to nationalization, expropriation or other actions that effectively deprive companies of their assets. Existing laws and
regulations include matters related to land tenure, production practices including hydraulic fracturing of wells, drilling, environmental
protection, marketing and pricing policies, various taxes and levies including income tax, royalties, foreign trade and investment and
government approval of lease and license transfers and other regulatory matters. Changes in government policy, laws and regulations could
affect Valeura’s operations and financial condition. Changes in the land tenure regulations associated with the New Petroleum Law are in the
early years of implementation and the full effect of these changes remains uncertain. Failure to comply with such regulations may result in
enforcement actions, including orders issued by regulatory or judicial authorities causing operations to cease, which could affect the
company’s business, financial condition and operations.
Threat - Exploration Production and Development Risks
Oil and gas exploration and production in the future may involve unprofitable efforts, not only from dry wells but also from producing wells,
when they are not commercially viable. The combination of technology and recovery costs may be higher than revenue earned from
production. Valeura’s operations could be affected by the risks related to exploration, production and development. Operational risks such as
unexpected formations or pressure, bow-outs and fire, which could result in loss of life and damage to properties, would cause production
delays and permanent well shut downs. However, production can be increased with effective operations but production delays cannot be
avoided. This could affect the company's revenue.
Threat - Fluctuations in Oil and Gas Prices
Valeura ’s operations could be affected by the fluctuations in oil and natural gas prices. Oil prices are dependent on various factors beyond
the company’s control, including supply of and demand for oil; weather conditions; and political conditions, among others. According to the
US Energy Information Administration’s (EIA’s) Short Term Energy Outlook 2017, the average WTI crude oil price was US$48.67/bbl in 2015
and US$43.33/bbl in 2016 and is expected to average US$53.46/bbl in 2017 and US$56.18/bbl in 2018. The Brent Crude Oil prices are
expected to reach US$54.54/bbl in 2017 and US$57.18/bbl in 2018 compared to average price of US$43.74/bbl in 2016. The fluctuation in the
price were due to recent production gains from producers outside the Organization of the Petroleum Exporting Countries (OPEC), including
Russia, the UK, and Brazil, and the continued resilience of onshore US producers which applied downward pressure on crude oil prices. The
average price of natural gas according to Henry Hub was US$2.6 per thousand cubic feet (/Mcf) in 2016, which was expected to reach
US$3.54/Mcf in 2017 and US$3.81/Mcf in 2018. The fluctuation in the price was due to increasing capacity for natural gas-fired electric
generation, growing domestic natural gas consumption, and new export capabilities.
NOTE:
* Sector average represents top companies within the specified sector
The above strategic analysis is based on in-house research and reflects the publishers opinion only

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Valeura Energy Inc. - Key Competitors

Valeura Energy Inc., Key Competitors
Name Headquarters Revenue (US$ m)
Athabasca Oil Corporation Canada 593
Imperial Oil Ltd Canada 19,201
Perenco Holdings United Kingdom 46
Tiway Turkey Limited Turkey
Turkish Petroleum International Company Ltd Turkey

254
Section 3 – Company Financial Ratios

Financial Ratios - Capital Market Ratios
Valeura Energy Inc., Ratios based on current share price
Key Ratios 31-May-2018
Enterprise Value/Sales 24.10

Enterprise Value/Total Assets 3.40
Note: Above ratios are based on share price as of 31-May-2018, the above ratios are absolute numbers

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Financial Ratios - Annual Ratios

Valeura Energy Inc., Annual Ratios
Equity Ratios
EPS (Earnings per Share) CAD -0.25 0.02 -0.01 -0.10 -0.12
Book Value per Share CAD 1.31 1.35 1.30 1 0.75
Cash Value per Share CAD 0.11 0.10 0.12
Gross Margin % 81.32 86.85 87.96 84.12 65.10
Operating Margin % -78.74 11.80 -2 -29.60 -74.91
Net Profit Margin % -96.04 6.30 -3.02 -43.31 -66.15
Profit Markup % 435.24 660.66 730.58 529.61 186.57
PBT Margin (Profit Before Tax) % -87.56 11.20 0.56 -45.16 -85.23
Return on Equity % -23.06 1.75 -0.75 -10.38 -15.29
Return on Capital Employed % -16.03 2.68 -0.39 -5.81 -12.41
Return on Assets % -18.01 1.37 -0.56 -8.02 -9.33
Return on Fixed Assets % -17.35 3 -0.42 -8.12 -12.99
Return on Working Capital % -210.17 25.39 -5.14 -20.37 -277.55
Growth Ratios
Sales Growth % -18.31 18.51 -13.82 -24.57 -9.81
Operating Income Growth % -114.63
EBITDA Growth % -27.94 -88.02 -263.12
Net Income Growth % -141.26

256

EPS Growth % -151.59
Working Capital Growth % -71.83 46.97 -27.79 181.55 -83.25
Cost Ratios
Operating Costs (% of Sales) % 178.74 88.20 102 129.60 174.91
Administration Costs (% of Sales) % 41.06 27.50 37.24 41 40.05
Liquidity Ratios
Cash Ratio Absolute 0.85 1.45 1.16 0.47 0.83
Leverage Ratios
Net Debt to Equity Absolute -0.09 -0.08 -0.09 0.03 0.20
Efficiency Ratios
Asset Turnover Absolute 0.19 0.22 0.18 0.19 0.14
Fixed Asset Turnover Absolute 0.22 0.26 0.21 0.28 0.18
Inventory Turnover Absolute 17.62
Current Asset Turnover Absolute 1.26 1.53 1.41 0.57 0.75
Capital Employed Turnover Absolute 0.24 0.28 0.25 0.24 0.23
Working Capital Turnover Absolute 2.67 2.15 2.57 0.69 3.71
Revenue per Employee CAD 792,188
Net Income per Employee CAD -524,000

257

Capex to Sales % 147.76 52.27 70.81 67.85 270.15
R&D to Sales % 73.06 0.35 5.58

258
Performance Chart
Valeura Energy Inc., Performance Chart (2013 - 2017)
Financial Performance
The company reported revenues of (Canadian Dollars) CAD14.1 million for the fiscal year ended December 2016 (FY2016), a decrease of
24.6% over FY2015. The operating loss of the company was CAD4.2 million in FY2016, compared to an operating loss of CAD0.4 million in
FY2015. The net loss of the company was CAD6.1 million in FY2016, compared to a net loss of CAD0.6 million in FY2015.
The company reported revenues of CAD2.7 million for the first quarter ended March 2017, a decrease of 12.2% over the previous quarter.

259
Financial Ratios - Interim Ratios

Valeura Energy Inc., Interim Ratios
Key Ratios Unit/Currency Mar-2017 Jun-2017 Sep-2017 Dec-2017 Mar-2018
Interim EPS (Earnings per Share) CAD 0.03 0.01 -0.07 0.01 0.03
Book Value per Share CAD 0.89 0.90 0.79 0.75 1.28
Gross Margin % 77.35 58.79 62.03 64.52 65.14
Operating Margin % -103.01 -73.19 -75.87 -52.77 -79.16
Net Profit Margin % -74.41 -16.25 -142.76 -28.59 -80.92
Profit Markup % 341.54 142.65 163.40 181.86 186.84
PBIT Margin (Profit Before Interest & Tax) % -464.16
PBT Margin (Profit Before Tax) % -126.03 -69.79 -99.07 -52.80 -74.18
Operating Costs (% of Sales) % 203.01 173.19 175.87 152.77 179.16
Administration Costs (% of Sales) % 65.15 44.36 30.44 25.42 50.22
Interest Costs (% of Sales) % 1.55
Net Debt to Equity Absolute 0.09 0.15 0.05 0.20 0.53
Interest Coverage Ratio Absolute 29,977.11

260
Financial Ratios - Ratio Charts

Valeura Energy Inc., Ratio Charts
EPS Operating Margin
Return on Equity Return on Assets
Current Ratio

261
Section 4 – Company’s Mergers & Acquisitions, Capital Raising and Alliances

Valeura Energy Inc. reported one deal worth $47.88 million in YTD 2018. The company’s deal volume increased from one deal in 2016 to four
deals in 2017.
YEAR No. of Deals Deal value ($m)
2012 1 15.38
2013 0 NA
2014 2 NA
2015 0 NA
2016 1 8.29
2017 4 71.90
YTD 2018 1 47.88

262
Note: Deals include all announced deals from 2011 onwards GlobalData
Valeura Energy Inc.’s deals activity has been reportedly focusing on asset transactions with five deals during the period 2012 to YTD 2018.

Deal type No. of Deals Deal Value (US$ million)
Asset Transactions 5 51
Equity Offerings 3 71.55
Acquisition 1 20.90

263
Valeura Energy Inc., deals activity has been reportedly focusing on Europe with five deals worth $71.90 million during the
period 2012 to YTD 2018.
Region No. of Deals Deal Value (US$ million)
Europe 5 71.90
North America 4 71.55

264
Deal Date Deal type Deal Status Deal Headline Deal Value (US $
million
01-Mar-2018 Equity Offerings Completed Valeura Completes Public Offering Of Shares For 47.88
US$47.8 Million
22-Jun-2017 Asset Transactions Completed Statoil Completes Acquisition Of Additional 10% 3.00
Stake In Deep Formations Rights On TBNG JV Lands In
24-Feb-2017 Acquisition Completed Valeura Energy Completes Acquisition Of Thrace 20.90
Basin Natural Gas From TransAtlantic Petroleum For
US$20.9 Million
06-Jan-2017 Asset Transactions Completed Statoil Holding Completes Acquisition Of 50% Interest 36.00
In Deep Formations On Banarli Licenses In Turkey
From Valeura Energy
06-Jan-2017 Asset Transactions Completed Statoil Completes Acquisition Of 40% Stake In Deep 12.00
Formations Rights On TBNG JV Lands In Turkey From
Valeura Energy For US$12 Million
03-Nov-2016 Equity Offerings Completed Valeura Energy Completes Private Placement Of 8.28
Subscription Receipts For US$8.3 Million
30-Sep-2014 Asset Transactions Completed Valeura Energy Sells Nine Oil And Gas Properties In
Alberta
28-Feb-2014 Asset Transactions Completed Valeura Energy Sells 27.5% Interest In Two Karakilise
Licenses In Southeast Turkey
10-Oct-2012 Equity Offerings Completed Valeura Energy Completes Public Offering Of Shares 15.38
For US$15.4 Million

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Acquisition
Valeura Energy Completes Acquisition Of Thrace Basin Natural Gas From TransAtlantic
Petroleum For US$20.9 Million
Valeura Energy Completes Acquisition Of Thrace Basin Natural Gas From TransAtlantic Petroleum For US$20.9 Million
Deal Type Acquisition Deal Sub Type 100% Acquisition
Deal in Brief
Valeura Energy Inc., an oil and gas company, through its wholly-owned subsidiary Valeura Energy Netherlands B.V., completed the
acquisition of Thrace Basin Natural Gas (Turkiye) Corporation (TBNG), a gas exploration and production company, from TransAtlantic
Worldwide, Ltd., a wholly-owned subsidiary of TransAtlantic Petroleum Ltd., an oil and gas company, for a cash consideration of
approximately US$20.9 million (MM), subject to post-closing adjustments. The transaction has an effective date of March 31, 2016. Of the
total consideration, TransAtlantic agreed to escrow US$3.1 MM for 30 days to satisfy any agreed upon purchase price adjustments.Valeura
funded the consideration through the proceeds raised from the sale of 50% interest in the deep formations on the Banarli exploration
licenses in Thrace Basin, northwest Turkey, 40% stake in the deep formations in Thrace Basin, Turkey, and through equity offering.TBNG
owns 41.5% interest in several discoveries (TBNG lands) in the Thrace Basin, Turkey. As of December 31, 2015, TBNG has net proved
reserves (1P) of 1,226 mbbls and proved plus probable reserves (2P) of 3,641 mbbls. The net production from the TBNG lands is
approximately 426.66 boed.In a separate transaction, on January 6, 2017, Statoil ASA completed the acquisition of a 40% stake in the deep
formations below 2,500 meters depth on certain TBNG JV lands located in Thrace Basin, Turkey, from Valeura, for a cash consideration of
US$12 MM.Following the transaction, Valeura owns 81.5% interest and becomes operatorship in the TBNG lands, while Pinnacle Turkey
Inc. will continue to own 18.5% in the TBNG lands.Cormark Securities, Inc. acted as financial advisor, while Torys LLP acted as legal advisor
to Valeura in the transaction. The acquisition enables Valeura to strengthen its position in the TBNG lands. TransAtlantic intends to use the
proceeds from the sale to fund drilling operations in its Southeast Turkey oilfields.Jim McFarland, president and CEO of Valeura, said,
“Closing of these strategic transactions is the culmination of many months of transactional work to transform Valeura to the operator of its
core shallow gas business, increase its working interest in that business and bring onboard a large and well-respected partner to help fund
the exploration for a deep, basin-centered gas play in the Thrace Basin, an exciting, high impact concept we have championed for several
years. We are very pleased with this reset for our business in Turkey. As our efforts now turn to operations to build on this new
foundation, we are funded, organized and poised to ramp-up the shallow gas drilling program, grow production and expect to spud the
first deep exploration well at Banarli in Q2 2017. I would also like to welcome more than 50 TBNG employees to the Valeura group who will
have a key role to play in executing our new business plan in Turkey.”N. Malone Mitchell, chairman and CEO of TransAtlantic, said,
“Valeura has been a great partner, and we are pleased to see the transaction completed. We anticipate the success of their further
development of the associated licenses.”The transaction implies values of US$48,985.14 per boe of daily production, US$17.05 per boe of
1P reserves, and US$5.74 per boe of 2P reserves.Deal historyCompleted: On February 24, 2017, Valeura completed the acquisition of
TBNG, from TransAtlantic, for a cash consideration of approximately US$20.9 MM, subject to post-closing adjustments.Update: On
December 30, 2016, the Ministry of Energy and Natural Resources of the Republic of Turkey have approved the proposed
transaction.Announced: On October 13, 2016, Valeura entered into a share purchase agreement to acquire TBNG, from TransAtlantic, for a
cash consideration of approximately US$18.5 MM.Planned: On May 15, 2016, TransAtlantic intends to sell TBNG.
Deal Rationale
The acquisition enables Valeura to strengthen its position in the TBNG lands.
Deal Information

% Acquired 100
Deal Financials
Deal Value (US$ m) 20.90
Deal Payment
Cash (US$ m) 20.90

266
Company Name TransAtlantic Petroleum Ltd.
TransAtlantic Petroleum Ltd. (TransAtlantic) is an upstream energy company. It acquires, develops, explores for, and produces crude oil
and natural gas in Turkey, Bulgaria, and Albania. The company operates onshore and offshore exploration licenses and onshore production
leases in Southeastern and Northwestern regions of Turkey. In Northwestern turkey region, TransAtlantic concentrates on Thrace basin. In
Southeastern region, it carries out operations in the Arpatepe, Bahar, Goksu, and Selmo oil fields. The company has interests in a
production concession and exploration permit in Bulgaria. Through a joint venture agreement, it holds interests in the Delvina gas field in
Albania. TransAtlantic is headquartered in Addison, Texas, the US.
Company Name Thrace Basin Natural Gas Parent Valeura Energy Inc.
Turkiye Corporation
Thrace Basin Natural Gas Türkiye Corporation is engaged in the drilling activity for natural gas pipelines and for new discoveries. The
company is headquartered in Turkey.
Advisor Information
Company Being Advised Financial Advisor
Source: GlobalData

267
Asset Transactions
Statoil Completes Acquisition Of Additional 10% Stake In Deep Formations Rights On TBNG
JV Lands In Turkey From Valeura Energy For US$3 Million
Statoil Completes Acquisition Of Additional 10% Stake In Deep Formations Rights On TBNG JV Lands In Turkey From Valeura Energy For
US$3 Million
Deal in Brief
Statoil ASA, an integrated energy company, through its wholly-owned subsidiary Statoil Banarli Turkey B.V., completed the acquisition of
an additional 10% stake in the deep formations below 2,500 meters depth on certain TBNG JV lands (West Thrace lands) located in Thrace
Basin, Turkey, from Valeura Energy Inc., an oil and gas company, for a cash consideration of US$3 million (MM).The TBNG JV lands include
two exploration licenses and three production leases in Thrace Basin.Earlier, on January 6, 2017, Statoil completed the acquisition of a 40%
stake in the deep formations on certain TBNG JV lands located in Thrace Basin from Valeura Energy, for a cash consideration of US$12 MM.
Following the completion of the transaction, Statoil holds 50% participating interest in the TBNG JV lands. Torys LLP acted as legal advisor
to Valeura in the transaction. The acquisition enables Statoil to strengthen its position in the TBNG JV lands.Deal historyCompleted: On
June 22, 2017, Statoil completed the acquisition of an additional 10% stake in the deep formations below 2,500 meters depth on certain
TBNG JV lands located in Thrace Basin, Turkey, from Valeura Energy US$3 MM.Announced: On March 10, 2017, Statoil entered into a sale
and purchase agreement to acquire an additional 10% stake in the deep formations below 2,500 meters depth on certain TBNG JV lands
located in Thrace Basin, Turkey, from Valeura Energy US$3 MM.Planned: On October 13, 2016, Statoil intends to acquire an additional 10%
stake in the deep formations below 2,500 meters depth on certain TBNG JV lands located in Thrace Basin, Turkey, from Valeura Energy
US$3 MM.
Deal Rationale
The acquisition enables Statoil to strengthen its position in the TBNG JV lands.
Deal Information
Announced Date 10-Mar-2017
Completed Date 22-Jun-2017

% Acquired 10
Deal Financials
Deal Payment
Cash (US$ m) 3
Norway.
Asset Information

268

Basin.
Advisor Information
Source: GlobalData

269
Statoil Holding Completes Acquisition Of 50% Interest In Deep Formations On Banarli

Licenses In Turkey From Valeura Energy
Statoil Holding Completes Acquisition Of 50% Interest In Deep Formations On Banarli Licenses In Turkey From Valeura Energy
Deal in Brief
Statoil Holding Netherlands B.V., a wholly-owned subsidiary of Statoil ASA, an integrated energy company, completed the acquisition of a
50% interest in the deep formations on the Banarli exploration licenses located in Thrace Basin, northwest Turkey, from Corporate
Resources B.V., a wholly-owned subsidiary of Valeura Energy Inc., an oil and gas company.The licenses cover an area of approximately
133,840 gross acres in the Thrace Basin, northwest Turkey.Under terms of the agreement, to earn the interest, Statoil invested in an
exploration program that includes payments and carried costs of at least US$36 million (MM). Statoil funded the exploration program in
the three phases as follows:In Phase one, Statoil paid Valeura US$6 MM as a contribution to back costs incurred on the licenses and will
pay US$10 MM for the Phase one commitment directed to the drilling, evaluating, completing, fracing and testing of a Phase one well to be
drilled to the greater of 4,000 m or a depth that intersects the upper 450 m of the Teslimkoy formation, with a target spud date by first
quarter 2017. In Phase two, Statoil will pay no less than US$10 MM for the Phase two commitments directed to acquiring 3D seismic over
the licenses at a minimum equivalent cost. In Phase three, Statoil will pay no less than US$10 MM for the Phase three commitments
directed to drilling a Phase three well based on the same parameters as the Phase one well.If Statoil elects to exit after Phase one, it will
pay a penalty of US$10 MM and surrender its interest in the licenses back to Valeura. At that point, Statoil would have invested a minimum
of US$26 MM. If Statoil elects to exit after Phase two, it will pay a penalty of US$5 MM and surrender its interest in the licenses back to
Valeura. At that point, Statoil would have invested a minimum of US$31 MM.Valeura will operate the deep exploration program during the
earning phase under the agreement. Valeura retains a 100% interest in the shallow formations in the Banarli licenses. Torys LLP acted as
legal advisor to Valeura in the transaction.The transaction enables Statoil to increase its oil and gas assets base.Jim McFarland, president
and CEO of Valeura, said, "Closing of these transformational transactions with Statoil is an exciting milestone for Valeura, which paves the
way to spud the first 4,000 metre exploration well in Q1 2017 under the Banarli Farm-in, funded by Statoil, targeting a deep, over-
pressured, basin-centered gas play that has the potential to be another game-changer for Valeura. In addition, we now have the financial
capacity to proceed with our planned 2017 shallow gas drilling program in the Thrace Basin, which is expected to commence in February
on the TBNG JV lands at the Dogu Atakoy-3 location where approvals and site preparation are already complete.”Deal historyCompleted:
On January 6, 2017, Statoil Holding completed the acquisition of a 50% interest in the deep formations on the Banarli exploration licenses
located in Thrace Basin, northwest Turkey, from Corporate Resources.Update 2: On December 30, 2016, the Ministry of Energy and Natural
Resources of the Republic of Turkey approved the proposed transaction.Announced: On August 19, 2016, Statoil Holding executed the
definitive agreement to acquire a 50% interest in the deep formations on the Banarli exploration licenses located in Thrace Basin,
northwest Turkey, from Corporate Resources.Update 1: On August 2, 2016, Statoil Holding and Corporate Resources extended the timeline
for the completion of the definitive agreements from July 29, 2016 to August 19, 2016.Planned: On May 15, 2016, Statoil Holding entered
into a binding letter agreement to acquire a 50% interest in the deep formations on the Banarli exploration licenses located in Thrace
Basin, northwest Turkey, from Corporate Resources.
Deal Rationale
The transaction enables Statoil to increase its oil and gas assets base.
Deal Information
Announced Date 19-Aug-2016
% Acquired 50
Deal Financials
Deal Value - Estimated
Minimum Value (US$ m) 36
Company Name Statoil Holding Netherlands B.V. Parent Equinor ASA


270
Asset Information
Banarli Licenses - Turkey
Asset Description The licenses cover an area of approximately 133,840 gross acres in the Thrace Basin, northwest Turkey.
Advisor Information
Source: GlobalData

271
Statoil Completes Acquisition Of 40% Stake In Deep Formations Rights On TBNG JV Lands In
Statoil Completes Acquisition Of 40% Stake In Deep Formations Rights On TBNG JV Lands In Turkey From Valeura Energy For US$12
Million
Deal in Brief
Statoil ASA, an integrated energy company, through its wholly-owned subsidiary Statoil Banarli Turkey B.V., completed the acquisition of a
40% stake in the deep formations below 2,500 meters depth on certain TBNG JV lands located in Thrace Basin, Turkey, from Valeura Energy
Inc., an oil and gas company, for a cash consideration of US$12 million (MM).The TBNG JV lands include two exploration licenses and three
production leases in Thrace Basin.Torys LLP acted as legal advisor to Valeura in the transaction. The transaction enables Statoil to increase
its gas assets base in Turkey.Jim McFarland, president and CEO of Valeura, said, “Closing of these transformational transactions with Statoil
is an exciting milestone for Valeura, which paves the way to spud the first 4,000 metre exploration well in Q1 2017 under the Banarli Farm-
in, funded by Statoil, targeting a deep, over-pressured, basin-centered gas play that has the potential to be another game-changer for
Valeura. In addition, we now have the financial capacity to proceed with our planned 2017 shallow gas drilling program in the Thrace Basin,
which is expected to commence in February on the TBNG JV lands at the Dogu Atakoy-3 location where approvals and site preparation are
already complete.”Deal historyCompleted: On January 6, 2017, Statoil completed the acquisition of a 40% stake in the deep formations on
certain TBNG JV lands located in Thrace Basin from Valeura Energy, for a cash consideration of US$12 MM.Update: On December 30, 2016,
the Ministry of Energy and Natural Resources of the Republic of Turkey approved the proposed transaction.Announced: On October 13,
2016, Statoil entered into a sale and purchase agreement to acquire a 40% stake in the deep formations on certain TBNG JV lands located
in Thrace Basin from Valeura Energy, for a cash consideration of US$12 MM.
Deal Rationale
The transaction enables Statoil to increase its gas assets base in Turkey
Deal Information

% Acquired 40
Deal Financials
Deal Payment
Cash (US$ m) 12
Norway.
Asset Information

272
Basin.
Advisor Information
Source: GlobalData

273

Deal in Brief
Valeura Energy Inc., an oil and gas company, sold its interests in nine oil and gas properties in Alberta, Canada.The properties have net
Deal Information
Completed Date 30-Sep-2014

Asset Information
Nine Oil And Gas Properties - Alberta
Asset Description The nine oil and gas properties are located in Alberta, Canada. The properties have net
Source: GlobalData

274
Deal in Brief
Valeura Energy Inc., an oil and gas company, sold its 27.5% interest in licenses 2674 and 2677 in Karakilise, southeast Turkey.The licenses
include two wells targeting the Bedinan and Mardin formations with current production of less than 10 bd.
Deal Information

% Acquired 27.50
Asset Information
Two Karakilise Licenses - Southeast Turkey
Asset Description The licenses 2674 and 2677 are located in Karakilise, southeast Turkey. The licenses include
two wells targeting the Bedinan and Mardin formations with current production of less than
10 bd.
Source: GlobalData

275
Equity Offerings
Deal in Brief
Valeura Energy Inc, an oil and gas company, completed the public offering of 10,527,000 shares, at a price of C$5.7 (US$4.54) per share, for
gross proceeds of approximately C$60 million (MM) (US$47.88 MM). The offering was upsized from 8,772,000 to 10,527,000 shares.GMP
FirstEnergy and Cormark Securities Inc. acted as underwriters, while Torys LLP acted as legal advisor to the company for the offering. The
company intends to use net proceeds from the offering to fund the continued appraisal of its basin-centered gas play in Turkey and for
general corporate purposes.Deal historyCompleted: On March 1, 2018, Valeura Energy completed the public offering of 10,527,000 shares,
at a price of C$5.7 (US$4.54) per share, for gross proceeds of approximately C$60 MM (US$47.88 MM).Announced: On February 8, 2018,
Valeura Energy agreed to issue 10,527,000 shares, at a price of C$5.7 (US$4.54) per share, for gross proceeds of approximately C$60 MM
(US$47.88 MM), in a public offering.
Deal Rationale
The company intends to use net proceeds from the offering to fund the continued appraisal of its basin-centered gas play in Turkey and for
general corporate purposes.
Deal Information
Announced Date 08-Feb-2018

Completed Date 01-Mar-2018
Deal Financials
Deal Value (CAD million) 60 Deal Value (US$ m) 47.88
Advisor Information
GMP FirstEnergy
Source: GlobalData

276
Deal Type Equity Offerings Deal Sub Type PIPE
Deal in Brief
Valeura Energy Inc., an oil and gas company, completed the private placement of 14,629,000 subscription receipts, at a price of C$0.75
(US$0.57) per receipt, for gross proceeds of C$10.97 million (MM) (US$8.28 MM). The placement was upsized from 10 MM to 14,629,000
receipts. The subscription receipts are subject to a four-month holding period.Each subscription receipt entitles the holder to receive one
share of the company, at no additional consideration, upon the closing of the acquisition by the company of Thrace Basin Natural Gas
(Turkiye) Corporation (TBNG) from TransAtlantic Worldwide, Ltd.Cormark Securities, Inc., GMP Securities Ltd. and FirstEnergy Capital Corp.
acted as underwriters, while Torys LLP acted as legal advisor to the company for the placement. The company intends to use the proceeds
from the placement to partially fund the TBNG acquisition.Deal historyCompleted: On November 3, 2016, Valeura Energy completed the
private placement of 14,629,000 subscription receipts, at a price of C$0.75 (US$0.57) per receipt, for gross proceeds of C$10.97 MM
(US$8.28 MM).Update: On October 14, 2016, Valeura Energy upsized the private placement of 14,629,000 subscription receipts, at a price
of C$0.75 (US$0.57) per receipt, for gross proceeds of C$10.97 MM (US$8.28 MM).Announced: On October 13, 2016, Valeura Energy
agreed to issue 10 MM subscription receipts, at a price of C$0.75 (US$0.57) per receipt, for gross proceeds of approximately C$7.5 MM
(US$5.66 MM).
Deal Rationale
The company intends to use the proceeds from the placement to partially fund the TBNG acquisition.
Deal Information
Completed Date 03-Nov-2016

Deal Financials
Advisor Information
Valeura Energy Inc. FirstEnergy Capital Corp
GMP Securities Ltd.
(US$)
(Trailing Twelve Months Ended 31-Dec-2015)
Number of Employees 17
EV/Revenues 2.58
EV/EBITDA 5.36

277

Source: GlobalData

278

Deal in Brief
Valeura Energy Inc., an oil and gas exploration and production company, completed the bought deal public offering of 11.5 million shares,
at a price of CAD1.3 ($1.34) per share, for gross proceeds of CAD14.95m ($15.38m). In addition, the company granted underwriters a 30-
day option to purchase up to additional 1,725,000 shares to cover over-allotments, if any.Cormark Securities Inc., National Bank Financial
Inc., Canaccord Genuity Corp., FirstEnergy Capital Corp., and Jennings Capital Inc. acted as underwriters, Norton Rose Fulbright LLP acted as
legal advisor to the company for the offering.The company intends to use the proceeds from the offering to fund for its capital program,
including continued field development and exploration operations in Turkey and for general corporate purposes.The transaction implies
deal value of $37,784.41 per boe of daily production.Deal historyCompleted: On October 10, 2012, Valeura completed the bought deal
public offering of 11.5 million shares, at a price of CAD1.3 ($1.34) per share, for gross proceeds of CAD14.95m ($15.38m).Announced: On
September 17, 2012, Valeura agreed to issue 11.5 million shares at a price of CAD1.3 ($1.34) per share, for gross proceeds of CAD14.95m
($15.38m), in a bought deal public offering.
Deal Rationale
Valeura Energy intends to use the proceeds from the offering to fund for its capital program, including continued field development and
exploration operations in Turkey and for general corporate purposes.
Deal Information
Announced Date 17-Sep-2012
Completed Date 10-Oct-2012

Deal Financials
Advisor Information
Valeura Energy Inc. Norton Rose Fulbright LLP
Valeura Energy Inc. Canaccord Genuity Group Inc.
FirstEnergy Capital Corp
National Bank Financial Inc
Jennings Capital, Inc.
(US$)
(Trailing Twelve Months Ended 30-Jun-2012)
EV/Revenues 2.21
EV/EBITDA 9.08

279

Source: GlobalData

280
Section 5 – Company’s Recent Developments

May 09, 2018: Valeura Announces First Quarter 2018 Results and Updates on Progress for
Appraisal Activities
Valeura Energy Inc. is pleased to report the following highlights of its financial and operating results for Q1 2018:
the Company released the DeGolyer and MacNaughton external resource report onFebruary 6, 2018 (the "D&M Resource Report"), which
attributed 10.1 trillion cubic feet ("Tcf") of estimated unrisked mean prospective resources of natural gas (5.2 Tcf risked), which includes 236
MMbbls of condensate, to Valeura's working interest of the basin centered gas accumulation ("BCGA") discovered with the Yamalik-1 well
the Company closed a $60 million (gross) bought deal financing on March 1, 2018 which will fund Valeura's 2018 and 2019 capital program,
including the appraisal of the BCGA
the Company's shallow gas production was cash flow positive in Q1 2018and
BOTAS, who own and operate Turkey's crude oil and natural gas pipeline grid, increasedTurkey's reference natural gas price by almost 25%
with increases on January 1 and April 1, 2018. The Company's realised gas price is subject to exchange rate variations, such that in Canadian
dollars, the realised price for April 2018 was 17% higher than Q4 2017.
Valeura Energy Inc. (CNW Group/Valeura Energy Inc.)
"This was a transformative quarter for Valeura," said Sean Guest, President and CEO, "Our external resource report confirmed the world-class
scale of the unconventional gas resource we discovered in Turkey and we raised funds to see the Company through a definitive appraisal
program."
"Our balance sheet is in excellent shape, and planning is now in full swing for the work program ahead. In addition, we are encouraged by the
recent changes in Turkey's gas reference price, which help to confirm the long-term value proposition for our basin centered gas
accumulation."
Valeura has made progress toward its key BCGA appraisal activities. The Yamalik-1 well tie-in and long-term testing is on track for early Q3
2018 operations. Related pipeline approvals have been received and construction is now under way. The first of three appraisal wells, Inanli-
1, is planned to spud in late Q3 2018.
Also subsequent to quarter end, the Company completed processing newly acquired 3D seismic data and information has been merged into
the existing dataset. Interpretation is in progress and will form part of the planning process for additional appraisal wells.
FINANCIAL AND OPERATING RESULTS SUMMARY
On March 1, 2018, the Company closed a bought deal financing for $60.0 million (gross) that resulted in the issuance of 10,527,000 common
shares. This financing yielded $55.4 million in net proceeds to the Company which is reflected in the increased net working capital surplus and
the cash position at the end of Q1 2018.
Net petroleum and natural gas sales in Q1 2018 averaged 859 BOE/d, which was 17% lower than Q4 2017 and 6% higher than the same period
last year. While Valeura continues to undertake low cost workover activities across its conventional gas fields, and will drill one shallow
conventional well in Q2 2018, the Company is focusing its technical and drilling efforts on appraisal of its BCGA play.
Adjusted funds flow for Q1 2018 was an inflow of $0.5 million compared to an outflow of $2.9 million for the same period in 2017. Adjusted
funds flow for Q1 2017 was negatively impacted by expenses related to the TBNG acquisition and the Banarli farm-in, including transaction
costs, income taxes and realized foreign exchange losses. Income tax related to these transactions continued into Q4 2017. These were one-
time expenses that did not recur in Q1 2018, and combined with the effect of higher volumes and prices, the Company generated positive
adjusted funds flow for the quarter.

281
Net loss from operations was $2.4 million for Q1 2018, compared to a loss of $1.0 million in Q4 2017 and a loss of $2.0 million in Q1 2017.
The net loss is due to non-cash items including depletion and depreciation, accretion on decommissioning liabilities, share based
compensation and deferred tax expense.
2018 OUTLOOK
Valeura is fully focused on appraising and de-risking its BCGA discovered by the Yamalik-1 well. The objective of the 2018 and 2019 work
program is to demonstrate that over-pressured gas is pervasive across Valeura's Thrace Basin lands and to show that commercial flow rates
can be achieved. The key activities to support this objective are the tie-in and long-term testing of the Yamalik-1 well and a three well
appraisal program.
Further testing of Yamalik-1 remains on schedule with activity planned to commence in early Q3 2018. Appropriate test equipment has been
acquired in North America and is currently being mobilized to Turkey. Once this equipment arrives in Turkey, the Yamalik-1 testing program
can resume. Pipeline approval to tie the Yamalik-1 well in to Valeura's gas marketing infrastructure is in place and construction is underway.
The line will be commissioned in advance, so gas flaring during the testing phase can be reduced and eliminated for the long term test.
The first well in the appraisal drilling program will be Inanli-1. The well will be drilled 6 km to the north-east of the Yamalik-1 discovery well, in
an area with high quality 3D seismic imaging. Inanli-1 is being designed to test the vertical extent of the BCGA, which includes planning to drill
to a depth of 5,000m.
Preliminary locations for the second and third wells have been identified, and will be confirmed based on interpretation of the new Karaca 3D
seismic data acquired in 2017. Final processing of this seismic survey and merging with Valeura's existing 3D datasets is complete and these
data are being interpreted now.
The delineation drilling campaign is on schedule to commence in late Q3 2018 and the three wells will be drilled back-to-back. Each well is
expected to take about two to two and half months to drill. Assuming that the well is successful, after the rig has completed drilling
operations, the well will then be fraced and production tested. Procurement activities for the rig and the required equipment are in progress
with long lead items having been ordered and a rig contract is anticipated to be signed in Q2 2018. The Inanli-1 well drilling and testing
program will be fully funded by Valeura's joint interest partner, Statoil, and will complete their earning obligations under the Banarli farm-in
agreement.
The Company will drill one shallow gas well in Q2 2018 in one of the West Thrace licenses. The Karanfiltepe-7 well will target a conventional
fault-bounded trap and will be drilled to approximately 1,450m. The well must be spudded prior to June 27, 2018 to maintain the license in
good standing.
In all its activities, the Company remains committed to continuing its safe operations and ensuring that operational and administrative
functions are conducted in the most cost-efficient way.

282
Apr 18, 2018: Valeura Announces Increased 2018 Natural Gas Prices, Lyle Martinson
Appointed As Chief Operating Officer
Valeura Energy Inc. (Valeura) is pleased to announce an increase in the sales price of its natural gas production in Turkey.
Boru Hatlari ile Petrol Tasima Anonim Sirketi ("BOTAS"), who own and operate Turkey's crude oil and natural gas pipeline grid, has announced
an increase of 10% in Turkey's reference natural gas price, effective April 1, 2018. This comes less than three months after the last increase of
14%, which was effective January 1, 2018. When currency exchange rate changes are incorporated, the Company expects to report first
quarter 2018 realized gas prices of C$7.37 per thousand cubic feet, which is an increase of 11.5% from the fourth quarter in 2017. Actual price
realizations for the second quarter 2018 will be dependent on the Turkish Lira exchange rate.
"These price increases by BOTAS help to keep the value of domestic Turkish gas broadly in line with European natural gas prices," commented
Sean Guest, President and CEO. "Valeura expects to continue to realize strong dollar-denominated revenue from our production in Turkey,
and more importantly, it also increases our confidence in the long-term value of our major unconventional Basin-Centered Gas Accumulation
(the "BCGA") in Turkey's Thrace Basin."
The Company is preparing for a major appraisal phase of its unconventional gas discovery in Turkey, which has been evaluated by DeGolyer
and MacNaughton to hold 10.1 trillion cubic feet of estimated working interest unrisked mean prospective resources of natural gas as of
December 31, 2017. The appraisal program will include drilling three additional deep delineation wells, the first of which will start drilling in
the third quarter of this year, fracing, and long-term production testing through the Company's gathering and processing infrastructure.
In preparation for this appraisal program, which Valeura will operate, the Company is also making adjustments to its organization to ensure
operations are conducted in the most safe and efficient manner. The Company is pleased to announce that Lyle Martinson has been
promoted to the role of Chief Operating Officer. Lyle has been with the Company since its founding as the VP Operations and is a professional
engineer with more than 39 years of management, operations, and engineering experience in the oil and gas industry internationally and in
Canada. Sean Guest commented, "I have no doubt that Lyle's level-headed demeanor and steadfast commitment to safe and efficient
operations will be a great benefit as we press forward with operations to appraise the BCGA."

283
Feb 06, 2018: Valeura Announces Prospective Resources For Unconventional Basin-
Centered Gas Prospect
Valeura Energy Inc. ("Valeura" or the "Corporation") is pleased to announce summary results of an independent evaluation of its prospective
resources in the Thrace Basin of Turkey prepared by DeGolyer and MacNaughton ("D&M") of Dallas, Texas in its report dated February 6, 2018
(the "D&M Resources Report"). Highlights of the D&M Resources Report are as follows:
10.1 Tcf of estimated working interest unrisked mean prospective resources of natural gas, which includes 236 MMbbl of condensateand
5.2 Tcf of estimated working interest risked mean prospective resources of natural gas, which includes 165 MMbbl of condensate.
Valeura's CEO, Sean Guest, said "We are pleased to now have an independent evaluation that supports Valeura's thesis that the Thrace Basin
may hold a very large unconventional, basin-centered natural gas-condensate resource. Valeura has been maturing this play for almost five
years and these efforts culminated in the drilling of the Yamalik-1 natural gas-condensate discovery in 2017 with our partner Statoil. While
Valeura is confident that natural gas is pervasive in these deep formations, we recognise that we are in the early phases of exploration. More
drilling and testing will be required to prove that the gas will flow at commercial rates, and to refine the large uncertainty around recoverable
gas and condensate. Valeura and Statoil are committed to progressing the work required to further evaluate this unconventional prospect.
We are currently working to tie-in the Yamalik-1 discovery well to Valeura's gas production network to allow for further testing and long-term
production and sales. Additionally, Statoil and Valeura are planning a three-well delineation drilling and testing program which is expected to
commence in Q3 2018."
2017 YEAR-END UNCONVENTIONAL PROSPECTIVE RESOURCES SUMMARY
The D&M Resources Report was prepared using the guidelines outlined in the Canadian Oil and Gas Evaluation Handbook ("COGEH") and in
accordance with NI 51-101 and is valid atDecember 31, 2017. D&M evaluated the unconventional prospective resources attributable to the
Teslimkoy/Kesan basin-centered gas prospect on Valeura's lands in the Thrace Basin ofTurkey. The working interest lands included comprise
the deep formations (generally below2,500 m depth) on the Corporation's Banarli licenses (50% working interest), TBNG JV West Thrace lands
(31.5% working interest), and TBNG JV South Thrace lands (81.5% working interest).
The D&M evaluation benefited from the Yamalik-1 natural gas-condensate discovery, which was recently drilled and tested on the Banarli
licenses. Yamalik-1 discovered an approximate 1,300 m column of natural gas and condensate in over-pressured reservoirs below 2,900 m in
the Teslimkoy and Kesan formations. The well was drilled to 4,196 m, fracture stimulated and production tested in Q4 2017. As announced on
December 27, 2017, four production tests from eight frac stages in the Kesan formation yielded a 24-hour aggregate test rate of 2.9 MMcf/d.
Extensive coring and wireline logging information was also captured in the well.
Yamalik-1 was the first well to be extensively facture stimulated in the basin-centered gas prospect in the Thrace Basin. However, well data
from seven other legacy wells drilled in the prospective area to depths up to 4,050 m also indicate over-pressured natural gas below
approximately 2,500 m and were available for D&M's evaluation. Only one of these legacy wells (Yayli-1) was fracture stimulated with a small
two-stage frac at a depth of approximately 2,800 m.
The broad range of recoverable gas from 3.2 to more than 20 Tcf is a function of the uncertainty in the various components of the
assessment including recovery factor. There has been very limited stimulation and production testing from the over-pressured Teslimkoy and
Kesan formations in the Thrace Basin, and as yet there is no production data. To determine potential recovery factors, D&M have utilized their
experience in analogous basins. All of Valeura's prospective resources were sub-classified into the project maturity subclass of 'prospect'.
D&M has assigned a chance of discovery of 70%. This high chance is driven by: (1) the hundreds of legacy wells drilled in the Thrace Basin
which support the geological model for the Teslimkoy and Kesan formations(2) the over-pressured natural gas which was encountered and
tested at Yamalik-1, and (3) the seven legacy wells surrounding the basin which all encountered over-pressured gas below 2,500 m.
D&M has assigned a chance of development of the natural gas prospective resources of approximately 74%, which is a product of the
probability of threshold economic field size and probability of development. This high chance of development reflects that existing hydraulic
fracturing technology is being applied, well depths and costs are not expected to be excessive, sales pipeline infrastructure already exists in
the area and there are ready domestic markets inTurkey for domestic natural gas and condensate sales. This results in an overall chance of
commerciality of 51.1% which is the product of chance of discovery and chance of development.
Understanding of the extent of this basin-centered gas prospect in the Thrace Basin and its potential commerciality is in the early stages of
exploration and appraisal. There are a number of positive and negative factors which are driving large uncertainty. The key positive factors
include:

284
Design work is underway for the production facilities and gathering pipeline to tie-in the Yamalik-1 well to Valeura's existing gathering sales
pipeline infrastructure to enable a long-term production test and natural gas and condensate sales from the well at an anticipated cost of
approximately US$3 MM (gross). First sales from Yamalik-1 are targeted for Q2 2018.
Valeura and Statoil are planning a delineation drilling program comprising three wells expected to commence in Q3 2018 and extend into
2019. The first well in this program will be the second and final earning well under Phase 3 of the Banarli Farm-in to be fully funded by Statoil.
The follow-up delineation drilling program will benefit from the new Karaca 3D seismic in terms of finalizing drilling locations, correlating the
seismic to the Yamalik-1 well results and targeting sweet-spots in the basin-centered gas prospect.
It is expected that the follow-up delineation wells will be drilled to approximately 5,000 mgiven good potential to extend the column of
hydrocarbon-bearing sands. The Yamalik-1 well was drilled to 4,196 m, the limit of the rig capability and well completion, but the base of the
well was still in gas-bearing sands that were successfully flow tested.
Valeura's existing infrastructure and customer base is expected to be capable of handling sales of more than 35 MMcf/d compared to current
sales through the system of less than 10 MMcf/d, thereby providing the opportunity for early production from any future delineation wells.
Turkey is a captive natural gas market given that 99% of its natural gas demand is served by imports. This provides an attractive marketing
opportunity for a domestic natural gas producer. As Valeura's natural gas production volumes potentially grow beyond the limit of its owned
infrastructure, there are multiple take-away opportunities. These include: a potential to tie-in to a pipeline owned by Bori Hatlari ile Petrol
Tasima Anonim Sirketi ("BOTAS") just north of the Banarli landsa tie-in to another BOTAS interconnector pipeline traversing Banarli and
connected to an export line to Greeceand sales to the local gas distributor who currently offtakes gas from the BOTAS pipeline to the north.
Natural gas prices in Turkey are strong. Valeura's average natural gas price realization in Q4 2017 was approximately CAD$6.61/Mcf. On
January 1, 2018, the reference natural gas price set by BOTAS was increased by 14%.
Negative factors with respect to the estimate of prospective resources include:
The basin-centered gas prospect is in the early exploration and delineation cycle with very sparse well control and very limited fracture
stimulation and testing data.
There is no long-term well production performance from the basin-centered prospect to establish a production type curve specific to the
prospect, thereby requiring use of analogue information at this time to establish development plans and to confirm the chance of
commerciality.
Recovery efficiencies are uncertain given the absence of site specific long-term well production performance data in the basin-centered gas
prospect.
The limited deep drilling carried out in the Thrace Basin provides poor visibility on future costs to drill, frac and complete deep development
wells to exploit the basin-centered gas prospect and the associated impact on the chance of commerciality.
Although oil and gas activity has been underway for many decades in the Thrace Basin area, as activity levels increase, timelines may increase
to achieve government and local landowner approvals.
RESERVES UPDATE
For completeness, the Corporation also announces an update on its proved plus probable (2P) gross reserves attributed to its properties in
the Thrace Basin of Turkey. The Corporation has completed an internal assessment (non-independent) which estimates 2P gross reserves of
7.8 MMboe effective December 31, 2017. This represents a significant increase in reserves relative to the reported year-end 2016 and is
attributed to the TBNG acquisition which occurred after the year-end 2016 report. The Corporation expects that the related 2P net present
value of future net revenue before-tax for year-end 2017 will be similar to year-end 2016 as the increase in reserves from the TBNG
acquisition is expected to be mostly offset by a reduction in the forecast gas price.
D&M are currently preparing their independent evaluation of the Corporation's reserves atDecember 31, 2017. This information will be
released in the normal course in March 2018 in conjunction with the release of the 2017 Annual Information Form.

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Jan 16, 2018: TransAtlantic Petroleum Announces Engagement Of Financial Advisor To

Market Company And Provides Updates On Drilling Program & Prospects In Thrace Basin
TransAtlantic Petroleum Ltd. (TransAtlantic Petroleum) announces the formation of a strategic committee of the board of directors and
engagement of a financial advisor to market the Company and explore strategic alternatives to increase shareholder value.
In addition, the Company provides an update on the Company's previously announced drilling program and the Company's evaluation of its
prospects in the Thrace Basin.
Strategic Committee
The Company has formed a strategic committee of the board of directors, headed by Mel Riggs, in order to conduct a marketing process of
the Company. N. Malone Mitchell, 3rd, Chairman and Chief Executive Officer of the Company, stated, "We believe it is time to go forward
with a strategy to market the Company so that it can pursue a stronger capital structure for future development.The strategic committee has
engaged Tudor Pickering Holt & Co. to act as financial advisor. In addition, the Company's legal counsel, Akin Gump Strauss Hauer & Feld LLP,
will be advising the Company in this process.
There is no assurance that the strategic alternatives process will result in the Company completing a sale of the Company or its assets. Except
as described below, the Company does not intend to make any further announcements regarding strategic alternatives unless and until a final
decision has been made by its board of directors. The Company will provide a management presentation and investor update in the first two
weeks of February. At that time, the Company will provide further views on the timeline of this process.
Update on Drilling Program and 3-D Seismic Program
As previously disclosed, on November 28, 2017, DenizBank A.S. (the "Lender) entered into an additional $20.4 million term loan (the "2017
Term Loan) with the Turkish branch of TransAtlantic Exploration Mediterranean International Pty Ltd ("TEMI), a subsidiary of the Company
under the Company's current credit agreement with the Lender. The 2017 Term Loan is in addition to the Company's term loan currently
outstanding with the Lender, as described in the Company's previous periodic reports filed with the Securities and Exchange Commission.
With receipt of proceeds from the 2017 Term Loan, the Company has launched a new drilling program. The Company has executed a drilling
contract with Viking International Ltd. and is currently in the process of mobilizing Rig I-34 from southwest Turkey to the Company's Selmo
81H2 location. The Company estimates that the rig mobilization will be completed and the well will spud in the first week of February 2018
dependent on weather and other conditions. The Company has identified a number of additional well locations to follow.
The Company has acquired approximately 116 square miles of new 3D seismic data during the summer of 2017 as an extension to the
Company's existing 3D seismic coverage in the Molla Area of southeast Turkey. The new 3D seismic data is being processed with anticipated
completion in April 2018. The new 3D seismic data is being merged with the Company's existing seismic data to create one continuous 3D
seismic survey across all of the Company's acreage in the Molla Area.
Update on the Evaluation of Prospects in the Thrace Basin
The Company is continuing to evaluate its prospects in the Thrace Basin in Turkey in light of the recent positive production test results at the
Yamalik-1 exploration well operated by Valeura with their partner Statoil. The Yamalik-1 exploration well is directly adjacent to the Company's
120,000 net acres in the Thrace Basin of which the Company believes approximately 50,000 net acres (100% WI, 87.5% NRI) is analogous to
the Valeura and Statoil acreage.

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Jan 15, 2018: Valeura Provides Operational Update and Announces Board Changes
Valeura Energy Inc. ("Valeura") is pleased to provide an update of operational results for Q4 2017 and the status of the Yamalik-1 well
operations. The Corporation is also pleased to announce the addition of Mr. Russell Hiscock to the board of directors of the Corporation (the
"Board") and the appointment of Mr. Tim Marchant as the Chair of the Board.
FRAC AND TEST EQUIPMENT RELEASED FROM YAMALIK-1 WELL
The Corporation has temporarily suspended testing operations on the Yamalik-1 well and has released the fracing
and testing equipment after accomplishing the primary objectives of the testing. The Yamalik-1 well testing program
was designed to demonstrate that fracing would allow gas to flow to surface from these deep, tight reservoirs, and
without the production of formation water. Both of these factors are key components to demonstrate the presence of
a basin-centred gas accumulation. The production testing results have exceeded expectations. The 24-hour aggregate
production test rate of 2.9 million cubic feet per day ("MMcf/d") from the four production tests in the Kesan
formation was better than modelled. Additionally, the gas was at a higher pressure than expected and the gas flowed
with a significant amount of condensate (with a test data range of 20 to 70 barrels per MMcf).
Valeura stated in its press release on December 27, 2017 that it would attempt to mill out all of the plugs in the well
that were required for the multi-stage fracing operations and if successful, perform a commingled test. In that press
release, Valeura advised of its concern about the limitations of the third-party production test equipment and its
ability to cope with any flowback during this milling operation given the combination of high-pressure gas,
condensate, frac sand and milling debris. This concern was realised while milling the first plug as the surface test
equipment became plugged. The attempted milling operation has not compromised the wellbore or the fraced
reservoirs, and both remain in a state expected to be suitable for testing, tie-in and production. This type of post-frac
clean-out operation is standard in North America.
The Corporation is currently proceeding with engineering and design work to enable Yamalik-1 to be tied into its
gas gathering and sales network. When the pipeline and surface equipment are ready, the Corporation plans to clean
out the well with fit-for-purpose milling and testing equipment. The well would then be further tested and placed on
production through smaller diameter production tubing which should improve the production of natural gas and
condensate from the well, and allow for a better understanding of the performance of the fraced reservoirs. While
the Corporation is targeting to recommence operations by the end of Q1, this timing may be delayed if it is
determined that the high-pressure gas necessitates the use of special completion equipment with a longer
procurement time.
Based on the current cost estimates up until release of the test equipment, the testing operations completed to date

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are expected to be on the budget of US$10.3 million. Under the previously announced Banarli Farm-in Agreement,
Statoil is responsible for all of these testing costs up to 110% of the agreed budget.
Q4 2017 OPERATIONAL HIGHLIGHTS AND SUBSEQENT DEVELOPMENTS
Net petroleum and natural gas sales in Q4 2017 averaged approximately 1,038 barrels of oil equivalent per day
("boe/d"), which was up approximately 1% from Q3 2017 reflecting additions from four well workovers, offset by
natural declines.
December 2017 exit net sales were 929 boe/d compared to earlier guidance of 1,000 to 1,100 boe/d. This shortfall
was due to a decision to defer execution of two well re-entry fracs in the Tekirdag area to late December given the
high activity levels in support of the Yamalik-1 testing program. The two re-entry fracs were successfully completed
in the Kayi-14 and Baglik-1wells in normally-pressured, tight gas sands in the Teslimkoy formation.
A single stage frac was completed in the Kayi-14 well over a depth interval from 1,195 to 1,248 metres. The well
has been on-stream since December 27, 2017 and has produced at an average restricted rate of 0.6 MMcf/d (gross)
through a 22/64" to 26/64" choke over the past 16-day period.
A two-stage frac was completed in the Baglik-1 well on December 28, 2017 over a depth interval from 846 to 938
metres. The well has been on-stream since January 8, 2018 and has produced at an average restricted rate of 1.0
MMcf/d (gross) through a 20/64" to 24/64" choke over the past 4-day period.
Both of these wells are currently on-stream and contributing to the Corporation's gas sales.
BOTAS REFERENCE GAS PRICE UP 14% EFFECTIVE JANUARY 1, 2018
The Corporation's average natural gas price realization in Q4 2017 was approximately CAD$6.61 per thousand
cubic feet ("MCF"), down 5% from Q3 2017 due to weakening of the Turkish Lira ("TL") which is the pricing basis
for Turkish gas sales.
In a positive development, the reference natural gas price in Turkey set by Bori Hatlari ile Petrol Tasima Anonim
Sirketi ("BOTAS") was increased by approximately 14% effective January 1, 2018 to 0.8 TL per cubic meter, or
approximately CAD$7.50/Mcf at the current exchange rate of 3.0 TL/CAD$ (which is subject to change over time).
The Corporation's average natural gas price realizations have historically been at a 2 to 4% discount to the BOTAS
reference price.
RUSSELL HISCOCK APPOINTED TO BOARD AND TIM MARCHANT BECOMES BOARD CHAIR
Mr. Hiscock is the President and Chief Executive Officer of the CN Investment Division (Montreal), which manages

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one of the largest corporate pension funds in Canada. Mr. Hiscock has many years of equity portfolio management
experience in both the Canadian and international stock markets, with particular emphasis on the oil and gas sector.
He is a past Chairman of the Pension Investment Association of Canada (PIAC). Mr. Hiscock holds a Bachelor of
Mathematics degree from the University of Waterloo, a Master of Arts degree in Economics from the University of
Western Ontario and an MBA from the University of Toronto. He is a Certified Chartered Financial Analyst and a
Certified Management Accountant. Mr. Hiscock will serve as a member of the Audit Committee and the
Governance and Compensation Committee of the Board.
Tim Marchant stated, "We welcome Russell Hiscock to Valeura Energy. His deep experience of global investment
markets will be a valuable addition to the Board."
Mr. Tim Marchant has been appointed as Chair of the Board replacing Mr. William T. Fanagan, who requested for
health reasons to step down as Chair. Mr. Fanagan will continue to serve on the Board as a director and as the Chair
of the Audit Committee. The Corporation would like to thank Mr. Fanagan for his dedication and service to the
Corporation as Board Chair since the Corporation's inception.

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Jan 02, 2018: Valeura Announces Completion Of CEO Succession Plan

Valeura Energy Inc. ("Valeura" or the "Corporation") is pleased to announce the appointment of Sean Guest as the Chief Executive Officer of
the Corporation effective January 1, 2018.
The appointment of Sean is the final step of the Corporation's CEO succession plan announced on October 19, 2017. Sean was hired as the
Chief Operating Officer of the Corporation in May 2017 and assumed the role of President of the Corporation on October 19, 2017. Sean
replaces Jim McFarland who has retired from executive duties but will continue to serve on the Board and provide consulting services to the
Corporation.

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Dec 27, 2017: Valeura reports production testing progress (Test 4) at Yamalik-1 well
Valeura Energy has reported that the fourth production test in the Kesan formation at the Yamalik-1 exploration well in Turkey ("Test 4") has
been completed with positive results. The results of the three earlier production tests in the Kesan formation were announced on November
27, 2017, December 11, 2017 and December 18, 2017, respectively.
to 3,461 metres. The well was produced for a total of 41 hours. Over the final 24 hours of the test, the well was produced at an average
restricted rate of approximately 0.4 million cubic feet per day ("MMcf/d") of natural gas. This result increases the aggregate 24-hour tested
production rate from the four completed tests to approximately 2.9 MMcf/d.
Condensate production in the range of 30 to 50 barrels per MMcf was observed in Test 4. As in Test 2 and Test 3, the condensate
measurement is subject to considerable uncertainty given the nature of the testing protocol and the short duration of the testing.
Test 4 completes the planned production testing of the well. However in a change from earlier plans, the Corporation now plans to mill out
the bridge and flow-through plugs in the well and flow all of the intervals in a commingled fashion within the 5.5 inch production casing string.
There are some limitations with the surface testing equipment that may not enable this planned clean-out and commingled production
testing operation to be completed at this time. If so, the well will be suspended until such time as it can be tied into the natural gas-gathering
system in the area. This tie-in is planned for late Q1 2018 subject to partner approvals on funding. At that time, it is expected that the well will
be cleaned out with fit-for-purpose testing equipment and placed on production through smaller diameter production tubing, which should
facilitate flow-back of the remaining frac fluids and ongoing production of natural gas and condensate from the well.

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Dec 18, 2017: Valeura reports production testing progress (Test 3) at Yamalik-1 Well
Valeura Energy has reported that the third of four planned production tests in the Kesan formation at the Yamalik-1 exploration well in Turkey
(Test 3) has been completed with positive results. The results of the first production test (Test 1) and the second production test (Test 2) were
announced on November 27, 2017 and December 11, 2017, respectively.
to 3,635 metres. The well was produced for a total of 37 hours. Over the final 24 hours of stable flow, the well was produced at an average
restricted rate of approximately 0.9 million cubic feet per day ("MMcf/d") of natural gas. This rate compares to the final 24-hour rate of 0.8
MMcf/d in both Test 1 and Test 2.
Condensate production in the range of 20 to 30 barrels per MMcf was observed in Test 3. The condensate measurement is subject to
considerable uncertainty given the nature of the testing protocol and the short duration of the testing.
The Yamalik-1 testing program is continuing and it is expected that a bridge plug will be set above the Test 3 interval prior to executing a
planned two-stage frac in the fourth test interval at a mid-point depth of approximately 3,400 metres

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Dec 11, 2017: Valeura Updates Production Testing Progress At Yamalik-1 Well
Valeura Energy Inc. ("Valeura" or the "Corporation") is pleased to report that the second of four planned production tests in the Kesan
formation at the Yamalik-1 exploration well in Turkey ("Test 2") has been completed with positive results. The results of the first production
test ("Test 1") were announced on November 27, 2017.
to 3,968 metres. After establishing steady flow, the well was produced continuously for 39 hours. Over the final 24 hours of the test the well
was produced at an average restricted rate of approximately 0.8 million cubic feet per day ("MMcf/d") of natural gas. A similar final 24-hour
natural gas rate was achieved in Test 1.
The initial production rate for several hours from Test 2 was higher than the initial rate measured in Test 1. However, surface pressure
measurements suggest that several hours into Test 2, there was a failure of downhole equipment that appears to have obstructed production
for the remainder of the test period, including the final 24-hour test rate noted above. Condensate production in the range of 30 to 40 barrels
per MMcf was observed in this test. The condensate measurement is subject to considerable uncertainty given the nature of the testing
protocol and the short duration of the testing.
The Yamalik-1 testing program is continuing and a bridge plug has been set above the second test interval prior to executing a planned two-
stage frac in the third test interval at a depth of approximately 3,550 metres.

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Nov 27, 2017: Valeura Announces Positive Interim Production Test Results And Confirms
Natural Gas And Condensate Discovery At Yamalik-1 Well
Valeura Energy Inc. ("Valeura" or the "Corporation") is pleased to report positive interim production test results at the Yamalik-1 exploration
well in Turkey and to confirm Yamalik as a natural gas and condensate discovery.
Yamalik-1 is the first deep exploration well drilled under Phase 1 of the Banarli farm-in agreement with its partner Statoil Banarli Turkey B.V.
and is the Corporation's first test of the deep, basin-centred gas potential in the Thrace Basin of northwest Turkey. The well was drilled
through over-pressured formations below 2,500 metres to a total drilled depth of 4,196 metres. A comprehensive 60-day testing program
commenced in early November 2017 comprising four planned production tests with two frac stages per test interval (eight stages in total),
starting at the bottom of the well.
The first of the four planned production tests has been successfully completed in the Kesan formation. Two slick-water fracs were completed
in the first production test interval to access approximately 15 metres of indicated net gas pay over a depth interval from 3,996 to 4,147
metres. After establishing steady flow, the well was produced continuously for 44 hours through a range of choke sizes and was concluded on
November 25, 2017. Over the final 24 hours of the test the well was produced at an average restricted rate of approximately 0.8 million cubic
feet per day ("MMcf/d") of natural gas and 60 to 70 barrels per day of 56o API gravity condensate (70 to 80 barrels per MMcf). At the end of
the test, the well was still cleaning up.
This 44-hour flow period for the first production test was viewed as sufficient for preliminary internal evaluation purposes. As disclosed
previously, if the aggregate production tests are sufficiently positive, it is planned to tie-in Yamalik-1 to Valeura's existing pipeline and facility
infrastructure to enable a long term production test and to generate gas and liquids sales.
The estimated initial bottom hole pressure in the well is in the range of 10,700 to 11,200 pounds per square inch ("psi") based on a
preliminary analysis of a diagnostic fracture injection test carried out in advance of the first stage frac. This pressure is higher than estimated
from mud weights during drilling and represents a pressure gradient from surface of 0.80 to 0.84 psi/ft (18.1 to 19.0 kilopascals per metre) or
85 to 94% higher than a normal water pressure gradient.
Although the Corporation had previously advised that aggregate test results would be disclosed at the end of the test program after all four
planned production tests were completed, these interim production test results have exceeded expectations and are viewed as material to
the Corporation. The results are also encouraging given that this first production test was in the deepest and lowest porosity test interval.
Additionally, the test only accessed approximately 10% of the planned total net pay to be production tested in the well. The condensate
content of the gas was also much higher than expected and is a significant value addition to any future on-stream sales.
These positive interim production test results have increased the likelihood that Yamalik-1 will be tied in at the conclusion of the testing
program. Accordingly, the Corporation is commencing engineering and design work to be positioned for a timely tie-in. Any future sales from
Yamalik-1 will benefit from strong commodity prices in Turkey. In Q3 2017, the Corporation's realized prices for natural gas and liquids were
$6.98 per thousand cubic feet and $65.16 per barrel, respectively.
The Yamalik-1 testing program is continuing and a bridge plug has been set above the first test interval prior to executing a planned two-stage
frac in the second test interval at a depth of approximately 3,950 metres.

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Nov 14, 2017: Valeura Announces Third Quarter 2017 Financial And Operating Results And
Commencement Of Yamalik-1 Testing Program
three and nine month periods ended September 30, 2017 and an update on subsequent developments, including the commencement of the
Yamalik-1 Testing Program and implementation of an orderly CEO succession plan.
"We are pleased to report that the completion, multi-stage fracing and flow testing program for the Yamalik-1 well (the "Yamalik-1 Testing
Program") is now underway", said Jim McFarland, Chief Executive Officer. "The Yamlik-1 well will provide the first substantive evaluation of
the potential of a basin-centered gas play in the Thrace Basin. As such, we are at the front-end of what is expected to be a steep learning
curve going by industry's experience in developing other unconventional resource plays. We had a good start to the evaluation with positive
drilling results in the Yamalik-1 well. The testing program will provide critical information on reservoir properties and flow capability of the
deep over-pressured tight gas sands encountered in the well. In parallel a third party resource assessment is underway which will frame for
the first time the potential size of the basin-centered gas play in the Thrace Basin", added McFarland.
Yamalik-1 Testing Program underway
Net sales 1,024 boe/d
Funds flow from operations $1.2 million
Working capital surplus $5.5 million
Natural gas price realization $6.98/Mcf
Operating netback $22.66/boe
Exploration & development capital expenditures $5.0 million
Sean Guest to succeed Jim McFarland as CEO on his retirement December 31, 2017
Net petroleum and natural gas sales in Turkey in Q3 2017 averaged 1,024 barrels of oil equivalent per day ("boe/d"), which was up 10% from
Q2 2017 reflecting additions from new drill wells and workovers, partially offset by natural declines. Net sales were up 51% from Q3 2016
reflecting the acquisition of Thrace Basin Natural Gas (Turkiye) Corporation ("TBNG"), which closed on February 24, 2017 (the "TBNG
Acquisition"), and additions from new drills and workovers, partially offset by natural declines. Net sales in Q3 2017 included 6.1 million cubic
feet per day ("MMcf/d") of natural gas, representing more than 98% of net petroleum and natural gas sales.
Current net sales are approximately 1,100 boe/d.
The Yamalik-1 Testing Program commenced in early November 2017 and is expected to extend over a period of approximately 60 days.
Yamalik-1 is the first deep exploration well under Phase 1 of the Banarli farm-in agreement with Statoil Banarli Turkey B.V. ("Statoil") (the
"Banarli Farm-in") and was drilled to a depth of 4,196 metres. Interpretation of the extensive drilling and wireline logging data from the
Yamalik-1 well provided further positive indicators of the potential for a basin-centered gas play in the Thrace Basin of Turkey.
the first deep well to be extensively tested in pursuit of a basin-centered gas play in the Thrace Basin, the program is targeting to
systematically assess reservoir properties and flow capability of several high-graded intervals with varying reservoir quality representing, in

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aggregate, less than half of the net pay measured in the well. The program is expected to include four production tests with two frac stages
per test interval (eight stages in total).
development well.
If the aggregate flow test results are sufficiently positive, it is planned to tie-in Yamalik-1 to Valeura's existing pipeline and facility
infrastructure to enable a long-term production test, while at the same time generating additional natural gas sales.
Two frac stages in the first flow test interval in the Kesan formation below 4,000 metres are expected to be completed this week. The
Corporation plans to report aggregate flow test results at the conclusion of the testing program after all eight planned frac stages have been
completed.
The Karaca 3D seismic program under Phase 2 of the Banarli Farm-in commenced on June 18, 2017 and the acquisition step was completed on
September 20, 2017 within the planned timeline and budget. Statoil is required to fully fund US$10 million on 3D seismic acquisition and
processing under Phase 2. Approximately 500 square kilometres of 3D seismic has been acquired. This increases Valeura's 3D seismic
coverage on its acreage in the Thrace Basin to more than 1,300 square kilometres.
Processing of the new 3D seismic is underway and should be completed late in Q1 2018. An initial fast-track processing step will provide
preliminary data before year-end 2017 to support planning for the 2018 deep drilling program. This drilling program is expected to include the
Phase 3 well under the Banarli Farm-in.
The Karaca 3D seismic will also be used by Valeura to build on its portfolio of shallow gas prospects.
Valeura has commissioned DeGolyer and MacNaughton ("D&M") of Dallas, Texas to provide a resource assessment (the "D&M Resource
Assessment") under the Canadian Oil and Gas Evaluation Handbook and in accordance with National Instrument 51-101, Standards of
Disclosure For Oil and Gas Activitiesfor the potential basin-centered gas play underlying Valeura's significant acreage position in the Thrace
Basin. The D&M Resource Assessment will be timed to incorporate the results from the Yamalik-1 Testing Program.
Upon assuming operatorship of the TBNG JV, Valeura put a renewed emphasis on well workovers to mitigate natural declines. To date the
Corporation has completed 29 workovers on the TBNG JV lands and three on the Banarli licences, including eight workovers in total in Q3
2017.
Valeura has completed its planned 2017 shallow gas drilling campaign, which included five wells on the TBNG JV lands and one well on the
Banarli licences. In summary, three of these wells Dogu Atakoy-3, Dogu Kilavuzlu-2 and Koseilyas-2 were cased and tied-in and are currently
producing. Two other wells Sariyer-1 and Aydinkoy-1 were cased but tested insufficient natural gas volumes to justify tie-in. These two wells
remain under evaluation. A sixth well Karaevli-6 was unsuccessful and was plugged and abandoned.

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Funds flow from operations of $1.2 million in Q3 2017 was up 21% from Q2 2017 due to higher volumes, lower net general and administrative
expenses and lower operating costs, partially offset by lower natural gas price realizations and higher realized foreign exchange losses. Funds
flow from operations in Q3 2017 was up 9% from Q3 2016 due to higher volumes and lower transaction costs, partially offset by lower natural
gas price realizations, higher operating costs and higher realized foreign exchange losses. (See discussion below regarding non-IFRS
measures).
Exploration and development capital expenditures were $5.0 million in Q3 2017, up 24% and 62% from Q2 2017 and Q3 2016, respectively,
The net working capital surplus at September 30, 2017 was $5.5 million including cash of $3.0 million(excludes restricted cash of $3.4 million).
The average natural gas price realization in Turkey of $6.98 per thousand cubic feet ("Mcf") in Q3 2017 was down 5% from Q2 2017 due to
some weakening in the value of the Turkish Lira, and down 25% from Q3 2016 due to a 10% reduction in the BOTAS Reference Price (in
The average operating netback of $22.66 per boe in Q3 2017 was up marginally from Q2 2017 due to lower unit operating costs and lower
unit royalties, partially offset by lower natural gas price realizations, and down 41% from Q3 2016 due to lower natural gas price realizations
and higher unit operating costs, partially offset by lower unit royalties. The operating netbacks for 2017 are well below the forecasted average
operating netback of $35.00 per boe due to lower natural gas price realizations, which have been negatively impacted by a further
devaluation of the Turkish Lira, and higher operating costs.
EXECUTIVE CHANGES
As announced previously, a seamless transition of executive leadership of the Corporation is progressing.Sean Guest, who was hired as
Valeura's Chief Operating Officer in May 2017, has assumed the additional role of President and will become President and CEO upon the
retirement of Jim McFarland on December 31, 2017. Mr. McFarland will remain as CEO in the interim period and will continue to serve on the
board of directors and provide consulting services to the Corporation.
OUTLOOK
The Corporation continues to believe that the deep basin-centered gas play in the Thrace Basin provides the most significant upside potential
in its asset portfolio in Turkey. Results from the Yamalik-1 Testing Program will be important in shedding additional light on this potential. The
Corporation holds participating interests of 31.5% (West Thrace lands) to 50% (Banarli licences post Statoil earning) in the deep rights in
almost 0.2 million gross acres of land that are prospective for a basin-centered gas play. The D&M Resource Assessment will also provide the
first measure of this play potential and help frame the upside for shareholders.
Preliminary plans to further delineate the basin-centered gas play in 2018 are being developed. Under the Banarli Farm-in, Statoil must drill,
complete and test one additional deep well to earn its 50% interest in the deep rights on the Banarli licences.
The Corporation also believes there is a meaningful shallow gas business in the Thrace Basin and remains focused on developing a viable
exploitation plan that incorporates well workovers and re-completions, drilling and selective fracing programs. Valeura operates and holds
interests in 0.5 million gross acres of land. Following the closing of the TBNG Acquisition in early 2017, Valeura holds participating interests of
81.5% (TBNG JV lands) to 100% (Banarli licences) in the shallow rights on these lands. The 2018 shallow gas drilling program will be
determined once the new Karaca 3D seismic is integrated with the lessons learned from the shallow gas drilling and tight gas fracing programs
over the past six years.
The Corporation's outlook for 2017 exit rate net sales remains unchanged from earlier guidance, with a target range of 1,000 to 1,100 boe/d
on the basis of a 7% reduction in the 2017 capital program to $12 to $13 million (net). In Q4 2017, the Corporation is planning to carry out re-
entry fracs in two wells on the TBNG JV South Thrace lands targeting normally pressured tight gas formations. This frac program builds on the
extensive tight gas frac program carried out by the TBNG JV in the 2011 to 2015 period.

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The Corporation will remain committed to safe operations and ensuring that operational and administrative functions are conducted in the
most cost efficient way, with targeted cost reductions in the 2018 budget.
The Corporation does not expect to provide guidance on its 2018 work program and budget until Q1 2018, pending the results of the Yamalik-
1 Testing Program and its impact on further deep drilling under the Banarli Farm-in, the reset of the shallow gas drilling inventory and further
discussion with partners.

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Oct 17, 2017: Valeura Announces Yamalik-1 Testing Program And Operational Update
Valeura Energy Inc. ("Valeura" or the "Corporation") is pleased to announce agreement with Statoil Banarli Turkey B.V. ("Statoil") on the
scope and budget for the completion, multi-stage fracing and flow testing program for the Yamalik-1 well (the "Yamalik-1 Testing Program").
The well is the first deep exploration well under Phase 1 of the Banarli farm-in agreement with Statoil (the "Banarli Farm-in") and was drilled
to a depth of 4,196 metres. Interpretation of the extensive drilling and wireline logging data from the Yamalik-1 well provided further positive
indicators of the potential for a basin-centred gas play in the Thrace Basin of Turkey. Valeura currently holds interests in a large land position
of 0.5 million gross acres in the Thrace Basin, of which approximately 0.2 million gross acres may be prospective for this play. Equipment is
currently being mobilized to the Yamalik-1 well site and the Yamalik-1 Testing Program is expected to commence during November 2017.
YAMALIK-1 TESTING PROGRAM AGREED
the first deep well to be extensively tested in pursuit of a basin-centered gas play in the Thrace Basin, the program is targeting to maximize
information on reservoir properties and flow capability of several high-graded intervals.
The key elements of the program are as follows:
Four production tests are planned with two frac stages per test interval (eight stages in total)
The duration of the Yamalik-1 Testing Program is expected to be approximately 60 days
development well.
If the aggregate flow test results are sufficiently positive, it is planned to tie-in the well to Valeura's existing pipeline and facility infrastructure
to enable a long-term production test, while at the same time generating additional natural gas sales.
RECORDING COMPLETED ON BANARLI 3D SEISMIC PROGRAM
Under Phase 2 of the Banarli Farm-in, Statoil is required to fully fund US$10 million on 3D seismic acquisition and processing.
The recording stage of the Karaca 3D seismic program under Phase 2 commenced on June 18, 2017 and was completed on September 20,
2017 within the planned timeline and budget. Approximately 500 square kilometres of 3D seismic has been acquired. This increases Valeura's
3D seismic coverage on its acreage in the Thrace Basin to more than 1,300 square kilometres.
Processing of the new 3D seismic is underway and should be completed late in Q1 2018. However, faster processing approaches are being
assessed, which would provide early preliminary data to support planning for the 2018 deep drilling program. This program is expected to
include the Phase 3 well under the Banarli Farm-in.
The new 3D seismic will also be used by Valeura to build on its portfolio of shallow gas prospects.
RESOURCE ASSESSMENT FOR BASIN-CENTERED GAS PLAY UNDERWAY
Given the positive results from the Yamalik-1 well, Valeura has commissioned DeGolyer and MacNaughton ("D&M") of Dallas, Texas to
provide a resource assessment under the Canadian Oil and Gas Evaluation Handbook and in accordance with National Instrument 51-101,
Standards of Disclosure For Oil and Gas Activities for the potential basin-centered gas play underlying Valeura's significant acreage position in
the Thrace Basin. D&M has been Valeura's independent reserves evaluator since the Corporation was formed. Completion of this resource
assessment will be timed to incorporate the results from the Yamalik-1 Testing Program.
OUTLOOK
The Corporation has always viewed the deep basin-centered gas play as providing the most significant upside potential in its asset portfolio.
The Yamalik-1 Testing Program will be important in shedding additional light on this potential. Preliminary plans to further delineate the
basin-centered gas play in 2018 are being developed. Under the Banarli Farm-in, Statoil must drill, complete and test one additional deep well
to earn its 50% interest in the deep rights on the Banarli licences.

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The Corporation continues to believe there is a meaningful conventional shallow gas business in the Thrace Basin where it holds interests in
0.5 million gross acres of land. Following the acquisition of Thrace Basin Natural Gas (Turkiye) Corporation ("TBNG") in early 2017, Valeura
holds participating interests of 81.5 to 100% in the shallow rights on these lands. In Q3 2017, Valeura's conventional shallow gas business
delivered net petroleum and natural gas sales averaging 1,024 barrels of oil equivalent per day (99% natural gas), up almost 10% from Q2
2017. The 2018 conventional drilling program will be determined once the new Karaca 3D seismic is integrated with the lessons learned from
the shallow gas drilling and tight gas fracing programs over the past six years.
In managing the business, the Corporation remains committed to safe operations and ensuring that operational and administrative functions
are conducted in the most cost efficient way.
Turkey remains a very attractive place to do business, with a competitive fiscal and royalty regime. There is a ready domestic market for any
increased natural gas sales as Turkey has experienced some of the fastest growth in energy demand since 2010 among OECD countries and
currently imports more than 99% of its consumption. Natural gas prices are about double those in North America with Valeura's natural gas
price realization being $6.98 per thousand cubic feet in Q3 2017.

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Aug 10, 2017: Valeura Announces Second Quarter 2017 Financial And Operating Results
three and six month periods ended June 30, 2017 and an update on subsequent developments.
"We are very excited about the drilling results at the Yamalik-1 deep exploration well, which have exceeded our expectations in terms of the
extent of over-pressure, gas saturations and net pay, based on the drilling and wireline log analysis", said Jim McFarland, President and Chief
Executive Officer. "We are working diligently with Statoil to design a fulsome completion, multi-stage fracing and testing program and to
begin execution by early Q4 2017. In the meantime, the new 500 square kilometre 3D seismic program funded by Statoil is progressing well
with target completion of the recording phase by early in Q4 2017. Discussions are also underway with Statoil on the program for 2018. Under
the Banarli farm-in agreement (the "Banarli Farm-in"), Statoil Banarli Turkey B.V. ("Statoil") must drill, complete and test a second deep
exploration well to earn 50% in the deep rights, with Valeura retaining 50%.
"The planned seven well shallow gas drilling program in 2017 is nearing completion with five wells drilled to date, all of which have been
cased. While production additions in aggregate from these new wells are below expectations, two of the wells were commitment wells which
are expected to hold the shallow and deep rights on the West Thrace lands.
Our extensive workover program in 2017 has delivered strong results and has been decisive in mitigating natural declines. We plan to pause
the shallow gas drilling program after the sixth planned well, Karaevli-6, in order to assess drilling results and well performance to date,
refresh the prospect portfolio and seek required government approvals for any new locations. This pause also provides us with financial
flexibility in the event the pace of the deep program with Statoil is accelerated in 2018, based on the positive deep drilling results to date",
adds McFarland.
- Yamalik-1 deep exploration well drilled with positive evaluation results
- Net sales 934 boe/d
- Funds flow from operations $1.0 million
- Working capital surplus $8.6 million
- Natural gas price realization $7.34/Mcf
- Operating netback $22.38/boe
- Exploration & development capital expenditures $4.0 million
TRANSACTIONAL HIGHLIGHTS
- An affiliate of Valeura closed the sale of an additional 10% participating interest in the deep rights on the West Thrace lands in the Thrace
Basin of Turkey to Statoil on June 22, 2017 for US$3 million ($4.0 million) (the "Subsequent West Thrace Deep Rights Sale"), following receipt
of Turkish government approvals.
- Net petroleum and natural gas sales in Turkey in Q2 2017 averaged 934 barrels of oil equivalent per day ("boe/d"), which was up 16% from
Q1 2017 reflecting the acquisition of Thrace Basin Natural Gas (Turkiye) Corporation ("TBNG"), which closed on February 24, 2017 (the "TBNG
Acquisition"). Net sales were unchanged from Q2 2016, with additions from the TBNG Acquisition, well workovers and one new drill being
offset by natural declines. Net sales in Q2 2017 included 5.6 million cubic feet per day ("MMcf/d") of natural gas, representing more than 99%
of net petroleum and natural gas sales.
- Current net sales are approximately 1,100 boe/d reflecting additions from workovers and new drills, partially offset by natural declines.

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- The first deep exploration well, Yamalik-1, under the Phase 1 of the Banarli Farm-in with its partner Statoil, was spudded on May 13, 2017
and was rig released on July 22, 2017. The well was operated by Valeura and drilled to a total depth of 4,196 metres and has been cased and
left in a state ready for completion and production testing. The estimated well cost at rig release was within budget despite the additional
time required to drill 200 metres deeper and acquire additional core based on positive drilling results. Under the Banarli Farm-in, Statoil is
funding the drilling of Yamalik-1 on a 100% basis up to a cap of 110% of the budgeted cost.
- Yamalik-1 was designed as the Corporation's first test of the deep, basin-centred gas potential in the Thrace Basin. The key objectives of this
well were to prove the presence of reservoir rock, confirm that the encountered reservoirs are over-pressured, and to demonstrate that there
are significant sections of the reservoirs which are gas-saturated.
- Encouraging gas shows were encountered while drilling the objective section in Yamalik-1 and, based on the drilling data, the well is over-
pressured below approximately 2,900 metres down to the total drilled depth of 4,196 metres. Interpreted pressures were up to 0.79 pounds
per square inch per foot (17.9 kilopascals per metre) or 82% higher than a normal water gradient. Interpretation of the extensive wireline
logging data acquired in the objective section indicates the well has exceeded the criteria to proceed further with the completion and to test
potential zones with hydraulic stimulation. As the well was drilled in an area with no structural closure, the over-pressures and the indicated
pervasive gas saturation in the well are positive indicators of the potential for a basin-centred gas play.
- Further analysis of the Yamalik-1 well logs and 130 metres of new core data is progressing to finalize the design and cost estimate for the
completion and testing program, which is expected to commence by early Q4 2017. Commerciality of the Yamalik-1 well will be determined
after the completion and testing program.
- The Karaca 3D seismic program under Phase 2 of the Banarli Farm-in is also well underway, with more than 180 square kilometres recorded
to date out of a planned scope of approximately 500 square kilometres. The survey is expected to be completed by early Q4 2017 with Statoil
funding 100% of the agreed budget of US$10 million. Valeura is also the operator of the seismic program.
- Upon assuming operatorship of the TBNG JV, Valeura put a renewed emphasis on well workovers to mitigate natural declines. To date the
Corporation has completed 27 workovers which have essentially offset natural declines in the production base.
- Valeura has to date also drilled and cased five of the planned seven shallow gas wells budgeted for 2017, of which three wells are on-stream,
one well has been completed but remains under evaluation and a fifth well is preparing to complete and test. Two of these wells, Dogu
Atakoy-3 drilled in Q1 2017 and Sariyer-1 drilled in Q2 2017, were commitment wells that are expected to hold the shallow and deep rights on
the West Thrace lands.
- In Q2 2017 the second well in the 2017 program, Dogu Kilavuzlu-2, located on the TBNG JV lands at South Thrace (Valeura 81.5%
participating interest) was spudded on May 22, 2017 and drilled to a total depth of 1,260 metres and cased. The well is tied-in and has been
on-stream since June 30, 2017. The well is currently producing at a rate of approximately 0.1 MMcf/d (gross).
- The third well in the program, Sariyer-1, located on the TBNG JV lands at West Thrace (Valeura 81.5% participating interest) was spudded on
June 7, 2017 and drilled to a total depth of 2,420 metres and cased. The most attractive zone at a depth of 2,050 metres was perforated and
on a short six-hour test, flowed at a rate of approximately 20 barrels of oil and 460 barrels of water per day. This liquids discovery is under
review, including correlations with another offsetting small oil producer Bati Kazanci-4. (See advisories below regarding well-test flow rates).
- The fourth well in the program, Koseilyas-2, located on the TBNG JV lands at South Thrace (Valeura 81.5% participating interest) was
spudded on July 6, 2017 and drilled to depth of 1,107 metres and cased. The well is tied-in and has been on-stream since August 9, 2017. The
well is currently producing at a rate of approximately 0.9 MMcf/d (gross).
- The fifth well in the program, Aydinkoy-1, located on the Banarli licences (Valeura 100% participating interest) was spudded on July 19, 2017
and drilled to a total depth of 2,821 metres and cased. Preparations are underway to complete and test the well.
- The Corporation expects to spud the sixth shallow gas well in the 2017 program at Karaevli-6 on the South Thrace lands (Valeura 81.5%
participating interest) with a target depth of 1,100 metres.
- Funds flow from operations was $1.0 million in Q2 2017 compared to funds flow used in operations of $2.9 million in Q1 2017 reflecting the
absence of non-recurring expenses associated with the TBNG Acquisition, which closed in Q1 2017. Funds flow from operations in Q2 2017

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was down 54% from Q2 2016 due to lower natural gas price realizations and higher operating costs (operational employee bonuses and non-
recurring maintenance expense), partially offset by lower royalties.
- Exploration and development capital expenditures were $4.0 million in Q2 2017, up 107% and 25% from Q1 2017 and Q2 2016, respectively,
- Dispositions of $4.0 million in Q2 2017 reflect the funds received from Statoil for the Subsequent West Thrace Deep Rights Sale.
- The net working capital surplus at June 30, 2017 was $8.6 million, including cash of $9.9 million (excludes restricted cash of $3.6 million).
- The average natural gas price realization in Turkey of $7.34 per thousand cubic feet ("Mcf") in Q2 2017 was up 4% from Q1 2017 due to
some strengthening in the value of the Turkish Lira, and down 22% from Q2 2016 due to a 10% reduction in the BOTAS Reference Price (in
- The average operating netback of $22.38 per boe in Q2 2017 was down 22% from Q1 2017 due to higher unit operating costs (reflecting
non-recurring expense) and higher unit royalties, partially offset by higher natural gas price realizations, and down 48% from Q2 2016 due to
lower natural gas price realizations and higher unit operating costs, partially offset by lower unit royalties. The operating netbacks for 2017
are well below the forecasted average operating netback of $35.00 per boe due to lower natural gas price realizations, which have been
negatively impacted by a further devaluation of the Turkish Lira, and higher operating costs. (See discussion below regarding non-IFRS
measures).
2017 OUTLOOK
Given the positive drilling results on the Yamalik-1 well, the completion, multi-stage fracing and testing program is expected to proceed under
the Banarli Farm-in and commence by early Q4 2017. The recording phase of the Statoil funded Karaca 3D seismic program is expected to be
completed by early in Q4 2017 with processing to follow. Completion of these programs would fulfill Phase 1 and 2 of the Banarli Farm-in. To
earn 50% in the deep rights, Statoil would need to commit to Phase 3, which requires the drilling, completion and testing of a second deep
well with a minimum depth of 4,000 metres and a minimum investment of US$10 million. Discussions are underway with Statoil to develop
the plan for the joint venture in 2018, including the number of wells to drill, complete and test, including potential post-earning drilling.
The Corporation plans to spud the sixth well in the 2017 shallow gas drilling program at Karaevli-6 on the TBNG JV lands in late August 2017,
following which the program will be paused to assess results to date, refresh the portfolio and seek government approvals for new drilling
locations. The Corporation is looking forward to early interpreted results from the new 500 square kilometre Karaca 3D seismic program,
which should be available in Q1 2018. This new seismic is expected to add to the shallow gas prospect and lead inventory on the Banarli
licences and West Thrace lands.

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Jul 24, 2017: Valeura Announces Rig Release From Yamalik-1 Well And Positive Evaluation
Results
Valeura Energy Inc. ("Valeura" or the "Corporation") is pleased to announce that the first deep exploration well, Yamalik-1, under Phase 1 of
the Banarli farm-in agreement (the "Banarli Farm-in") with its partner Statoil Banarli Turkey B.V. ("Statoil"), has completed drilling and the drill
rig has been released.
The well was drilled to a total depth of 4,196 metres and has been cased and left in a state ready for completion and production testing. The
estimated well cost at rig release is within budget. Under the Banarli Farm-in, Statoil is funding the drilling of Yamalik-1 on a 100% basis up to
a cap of 110% of the budgeted cost.
Yamalik-1 was designed as the Corporation's first test of the deep, basin-centred gas potential in the Thrace Basin of northwest Turkey. The
key objectives of this well were to prove the presence of reservoir rock, confirm that the encountered reservoirs are over-pressured, and to
demonstrate that there are significant sections of the reservoirs which are gas-saturated. Encouraging gas shows were encountered while
drilling the objective section and, based on the drilling data, the well is over-pressured below approximately 2,900 metres down to the total
drilled depth of 4,196 metres. Interpretation of the extensive wireline logging data acquired in the objective section indicates the well has
exceeded the criteria to proceed further with the completion and to test potential zones with hydraulic stimulation. As the Yamalik-1 well was
drilled in an area with no structural closure, the over-pressures and the indicated pervasive gas saturation in the well are positive indicators of
the potential for a basin-centred gas play in the Thrace Basin.
Valeura is currently working with Statoil to design the completion, multi-stage fracing and testing program. Further analysis of the Yamalik-1
well logs and 130 metres of new core data is in progress in order to finalize the design and cost estimate for the completion and testing. It is
expected that the completion and testing program will commence late in the third quarter of 2017. Under the Banarli Farm-in, Statoil will pay
100% of the completion and testing program up to a cap of 110% of the agreed budget. Commerciality of the Yamalik-1 well will be
determined after the completion and testing program.
After the testing of Yamalik-1 is complete, the Corporation anticipates having improved data to assess the extent of the resources in the
tested formations. The Corporation will then work with its partner Statoil to determine potential future work programs for continued
delineation of the basin-centered gas play.
In further advancement of the Banarli Farm-in, Statoil is proceeding with Phase 2 of the farm-in agreement, which comprises the acquisition
of 3D seismic across the Banarli Farm-in lands and parts of the West Thrace lands not currently covered with 3D seismic. Shooting of the
seismic has already commenced, with more than 76 square kilometres recorded to date out of a planned scope of approximately 500 square
kilometres. The survey is expected to be completed by early in the fourth quarter of 2017 with Statoil funding 100% of the agreed budget of
US$10 million.

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Jun 22, 2017: Valeura Announces Closing Of Subsequent West Thrace Deep Rights Sale To
Statoil And Operational Update
Valeura Energy Inc. ("Valeura" or the "Corporation") has announced the closing of a sale by an affiliate of Valeura of a 10% participating
interest in the deep rights on its West Thrace lands in the Thrace Basin of Turkey to Statoil Banarli Turkey B.V. ("Statoil") for US$3.0 million
($4.0 million) (the "Subsequent West Thrace Deep Rights Sale"), following receipt of Turkish government approvals.
These funds will be directed to Valeura's shallow gas drilling program in the Thrace Basin.
As a result of this sale transaction, Statoil increases its participating interest to 50% and Valeura retains a 31.5% participating interest in the
deep formations below 2,500 metres on the West Thrace lands, which include two exploration licences F17-C and F18-D and three production
leases 2926, 3659 and 3734-5122. Valeura also retains an 81.5% interest in the shallow formations. The West Thrace lands cover a gross area
of 174,046 acres.
Closing of the Subsequent West Thrace Deep Rights Sale completes a series of four inter-linked and transformational transactions executed in
2016/2017 including: the US$36 million Banarli farm-in agreement with Statoilthe US$15 million sale of deep rights on the West Thrace lands
to Statoil (two tranches of proceeds)the US$20.7 million acquisition of Thrace Basin Natural Gas (Turkiye) Corporation ("TBNG")and the $11
million (gross proceeds) underwritten private placement of subscription receipts. These transactions have reset the business and positioned
the Corporation to move forward on a new growth plan focused on ramping-up shallow gas drilling to grow production, and exploring for a
potential high impact, deep, basin-centered gas play in the Thrace Basin with its partner Statoil.
OPERATIONAL UPDATE
The first deep exploration well, Yamalik-1, under Phase 1 of the Banarli farm-in agreement with its partner Statoil commenced drilling on May
13, 2017. Intermediate casing has been set at 2,609 metres. Coring operations are underway below 3,000 metres. The target total depth of
the well is 4,000 metres with an expected timeline from spud to rig release of approximately 60 days.
The acquisition stage of the 3D seismic program under Phase 2 of the Banarli farm-in agreement commenced on June 18, 2017. Up to 500
square kilometres of 3D seismic is expected to be acquired before year-end 2017 covering most of the Banarli licences and part of the West
Thrace lands.
TBNG JV and Banarli Shallow Gas Drilling Program
The second well in the 2017 shallow gas drilling program, Dogu Kilavuzlu-2, located on the TBNG JV lands at South Thrace (Valeura 81.5%
participating interest) commenced drilling on May 22, 2017 and was drilled to a total depth of 1,260 metres and cased. The timeline from
spud to rig release was nine days. The well was completed and flowed at approximately 0.5 million cubic feet per day from the Osmancik
formation on a short two-hour confirmatory flow test, and is currently being tied-in with a 550 metre line to the existing gathering system.
First gas is expected by early July. The estimated final cost to drill, complete and tie-in the well is on budget at $1.2 million (US$0.9 million).
The third well in the 2017 shallow gas drilling program, Sariyer-1, located on the TBNG JV lands at West Thrace (Valeura 81.5% participating
interest) commenced drilling on June 7, 2017 and is currently drilling below 2,300 metres. Drilling of the Sariyer-1 well and the earlier Dogu
Atakoy-3 well is expected to satisfy the 2017 drilling commitment on the West Thrace lands.
The next well in the program is expected to be at Aydinkoy-1 located on the Banarli licences (Valeura 100% participating interest).

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Section 6 – Appendix
The data and analysis within this report is driven by GlobalData.
GlobalData gives you key information to drive sales, investment and deal making activity in your business.
Our coverage includes 200,000 + reports on 185,000+ companies (including 150,000+ private) across 200+ countries and 29 industries. The
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Methodology
GlobalData company reports are based on a core set of research techniques which ensure the best possible level of quality and accuracy of
data. The key sources used include:
• Company Websites
• Company Annual Reports
• SEC Filings
• Press Releases
• Proprietary Databases
Currency Codes
Currency Code Currency
CAD Canadian Dollars

GlobalData
Units
Unit Expanded
MMbbl Million barrels

bcf Billion cubic feet
mmscm Million standard cubic meters
MMcf Million cubic feet
M3 Cubic meters
GlobalData
Ratio Definitions
Capital Market Ratios
Capital Market Ratios measure investor response to owning a company's stock and also the cost of issuing stock.
Price/Earnings (P/E) ratio is a measure of the price paid for a share relative to the annual income earned
Price/Earnings Ratio per share. It is a financial ratio used for valuation: a higher P/E ratio means that investors are paying more
(P/E) for each unit of income, so the stock is more expensive compared to one with lower P/E ratio. A high P/E
suggests that investors are expecting higher earnings growth in the future compared to companies with a
lower P/E. Price per share is as of previous business close, and EPS is from latest annual report.

306
Calculation: Price per Share / Earnings per Share

Enterprise Enterprise Value/EBITDA (EV/EBITDA) is a valuation multiple that is often used in parallel with, or as an
Value/Earnings before alternative to, the P/E ratio. The main advantage of EV/EBITDA over the PE ratio is that it is unaffected by a
Interest, Tax, company's capital structure. It compares the value of a business, free of debt, to earnings before interest.
Depreciation & Price per share is as of previous business close, and shares outstanding last reported. Other items are from
Amortization latest annual report.
(EV/EBITDA) Calculation: (Market Cap + Debt + Preferred Stock - Cash & Cash Equivalents) / (Net Income +
Interest + Tax + Depreciation + Amortization)
Enterprise Value/Sales (EV/Sales) is a ratio that provides an idea of how much it costs to buy the company's
sales. EV/Sales is seen as more accurate than Price/Sales because market capitalization does not take into
Enterprise Value/Sales account the amount of debt a company has, which needs to be paid back at some point. Price per share is
as of previous business close, and shares outstanding last reported. Other items are from latest annual
report.
Calculation: (Market Cap + Debt + Preferred Stock - Cash & Cash Equivalents) / Sales
Enterprise Value/Operating Profit measures the company's enterprise value to the operating profit. Price
Enterprise
per share is as of previous business close, and shares outstanding last reported. Other items are from latest
Value/Operating Profit
annual report.
Calculation: (Market Cap + Debt + Preferred Stock - Cash & Cash Equivalents) / Operating Income
Enterprise Value/Total Assets measures the company's enterprise value to the total assets. Price per share
Enterprise Value/Total
is as of previous business close, and shares outstanding last reported. Other items are from latest annual
Assets
report.
Calculation: (Market Cap + Debt + Preferred Stock - Cash & Cash Equivalents) / Total Assets
Dividend Yield shows how much a company pays out in dividends each year relative to its share price. In
Dividend Yield
the absence of any capital gains, the dividend yield is the return on investment for a stock.
Calculation: Annual Dividend per Share / Price per Share
GlobalData
Equity Ratios
These ratios are based on per share value.

Earnings per share (EPS) is the portion of a company's profit allocated to each outstanding share of
Earnings per Share (EPS) common stock. EPS serves as an indicator of a company's profitability.
Calculation: Net Income / Weighted Average Shares
Dividend per Share Dividend is the distribution of a portion of a company's earnings, decided by the board of
directors, to a class of its shareholders.
Dividend Cover Dividend cover is the ratio of company's earnings (net income) over the dividend paid to shareholders.
Calculation: Earnings per share / Dividend per share
Book Value per Share measure used by owners of common shares in a firm to determine the level of safety
Book Value per Share
associated with each individual share after all debts are paid accordingly.
Calculation: (Shareholders Equity - Preferred Equity) / Outstanding Shares
Cash Value per Share is a measure of a company's cash (cash & equivalents on the balance sheet) that is
Cash Value per Share
determined by dividing cash & equivalents by the total shares outstanding.
Calculation: Cash & equivalents / Outstanding Shares
GlobalData
Profitability Ratios are used to assess a company's ability to generate earnings, based on revenues generated or resources used. For

307
most of these ratios, having a higher value relative to a competitor's ratio or the same ratio from a previous period is indicative that
the company is doing well.
Gross margin is the amount of contribution to the business enterprise, after paying for direct-fixed and
Gross Margin direct-variable unit costs.
Calculation: {(Revenue-Cost of revenue) / Revenue}*100
Operating Margin Operating Margin is a ratio used to measure a company's pricing strategy and operating efficiency.
Calculation: (Operating Income / Revenues) *100
Net Profit Margin is the ratio of net profits to revenues for a company or business segment - that shows
Net Profit Margin how much of each dollar earned by the company is translated into profits.
Calculation: (Net Profit / Revenues) *100
Profit Markup Profit Markup measures the company's gross profitability, as compared to the cost of revenue.
Calculation: Gross Income / Cost of Revenue
PBIT Margin (Profit Profit Before Interest & Tax Margin shows the profitability of the company before interest expense &
Before Interest & Tax) taxation.
Calculation: {(Net Profit+Interest+Tax) / Revenue} *100
PBT Margin (Profit

Profit Before Tax Margin measures the pre-tax income over revenues.
Before Tax)
Calculation: {Income Before Tax / Revenues} *100
Return on Equity measures the rate of return on the ownership interest (shareholders' equity) of the
Return on Equity common stock owners.
Calculation: (Net Income / Shareholders Equity)*100
Return on Capital Employed is a ratio that indicates the efficiency and profitability of a company's capital
Return on Capital investments. ROCE should always be higher than the rate at which the company borrows; otherwise any
Employed increase in borrowing will reduce shareholders' earnings.
Calculation: EBIT / (Total Assets – Current Liabilities)*100
Return on Assets is an indicator of how profitable a company is relative to its total assets, the ratio
Return on Assets measures how efficient management is at using its assets to generate earnings.
Calculation: (Net Income / Total Assets)*100
Return on Fixed Assets measures the company's profitability to its fixed assets (property, plant &
Return on Fixed Assets equipment).
Calculation: (Net Income / Fixed Assets) *100
Return on Working Return on Working Capital measures the company's profitability to its working capital.
Capital
Calculation: (Net Income / Working Capital) *100
GlobalData
Cost Ratios
Cost ratios help to understand the costs the company is incurring as a percentage of sales.
Operating costs (% of Operating costs as percentage of total revenues measures the operating costs that a company incurs
Calculation: (Operating Expenses / Revenues) *100
Administration costs (% Administration costs as percentage of total revenue measures the selling, general and administrative
of Sales) expenses that a company incurs compared to the revenues.
Calculation: (Administrative Expenses / Revenues) *100

308
Interest costs (% of Interest costs as percentage of total revenues measures the interest expense that a company incurs
Calculation: (Interest Expenses / Revenues) *100
GlobalData
Liquidity Ratios
Liquidity ratios are used to determine a company's ability to pay off its short-terms debts obligations. Generally, the higher the value
of the ratio, the larger the margin of safety that the company possesses to cover short-term debts. A company's ability to turn short-
term assets into cash to cover debts is of the utmost importance when creditors are seeking payment. Bankruptcy analysts and
mortgage originators frequently use the liquidity ratios to determine whether a company will be able to continue as a going concern.
Current Ratio measures a company's ability to pay its short-term obligations. The ratio gives an idea of the
company's ability to pay back its short-term liabilities (debt and payables) with its short-term assets (cash,
Current Ratio inventory, receivables). The higher the current ratio, the more capable the company is of paying its
obligations. A ratio under 1 suggests that the company would be unable to pay off its obligations if they
came due at that point.
Calculation: Current Assets / Current Liabilities
Quick Ratio Quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets.
Calculation: (Current Assets - Inventories) / Current Liabilities
Cash ratio is the most stringent and conservative of the three short-term liquidity ratio. It only looks at the
most liquid short-term assets of the company, which are those that can be most easily used to pay off
Cash Ratio current obligations. It also ignores inventory and receivables, as there are no assurances that these two
accounts can be converted to cash in a timely matter to meet current liabilities.
Calculation: {(Cash & Bank Balance + Marketable Securities) / Current Liabilities)}
GlobalData
Leverage Ratios
Leverage ratios are used to calculate the financial leverage of a company to get an idea of the company's methods of financing or to
measure its ability to meet financial obligations. There are several different ratios, but the main factors looked at include debt, equity,
assets and interest expenses.
Debt to Equity Ratio is a measure of a company's financial leverage. The debt/equity ratio also depends on
Debt to Equity Ratio the industry in which the company operates. For example, capital-intensive industries tend to have a higher
debt-equity ratio.
Calculation: Total Liabilities / Shareholders Equity
Debt to capital ratio gives an idea of a company's financial structure, or how it is financing its operations,
along with some insight into its financial strength. The higher the debt-to-capital ratio, the more debt the
company has compared to its equity. This indicates to investors whether a company is more prone to using
Debt to Capital Ratio
debt financing or equity financing. A company with high debt-to-capital ratios, compared to a general or
industry average, may show weak financial strength because the cost of these debts may weigh on the
company and increase its default risk.
Calculation: {Total Debt / (Total assets - Current Liabilities)}
Interest Coverage Ratio is used to determine how easily a company can pay interest on outstanding debt,
Interest Coverage Ratio
calculated as earnings before interest & tax by interest expense.
Calculation: EBIT / Interest Expense
GlobalData
Efficiency Ratios

309
Efficiency ratios measure a company's effectiveness in various areas of its operations, essentially looking at maximizing its use of
resources.
Fixed Asset Turnover ratio indicates how well the business is using its fixed assets to generate sales. A
higher ratio indicates the business has less money tied up in fixed assets for each currency unit of sales
Fixed Asset Turnover revenue. A declining ratio may indicate that the business is over-invested in plant, equipment, or other
fixed assets.
Calculation: Net Sales / Fixed Assets
Asset turnover ratio measures the efficiency of a company's use of its assets in generating sales revenue to
Asset Turnover the company. A higher asset turnover ratio shows that the company has been more effective in using its
assets to generate revenues.
Calculation: Net Sales / Total Assets
Current Asset Turnover Current Asset Turnover indicates how efficiently the business uses its current assets to generate sales.
Calculation: Net Sales / Current Assets
Inventory Turnover ratio shows how many times a company's inventory is sold and replaced over a period.
Inventory Turnover A low turnover implies poor sales and, therefore, excess inventory. A high ratio implies either strong sales
or ineffective buying.
Calculation: Cost of Goods Sold / Inventory
Working Capital Turnover is a measurement to compare the depletion of working capital to the generation
Working Capital of sales. This provides some useful information as to how effectively a company is using its working capital
Turnover to generate sales.
Calculation: Net Sales / Working Capital
Capital Employed Capital employed turnover ratio measures the efficiency of a company's use of its equity in generating sales
Turnover revenue to the company.
Calculation: Net Sales / Shareholders Equity
Capex to Sales ratio measures the company's expenditure (investments) on fixed and related assets'
Capex to sales effectiveness when compared to the sales generated.
Calculation: (Capital Expenditure / Sales) *100
Net income per Net income per Employee looks at a company's net income in relation to the number of employees they
Employee have. Ideally, a company wants a higher profit per employee possible, as it denotes higher productivity.
Calculation: Net Income / No. of Employees
Revenue per Employee measures the average revenue generated per employee of a company. This ratio is
Revenue per Employee most useful when compared against other companies in the same industry. Generally, a company seeks the
highest revenue per employee.
Calculation: Revenue / No. of Employees
Efficiency Ratio is used to calculate a bank's efficiency. An increase means the company is losing a larger
Efficiency Ratio percentage of its income to expenses. If the efficiency ratio is getting lower, it is good for the bank and its
shareholders.
Calculation: Non-interest expense / Total Interest Income
GlobalData
Notes
• Financial information of the company is taken from the most recently published annual reports or SEC filings
• The financial and operational data reported for the company is as per the industry defined standards
• Revenue converted to USD at average annual conversion rate as of fiscal year end
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310
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sources and does not necessarily represent the views of the company profiled.
The facts of this report are believed to be correct at the time of publication but cannot be guaranteed. Please note that the findings,
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311
Data as of Market Close: 30 May 2018
Is Valeura Energy Inc Due for a Rebound?

StockMarks Ratings Highlights

Prospect
Valeura Energy Inc has a fair prospect, with an overall
score of 79/100. Its business rating is reasonable due to a
satisfactory asset conversion, low leverage but poor
revenue stream. Valeura Energy Inc's management is
rated as mediocre but has improved in the last quarter. Its
average quality financials are the result of a prudent
financial position, deficient cash generation efficiency but
poor performance. Valeura Energy Inc's relatively
attractive valuation is due to high price attractiveness and
positive market multiples.
Overall, the company is rated as very safe. With small

market risk, it has average operational risk and tolerable
information risk. The current sentiment in relation to
Valeura Energy Inc is bullish with a neutral outlook. The
company's business forecast is positive based on an
Quality Safety Sentiment improving trend in our estimates. To conclude, we believe
Valeura Energy Inc to be an above average long-term
SMQ SMD SMC investment that is not due for a rebound in the near term.
Last Close Price 52-Week Range Market Cap.
4.750 CAD 0.43 - 8.27 406.895M

Business Operational Technicals
SMB SMD1 SMS Beta PE PBV
14.74 -39.91 3.40
EPS Earnings Yield Div Announc. Date
-0.12 -17.00% -
Financials Information Outlook DPS Dividend Yield Div Ex Date
SMF SMD2 SMA - 0.00% -
Contents
1. Business and Management ...................................... 2
Earnings Market Valuation 2. Benchmarking and Parities ...................................... 4

SMI SMD3 SMW 3. Financials and Valuation .......................................... 6
4. Safety and Sentiment ............................................... 8
5. Estimates and Recommendations ........................... 10

2007-2018 Marques Mendes & Associados Lda ( MM&A). All Rights Reserved. Please read disclaimer in page 12
312
Valeura Energy Inc
The business C1.SADIF sector and industry stock price indexes

Its business is rated as reasonable due to
a satisfactory asset conversion, low
leverage but poor revenue stream. The
company operates in the Oil & Gas
Exploration and Production industry -
where stock prices are rising faster than
the overall Energy sector.
The Industry
The stock prices in the Oil & Gas
Exploration and Production industry,
whose average price index is shown in
chart C1, have been rising over the past
quarter. Likewise, the Energy sector has
followed a rising path.
T1. Benchmark Group: Industry Competitors
The Company
Industry
Valeura Energy Inc. is a Canada-based Ticker Company Name Similarity SMB SMB1 SMB2 SMB3
Share
company engaged in the exploration,
VLE Valeura Energy Inc 0.03% 49 8 52 59
development and production of petroleum
and natural gas in Turkey. The Company BBI Blackbird Energy Inc 68.42% 0.03% 27 91 57 15
is focused on its natural gas operations in BNP Bonavista Energy Corp 63.16% 0.99% 74 48 60 69
the Thrace Basin in northwest Turkey. The Painted Pony Energy
PONY 63.16% 0.76% 40 74 61 28
Thrace Basin is located in an area west of Ltd
Istanbul and extending to the borders with
Valeura Energy Inc has a below average revenue rating (SMB1 = 8/100)
Greece and Bulgaria. The TBNG-PTI JV
lands are located in the Thrace Basin. with revenue well above its breakeven point. The company's revenue has
Natural gas is produced from both low volatility and is growing slower than its first competitor.
conventional and unconventional (tight
gas) sandstone reservoirs in onshore In terms of cash conversion (SMB2 = 52/100), the company has a modest
leases and licenses on the TBNG-PTI JV rating due to its average net operating cycle, median operating margins but
lands. The Thrace Basin also includes insufficient asset turnover.
Banarli exploration licenses. The Company
also holds interests in minor properties, Finally, Valeura Energy Inc is well leveraged (SMB3 = 59/100), especially
including production leases at Edirne in when assessed by its degree of leverage.
the Thrace Basin. The natural gas C2. The trend in the Business Stockmark and its determinants
production from the Edirne production
leases is sold domestically to a wholesale
gas marketer. The Company holds interest
in approximately five exploration licenses
in the Anatolian Basin located around the
city of Gaziantep in southeast Turkey.
Business rating and competitors
The Summary Business StockMarks
Rating (SMB = 49/100) for Valeura Energy
Inc is below the sector average and in line
with its top 3 ranked competitors in terms
of business similarity as listed in table T1.
The SMB trend is depicted in chart C2. Its
recent rise was primarily due to growth in
the company's leverage rating.

313
Valeura Energy Inc
Management C3. Ownership evolution

Valeura Energy Inc's management is
rated as mediocre but has improved in
the last quarter. The company trades with
a float of 88.71%, which has been
growing in the last quarter. The
company's earnings quality is rated as
weak.
Ownership
In terms of ownership, Valeura Energy Inc
is in the capitalist sector category,
because it operates in an unregulated
sector, has a float of 88.71% and its top 5
shareholders own 23.81%.The major
shareholder, Baillie Gifford & Co., owns Comparing the management efficiency of Valeura Energy Inc with that of its
12.30% of the company. closest competitor, Blackbird Energy Inc, shows that Valeura Energy Inc's
Among its top 10 investors, Baillie Gifford rating is 22.7% lower.
& Co. bought 9.183 million shares and
Arrow Capital Management Inc. sold In general, the assessment of the management efficiency trend needs to be
50357 shares in the past half year. qualified by taking into account how long the incumbent management has
As shown in chart C3, in the last quarter, been in place as it takes a few quarters before the impact is shown in the
institutional investors increased their company financials. Sometimes, a small temporary decline or rise may not
ownership to 14.2%, while insiders be attributed to a change in efficiency but is instead the result of large shifts
reduced their holdings to 11.3%. in investment / disinvestment. Despite the importance of management
efficiency, investors should not neglect other more subjective factors such as
Governance management integrity and business savvy, which are beyond the scope of
this report.
Due to lack of data it is not possible to
present a complete rating for governance. C4. The trend in the Management StockMarks Determinants
However, a partial assessment can be
made through Valeura Energy Inc's
earnings quality rating (SMI = 13/100).
With an earnings quality in the bottom
range, the company may be relatively
exposed to governance risk despite a
positive trend in the last quarter.
Management
Valeura Energy Inc currently has a
mediocre management with a
Management StockMark (SMM) of 37/100,
the lowest of its quality sub-ratings.
Chart C4 shows that its recent rise was
driven by a matching change in the
earnings growth rate.
For a descriptive classification of management efficiency, we use the following five categories:
Category First Class Efficient Passable Mediocre Inefficient
SMM Rating 85-100 60-84 40-59 20-39 0-19

314
Valeura Energy Inc
Benchmarking T2. Benchmark Group: Competitors

In terms of overall business quality, Industry
Ticker Company Name Similarity SMQ SMB SMF SMI
Valeura Energy Inc ranks third amongst Share
its competitors in the Oil & Gas VLE Valeura Energy Inc 0.03% 34 49 41 13
Exploration and Production industry. Its BBI Blackbird Energy Inc 68.42% 0.03% 45 27 71 2
strongest position is in terms of business.
BNP Bonavista Energy Corp 63.16% 0.99% 67 74 56 31
In relation to performance, its best driver
is the return rating, which improved in the PONY Painted Pony Energy 63.16% 0.76% 14 40 13 13
Ltd
past quarter.
CR Crew Energy Inc 63.16% 0.41% 24 47 28 16
Comparables BNE Bonterra Energy Corp 63.16% 0.38% 26 16 40 55
Although no two companies are exactly Chart C5 below depicts a detailed comparison of the determinants of each
alike, it is useful to define a benchmark quality rating. It can be observed that Valeura Energy Inc underperforms its
group of comparable companies. The closest competitor in terms of revenue (SMB1 = 8/100).
group's selection may be based on
clientele, business model, price C5. Competitor Analysis based on Quality drivers
correlation, technology, location or any
other criteria. Since most companies
operate via various lines of business,
selecting on the basis of a single criteria is
controversial and analysts often prefer a
comparison with an industry or sector
average. Yet, for multi-industry firms, to
use the industry of registration is equally
questionable.
Instead, we opted for a broader set
comprising of all companies trading in the
same stock exchange. This is inadequate
for companies whose most direct
competitor is a foreign company. Equally
Moreover, the comparison of performance and its drivers, depicted in chart
controversial is the choice of indicators to
C6, shows that Valeura Energy Inc is less profitable than its closest
be compared.
competitor. In terms of its performance (SMF12) determinants the company
Nevertheless, although we rate Valeura
is in an average position with regard to the distribution to shareholders, high
Energy Inc against the entire market, it is
returns but it seems less valued by the market.
important to compare the company to a
peer group - that we call competitors - in C6. Competitor Analysis based on Performance Drivers
relation to the drivers of business quality
and performance (see table T2 and chart
C6).
Competitors
The company's closest competitor,
Blackbird Energy Inc, has a similarity index
of 68.42% and a market share of 0.03%
compared to the company's market share
of 0.03% (see table T2). This similarity
index is too low to consider this competitor
fully relevant for comparable analysis.
From table T2 we see that, when analyzed
from an investor perspective, the company
fares poorly in relation to its top
competitor. Its best rating is for business
(SMB = 49/100) while its lowest is for
earnings quality (SMI = 13/100).

315
Valeura Energy Inc
Parities T3. Benchmark Group: Correlated Pairs

Compared to its most correlated pairs, Ticker Company Name Similarity SMC SMW SMS SMA
Valeura Energy Inc ranks second in terms
of business sentiment. It is undervalued VLE Valeura Energy Inc 73 65 17 93
relative to its closest pair, with a fair value CBV Cobra Venture Corp 72.73% 43 36 59 47
exchange rate above the nominal
GXO Granite Oil Corp 60.61% 63 41 66 67
exchange rate and a trend towards
depreciation. MET Metalore Resources Ltd 60.61% 10 20 25 21
IFR International Frontier Resourc 60.61% 56 76 17 64
Currently, Cobra Venture Corp is the (...)
closest stock for pair trading with a CHH Centric Health Corp 57.58% 88 63 76 89
similarity index of 72.73%, defined on the
basis of market correlation, sector and The rates quoted in chart C7 give us the number of benchmarked shares
trading volumes (see Table 3). that we could buy with one share of Valeura Energy Inc. Therefore, an
In comparison to its highest correlated increase/decrease in the rate of exchange means that its price is
stocks (for pair trading), Valeura Energy appreciating/depreciating relative to its pair. The trend in the fair value
Inc's best rank is the outlook rating (SMA), exchange rate is relevant not only to adjust valuations but also to assess the
where it ranks first. price outlook for the stock price. SADIF clients may access the company's
fair value in relation to any other company at http://sadifanalytics.com.
Market vs. Fair Value
Warren Buffett popularized the idea that Parities
many air-for-assets risky acquisitions take Chart C8 also shows the parity index and the evolution of the fair value
place during bull markets because exchange rate for Valeura Energy Inc, in relation to its first pair, Cobra
overvalued acquirers can afford to overpay Venture Corp.
because they are, in effect, using stock as
if it were counterfeit money. We can observe that in relation to the first pair, the trend in its fair value
But, unfortunately, the estimation of during the last quarter has been towards depreciation. In turn, in the last
intrinsic values is a very challenging task. month the parity index shows a decline reflecting a depreciation in relation to
its pair.
Yet, we may minimize the problem and C8. Prices, parity indexes and fair value
bypass the need to estimate intrinsic
values by adjusting the nominal stock
exchange rates with our Price
Attractiveness StockMark (SMP), which
estimates the degree of
over/undervaluation at any level of market
premium or discount.
By adjusting the nominal rates by the
relative SMPs we obtain the fair value
exchange rates depicted in chart C7.
C7. Fair value exchange rates
In general, pair trading requires degrees of similarity above 70% and the
success of pair trading strategies depends on the investor’s ability to
forecast the duration of the convergence path.
However, convergence itself may only happen if the two companies are not
diverging in a fundamental way. Investors can evaluate this possibility by
comparing the StockMarks sentiment ratings shown in the table T3. It shows
that Valeura Energy Inc's sentiment is significantly above that of Cobra
Venture Corp, mostly due to a difference in the outlook rating (SMA).

316
Valeura Energy Inc
Financials C9. The trend in the Financial rating and its determinants
The company's average quality financials
are the result of a prudent financial
position, deficient cash generation
efficiency but poor performance. The
recent trend shows a rising evolution
mainly due to an increase in the rating of
their financial strength. The table below
shows some of Valeura Energy Inc's key
ratios.
T4. Ratios VLE BBI BNP Oil & Gas Exploration and
Revenue
Revenue Growth 0.01 0.18 0.37 0.07
Revenue Volatility 50.52 3.07 2.64 3.92
Sales Elasticity -2.07 22.80 -2.44 -1.16
Margins
EBITDA Margin -0.07 0.34 0.67 0.27
Operating Margin -0.80 -0.07 0.12 -0.11
Asset Turnover 0.09 0.12 0.14 0.17
Cash Conversion
Operating Cycle (Days) 237 54 - 111.00
Net Operating Cycle (Days) - - - 38.00
Average Days Receivables & Other * 231.31 50.98 104.39 88.01
Leverage
Breakeven Revenue 0.19 1.16 1.11 0.05
Degree of Operational Leverage 1.23 -6.23 -2.19 0.59
Degree of Financial Leverage 1.00 1.00 4.16 1.00
Efficiency
ROA -0.07 -0.04 -0.04 -0.09
ROE -0.08 -0.05 -0.08 -0.09
Equity Growth 0.96 0.00 -0.00 -0.00
Liquidity
Cash Ratio * 2.35 0.66 - 0.33
Quick Ratio * 2.64 0.80 0.24 0.62
Current Ratio * 2.65 0.80 0.24 0.66
Solvency
Interest Service Coverage * - - 7.00 3.70
Capitalization 0.82 0.88 0.52 0.60
Gearing * 0.00 0.00 0.52 0.12
Asset Quality
Asset Growth 0.46 -0.01 -0.01 0.01
Share of Intangibles 0.00 0.00 0.00 0.00
Share of Goodwill 0.00 0.00 0.00 0.00
* the definition of this ratio is different for banks and insurance companies

317
Valeura Energy Inc
Valuation C11. Synthetic Multiple (SMK) and its determinants

Valeura Energy Inc's relatively attractive
valuation is due to high price
attractiveness and positive market
multiples. The company is currently
trading at 3.4 times book value and -39.9
times earnings, which compares
favourably with the industry average. In
the past quarter, the valuation has
deteriorated due to a decline in the
synthetic multiple rating (SMK).
Multiples
The traditional valuation of companies
based on market price multiples depicted
However, investors should not focus exclusively on trends in market price
in chart C10 shows that Valeura Energy
multiples and earnings yields. They need to consider the most recent
Inc has depreciated in the last quarter.
absolute value of the SMP and its trend (depicted in chart C12) for two main
However, because the various multiples
reasons.
are based on different metrics, we
Firstly, to verify if the stock is caught at a stationary level, indicating that it
standardize and combine them into a
may remain undervalued or overvalued for long periods.
synthetic multiple (SMK) depicted in chart
Secondly, investors should assess if it is diverging or converging in relation
C11.
to a fair valuation (SMP between 45-55).
C10. Trend in valuation multiples
Chart C12 shows the overall valuation rating (SMW = 65/100) and its
determinants. Overall, we observe that Valeura Energy Inc has an attractive
valuation with a tendency towards correction.
C12. The trend in valuation (SMW) and its determinants
The trend in our synthetic multiple (SMK =

55/100), shown in chart C11, is negative,
due mostly to a decline in the book value
multiple.
Price Attractiveness In terms of the SMW determinants it is worth noting that the company's main
Despite the recent steep decline in driver is price attractiveness (SMP) and its weakest is the synthetic multiple
Valeura Energy Inc share price, the (SMK).
possibility of the company's shares being The nominal stock exchange rate between two stocks as given by current
overbought remains high. market prices (shown previously in page 5, chart C7) may be misleading if
markets, as they often do, over-estimate or underestimate the
Valeura Energy Inc currently has a Price premium/discount relative to intrinsic value.
StockMark (SMP) of 77/100, indicating that The valuation of stock-for-stock offers in M&A transactions is quite complex
the market is undervaluing the company's when shareholders of the acquirer and the target company hold significantly
long-term fundamentals. different views on the intrinsic value of their companies. So, since the
divergence in relation to the nominal rate is significant, the fair value
exchange rate is a good aide in such discussions.

318
Valeura Energy Inc
Safety Financial Strength C14. Financial strength

The company is rated as very safe. With The breakdown of financial
small market risk, it has average strength (SMF11 = 85/100) -
operational risk and tolerable information see chart on the right - shows a
risk. The trend in its determinants shows high rating in terms of liquidity,
a significant reduction in market risk over minor risk of default and a small
the past quarter. The market risk, in terms risk of insolvency.
of volatility, is significantly higher than the The recent trend shows an
market index ETF in the last quarter. improved situation in the last
quarter. The main contributor for
As shown in chart C13, Valeura Energy this improvement was liquidity,
Inc has a high level of safety (SMD = which rose by 263.8%
87/100) which has improved in the past
quarter. Its weakest rating is in terms of Informational Safety (SMD2 = 50/100)
information safety. Valeura Energy Inc's classification in terms Information Earn. Quality
of informational safety is the result of low
C13. Safety and its determinants earnings quality combined with good data
availability and passable reliability.
This classification does not include
transparency, integrity and regulatory risks, Availability Reliability
which may vary due to Valeura Energy Inc's
rating for governance.
Market Safety (SMD3 = 90/100)

The market risk (see box on the right) has Market Volatility
three components: volatility risk, delisting
risk and takeover exposure. When
compared to its closest competitor in terms
of similarity, Valeura Energy Inc is 6.62
Operational Safety
times less riskier than Blackbird Energy Inc.
The determinants of the sales and The main difference is a higher volatility Continuation Takeover
operational risk depicted in the box below, rating. Valeura Energy Inc's volatity
are the result of low revenue performance compared to the market index ETF, shown
combined with inadequate leverage in a below, is high with a cumulative frequency
company with great financial strength. of negative returns 8.8 % points above the
Valeura Energy Inc's lesser revenue ETF.
performance is due to a combination of
high revenue growth, large volatility and C15. Volatility compared to market ETF
weak competitiveness in relation to its
industry.
Operational Safety Revenue
Leverage Financial Strength

319
Valeura Energy Inc
Sentiment C16. Overall Investor Sentiment (SMC) and its constituents

to Valeura Energy Inc is bullish, and with
a neutral outlook. It may change abruptly
by some unknown forthcoming corporate
action or event. Meanwhile, the short
term trend measured through technical
indicators shows some worsening in the
last month.
The current sentiment (SMC = 73/100) in

relation to Valeura Energy Inc is assessed
on the basis of its current valuation and
forecasts, complemented by technical
indicators. Its evolution depicted in chart
C17. Technical Analysis Sentiment (SMS) and its constituents
C16, shows a stable trend, mainly as a
result of a deterioration in the technicals
rating (SMS).
Valuation
The valuation sentiment (SMW = 65/100)
is positive, supported by a combination of
high multiples, attractive price and a
significant outperformance likelihood (see
chart C12, page 7).
Technicals
The outlook in terms of technical analysis
(chart C17), price targets and market trend C18. Outperformance (SMO) and Fair Value exchange indexes
shows a negative trend in the last quarter.
This is reinforced by a positive trend in
recent SADIF estimates and it is
dampened by a declining valuation
Outperformance likelihood
When compared to its closest competitor,
Blackbird Energy Inc, Valeura Energy Inc
exhibits similar undervaluation and is
equally likely to outperform the market in
the long term.
Finally, an important complement to gauge
investor sentiment is given below through
the list of recent major buyers and sellers.
Major Buyers Major Sellers
Investor Name Shares Investor Name Shares
Baillie Gifford & Co. +9.18M Lamacraft (Scott) -0.88M
JPMorgan Asset Management U.K. Limited +0.69M Arrow Capital Management Inc. -0.05M
Ninepoint Partners LP +0.10M
Guest (William Sean) +0.01M
BlackRock Institutional Trust Company, N.A. +0.00M

320
Valeura Energy Inc
The company's business outlook is
in our estimates, is likely to improve.
Earnings per share is strengthening,
while its book value per share is rising.
The impact on market multiples is
favorable. Our target price has an implicit
annual CAGR of -1.0%, well below that of
the analyst consensus.
Overall, our rating for business outlook Book Value
(SMA = 93/100) has improved in the last
quarter due mostly to an improvement in The stock is trading at -39.9 times earnings and3.4 times book value, with a
the price direction (see chart C16, page 9). declining trend.
The trend in Valeura Energy Inc's market and book values, allow investors to
Revenue gauge how the market values the company's growth. Comparing the two
Valeura Energy Inc is currently losing most recent quarters with the previous two, we see that book values have
87.15% on revenue of 2.79 million. increased by 27.0% while the company's market value has increased by
582.95%. Moreover, the gap between the two widened in the last month.
T7. Quarterly BVS
Year Q1 Q2 Q3 Q4
Year Q1 Q2 Q3 Q4
2018 0.036 0.036f 0.035f -
2017 0.027 0.041 0.031 0.041 2018 1.398 1.929f 2.347f -
2016 0.053 0.068 0.044 0.024 2017 1.015 0.898 0.793 0.749
2016 1.251 1.220 1.168 1.001
This revenue translates into an earnings
yield of -17.0% and a return on equity of - Price Targets
8.2% over the last twelve months. The We use the estimates above and the outperformance likelihood rating (SMO)
corresponding EPS trend can be seen in to derive Valeura Energy Inc's price target. We do not take a view on the
table T6. market direction. Investors expecting the market to rise (or fall) significantly
Earnings should increase (decrease) the price target accordingly.
Over the last two quarters available,
Valeura Energy Inc's earnings per share Chart C20 shows that we expect the stock price to depreciate by 0.047 in
absolute terms to reach 4.703. And, in relation to its current level (4.750), we
deteriorated to -0.032. As shown in table
estimate a potential loss of -1.0% over the coming year. The corresponding
T6, this represents a deterioration in
CAGR value of the analyst consensus is higher at 131.58%.The lower and
relation to its earnings one year ago.
upper bounds shown suggest good price target reliability.
Our estimation, shown in table T6, is that C20. Price Targets
quarterly earnings may rise to -0.036
during the coming semester.
T6. Quarterly EPS
Year Q1 Q2 Q3 Q4
2018 -0.032 -0.039f -0.036f -
2017 -0.031 -0.007 -0.067 -0.013
2016 -0.017 -0.011 -0.022 -0.054

321
Valeura Energy Inc
Recommendations C21. SADIF overall Rating (SMR) and its drivers

Valeura Energy Inc rates as an above
average investment. Compared to the
analyst consensus, our recommendation
is equally favorable.The comparison with
its closest competitor also shows a better
rating. The main contributor to this rating
is its current safety.
The current SMR rating is 79/100. Chart
C22 shows the SMR trend compared to
the sell side recommendation values
depicted with the half-year lead time. its closest rated-competitor, Blackbird Energy Inc, has been depreciating
Our last SMR revision was upward, but the over the past 2 weeks. When compared to its closest competitor, Blackbird
month-to-month trend is negative. Energy Inc, Valeura Energy Inc shows similar undervaluation and is equally
likely to outperform the market.
T8. History of up(down)grades * The company's share price has risen sharply over the past year, but we
believe underlying fundamentals to be the primary determinant of long-term
performance.
13 Apr 2018 Above Average The likelihood of Valeura Energy Inc stock to outperform the market – as
measured by the Outperformance StockMark (SMO) is slightly above
27 Mar 2018 Average
average with a rating of 58/100.
09 Feb 2018 Above Average The market risk associated with holding the shares – as measured by the
StockMarks Market Risk (SMD3) – is low with a rating of 90/100.
Conclusions
Valeura Energy Inc is a low quality Overall, we believe Valeura Energy Inc to be an above average long-term
company. With reasonable business investment.
rating, it has fair financials and poor
earnings quality. In terms of risk, Valeura C22. Price Index (RHS) vs. Recommendations (LHS)
Energy Inc, is very safe. With average
operational risk, it has average information
risk and low market risk. The current
market sentiment in relation to the
company is positive notwithstanding
unfavorable technical indicators, positive
estimates and an attractive valuation. The
trend in Valeura Energy Inc fair value
exchange rate against
About Stock Recommendations

Traditionally research providers make recommendations standardized as analyst consensus on a scale of 1 to 5 as shown
below. We use a similar rating - SMR StockMarks™ – with 5 categories, ranging from good to risky.
1. Rating 2. Rating 3. Rating 4. Rating 5. Rating
Strong Buy and/or Very Strong Sell and/or Very
Buy and/or Positive Hold and/or Neutral Sell and/or Negative
Positive Negative
Strong Buy and/or Very Positive Hold and/or Neutral Sell and/or Negative
2
Good Above Average Average Below Average Risky
100-85 StockMarks 85-51 StockMarks 51-16 StockMarks 16-9 Stockmarks 9-0 StockMarks
* Current Ratings are not stricly comparable to those published before 8 Dec 2016 due to changes in methodology.

322
SMR
SMD SMQ SMC
SMD2
SMB SMA
SMS
SMD1 SMG
SMW
SMD3 SMF
SMR
SMR

SMQ
SMB

leverage.
Quality (SMQ)
SMD
SMF

SMG
SMC

SMD1
SMW
Sentiment (SMC)

Safety (SMD)
SMD2
SMA
SMD3
SMS
the article. The author of this article does not hold a position in any of the companies featured within this report. Frequency: Quarterly; Director: António
José Marques Mendes; NIPC: 504284444; ERC Registration No.: 125265; Editor and Owner: Marques Mendes & Associados, Lda Editorial
Headquarters: R. Domingos F. Pinto Basto, 21 - 3830-176 Ilhavo, Portugal

323
Michael Mueller, P.Geo., Associate, (403) 750-7210, mmueller@cormark.com

MAY 30, 2018
Recommendation: Buy

Target Price: $12.50 Investor Day Highlights Geology, Analogs and
Upcoming Catalysts; Increasing Target to $12.50
52 Wk Low $0.43 Basic Sh. (O/S) 83.7 Investment Thesis:
NAV $0.34 FD Sh. (O/S) 91.0 Valeura offers investors exposure to a potentially massive unconventional
P/NAV 13.3x Mngt. & Dir. 3.4 resource play in one of the most favorable natural gas regimes in the world.
Net Debt - 18E (MM) -$39.4 - Pct. of basic 4%
Highlights:
DPS NA Float (MM) $369  Event
Dividend Yield NA EV (MM) $346 Valeura held an investor day with a focus on Turkish macro, the geologic
Fiscal YE Dec. 2017A 2018E 2019E background of the Thrace Basin BCGA and development considerations.
Production (BOE/d) Q1 807 859 A 1,150
Q2 934 713 1,550  Details
Q3 1,024 792 1,740 With pipe under construction and testing equipment en route, we believe an
Q4 1,038 933 1,850 IP-30 rate from the Yamalik-1 exploration well possible by the end of August
FY 952 825 1,575 represents a material near-term catalyst for Valeura investors. The spudding of
% Gas 99% 92% 87% the Inanli-1 appraisal well in late Q3/18 follows with our expectation that more
Growth -5% -23% 87% favorable geology and fracturing and (potentially) higher intensity completions
CFPS Q1 ($0.04) $0.01 A $0.02 will establish solid IP-30 and EUR rates early next year. Based on US analogs,
Q2 $0.01 $0.01 $0.03 the potential horizontal development of the massive BCGA in the Thrace Basin
Q3 $0.02 $0.01 $0.04 and continued favorable economics in Turkey, we believe a conservative NPV
Q4 ($0.01) $0.02 $0.04 of the company’s assets could exceed $30.00 per share. An active program
Diluted ($0.02) $0.04 $0.13 through 2018 and 2019 should convert prospective resource to contingent
NYMEX WTI (US$/Bbl) $306.43 $344.11 $345.38 resource and booked reserves and attract additional attention (both investor
EV/EBITDA 84.5x 32.9x and industry) with an increased understanding of costs and rates likely to spur
EV/BOE/d $419,094 $235,475 a well type curve and increased confidence in the value captured by Valeura.
 Recommendation
With upcoming operational catalysts, an improved understanding of the BCGA,
applied US analogs and preliminary potential economics, we are reiterating our
Buy rating and increasing our target to $12.50 from $12.00 based on an
updated risked NPV. We continue to encourage buying ahead of Yamalik-1
test results and spudding of Inanli-1.
Company Description:
Valeura Energy is a Canadian-based junior International
E&P company with operations in Turkey. Led by the
previous managers of Verenex Energy, Valeura is building
critical mass in high-netback gas resource plays in the
Thrace Basin.
Source: BigCharts.com, May 29, 2018

 During the past twenty-four months, Cormark Securities Inc., either on its own
or as a syndicate member, participated in the underwriting of securities for
Valeura Energy Inc.
324

MAY 30, 2018
Thrace Basin BCGA:

 Yesterday, Valeura held a thorough Investor Day in Calgary focused on doing business in Turkey, the
geologic background of the company’s resource, a discussion of analog plays, related development
considerations and upcoming field operations.
 With research coverage of Valeura ongoing for several years, we (Cormark) are comfortable that the
fiscal and price regime in Turkey ranks in the top decile globally with accessible infrastructure,
continually growing demand for natural gas and stable oil and gas laws. Despite recent political
tension, we expect the environment for domestic gas producers to remain very robust for the next
several years with the entrance of Equinor (Statoil) providing comfort that large multi-national firms
have decided Turkey is amenable to resource development and foreign capital. As such, this note will
focus on incremental information from the investor day as it relates to the geology (and risks) of the
BCGA, analogs and potential economics.
 Long an oil and gas producing basin (~900 Bcf produced over ~50 years) near Istanbul and industrial
end-users, the Thrace Basin has a deep history in energy. At the heart of the Thrace Basin and an
area where deposited sediment can be up to 9 km thick, Valeura Energy’s Basin-Centred Gas-
Condensate Accumulation (“BCGA”) has the potential to be one of the largest onshore natural gas
finds in decades.
Figure 1: Thrace Basin Sediment Thickness
Source: Company Reports
 The company’s land position (~250,000 gross or ~103,000 net acres) in the centre of the BCGA has
been delineated (we believe) with nine vertical wells drilled below 2,500 m (TVD) by Valeura or other
operators, all of which encountered over-pressured conditions at depth.
 These nine wells have confirmed two of the three requirements to proclaiming a BCGA including (1) a
reservoir to hold and trap a significant volume of gas and (2) the pervasive presence of over-
pressured gas actually in that reservoir. The third requirement, the proving of commercial flows
of gas, is expected by the end of August with test results from the Yamalik-1 well.
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MAY 30, 2018
Figure 2: Key Thrace Basin BCGA Wells
 The dotted outlined above represents the current identified boundary of the BCGA with over-pressure
and gas saturated conditions below 2,500 m.
Yamalik-1 Exploration Well:
 The Yamalik-1 exploration well funded by Equinor was drilled to ~4,200 m, recovered significant core
(135 m) and encountered over-pressured rock and gas saturation between ~2,900 m and ~4,200 m
TVD. The 1,200-1,300 m of gross section had a 0.44 net/gross ratio, average porosity of 5.0% and
sands comprising 40-50% of the gross section. With a pressure gradient at depth as high as 80-95%
over-pressured (1.9x normal pressure or 19 kpa/m), there remains an additional 1,600 m (or more) of
unpenetrated Kesan section below 4,200 m.
Figure 3: Mezardere and Teslimkoy/Kesan Cross Section
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MAY 30, 2018
 Of note, the location of Yamalik-1 was chosen by Equinor and Valeura in an area with low levels of
natural fracturing, no chance of structural trapping mechanisms and monocline down-dip from shallow
gas production and reserves from the same formation in the area to ensure that any gas encountered
by the well would confirm pervasive gas (with the least amount of “noise” and greatest certainty)
indicative of the presence of a BCGA.
 While Yamalik-1 was completed over eight intervals, total proppant placed was just 464 tonnes
compared to 5,000+ tonnes placed in Western Canadian Montney and Duvernay horizontals. Despite
the low tonnage and mechanical issues with bridge plugs, Yamalik-1 tested an aggregate 2.9 MMcf/d
from the four zones tested with significant condensate from all intervals. Surprisingly, rates from the
shallower zones initially expected to have higher porosity and therefore higher rates were lower than
expected while rates from the deeper zones expected to be lower due to lower porosity were higher
than expected.
Figure 4: Yamalik-1 Completions and Limited Test Rates
 Despite a massive success confirming over-pressured gas saturation and the potential for
commercial flow rates, Yamalik-1 was severely limited by (1) its design as an exploration and not an
appraisal or development well, (2) very high pressures and limited surface equipment, (3) issues with
downhole bridge plugs, (4) not recovering more than 20% of frac fluid pumped in the completion and
(5) the location/placement of the well geologically.
 With a pipeline to connect Yamalik-1 to infrastructure under construction and plans to clean out the
well and flow-back additional frac fluid, a long-term production test of Yamalik-1 is expected to
commence later this summer. Recompletion and clean-out of Yamalik-1 is scheduled to commence in
early July with a three week work program followed by tie-in and long term testing of the well. As
such, we believe an IP-30 for Yamalik-1 could be as early as late August or early September, a
material catalyst for investors.
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MAY 30, 2018
 While rates are expected to decline materially in line with BCGA analogs (up to 80% per year) and
Yamalik’s IP-30 rate will be impacted by declines, we expect a relatively healthy rate from the well
given the 2.9 MMcf/d tested previously and the potential for the well to outperform following the
milling out of plugs, commingling of zones and recovery of incremental frac fluid.
Inanli-1 Appraisal Well:
 The second and final well to be funded by Equinor, the Inanli-1 appraisal well will be drilled ~6 km
northeast of Yamalik-1 (Figure 5) with a planned TMD of 5,000 m reaching a lower stratigraphic level
and situated farther basinward than Yamalik-1. Valeura expects to intersect ~1,600 m of high net-to-
gross Teslimkoy and Kesan reservoir at Inanli-1 compared to the ~1,100 m penetrated in Yamalik-1.
 With significant core retrieved from Yamalik-1 (135 m), Valeura has focused attention in the lab and
the field mapping and analyzing natural fractures from the micro-scale to the large scale faults in the
region, providing insight into regional stress regimes valuable in determining resource “sweet spots”.
 As noted, while Yamalik-1 was relatively “sterile” with a location chosen in part due to the low
occurrence of natural fracturing, Inanli-1’s location was chosen in a potential production “sweet spot”
with a high level of natural fractures in addition to the thick reservoir, significant overpressure and
location within the wet gas maturity window similar to Yamalik-1.
Figure 5: Natural Fracture Network Interpretation
 We would expect natural fractures to potentially (and materially) enhance the overall productivity of
Inanli-1 when compared to Yamalik-1, ceteris paribus. The impact of natural fractures on ultimate
recoveries has yet to be determined but should natural fractures indicate higher productivity sweet
spots, the use of Valeura’s extensive 3D seismic coverage could then be utilized to identify such
locations and lower near term risks to commerciality. Following an aggressive 3D seismic program
funded 100% by Equinor, very little of the company’s acreage now lacks coverage.
 While yet to be determined, we would at this time also expect significantly higher tonnage in the
completion of Inanli-1 compared to the 464 tonnes in Yamalik-1 as the company drives prospective
resource into the reserve and contingent resource categories by confirming commercial flow rates.
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MAY 30, 2018
Figure 6: Valeura 3D Seismic Coverage
 With up to 1,600 m of unpenetrated reservoir left in Yamalik-1, Inanli-1’s target depth of 5,000 m will
likely (we expect) result in materially more prospective resource in an updated resource report
expected at year-end. As well, in addition to the primary Teslimkoy/Kesan targets, Valeura plans to
test the shallower, overlying Mezardere formation in Inanli-1 not included in the Yamalik-1 tests.
Though the formation is generally less sandy than the Teslimkoy/Kesan formations, the Mezardere at
Inanli-1 lies within the over-pressured tight gas reservoir.
Figure 7: D&M Resource Evaluation
329

MAY 30, 2018
 Recall that D&M’s resource report earlier this year estimated a risked mean resource estimate of ~5.2
Tcf to Valeura’s interest in the play (see our Morning Note from March 2nd, 2018 for more details).
Figure 8: Valeura Working Interest Prospective Resources
Source: Company Reports, Cormark Securities Inc.
 As previously disclosed, Valeura has a steady stream of activity on the horizon commencing in early
July with tie-in and testing of Yamalik-1 and spudding of Inanli-1 to follow in late Q3/18. A West
Thrace appraisal well will follow in Q4/18 with a third Banarli deep well to spud in Q1/19 (both of
these wells will be funded pro rata by Valeura). With the Inanli-1 location chosen, Valeura retains
optionality for the locations of the following wells having submitted 10 drilling locations to government
for approval.
 The recompletion of Hayrabolu-10 is currently contingent but in our mind is relatively unlikely at this
time given the potential cost of retrieving tools, etc., from the wellbore left behind and perforations
already in the well casing.
Figure 9: Upcoming Key Events
US Analogs:
 US analogs were detailed yesterday by management with the Granite Wash play in the Anadarko
Basin highlighted as one of the most relevant given similar depth, pressures, depositional
environments, trapping, thickness and porosities. One notable difference that does favor the Thrace
Basin is the amount of quartz in the rock found at Banarli. With reservoir mineralogy comprising 40-
50% quartz at Banarli versus 30-40% in the Granite Wash, it is expected that the rock in Turkey is
more “breakable” which could lead to higher relatively productivity.
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MAY 30, 2018
Figure 10: Thrace Basin and Granite Wash BCGAs
 Having begun developing the Granite Wash with vertical wells, drilling turned to horizontals in 2007
following the evolution of multi-stage completions and drilling. IP-30 rates have varied between 3-30
MMcfe/d with first year declines of up to 83%, resulting in EURs of 3-17 Bcfe. Condensate-gas-ratios
(CGRs) of 30 B/MMcf are common, similar to that initially encountered in Yamalik-1.
 With very high original-gas-in-place (OGIP) in the shallower intervals in the Kesan and higher
porosity, horizontal wells may offer the most economical solution to develop upper zones. High
pressures, tighter rock and greater depths in contrast, may be more amenable to vertical
development over time.
Figure 11: Thrace Basin OOIP and Potential Development
331

MAY 30, 2018
 Based on ultimate completion tonnage, rock qualities, US analogs and limited results from Yamalik-1,
Cormark’s current Banarli well type curve model assumes an IP-30 rate of 10.0 MMcf/d with a CGR of
30 B/MMcf, resulting in an EUR of 8.5 Bcf (10.0 Bcfe including liquids). We have also assumed a
development well cost of US$8.0 MM (at the top end of our ultimate expected range) with an
additional $2.0 MM (gross) per well for tie-in and related infrastructure (likely very high). While pad-
based development wells should lower ultimate drilling costs below that currently seen even in the
Duvernay in Canada ($8-10 MM for a 2,000 m lateral), we have chosen to be conservative at this
time until at least well costs from a production pilot project are realized.
Figure 12: Assumed Banarli BCGA Type Curve (10 years)
12.0
11.0
10.0
9.0
Gas Production (MMcf/d)
8.0
7.0
6.0
5.0
4.0
3.0
2.0
1.0
-
1 13 25 37 49 61 73 85 97 109
Months on Production
Source: Cormark Securities Inc.
 Using operating/transportation costs of $6.00/BOE, current Turkish gas and oil pricing, a 12.5%
royalty rate and 20% corporate tax rate, we calculate an individual well NPV (AT-10%) of US$14.4
MM with a nine month payout and 65% IRR. We would note that our well models do not inflate oil and
gas pricing or costs over the 40 year life of the well. We also caution that all or many of the above
assumptions are likely to change (some materially) as incremental drilling and testing refines the
knowledge of the play.
 Based on our type curve to recover ~5.2 Tcf of working interest Mean Risked Estimated
resource and assuming a 25 year development plan (a 5-year exploration term and 20-year
development term with no extensions) with the drilling of 519 net wells (~1,300 gross wells)
which should pose no inventory issues for Valeura based on analog spacing (Figure 13),
potential value to Valeura shareholders results to ~US$2.2 billion or ~C$31.00 per share.
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MAY 30, 2018
Figure 13: Thrace BCGA Well Spacing
Valuation/Conclusion:
 With ~$31.00 per share of ultimate value net to Valeura (with the potential to increase with deeper
and shallower intervals evaluated), we continue to take a relatively conservative approach to our
target price. We have taken our estimate of ultimate DCF value of the Risked Mean resource
identified by D&M (~5.2 Tcfe) and discounted that by 60% to incorporate risks to the project
associated with market volatility, perceived geopolitical risk in Turkey, etc., as a proxy for what we
believe third parties would be reasonably willing to pay to enter a potentially world-class play absent
reserves or contingent resource. The 60% risk factor is up slightly from our previous 50% risk factor
given recent perceived instability in Turkey.
 This results in a new target price of $12.50 per share, up slightly from $12.00 prior to the investor day.
 We reiterate our Buy rating on Valeura and continue to encourage investors accumulate the stock
ahead of Yamalik-1 test results and spudding of Inanli-1.
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MAY 30, 2018
334
MAY 30, 2018
www.cormark.com
335
Garett U rsu, CFA, (403) 750-7221, gursu@cormark.com

MAY 11, 2018
Recommendation: Buy

Target Price: $12.00 Q1/18 Results; Yamalik-1 Test On Track For
Early Q3/18 With Inanli-1 To Spud in Late Q3/18
52 Wk Low $0.43 Basic Sh. (O/S) 83.7 Event:
NAV $0.34 FD Sh. (O/S) 91.0
Valeura reported Q1/18 results.
P/NAV 15.0x Mngt. & Dir. 3.4
Net Debt - 18E (MM) -$39.4 - Pct. of basic 4% Impact:
DPS NA Float (MM) $414 Neutral.
Dividend Yield NA EV (MM) $392
Commentary:
Fiscal YE Dec. 2017A 2018E 2019E
Production (BOE/d) Q1 807 859 A 1,150 Valeura reported Q1/18 production of 859 BOE/d, in line with the 810 BOE/d we
Q2 934 713 1,550 had forecast while cash flow of $0.55 MM ($0.01 per share) was also largely in line
Q3 1,024 792 1,740 with our $0.7 MM ($0.01 per share) estimate.
Q4 1,038 933 1,850
The Company confirmed that the Yamalik-1 discovery well tie-in and long-term
FY 952 825 1,575
testing program remains on track for early Q3/18 (July) with testing equipment now
% Gas 99% 92% 87%
acquired in North America and in the process of being mobilized to Turkey. As well,
Growth -5% -23% 87%
approvals for pipe to tie-in Yamalik-1 into Valeura’s gas facilities have been
CFPS Q1 ($0.04) $0.01 A $0.02
obtained with construction now underway.
Q2 $0.01 $0.01 $0.03
Q3 $0.02 $0.01 $0.04 The first appraisal well to be carried by Statoil under the ongoing farm-in on Banarli
Q4 ($0.01) $0.02 $0.04 (now named “Inanli-1”) will be drilled 6 km to the northeast of Yamalik within an
Diluted ($0.02) $0.04 $0.13 area of 3D seismic coverage with increased natural fracturing and will have a target
NYMEX WTI (US$/Bbl) $306.43 $344.11 $345.38 TVD of 5,000 m to test the vertical extent of the BCGA in the Thrace Basin. Long
EV/EBITDA 95.9x 37.1x lead items have been ordered for the upcoming 3-well delineation program
EV/BOE/d $475,924 $265,228 (including Inanli-1) with spudding of Inanli-1 scheduled for late Q3/18. Each well is
expected to take 60-75 days with all three wells drilled back-to-back. After each drill
(and assuming success), each well will then be completed and tested.
One shallow gas well (Karanfiltepe-7) will also be drilled this quarter in one of the
West Thrace licenses to ~1,450 m TVD to maintain the license.
While news flow out of Turkey may be limited until July/August, once the
Company’s drilling and testing program is underway we expect regular and
frequent operational catalysts to move the stock higher. We also expect the
technical investor day later this month that will have a focus on explaining
commerciality to drive investor interest back to the name near term.
Investment Conclusion:
With increasing news flow this year (beginning later this month and later this
summer) we continue to value Valeura’s massive emerging gas resource play well
above the current stock price. We maintain our Buy rating and $12.00 target (87.9x
2019 EV/EBITDA) on Valeura and continue to encourage investors to aggressively
accumulate the stock before tie-in and testing of Yamalik-1.
Source: BigCharts.com, May 10, 2018

During the past twenty-four months, Cormark Securities Inc., either on its own or as a
syndicate member, participated in the underwriting of securities for Valeura Energy Inc.
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MAY 11, 2018
Figure 1: Thrace Basin BCGA (Deep) Drilling
Figure 2: Thrace Basin Activity Timeline
337

MAY 11, 2018
338
MAY 11, 2018
www.cormark.com
339
Equity Research
Valeura Energy Inc.1,6 BUY

VLE-TSX
Last: C$5.09
May 10, 2018 Target: C$11.50
Program to appraise and de-risk the basin Rating & target

Rating
Old
BUY
New
n.c.
centered natural gas accumulation on track Target
Dividend yield
$11.50 n.c.
0%
Total projected return 126%
 Valeura reported 1Q18 results that are inconsequential, versus the Share Data 2017 2018e 2019e
larger target and program of appraising and de-risking the basin Shares dil., mm 78 89 89
Mkt Cap, US$mm $268 $351 $350
centered natural gas accumulation that was discovered in late 2017 EV, US$mm $266 $310 $333
with the Yamalik-1 well. Financial Data 2017 2018e 2019e
Liquids, bbl/d 8 10 10
 The Yamalik-1 well will commence producing testing in early 3Q18e. Gas, mmcf/d 5.7 4.7 3.5
Total boe/d (6:1) 952 800 600
 The drilling of three back-to-back wells will commence in late 3Q18e.
CFO, US$mm -$1 $3 $1
Valeura reported 1Q18 production of 859 boe/d and positive cash flow. With Net Capex, US$mm $6 $10 $33
Net Debt, US$mm -$3 -$41 -$17
no wells drilled during the quarter, and only one shallow well planned in
CFPS dil., US$/shr -$0.01 $0.04 $0.02
2Q18e, we continue to expect production from the shallow horizons to EPS dil., US$/shr -$0.12 -$0.05 -$0.04
decline. The focus of the company is rightfully on the deeper and more Valuation 2017 2018e 2019e
prolific basin centered natural gas accumulation. EV/DACF n.a. n.a. n.a.
Target EV/DACF n.a. n.a. n.a.
The capital program to appraise the basin centered natural gas accumulation EV per boe/d $279,294 $387,349 $554,492
remains on track with prior expectations. The Yamalik-1 discovery well will Net asset value
commence a longer-term production test in early 3Q18e. The drilling of three CNAV, $/shr $1.01
RENAV, $/shr $11.19
back-to-back deep delineation wells is planned to commence in late 3Q18e. ENAV, $/shr $20.50
The next appraisal well, Inanli-1, will be drilled 6 kilometres northeast of the P/CNAV 5.1x
Yamalik-1 well and will be drilled to a depth of 5,000 metres. P/RENAV 0.5x
P/ENAV 0.2x
The drilling and testing program of the Inanli-1 well is fully funded by Statoil, All figures in C$ unless otherwise noted
as per the terms of the farm-out agreement for Statoil to earn a 50% WI in
the deep (greater than 2,500 metres) basin centered natural gas
accumulation on the Banarli License.
Darren B. Engels, CA, CFA (403) 262-0689
Our production forecasts for 2018e and 2019e do not include any dbengels@gmpfirstenergy.com
contribution from the Yamalik-1 well or the three deep wells that are
Cole J. Pereira, CPA (403) 262-0641
planned. cjpereira@gmpfirstenergy.com
Recommendation: BUY and target price of C$11.50 per share

With the appraisal program of the basin centered natural gas accumulation
remaining on track with prior expectations, our target price of C$11.50 per
share remains unchanged and based on our risked NAV estimate of C$11.19
per share.
Prepared by GMP Securities L.P. See important disclosures on the last page of this report
340
Equity Research
Figure 1. Financial & operating information

Valeura Energy Inc. @ Futures Strip**
Financial & Operating Information 2016 2017 2018e 2019e 2018e 2019e
Commodity Prices
Brent US$/bbl $45.09 $54.76 $69.70 $71.25 $71.92 $69.50
WTI US$/bbl $43.41 $50.86 $65.99 $67.75 $66.72 $63.08
UK NBP US$/mcf $4.66 $5.80 $6.95 $6.58 $7.79 $7.32
USD/CAD US$/C$ 0.76 0.77 0.78 0.78 $0.78 $0.78
GBP / USD £/US$ 1.35 1.29 1.42 1.44 1.416 1.445
Production
Our production Oil and Liquids bbl/d 10 8 14 14 14 14
Natural Gas mmcf/d 4.7 5.7 4.7 3.5 4.7 3.5
forecasts do not include
Total (6 mcf = 1 boe) boe/d 800 952 800 600 800 600
a production % Oil and Liquids % 1% 1% 2% 2% 2% 2%
contribution from the Netbacks
deep wells, given the Realized Price US$/boe $41.69 $32.52 $36.98 $38.66 $37.17 $38.74
Royalties US$/boe $5.42 $4.38 $4.92 $5.14 $4.94 $5.15
early stage of testing Production & Transport Costs US$/boe $5.76 $9.82 $9.64 $7.75 $9.68 $7.78
operations and Operating Netback US$/boe $30.51 $18.32 $22.43 $25.76 $22.56 $25.81
delineation drilling not Taxes US$/boe $0.00 $5.26 $0.22 $0.00 $0.22 $0.00
Cash Flow Netback US$/boe $15.61 ($2.68) $10.64 $6.43 $10.71 $6.41
expected to commence Government Take % 13% 30% 14% 13% 14% 13%
until late 3Q18e. Financials
Cash Flow (CFO) US$mm $5 ($1) $3 $1 $3 $1
CFPS - diluted US$/shr $0.08 ($0.01) $0.04 $0.02 $0.04 $0.02
EBITDAX a US$mm $5 $1 $3 $1 $3 $1
E&D Capex US$mm $7 $10 $10 $33 $10 $33
A&D Capex,Net US$mm $0 ($4) $0 $0 $0 $0
Total Net Capex US$mm $7 $6 $10 $33 $10 $33
E&D Capex/CFO x 1.6x -10.6x 3.1x 23.5x 3.1x 23.6x
Leverage
Net Debt US$mm ($15) ($3) ($41) ($17) ($41) ($17)
Net debt/CFO (Trailing) x n.a. n.a. n.a. n.a. n.a. n.a.
Entry Net debt/CFO x n.a. n.a. n.a. n.a. n.a. n.a.
Capital Structure
Basic Shares o/s @ YE mm 59 73 84 84 84 84
Diluted Shares o/s @ YE mm 60 78 89 89 89 89
Market Capitalization US$mm $43 $268 $351 $350 $352 $354
Enterprise Value US$mm $27 $266 $310 $333 $311 $337
Dividends & Sustainability
Dividends US$mm $0 $0 $0 $0 $0 $0
Dividends $/shr $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
Dividend Yield % 0% 0% 0% 0% 0% 0%
Free Cash Flow US$mm ($2) ($5) ($5) ($24) ($5) ($25)
Cash Use/CFO % 158% -659% 308% 2345% 307% 2359%
Performance
Prod. Per Shr Growth (Y/Y) - dil. % -4% 3% -36% -55% -36% -55%
PPS Growth (Y/Y) DDA - dil. b % 11% -34% -28% -58% -28% -58%
CFPS Growth (Y/Y) - dil. % -43% -117% -374% -55% -376% -56%
CFPS Growth (Y/Y) DDA - dil. b % -34% -111% n.a. -59% n.a. -59%
ROCE % -9% -15% -6% -4% -6% -4%
Net Asset Value c
CNAV (Atax, 15%) - diluted $/shr $0.35 $0.23 $1.01 $1.02

RENAV (Atax, 15%) - diluted $/shr $1.51 $9.31 $11.19 $10.19
ENAV (Atax, 15%) - diluted $/shr $1.63 $17.67 $20.50 $18.53
P/CNAV % 271% 1891% 505% 501%
P/RENAV % 63% 47% 45% 50%
P/ENAV % 58% 25% 25% 27%
Valuation
Share Price, YE/Current $/shr $0.95 $4.35 $5.09 $5.09 $5.09 $5.09
P/CF x 9.2x n.a. 111.8x 250.3x 111.5x 251.8x
EV/DACF x 6.2x n.a. n.a. n.a. n.a. n.a.
Target EV/DACF x n.a. n.a. n.a. n.a. n.a. n.a.
EV per boe/d $/boepd 34,032 279,294 387,349 554,492 388,535 561,859
EV per 2P boe US$/boe 5.79 34.00 39.65 39.77
EV per 2P boe, with FDC US$/boe 18.89 48.68 54.32 54.44
a)
EBITDAX = Pre-Int. & Pre-Tax Cash Flow; b) DDA = Debt-and-Dividend-Adjusted
c)
CNAV incl. 2P reserves, RENAV incl. 3P reserves + risked exploration upside, ENAV incl. 3P reserves + unrisked exploration upside
**Futures strip as of 8-May-18
Source: GMP FirstEnergy, Company disclosures
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Equity Research
Figure 2. Core and risked NAV estimate, GMP FirstEnergy price deck and strip pricing
Valeura Energy
Core and Risked NAV Estimate
GMP FE Price Deck Strip Pricing
Financial C$mm C$/share C$mm C$/share
Cash balance 49 0.55 49 0.55
Working capital 53 0.60 53 0.59
Long-term debt 0 0.00 0 0.00
Net debt 53 0.60 53 0.59
Decommissioning obligations -16 -0.18 -16 -0.18
Reserves mmbbl bcf mmboe C$/boe C$mm C$/share C$/boe C$mm C$/share
Turkey
1P reserves 0.0 13.2 2.2 4.93 11 0.12 5.00 11 0.12
2P reserves 0.0 46.8 7.8 6.74 53 0.59 6.83 53 0.60
3P reserves 0.0 73.4 12.2 7.56 93 1.04 7.64 94 1.05
NAV Estimate
Core NAV (2P reserves) 90 1.01 91 1.02
3P NAV 130 1.46 131 1.47
Prospective Resources, Net
Low Best High Mean NPV NPV
Estimate Estimate Estimate Estimate C$/boe C$mm C$/share C$/boe C$mm C$/share
Unrisked prospective resource
Natural gas - bcf 2,959 6,722 17,053 8,721
Condensate - mmbbl 45 155 504 236
Total - bcfe 3,229 7,652 20,077 10,137
Total - mmboe 538 1,275 3,346 1,690
Chance of commerciality - % 51% 51% 51% 51%
Risked prospective resource
Natural gas - bcf 1,513 3,436 8,717 4,458
Condensate - mmbbl 23 79 258 121
Total - bcfe 1,651 3,912 10,263 5,182
Total - mmboe 275 652 1,711 864 1.01 869 9.73 0.90 778 8.72
Risked NAV 998 11.19 909 10.19
Unrisked NAV 1,829 20.50 1,653 18.53
Diluted shares outstanding 89 89
342
Equity Research
Figure 3. Actual results versus estimates

GMP FirstEnergy Sequential Annual
1Q18 GMP FE Chg 4Q17 Chg 1Q17 Chg
Production
Oil & Liquids bbl/d 15 8 +78% 9 +67% 3 +400%
Natural Gas mmcf/d 5.1 5.5 -8% 6.2 -18% 4.8 +5%
Total (6 mcf:1 boe) boe/d 859 924 -7% 1,038 -17% 807 +6%
Key Financials
Cash Flow (CFO) US$mm 0 1 -59% (0) +$1 (2) +$3
CFPS - diluted US$/shr 0.00 0.01 -59% (0.00) +$0.01 (0.03) +$0.04
E&D Capex US$mm 1 1 -13% 1 -53% 1 -53%
Total Net Capex US$mm 1 1 -13% 1 -53% 1 -14%
Net Debt US$mm (46) (48) +$1 (3) -$44 (9) -$37
Net Debt/CFO (Trailing) x n.a. n.a. n.a. n.a.
Netbacks
Realized Price US$/boe 35.48 35.27 +1% 31.51 +13% 32.12 +10%
Royalties US$/boe 4.70 4.76 -1% 4.25 +11% 4.15 +13%
Production & Transport US$/boe 10.73 9.49 +13% 9.67 +11% 6.33 +69%
Operating Netback US$/boe 20.04 21.02 17.59 21.64
Cash Flow Netback US$/boe 5.33 11.98 -56% (3.67) +$9.00 (29.99) +$35.32
Cash Flow
Upstream Netback US$mm 2 2 -11% 2 -30% 2
Realized Hedging US$mm 0 0 0 22% 0
Cash G&A Expense US$mm (1) (1) 7% (1) 11% (1) -16%
Other Cash Items US$mm (0) 0 $0 (0) -100% (2) -99%
EBITDAX US$mm 0 1 -52% 1 -15% (1) $2
Interest Expense US$mm 0 0 0 -20% 0
Current Income Tax US$mm (0) 0 $0 (1) (1) -92%
Cash Flow US$mm 0 1 -59% (0) -15% (2) $2
343
Equity Research
Figure 4. Current versus prior estimates

2018e 2019e
New Prior Chg New Prior Chg
Production
Oil & Liquids bbl/d 14 8 +73% 14 10 +38%
Natural Gas mmcf/d 4.7 4.8 -1% 3.5 3.5 -1%
Total (6 mcf:1 boe) boe/d 800 800 600 600
Key Financials
Cash Flow (CFO) US$mm 3 4 -14% 1 2 -8%
CFPS - diluted US$/shr 0.04 0.04 -14% 0.02 0.02 -8%
E&D Capex US$mm 10 10 -1% 33 33
Total Net Capex US$mm 10 10 -1% 33 33
Net Debt US$mm (41) (43) +$1 (17) (19) +$2
Net Debt/CFO (Trailing) x n.a. n.a. n.a. 0.0x
Netbacks
Realized Price US$/boe 36.98 36.76 +1% 38.66 38.54
Royalties US$/boe 4.92 4.96 -1% 5.14 5.20 -1%
Production & Transport US$/boe 9.64 9.31 +3% 7.75 7.75
Operating Netback US$/boe 22.43 22.48 25.76 25.58
Cash Flow Netback US$/boe 10.64 12.38 -14% 6.43 6.99 -8%
Cash Flow
Upstream Netback US$mm 7 7 6 6
Realized Hedging US$mm 0 0 0 0
Cash G&A Expense US$mm (4) (4) 5% (4) (4) 4%
Other Cash Items US$mm 1 1 $0 0 0
EBITDAX US$mm 3 4 -12% 1 2 -8%
Interest Expense US$mm 0 0 0 0
Current Income Tax US$mm (0) 0 $0 0 0
Cash Flow US$mm 2 3 -14% 1 1 -8%
Net Asset Value
CNAV (Atax, 15%) $/shr 1.01 0.96 +5%
RENAV (Atax, 15%) $/shr 11.19 11.45 -2%
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Equity Research
Figure 5. Quarter information

Quarterly Info^ 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18e 3Q18e 4Q18e 1Q19e 2Q19e 3Q19e 4Q19e
Liquids, bbl/d 9 7 10 12 3 9 11 9 15 14 13 13 14 14 14 13
Gas, mmcf/d 4.7 5.6 4.0 4.7 4.8 5.6 6.1 6.2 5.1 4.7 4.5 4.6 4.0 4.3 3.7 2.0
Total, boe/d 792 933 680 795 807 934 1,024 1,038 859 800 760 783 687 732 631 353
CFO, US$mm $1 $2 $1 $1 ($2) $1 $1 ($0) $0 $1 $1 $1 $1 $1 $0 ($0)
CFPS dil., US$/shr $0.02 $0.03 $0.01 $0.01 ($0.03) $0.01 $0.01 ($0.00) $0.00 $0.01 $0.01 $0.01 $0.01 $0.01 $0.00 ($0.00)
E&D Capex, US$mm $2 $2 $2 $0 $1 $3 $4 $1 $1 $2 $1 $6 $12 $15 $3 $3
A&D Net, US$mm $0 $0 $0 $0 ($1) ($3) $0 ($0) $0 $0 $0 $0 $0 $0 $0 $0
Net Capex, US$mm $2 $2 $2 $0 $1 $0 $4 $1 $1 $2 $1 $6 $12 $15 $3 $3
Net Debt, US$mm ($7) ($8) ($3) ($15) ($9) ($6) ($4) ($3) ($46) ($44) ($44) ($41) ($32) ($22) ($20) ($17)
*Bank Debt & Working Capital Deficit, $mm ^For annual estimates see the FinOp table on page 2
Figure 6. Commodity price scenarios

Low Mid-Low Mid-High High
2018e 2019e 2018e 2019e 2018e 2019e 2018e 2019e
Commodity Prices
Brent US$/bbl 54.25 50.00 61.78 60.00 69.32 70.00 76.85 80.00
USD/CAD US$/C$ 0.80 0.80 0.80 0.80 0.80 0.80 0.80 0.80
Key Financial & Operating Information
Total Production (6 mcf: 1 boe) boe/d 800 600 800 600 800 600 800 600
Operating Netback US$/boe 22.81 26.11 22.92 26.31 23.03 26.50 23.13 26.70
Cash Flow (CFO) US$mm 3 1 3 1 3 1 3 1
CFPS, dil. US$/shr 0.04 0.02 0.04 0.02 0.04 0.02 0.04 0.02
EBITDAX US$mm 29 12 29 13 30 13 30 14
Net Capex US$mm 72 249 72 249 72 249 72 249
a
Cash Use/Cash Flow % 315% 2520% 312% 2442% 309% 2370% 306% 2301%
Net Debt US$mm (42) (16) (42) (16) (42) (17) (42) (17)
Net Debt/Cash Flow (Trailing) x n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a.
DACF Multiple
b
EV/DACF x n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a.
b
Target EV/DACF x n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a.
a) 'Cash Use' Net of any DRIP; b) Current Share Price at 9-May: $5.09; Target Price: $11.50; * Go-forward price deck scenarios for current year are equal to the price deck shown for Year 2
See page 2 for metrics at FirstEnergy's price deck and the Futures strip
345
Equity Research
Disclosures
GMP FirstEnergy is a trade name and division of GMP Securities L.P. (“GMP”), and a trade name of FirstEnergy Capital LLP (together with GMP referred to as
“GMP/FirstEnergy”).
The information contained in this report is drawn from sources believed to be reliable but the accuracy or completeness of the information is not
guaranteed, nor in providing it does GMP/FirstEnergy assume any responsibility or liability whatsoever. Information on which this report is based is available
upon request. This report is not to be construed as a solicitation of an offer to buy or sell any securities. GMP/FirstEnergy and/or affiliated companies or
persons may as principal or agent, buy and sell securities mentioned herein, including options, futures or other derivative instruments thereon.
The superscript(s) following the issuer name(s) mentioned in this report refers to the company-specific disclosures below. If there is no such superscript,
then none of the disclosures are applicable and/or required.
Company-Specific Disclosures:
1 GMP/FirstEnergy has, within the previous 12 months, provided paid investment banking services or acted as underwriter to the issuer.
2 RESERVED
3 GMP/FirstEnergy owns 1% or more of this issuer’s securities.
4 GMP Securities, LLC (“GMP LLC”), an affiliate of GMP/FirstEnergy, discloses the following in relation to this issuer as required by the Financial Industry
Regulatory Authority (“FINRA”) Rule 2241: as applicable.
5 The analyst is related to an officer, director or advisory board member of this issuer, but that related individual has no influence in the preparation of this
report.
6 The analyst has viewed the operations of this issuer and the issuer paid all or a portion of the travel expenses associated with the analyst’s site visit to its
operations.
7 The analyst has viewed the operations of this issuer.
8 The analyst and/or a member of their household has a position in this issuer's securities.
9 A member of the Board of Directors of this issuer is also a member of the Board of Directors of GMP Capital Inc., but that individual had no influence in
the preparation of this report.
10 The analyst owns this issuer's securities in a managed account but has no involvement in the investment decisions for that managed account.
Each research analyst and associate research analyst who authored this document and whose name appears herein certifies that:
(1) the recommendations and opinions expressed in the research report accurately reflect their personal views about any and all of the securities or issuers
discussed herein that are within their coverage universe; and (2) no part of their compensation was, is or will be, directly or indirectly, related to the
provision of specific recommendations or views expressed herein.
GMP/FirstEnergy Analysts are not registered and/or qualified as research analysts with FINRA and may not be associated persons of GMP LLC and therefore
may not be subject to FINRA Rule 2241 restrictions on communications with a subject company, public appearances and trading securities held by a research
analyst account as defined by FINRA but are subject to the applicable regulatory rules as mentioned below.
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Authority), GMP/FirstEnergy’s recommendation statistics and research dissemination policies can be obtained at www.gmpsecurities.com or by calling
GMP’s Compliance Department at 416-367-8600.
GMP/FirstEnergy Analysts are compensated competitively based on several criteria. The Analyst compensation pool is comprised of several revenue
sources, including secondary trading commissions, new issue commissions, investment banking fees, and directed payments from institutional clients.
The GMP/FirstEnergy research recommendation structure consists of the following ratings:
Buy: A Buy rating reflects 1) bullish conviction on the part of the analyst; and 2) typically a 15% or greater return to target.
Speculative Buy: A Speculative Buy rating reflects 1) bullish conviction on the part of the analyst accompanied by a substantially higher than normal risk,
including the possibility of a binary outcome; and 2) typically a 30% or greater return to target.
Hold: A Hold rating reflects 1) a lack of bullish or bearish conviction on the part of the analyst; and 2) typically a return of 0 to 20%.
Reduce: A Reduce rating reflects 1) bearish conviction on the part of the analyst; and 2) typically a 5% or lower return to target.
Tender: Clients are advised to tender their shares to a takeover bid or similar offer.
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346
Monday, May 07, 2018
Last Updated: Thursday, March 15, 2018
Valeura Energy (VLE)

Seven-bagger Valeura Energy
soars 666% Fig 3: Financials Summary
Valeura Energy Inc., Canada's 33rd largest Oil & Gas - Dec Dec Dec
Year ended
Exploration & Production company by market cap, 2017 2016 2015
soared CAD4.53 (or 666.2%) in the past year to close at Sales (USD M) 10.9 11.6 14.5
CAD5.21. Compared with the S&P/TSX 60 Index which has
Pretax (USD) (8.4M) (4.9M) 80,993.5
risen 1.6% over the same period, this is a relative price
increase of 664.6%. A seven-bagger, the value of Net (USD) (6.5M) (4.7M) (437,676.
CAD1,000 invested one year ago is CAD7,662 [vs 6)
CAD1,015 for the S&P/TSX 60 Index], for a capital gain of EPS (CAD) (0.12) (0.1) (0.01)
CAD6,662. The average daily turnover of shares in the past
Net profit deteriorated from -US$4.7 million in 2016 to -US$6.5
year was CAD1.7 million.
million in 2017. Earnings Per Share (EPS) deteriorated from -
APPOINTMENT OF CHIEF OPERATING OFFICER 10.0c to -12.0c.
The company appointed Lyle Martinson as chief
operating officer on Wednesday, April 18.
In this Report:
Highlights: Page
Company Overview
Summary 1
Figure 1: Activities Analysis 2
Period-based Shareholder Returns 4

Valeura Energy Inc together with subsidiaries explores,
develops and produces petroleum and natural gas in Turkey Price Volume Dynamics 7
and Western Canada. News 12
Further details can be found at Financials 21
http://www.valeuraenergy.com.
Peer Group Analysis 27
Business Sector Energy - Fossil Fuels
Board and Management 30
Industry Group Oil & Gas
Index and Glossary 32
Industry Oil & Gas Exploration and
Production Note also:
Activity Oil & Gas Exploration and
Section Headers and Figures are mapped as Bookmarks in the PDF
Production - NEC
menu (left, top)
Economic Sector Energy
Fig 2: Stock Summary

Shares Outstanding 85,662,154
Sector Oil & Gas - Exploration &
Production
Market Cap CAD446.3 million (US$347.3
million)
TSR (1 yr) 666.2%
52-Week Range 42.50c-CAD8.27
Relative Strength (3 mo) 25
ISIN CA9191444020
PermID 4296387239
www.BuySellSignals.com Index and Glossary at end of this Report.

347
Analysis
Introduction with Trends Undervaluation:

• The average annual compound return on the share
We are currently bullish on this stock in the
price in the last 5 years was 42.1%, exceeding the
short-term based on technical indicators, but
are more bearish in the long-term based on average annual compound return on the S&P/TSX 60
fundamental metrics Index of 5.5%.
What makes us most bullish on the stock is the

following: Other Bullish Signals:
• In the last three months the stock has hit a new 52-week
high once. Fig 4: Bullish Indicators
• Its Moving Average Convergence Divergence indicators
are rising, with its 12-day EMA higher than its 26-day EMA. Description Value Rank In Canada
• The price to 200-day MAP ratio is 1.8, a bullish indicator. Relative Strength 99 In Top 1%
• It is beating 99% of the market in the past 6 months. (6 mo)
However, there are some reasons why we remain Price/MAP200 1.8 In Top 2%
bearish on the stock for the long-term: Turnover in CAD209.1 million In Top 10%
• The Price to Book of 8.1 higher than average of 0.8 for Quarter
the Oil & Gas - Exploration & Production sector and 0.5 Price/MAP50 1.02 In Top Quartile
for the Total Canadian Market. We estimate the shares MCap $US347.3 million In Top Quartile
• The Q Ratio, defined by James Tobin as MCap divided Bearish Signals
by Total Assets, is 5. Compared with the rest of the
market the stock is overvalued and ranks in the bottom Overvaluation:
quartile of stocks by value of Q Ratio. • Price/Sales of 31.79 versus sector average of 1.2 and
market average of 0.3.
Bullish Signals • The Price to Book of 8.1 higher than average of 0.8 for
• In the last 21 trading sessions there has been a net rise of for the Total Canadian Market. We estimate the shares
13.3%; the stock has advanced ten times and the are trading at a current year Price to Book of 8.8 and a
biggest one day rise was 13.5% on April 10. forward year Price to Book of 9.4.
• In the Canadian market of 1,902 stocks and 96 units • The Q Ratio, defined by James Tobin as MCap divided
traded today, the stock has a 6-month relative strength by Total Assets, is 5. Compared with the rest of the
of 99 which means it is beating 99% of the market. market the stock is overvalued and ranks in the bottom
• The Moving Average Convergence Divergence (MACD) quartile of stocks by value of Q Ratio.
indicator of 12-day Exponential Moving Average (EMA)
of 5.28 minus the 26-day EMA of 5.14 is positive
suggesting a bullish signal.
• The Price/MAP 200 of 1.8 for Valeura Energy is higher
than the Price/MAP 200 for the S&P/TSX 60 Index of 1.04.
• In the last three months the stock has hit a new 52-week
high once.
• The price to 200-day MAP ratio is 1.8, a bullish indicator.
In the past 200 days this ratio has exceeded 1.8, 102
times suggesting further upside. The stock is trading
above both its MAPs and the 50-day MAP of CAD5.10 is
higher than the 200-day MAP of CAD2.90, another bullish
indicator.
348
Analysis (continued)
Other Bearish Signals: Fig 7: Global Rank [out of 47,635

stocks]
Fig 5: Quarterly Revenue & Net Description Value Rank Quartile
Income MCap (US$ M) 347.3 14,837 Second
Total Assets (US$ M) 58.9 27,727 Third
Revenue (US$ M) 10.9 31,218 Third
Net Profit (US$ M) (4.7) 36,475 Bottom
Return on Equity % (10.4) 32,811 Third
Net Profit Margin % (40.8) 34,398 Third
Price to Book 5.9 29,564 Third
PV$1000 (1Year) US$* 8,176 69 Top
US$* Change (1Year) 539.2 133 Top
%
Rel Strength 6 Mo 100 50 Top
(US$)
* 1 year ago CAD 1 = USD 0.73; May 07, 2018: CAD 1 = USD
0.78
Quarterly Revenue for October to December 2017 was
CAD3.6 million, down 0.0% from CAD3.6 million in October to Fig 8: Other Listings
December 2017. Quarterly Net profit for October to
December 2017 was -CAD946,000, a deterioration from - Exchange RIC Avg. Daily Volume
Volume % of Total
CAD946,000 in October to December 2017.
Primary Exchange (Canada)
The stock has a score of merely 2 out of 9 set Toronto VLE.TO 446,102 99.4
by Joseph Piotroski [pass mark >=5 ]:
Positive operating cashflow; good quality of earnings Other Listings
[operating cashflow exceeds net income]. United States
OTC Pink - 30,422 0.6
Fig 6: Bearish Indicators Total 100.00
Description Value Rank In Canada

Price Change % (3 -4.4 In Bottom Quartile
mo)
Price to Book 8.1 In Bottom Quartile
Value
Note
• It is at a discount of 37.0% to the 12-month high of
CAD8.27 on 07 Feb, 2018. It is also at a premium of
1,125.9% to the 12-month low of 42.50c on 13 Oct, 2017.
Standard Deviation (SD):SD is a statistical measure of
deviation from the mean. The SD of 8.2% gives it a percentile
rank of 90 meaning that 90% of stocks in the Canadian
market are less volatile than this stock.
349
PAST QUARTER
Valeura Energy slumps 16% in past quarter
Valeura Energy Inc. (TSX:VLE), has slumped 98.0c (or 15.8%) in the past quarter to close at CAD5.21. Compared with the S&P/TSX
60 Index which rose 28.0 points (or 3.1%) in the past quarter, this represented a relative price change of -18.9%.
The stock fell 35 times (57.4% of the time) and rose 26 times (42.6% of the time). The aggregate volume was 1.6 times average
trading of 457,752 shares. The value of CAD1,000 invested 3 months ago is CAD842 [vs CAD1,039 for the S&P/TSX 60 Index] for a
capital loss of CAD158.
YEAR-TO-DATE
Valeura Energy advances 20% in 2018
Valeura Energy Inc. (TSX:VLE), advanced 86.0c (or 19.8%) year-to-date (YTD) in 2018 to close at CAD5.21. Compared with the
S&P/TSX 60 Index which has fallen 2.4% YTD, this is a relative price increase of 22.1%.
Fig 10: PRESENT VALUE OF CAD1000 INVESTED IN THE PAST [3 Mo, 1 Yr, 3
Yrs]
PVCAD1,000 3 mo ago 1 yr ago 3 yrs ago
VLE CAD842 CAD7,776
Oil & Gas - Exploration & CAD1,156 CAD1,062 CAD935
Production sector
S&P/TSX 60 Index CAD1,039 CAD1,015 CAD1,063
Fig 11: 5-Year Moving Annual Return
Based on a dynamic start date of 5 years ago, the Moving

Annual Return has been positive in 2 of the last 5 years. An
investment a year ago in VLE would have produced a return
of 666.2%.
Annual Return
VLE Close (CAD) %
May 07 5.21 666.2
1 Yr ago 0.68 (11.7)
2 Yrs ago 0.77 14.9
3 Yrs ago 0.67 (2.9)
4 Yrs ago 0.69 (23.3)
Close 5 years ago 90.0c
350
Period-based Shareholder Returns (continued)
Fig 12: Total Shareholder Returns, Annualised [TSR %]

TSR % 1 yr 3 yrs 5 yrs
VLE 666.2 96.8 42.1
351

• The present value of CAD1,000 (PV1000) invested five
years ago in Valeura Energy is CAD5,789, for a capital
gain of CAD4,789.
• 5 years Multiplier in CAD = 5.789x
• Compound Annual Growth Rate (CAGR) in CAD = 42.1%
Fig 14: PRESENT VALUE OF USD1000 INVESTED 5 YEARS AGO

• The present value of USD1,000 (PV1000) invested five
years ago in Valeura Energy is $US4,542, for a capital
gain of $US3,542.
• 5 years ago CAD 1 equalled USD 0.9926
• 5 years Multiplier in USD = 4.542x
• Compound Annual Growth Rate (CAGR) in USD = 35.4%
352
Price Volume Dynamics (Past quarter)

Fig 15: The Best 3 weeks Fig 16: The Worst 3 weeks
Mon-Fri Change S&P/TSX RPC % Vol Ind Mon-Fri Change S&P/TSX RPC % Vol Ind
% 60 [1 is % 60 [1 is
index avg] index avg]
Change Change
% %
Apr 09-13 26.5 0.2 26.4 1.8 Mar 12-16 -14.9 1.1 -15.9 1.5
Feb 05-09 13.3 -3.8 17.2 6.3 Apr 16-20 -9.6 1.3 -10.8 1
Apr 23-27 11.8 1.6 10.2 1.2 Feb 19-23 -9.5 1.5 -11 1.4
Fig 17: Weekly Price Change (%) and Volume Index (Last 3 months)
Price increase fuelled by above average Volume Price increase on below average Volume
Price decrease fuelled by above average Volume Price decrease on below average Volume
Price unchanged on above average Volume Price unchanged on below average Volume
Untraded
In the last 13 weeks the share price was down 15.8%. It fell in 6/13 weeks. Of the 6 weeks, the stock fell on above average
volume in 6 weeks.
353
Fig 18: Price Volume Trend: Trailing Quarter
Valeura Energy hit a 3-month high of CAD7.21 on Feb 08 and a 3-month low of CAD3.80 on Mar 28.
Fig 19: Fibonacci Retracement
354
Fig 20: Trailing 3 months Fig 21: Trailing Price Change %

Turnover US$162.7 million 3-Year price change of 677.6% for VLE outperformed the
Volume 39,044,520 change of 6.8% in the S&P/TSX 60 index for a relative price
change of 670.8%.
Volume Index (1 is avg) 1.4
Price Change % Quarter Year 3 Years
VLE -15.8 666.2 677.6
Sector* 15.6 6.2 -7.4
S&P/TSX 60 index 3.1 1.6 6.8
* Oil & Gas - Exploration & Production
Volatility Fig 23: YTD Comparison Stock

The stock traded between a 52-week low of 42.50c and a Sector Index (%)
high of CAD8.27. The average daily volatility of 6.4% places
the stock in the 1st quartile in the market meaning it is highly
volatile.
Fig 22: Price High Low Close
Valeura Energy Inc. has increased 86.0c (19.8%) Year-to-

Date (YTD). Compared with the S&P/TSX 60 index which fell
22.54 points (2.4%), the YTD relative price change was
22.1%.
Fig 24: Relative Strength
355
Fig 25: Price/Moving Avg Price Fig 26: Turnover Rate & Period
[P/MAP200]
In the last 3 months the share price has exceeded Moving

Avg Price on 62/63 days; a bullish signal.
Fig 27: CAD1 buys USD 0.78 today: Appreciation of USD from 0.86
twenty-eight years ago
Fig 28: Year-on-Year Comparison (Trailing year - ended 30 Apr)

2018 2017 2016 2015 2014 2013
Price 30 Apr (CAD) 5.39 0.65 0.8 0.65 0.68 0.88
% Price Change 729.2 -18.8 23.1 -4.4 -22.7
Avg Daily Volume 413,917 98,813 89,976 111,377 109,118 56,920
VWAP (CAD) 3.96 0.97 0.67 0.46 0.52 0.85
Turnover Period 1 yr 40 d 2 yrs 1 d 3 yrs 51 d 2 yrs 11 mo 2 yrs 9 mo 47 yrs 11 mo
Price Range (CAD) 0.42 - 8.27 0.6 - 1.44 0.35 - 0.88 0.3 - 0.71 0.27 - 0.9 0.73 - 0.93
Index Change % 0.3 12.7 -8 5.8 17.9
Relative Price Change % 729 -31.4 31.1 -10.3 -40.6
In the past 5 years average daily volume has jumped 627.2% from 56,920 shares to 413,917 shares. Turnover period has
decreased from 47 years 11 months to 1 year 40 days.
356

Primary Exchange and Year-to-date (YTD)
Aggregate Volume
+Toronto: VLE.TSX year-to-date volume is 60,570,326; volume
93.56% of aggregate. Average daily volume is 680,565.
Year-to-date (YTD) Volume Weighted Average Price (VWAP):
CAD5.0.
Other listings and Year-to-date (YTD) Aggregate Volumes
+OTC Pink: PNWRF.PINKSHEETS year-to-date volume is
4,170,641; volume 6.44% of aggregate. Average daily
volume is 48,496.
Year-to-date (YTD) VWAP: $US4.0.
Using the current exchange rate of USD1 equals 1.2853CAD,
the shares are at a 2.8% premium to the year-to-date VWAP
on Toronto.
+YTD Aggregate volume: there were 64,740,967 shares of
Valeura Energy worth CAD336.4 million traded year-to-date.
357
Regulatory Announcements
Fig 29: Acquisitions Fig 31: Changes in Board

August 13 2015: Valeura Announces Second Quarter April 18: Valeura Energy appoints Chief Operating
2015 Financial and Operating Results and Completion Officer
of Banarli 3D Seismic Acquisition and Initial Processing Valeura Energy has appointed Lyle Martinson as Chief
[News Story] CALGARY, Aug. 13, 2015 /CNW/ - Valeura Operating Officer. The effective date is Wednesday, April 18.
Energy Inc. ("Valeura" or the "Corporation") (TSX: VLE) is For more details click here.
pleased to report highlights of its unaudited financial and
operating results for the three and six month periods ended January 12: Valeura Energy appoints Chairman
June 30, 2015 and an update on subsequent developments. Valeura Energy has appointed Russell Hiscock as Chairman.
The complete quarterly reporting package for the The effective date is Friday, January 12.
Corporation, including the unaudited financial statements For more details click here.
and associated management's discussion and analysis
("MD&A"), has been filed on SEDAR at www.sedar.com and January 12: Valeura Energy appoints Director
posted on the Corporation's website at Valeura Energy has appointed Russell Hiscock as a Director.
www.valeuraenergy.com. The effective date is Friday, January 12.
"Valeura generated funds flow from operations in Turkey of For more details click here.
$3.0 million in the second quarter, driven by continued strong
natural gas price realizations and operating netbacks of October 19 2017: Valeura Announces Executive
$9.89 per Mcf and $45.90 per boe, respectively," said Jim Changes
McFarland, President and Chief Executive Officer. CALGARY, Oct.19, 2017 /CNW/ - Valeura Energy Inc.
For more details click here. ("Valeura" or the "Corporation") (TSX: VLE) Chairman of the
board of directors, Bill Fanagan, announced today that Co-
founder, President and Chief Executive Officer, Jim
McFarland, will be retiring as an executive of the Corporation
Fig 30: Natural effective December 31, 2017.
Reserves/Resources Discovery For more details click here.
January 04 2016: Valeura confirms natural gas April 15 2015: Valeura Energy appoints Director
discovery in its first Banarli exploration well and Valeura Energy has appointed Tim Marchant as a Director.
provides operational update The effective date is April 15, 2015.
Canada NewsWire
CALGARY, Jan. 4, 2016
CALGARY, Jan. 4, 2016 /CNW/ - Valeura Energy Inc. Fig 32: Management Issues
("Valeura" or the "Corporation") (TSX: VLE) is pleased to
confirm a natural gas discovery in its first exploration well Bati May 12 2016: Valeura announces voting results
Gurgen-1 on its 100% owned and operated Banarli licences Canada NewsWire
in the Thrace Basin of Turkey, which flowed at an initial CALGARY, May 12, 2016
restricted rate of 3.4 million cubic feet per day ("MMcf/d") on CALGARY, May 12, 2016 /CNW/ - Valeura Energy Inc.
a 24-hour production test. ("Valeura" or the "Corporation") (TSX: VLE) is pleased to
For more details click here. provide the voting results from its annual meeting of
shareholders held on May 12, 2016.
December 17 2015: Valeura announces encouraging Shareholders voted on and approved the following
drilling results and commencement of completion & proposals: (1) the appointment of KPMG LLP as the auditors
testing operations on the initial two Banarli exploration of the Corporation; and (2) the election of the directors of
wells the Corporation.
Canada NewsWire For more details click here.
announce encouraging drilling results and the
commencement of completion and testing operations on its
initial two exploration wells Bati Gurgen-1 and Yayli-1 on its
100% owned and operated Banarli licences in the Thrace
Basin of Turkey.
358

October 13 2016: IIROC Trading Halt - VLE
Fig 33: Exchange Activity Canada NewsWire
TORONTO, Oct. 13, 2016
February 08: IIROC Trade Resumption - VLE TORONTO, Oct. 13, 2016 /CNW/ - The following issues have
Canada NewsWire been halted by IIROC:
TORONTO, Feb. 8, 2018 Company: Valeura Energy Inc.
TORONTO, Feb. 8, 2018 - Trading resumes in: TSX Symbol: VLE (all issues)
Company: Valeura Energy Inc. Reason: Dissemination
TSX Symbol: VLE Halt Time (ET): 4:45 PM ET
Resumption (ET): 9:39:35 AM IIROC can make a decision to impose a temporary
IIROC can make a decision to impose a temporary suspension (halt) of trading in a security of a publicly-listed
suspension (halt) of trading in a security of a publicly-listed company.
company. Trading halts are implemented to ensure a fair For more details click here.
and orderly market.
October 13 2016: IIROC Trade Halt - Valeura Energy
Inc.
February 08: IIROC Trade Halt - Valeura Energy Inc. Toronto, Ontario--(Newsfile Corp. - October 13, 2016) - The
Toronto, Ontario--(Newsfile Corp. - February 8, 2018) - The following issues have been halted by IIROC:
following issues have been halted by IIROC: Source: <a
Source: TMX Group href='http://tmx.quotemedia.com/article.php?newsid=63826
For more details click here. 68951085637&qm_symbol=VLE' target='_blank'>TMX
Group</a>
February 08: IIROC Trading Halt - VLE For more details click here.
Canada NewsWire
TORONTO, Feb. 8, 2018 August 19 2016: IIROC Trade Resumption - VLE
TORONTO, Feb. 8, 2018 - The following issues have been Canada NewsWire
halted by IIROC: TORONTO, Aug. 19, 2016
Company: Valeura Energy Inc. TORONTO, Aug. 19, 2016 /CNW/ - Trading resumes in:
TSX Symbol: VLE Company: Valeura Energy Inc.
Reason: Single-Stock Circuit Breaker TSX Symbol: VLE
Halt Time (ET): 9:34:35 AM Resumption (ET): 12:45 PM
IIROC can make a decision to impose a temporary IIROC can make a decision to impose a temporary
suspension (halt) of trading in a security of a publicly-listed suspension (halt) of trading in a security of a publicly-listed
company. company. Trading halts are implemented to ensure a fair
For more details click here. and orderly market.
October 14 2016: IIROC Trade Resumption - Valeura
Energy Inc. August 19 2016: IIROC Trade Halt - Valeura Energy Inc.
IIROC can make a decision to impose a temporary Toronto, Ontario--(Newsfile Corp. - August 19, 2016) - The
suspension of trading in a security of a publicly listed following issues have been halted by IIROC:
company, usually in anticipation of a material news Source: <a
announcement by the company. Trading halts are issued href='http://tmx.quotemedia.com/article.php?newsid=78093
based on the principle that all investors should have the 64257465211&qm_symbol=VLE' target='_blank'>TMX
same timely access to important company information. Group</a>
For more details click here. For more details click here.
October 14 2016: IIROC Trade Resumption - VLE August 19 2016: IIROC Trading Halt - VLE
Canada NewsWire Canada NewsWire
TORONTO, Oct. 14, 2016 TORONTO, Aug. 19, 2016
TORONTO, Oct. 14, 2016 /CNW/ - Trading resumes in: TORONTO, Aug. 19, 2016 /CNW/ - The following issues have
Company: Valeura Energy Inc. been halted by IIROC:
TSX Symbol: VLE (all issues) Company: Valeura Energy Inc.
Resumption (ET): 8:00 AM TSX Symbol: VLE
IIROC can make a decision to impose a temporary Reason: Pending News
suspension (halt) of trading in a security of a publicly-listed Halt Time (ET): 10:55
company. IIROC can make a decision to impose a temporary
For more details click here. suspension (halt) of trading in a security of a publicly-listed
company.
359

March 14 2017: Valeura Announces Fourth Quarter
Fig 34: Meetings 2016 Financial and Operating Results and Year-End
2016 Reserves
May 05 2016: Valeura Energy announces AGM Canada NewsWire
Valeura Energy has announced its Annual General Meeting CALGARY, March 14, 2017
will take place on Thursday, May 12. /NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE
June 09 2015: Valeura Energy announces AGM CALGARY, March 14, 2017 /CNW/ - Valeura Energy Inc.
Valeura Energy has announced its Annual General Meeting ("Valeura" or the "Corporation") (TSX: VLE) is pleased to report
will take place on June 17, 2015. highlights of its unaudited financial and operating results for
the three month period ended December 31, 2016, audited
May 10 2013: Valeura Energy announces AGM results for the year ended December 31, 2016, year-end 2016
Valeura Energy has announced its Annual General Meeting reserves and an update on subsequent developments.
will take place on May 15, 2013. For more details click here.
November 10 2016: Valeura announces third quarter

2016 financial and operating results and progress on
Fig 35: Financial Results recent transformational transactions
announcements Canada NewsWire
March 20: Valeura Announces Fourth Quarter 2017 /NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE
Financial and Operating Results and Year-End 2017 SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/
Reserves CALGARY, Nov. 10, 2016 /CNW/ - Valeura Energy Inc.
Canada NewsWire ("Valeura" or the "Corporation") (TSX: VLE) is pleased to report
CALGARY, March 20, 2018 highlights of its unaudited financial and operating results for
CALGARY, March 20, 2018 - Valeura Energy Inc. (TSX:VLE) the three and nine month periods ended September 30, 2016
("Valeura" or the "Company") is pleased to report highlights of and an update on subsequent developments including
its financial and operating results for Q4 2017, and for the progress towards closing a number of recently announced
year ended December 31, 2017 and the activity plan for transactions including the Banarli Farm-in, TBNG Acquisition,
2018. West Thrace Deep Rights Sale and private placement
Valeura closed key transformative deals in Q1 2017 to financing (collectively, the "Transactions") (each as
purchase Thrace Basin Natural Gas ("TBNG"), and to partner described below).
with Statoil for the exploration of the deep, unconventional For more details click here.
potential of its Thrace Basin lands.The Yamalik-1 gas-
condensate discovery well was drilled to 4,196 m and August 11 2016: Valeura announces second quarter
encountered a 1,300 m (gross) column of highly 2016 financial and operating results
overpressured gas that demonstrated the presence of an Canada NewsWire
unconventional, Basin Centered Gas Accumulation ("BCGA") CALGARY, Aug. 11, 2016
in the Thrace Basin. CALGARY, Aug. 11, 2016 /CNW/ - Valeura Energy Inc.
For more details click here. ("Valeura" or the "Corporation") (TSX: VLE) is pleased to report
highlights of its unaudited financial and operating results for
November 14 2017: Valeura Announces Third Quarter the three and six month periods ended June 30, 2016 and an
2017 Financial and Operating Results and update on subsequent developments including progress
Commencement of the Yamalik-1 Testing Program towards closing the Statoil farm-in transaction on Valeura's
Canada NewsWire CALGARY, Nov. 14, 2017 /NOT FOR two 100% owned and operated Banarli licences in the
DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR Thrace Basin of northwest Turkey.
DISSEMINATION IN THE UNITED STATES/ CALGARY, Nov. 14, For more details click here.
2017 /CNW/ - Valeura Energy Inc. ("Valeura" or the
"Corporation") (TSX: VLE) is pleased to report highlights of its July 18 2016: Valeura confirms no impact to date on
unaudited financial and operating results for the three and personnel or operations from attempted coup in Turkey
nine month periods ended September 30, 2017 and an and provides operational update
update on subsequent developments, including the Canada NewsWire
commencement of the Yamalik-1 Testing Program and CALGARY, July 17, 2016
implementation of an orderly CEO succession plan. CALGARY, July 17, 2016 /CNW/ - Valeura Energy Inc.
For more details click here. ("Valeura" or the "Corporation") (TSX: VLE) is pleased to
provide the following update.
"We would like to confirm that our operations in the Thrace
Basin have not been directly affected to date by the
attempted coup in Turkey on July 15, 2016, which appears to
have been put down by the government", said Jim
McFarland, President and Chief Executive Officer.
360

May 11 2016: Valeura announces first quarter 2016 August 13 2014: Valeura Announces Second Quarter
financial and operating results and Yayli-1 Well 2014 Financial and Operating Results
completion update at Banarli [Company Release]
Canada NewsWire www.valeuraenergy.com/upload/news_release/91/01/valeu
CALGARY, May 11, 2016 ra-q2-2014-quarterly-press-release-august-13-2014-final.pdf
CALGARY, May 11, 2016 /CNW/ - Valeura Energy Inc. Source: Company Website
highlights of its unaudited financial and operating results for March 11 2014: Valeura announces fourth quarter 2013
the three month period ended March 31, 2016 and an financial and operating results and year-end 2013
update on subsequent developments. reserves
For more details click here. [News Story]
http://www.buysellsignals.net/BuySellSignals/report/Canada/
March 08 2016: Valeura Announces Fourth Quarter Stock/News/494204.html
2015 Financial and Operating Results and Year-End Source: TMX Group
2015 Reserves
Canada NewsWire January 09 2014: Valeura provides fourth quarter 2013
CALGARY, March 8, 2016 operational update and 2014 guidance
CALGARY, March 8, 2016 /CNW/ - Valeura Energy Inc. [News Story]
("Valeura" or the "Corporation") (TSX: VLE) is pleased to report http://web.tmxmoney.com/article.php?newsid=64981332&q
highlights of its unaudited financial and operating results for m_symbol=VLE
the three month period ended December 31, 2015, audited Source: TMX Group
results for the year ended December 31, 2015, year-end 2015
reserves and an update on subsequent developments.
For more details click here. Fig 36: Funding/Capital
November 12 2015: Valeura Announces Third Quarter March 01: Valeura Announces Closing of $60 Million
2015 Financial and Operating Results and Bought Deal Financing
Commencement of Drilling on the First Banarli Canada NewsWire
Exploration Well CALGARY, March 1, 2018
class="xn-distributor">Canada NewsWire /NOT FOR DISTIRBUTION TO U.S. NEWSWIRE SERVICES OR FOR
CALGARY, Nov. 12, 2015 DISSEMINATION IN THE U.S./
CALGARY, Nov. 12, 2015 /CNW/ - Valeura Energy Inc. CALGARY, March 1, 2018 - Valeura Energy Inc. ("Valeura" or
("Valeura" or the "Corporation") (TSX: VLE) is pleased to report the "Corporation") (TSX: VLE) has completed its previously
highlights of its unaudited financial and operating results for announced public offering of common shares (the "Shares")
the three and nine month periods ended September 30, 2015 for gross proceeds of $60,003,900 (the "Offering").
and an update on subsequent developments. For more details click here.
February 08: Valeura Announces Increase to Previously
March 10 2015: Valeura Announces Strong Fourth Announced Bought Deal Financing to $60 Million
Quarter 2014 Financial and Operating Results and NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR
Increased Year-End 2014 Reserves DISSEMINATION IN THE U.S.
CALGARY, March 10, 2015 Valeura Energy Inc. ("Valeura" or CALGARY, Alberta, Feb. 08, 2018 -- Valeura Energy Inc.
the "Corporation") (TSX: VLE) is pleased to report highlights of ("Valeura" or the "Corporation") (TSX:VLE) is pleased to
its unaudited financial and operating results for the three announce that, in connection with its previously announced
month period ended December 31, 2014, audited results for bought deal financing, Valeura and the syndicate of
the year ended December 31, 2014, year-end 2014 reserves underwriters led by GMP FirstEnergy and including Cormark
and an update on subsequent developments. Securities Inc.
November 12 2014: Valeura announces new strategy February 08: Valeura Announces $50 Million Bought
for its 100% Banarli licence in Turkey and third quarter Deal Financing
2014 financial and operating results NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR
[News Story] CALGARY, Nov. 12, 2014 /CNW/ - Valeura DISSEMINATION IN THE U.S.
Energy Inc. ("Valeura" or the "Corporation") (TSX: VLE) is CALGARY, Alberta, Feb. 08, 2018 -- Valeura Energy Inc.
pleased to announce a new strategy for its 100% owned and ("Valeura" or the "Corporation") (TSX:VLE) is pleased to
operated Banarli licence in the Thrace Basin of Turkey and to announce that it has entered into an agreement with a
report highlights of its unaudited financial and operating syndicate of underwriters to purchase, on a "bought deal"
results for the three and nine month periods ended basis, 8,772,000 common shares ("Common Shares") of
September 30, 2014 and an update on subsequent Valeura at a price of $5.70 per Common Share for gross
developments. proceeds of approximately $50.0 million (the "Offering").
361

October 14 2016: Valeura Announces Increase to
Underwritten Private Placement
CALGARY, ALBERTA--(Marketwired - Oct. 14, 2016) -
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES
OR FOR DISSEMINATION IN THE UNITED STATES.
Valeura Energy Inc. ("Valeura" or the "Corporation") (TSX:VLE)
is pleased to announce that, in connection with its previously
announced private placement financing, Valeura and the
syndicate of underwriters led by Cormark Securities Inc.
Fig 37: Share Capital

February 24 2017: Valeura Announces Closing of TBNG
Acquisition and Issuance of Common Shares Pursuant
to Subscription Receipts Financing
Canada NewsWire
CALGARY, Feb. 24, 2017
CALGARY, Feb. 24, 2017 /CNW/ - Valeura Energy Inc.
announce the successful completion of the following
transactions, which form part of a chain of recent
transactions that transform Valeura in terms of business scale,
operational control, financial capability, drilling activity and
production:
November 03 2016: Valeura announces closing of

subscription receipt offering
Canada NewsWire
SERVICES OR FOR DISSEMINATION IN THE UNITED STATES./
CALGARY, Nov. 3, 2016 /CNW/ - Valeura Energy Inc.
announce that it has closed its previously announced
underwritten private placement financing of 14,629,000
subscription receipts (the "Subscription Receipts") at a price
of $0.75 per Subscription Receipt for aggregate gross
proceeds of approximately $11 million (the "Offering").
October 13 2016: Valeura Announces Execution of

Transformational Transaction Agreements in Turkey and
Underwritten Private Placement of Subscription
Receipts
CALGARY, ALBERTA--(Marketwired - Oct. 13, 2016) -
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES
OR FOR DISSEMINATION IN THE UNITED STATES.
Valeura Energy Inc. ("Valeura" or the "Corporation") (TSX:VLE)
is pleased to announce that it has executed definitive
agreements for three concurrent transactions, which
advance the Corporation's strategy to grow its high netback
natural gas business in the Thrace Basin of northwest Turkey.
362
Press Releases
March 01: Scott Lamacraft Announces Change in December 27 2017: Valeura Updates Production
Ownership Interest of Valeura Energy Inc. Testing Progress (Test #4) at the Yamalik-1 Well
TORONTO, March 1, 2018 CALGARY, Dec. 27, 2017
TORONTO, March 1, 2018 - Scott Lamacraft announces that /NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE
his along with his joint actor's (collectively, the "Lamacraft SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/
Group") ownership interest in Valeura Energy Inc. ("VALEURA") CALGARY, Dec. 27, 2017 /CNW/ - Valeura Energy Inc.
has decreased below 10%. Mr. Lamacraft last filed an early ("Valeura" or the "Corporation") (TSX: VLE) is pleased to report
warning report on January 7, 2015, at which time the that the fourth production test in the Kesan formation at the
Lamacraft Group owned and controlled approximately 14.7 Yamalik-1 exploration well in Turkey ("Test #4") has been
% of the issued and outstanding shares of VALEURA (the completed with positive results.
"Shares") on a non-diluted basis. For more details click here.
February 06: Valeura Announces Prospective Testing Progress (Test #3) at the Yamalik-1 Well
Resources for Unconventional Basin-Centered Gas Canada NewsWire
Prospect CALGARY, Dec. 18, 2017
Canada NewsWire /NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE
CALGARY, Feb. 6, 2018 SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/
/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE CALGARY, Dec. 18, 2017 /CNW/ - Valeura Energy Inc.
SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/ ("Valeura" or the "Corporation") (TSX: VLE) is pleased to report
CALGARY, Feb. 6, 2018 - Valeura Energy Inc. ("Valeura" or the that the third of four planned production tests in the Kesan
"Corporation") (TSX: VLE) is pleased to announce summary formation at the Yamalik-1 exploration well in Turkey ("Test
results of an independent evaluation of its prospective #3") has been completed with positive results.
resources in the Thrace Basin of Turkey prepared by DeGolyer For more details click here.
and MacNaughton ("D&M") of Dallas, Texas in its report
dated February 6, 2018 (the "D&M Resources Report"). December 11 2017: Valeura Updates Production
For more details click here. Testing Progress at the Yamalik-1 Well
Canada NewsWire
January 15: Valeura Energy: Corporate Presentation CALGARY, Dec. 11, 2017
Valeura Energy: Positioned for Material Growth /NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE
 Valeura (TSX: VLE) Canada-based company SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/
producing gas in NW Turkey CALGARY, Dec. 11, 2017 /CNW/ - Valeura Energy Inc.
 Internationally-experienced management team ("Valeura" or the "Corporation") (TSX: VLE) is pleased to report
with proven delivery of value to shareholders that the second of four planned production tests in the Kesan
 Turkey is very attractive for gas production formation at the Yamalik-1 exploration well in Turkey ("Test
− Excellent fiscal terms - 12.5% royalty and 20% tax #2") has been completed with positive results.
January 02: Valeura Announces Completion of CEO November 27 2017: Valeura Announces Positive Interim
Succession Plan Production Test Results and Confirms Natural Gas and
Canada NewsWire Condensate Discovery at the Yamalik-1 well
CALGARY, Jan. 2, 2018 Canada NewsWire
/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE CALGARY, Nov. 27, 2017
SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/ /NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE
CALGARY, Jan. 2, 2018 /CNW/ - Valeura Energy Inc. SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/
("Valeura" or the "Corporation") (TSX: VLE) is pleased to CALGARY, Nov. 27, 2017 /CNW/ - Valeura Energy Inc.
announce the appointment of Sean Guest as the Chief ("Valeura" or the "Corporation") (TSX: VLE) is pleased to report
Executive Officer of the Corporation effective January 1, positive interim production test results at the Yamalik-1
2018. exploration well in Turkey and to confirm Yamalik as a natural
For more details click here. gas and condensate discovery.
Yamalik-1 is the first deep exploration well drilled under Phase
1 of the Banarli farm-in agreement with its partner Statoil
Banarli Turkey B.V.
June 22 2017: Valeura Energy Inc. Corporate

Presentation
Source: Company Website
363

January 06 2017: Valeura Announces Closing Of The May 15 2016: Valeura announces binding letter
Banarli Farm-in And The West Thrace Deep Rights Sale agreement with Statoil for farm-out on Banarli Licences
Valeura Energy Inc. ("Valeura" or the "Corporation") (TSX: VLE) in Turkey
is pleased to announce the closing of the following Canada NewsWire
transformational transactions: CALGARY, May 15, 2016
 the farm-in for the exploration of the deep CALGARY, May 15, 2016 /CNW/ - Valeura Energy Inc.
formations below approximately 2,500 metres on Valeura's ("Valeura" or the "Corporation") (TSX: VLE) is pleased to
100% owned and operated Banarli licences in accordance announce that its wholly-owned affiliate, Corporate
with the farm-in agreement between Corporate Resources Resources B.V. ("CRBV") (collectively "Valeura") has entered a
B.V. binding letter agreement (the "Letter Agreement") with Statoil
For more details click here. Holding Netherlands B.V.
December 30 2016: Valeura Announces Turkish
Government Approval of Transformational Transactions March 21 2016: Valeura achieves first gas from Banarli
CALGARY, Dec. 30, 2016 CALGARY, March 21, 2016
/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE CALGARY, March 21, 2016 /CNW/ - Valeura Energy Inc.
SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/ ("Valeura" or the "Corporation") (TSX: VLE) is pleased to
CALGARY, Dec. 30, 2016 /CNW/ - Valeura Energy Inc. announce that it has achieved first natural gas sales from its
("Valeura" or the "Corporation") (TSX: VLE) is pleased to first exploration well Bati Gurgen-1 on the 100% owned and
announce that the Ministry of Energy and Natural Resources operated Banarli licences in the Thrace Basin of Turkey.
of the Republic of Turkey has approved a number of recently For more details click here.
announced transformational transactions (each as defined
below), including the Banarli Farm-in, the West Thrace Deep March 14 2016: Valeura Energy: March 2016 Corporate
Rights Sale and the TBNG Acquisition. Presentation >>
For more details click here. Corporate Profile
Valeura Energy Inc. (VLE - TSX) Canada - based oil & gas
August 19 2016: Valeura announces execution of company with assets in Turkey
definitive agreements for Statoil farm-in on Banarli Interests in 21 leases & licences in Turkey: 0.63 MM acres
licences in Turkey (gross); 0.31 MM acres (net) (1)
Canada NewsWire Pursuing development of conventional gas & tight gas in the
CALGARY, Aug. 19, 2016 Thrace Basin
CALGARY, Aug. 19, 2016 /CNW/ - Valeura Energy Inc. Utilizing latest 3D seismic, horizontal drilling & multi - stage frac
("Valeura" or the "Corporation") (TSX: VLE) is pleased to technologies
announce that its wholly-owned affiliate, Corporate For more details click here.
Resources B.V. ("CRBV") (collectively "Valeura") has executed
the definitive transaction documents (the "Definitive August 13 2015: Valeura Announces Second Quarter
Agreements") with Statoil Holding Netherlands B.V. 2015 Financial and Operating Results and Completion
For more details click here. of Banarli 3D Seismic Acquisition and Initial Processing
[News Story] CALGARY, Aug. 13, 2015 /CNW/ - Valeura
August 02 2016: Valeura announces extension of Energy Inc. ("Valeura" or the "Corporation") (TSX: VLE) is
timeline under binding letter agreement with Statoil for pleased to report highlights of its unaudited financial and
farm-in on Banarli Licences in Turkey operating results for the three and six month periods ended
Canada NewsWire June 30, 2015 and an update on subsequent developments.
CALGARY, Aug. 2, 2016 The complete quarterly reporting package for the
CALGARY, Aug. 2, 2016 /CNW/ - Valeura Energy Inc. Corporation, including the unaudited financial statements
("Valeura" or the "Corporation") (TSX: VLE) announces that its and associated management's discussion and analysis
wholly-owned affiliate, Corporate Resources B.V. ("CRBV") ("MD&A"), has been filed on SEDAR at www.sedar.com and
(collectively "Valeura") has executed an extension to the posted on the Corporation's website at
binding letter agreement (the "Letter Agreement") executed www.valeuraenergy.com.
on May 15, 2016 with Statoil Holding Netherlands B.V. "Valeura generated funds flow from operations in Turkey of
For more details click here. $3.0 million in the second quarter, driven by continued strong
natural gas price realizations and operating netbacks of
$9.89 per Mcf and $45.90 per boe, respectively," said Jim
McFarland, President and Chief Executive Officer.
364

July 07 2015: Valeura announces conversion of the January 06 2015: Valeura announces successful
100% owned Banarli licence in Turkey to two new Gurgen-2 appraisal well, 18% growth in quarter over
licences with a 13% larger area and completion of new quarter net sales and 2015 guidance
3D seismic [News Story] CALGARY, Jan. 6, 2015 Valeura Energy Inc.
[News Story] CALGARY, July 7, 2015 /CNW/ - Valeura Energy ("Valeura" or the "Corporation") (TSX: VLE) is pleased to
Inc. ("Valeura" or the "Corporation") (TSX: VLE) is pleased to announce successful drilling results at the Gurgen-2 appraisal
announce that the General Directorate of Petroleum Affairs well in the Thrace Basin of Turkey, which is on-stream and
of the Republic of Turkey ("GDPA") has approved the producing at an average restricted rate of 3.0 million cubic
Corporation's application to convert its 100% owned Banarli feet per day ("MMcf/d") (gross), and fourth quarter 2014 net
Exploration Licence 5104 in the Thrace Basin to the licencing sales up 18% compared to the third quarter of 2014.
terms under Turkey's new petroleum law adopted on June The Corporation is also pleased to advise that it plans a
30, 2013. capital budget of up to $19 to 22 million (net) in Turkey in
For more details click here. 2015 that is targeted to grow production volumes by 10 to
15% compared to 2014 and is expected to include the
June 17 2015: Valeura Announces Voting Results acquisition of approximately 140 square kilometres of 3D
[News Story] CALGARY, June 17, 2015 /CNW/ - Valeura seismic and drilling of up to three exploration wells on its 100%
Energy Inc. ("Valeura" or the "Corporation") (TSX: VLE) is Banarli licence in the Thrace Basin.
pleased to provide the voting results from its annual and GURGEN-2 APPRAISAL WELL ON-STREAM AT RESTRICTED RATE
special meeting of shareholders held on June 17, 2015. OF 3.0 MMCF/D (GROSS)
Shareholders voted on and approved the following As previously announced, the Corporation made three
proposals: (1) the appointment of KPMG LLP as the auditors conventional natural gas discoveries in the Osmanli area in
of the Corporation; (2) the election of the directors of the the third quarter of 2014 on the joint venture lands acquired
Corporation; and (3) the approval of the continuance and from Thrace Basin Natural Gas (Turkiye) Corporation ("TBNG")
the amendment and restatement of the Corporation's and Pinnacle Turkey Inc.
shareholder rights plan as amended and restated in For more details click here.
accordance with the amended and restated shareholder
rights plan agreement dated effective June 17, 2015 December 04 2014: Valeura announces strong
between the Corporation and Valiant Trust Company, as November natural gas prices of $10.62 per Mcf, Tie-in
rights agent. of new discoveries and projected 16% increase in
For more details click here. quarter over quarter sales
[News Story] CALGARY, Dec. 4, 2014 - Valeura Energy Inc.
January 13 2015: Valeura Energy: January 2015 ("Valeura" or the "Corporation") (TSX: VLE) is pleased to
Corporate Presentation announce strong natural gas price realizations in Turkey of
[Company Release] $10.62 per thousand cubic feet ("Mcf") in November and tie-
http://www.valeuraenergy.com/upload/news_release/104/0 in of three recent natural gas discoveries in the Thrace Basin,
2/valeura-january-2015-corporate-presentation-v2-january-9- which are projected to boost fourth quarter net sales to
2015-final.pdf approximately 1,160 barrels of oil equivalent per day
Source: Company Website ("boe/d"), up 16% from the third quarter of 2014.
Q4 2014 NATURAL GAS PRICE REALIZATIONS EXCEEDING
January 08 2015: Valeura Energy: January 2015 EXPECTATIONS
Corporate Presentation Natural gas price realizations in October and November
[Company Release] were $10.42 and $10.62 per Mcf, respectively, up significantly
www.valeuraenergy.com/upload/news_release/104/01/vale from the average of $9.66 per Mcf in the third quarter of
ura-january-2015-corporate-presentation-v1-january-7-2015- 2014.
final-1.pdf For more details click here.
October 08 2014: Valeura October 2014 Corporate
Presentation
[Company Release]
http://www.valeuraenergy.com/upload/news_release/94/01
/valeura-october-2014-corporate-presentation-v1-october-7-
2014-final.pdf
365

October 07 2014: Valeura announces new discoveries
in Turkey and provides third quarter 2014 operational
update
[News Story] CALGARY, Oct. 7, 2014 /CNW/ - Valeura Energy
Inc. ("Valeura" or the "Corporation") (TSX: VLE) is pleased to
announce three new discoveries in Turkey and to provide an
operational update for the third quarter of 2014.
"We are very excited to announce the successful results from
a new conventional natural gas exploration program on our
TBNG JV lands (Valeura 40%) in the sparsely drilled Osmanli
area," said Jim McFarland, President and Chief Executive
Officer.
October 07 2013: Valeura Provides Third Quarter 2013

Operational Update
[News Story] CALGARY, Oct. 7, 2013 Valeura Energy Inc.
provide an operational update for the third quarter of 2013.
PRODUCTION UP 16% IN THE THIRD QUARTER OF 2013
Corporate petroleum and natural gas sales in the third
quarter of 2013 averaged approximately 1,000 barrels of oil
equivalent per day ("boe/d") (net), up 16% from the second
quarter of 2013 reflecting the contribution of new fracs
completed in tight gas reservoirs in the Thrace Basin of
Turkey.
Turkish net production in the third quarter of 2013 averaged
approximately 960 boe/d, including 5.7 million cubic feet per
day ("MMcf/d") of natural gas at an average wellhead price
of $10.20 per thousand cubic feet ("Mcf") and 12 barrels of oil
per day ("bopd").
May 10 2013: Valeura Energy announces EGM

Valeura Energy has announced its Extra Ordinary General
Meeting will take place on May 15, 2013.
366
Financials
FY2017 Annual Report: Valeura Energy reports Loss of CAD8.4m ($US6.7m)

Valeura Energy (TSX:VLE) reported loss for the year-ended 31 December 2017 of CAD8.4m ($US6.7m).
Major changes compared with previous year:
Favourable Changes:
• Administration expenses to Sales down from 36.1% to 32.8%
• Total non-current assets to Total Assets up from 67.5% to 81.3%
• Fixed Assets to Total Assets up from 66.3% to 77.6%
• Cash to Total Assets up from 2.6% to 12.4%
Unfavourable Changes:
• Loss of CAD8.4m ($US6.7m)
• EBIT Margin of -77.0%
• Sales and marketing expenses to Sales up from 2.6% to 3.3%
• Total liabilities to Total assets up 69.6% from 0.2 to 0.4
• Current ratio down 78.2% from 5.8 to 1.3
• Working capital to total assets down from 26.9% to 3.8%
• Total current assets to Total Assets down from 32.5% to 18.7%
• Current Debtors to Total Assets down from 6.1% to 4.5%
• Net tangible assets per share down 23.8% from CAD1.01 (US74.9c) to CAD0.77 (US61.5c)
Note:
• EPS steady at -12.0c (-US9.55c)
• Total revenue to total assets steady at 0.2
• Depreciation to Sales up from 49.9% to 64.3%
Annual
Company Name : Valeura Energy Inc.(VLE)
December 31 2017 2016 2017 2016 Change

Description CAD m CAD m $US m $US m (%)
Sales Revenue 14 14.9 11.2 11.1 Down 5.8
EBIT (10.8) (6.3) (8.6) (4.7) Deterioration 70.2
Pre-Tax Profit/(Loss) (10.8) (6.3) (8.6) (4.7) Deterioration 70.2
Profit/(Loss) after (8.4) (6.1) (6.7) (4.5) Deterioration 37.8
Tax
Working Capital 3.4 20.4 2.7 15.2 Down 83.2
Current Assets 16.8 24.7 13.4 18.4 Down 32
Total Assets 89.9 75.9 71.5 56.5 Up 18.4
Operating Cash 3.9 6.3 3.1 4.7 Down 38.8
Flow
Net Assets 54.8 58.6 43.6 43.6 Down 6.5
Net Tangible Assets 54.8 58.6 43.6 43.6 Down 6.5
Auditor KPMG LLP
367
Per Share figures
December 31 2017 2016 2017 2016 Change (%)
Description c c US c US c -
Sales 19.8 25.6 15.7 19 Down 22.6
EBIT (15.2c) (10.9c) (12.1c) (8.1c) Deterioration 39.8
Total Assets 126.7 130.3 100.8 97 Down 2.8
Net Tangible Assets 77 101 61.5 74.9 Down 23.8
EPS Final (12c) (10c) (9.5c) (7.4c) Deterioration 20
December 31 2017 2016 Change (%)

Performance Ratios
Return on Equity (%) (15.3) (10.4) Deterioration 47.1
Return on Assets (%) (9.3) (8) Deterioration 16.3
Total Liabilities/Total Assets 0.4 0.2 Up 69.6
Current Ratio 1.3 5.8 Down 78.2
Common Size Ratios by Assets %
Total non-current assets to 81.3 67.5 Up 20.5
Total Assets
Fixed Assets to Total Assets 77.6 66.3 Up 17.1
Total current assets to Total 18.7 32.5 Down 42.5
Assets
Cash to Total Assets 12.4 2.6 Up 373.6
Current Debtors to Total 4.5 6.1 Down 25.8
Assets
Common Size Ratios by Sales %
Depreciation to Sales 64.3 49.9 Up 28.8
Administration expenses to 32.8 36.1 Down 9.1
Sales
Sales and marketing expenses 3.3 2.6 Up 27.4
to Sales
Tax expenses to Sales (17.2) (1.7) Down 885.6
Profit before tax to Sales (77.0) (42.6) Down 80.8

368
Fig 38: Five-Year History (All figures in CAD)

Net profit for FY2017 was -CAD8.4 million, a deterioration from -CAD6.1 million in FY2016. EPS for FY2017 was -12.0c, a
deterioration from -10.0c in FY2016.
Description (December 31) 2017 2016 2015 2014 2013
Income Statement
Sales (M) 14 14.9 18.6 22.1 21.9
EBITDA (M) (1.8) 1.1 9.1 12.6 (7.3)
Depreciation (M) 9 7.4 9 10.2 8.1
EBIT (10.8 M) (6.3 M) 104,000 2.4 M (15.4 M)
Profit before tax (10.8 M) (6.3 M) 104,000 2.4 M (16 M)
Tax (2.4 M) (260,000) 666,000 1.3 M (1.4 M)
Net profit (8.4 M) (6.1 M) (562,000) 1.4 M (17.5 M)

EPS (0.12) (0.1) (0.01) 0.02 (0.3)
Balance Sheet
Equity Share Capital (M) 54.8 58.6 75.3 78 76
Retained Earnings (M) (79.5) (71.2) (59.1) (11.7) (65.9)
Total Assets (M) 89.9 75.9 101.2 99.2 97.3
Current Asset (M) 16.8 24.7 13.3 14.1 14.5
Fixed Asset (M) 69.7 50.3 86.8 53.9 52.8
Working Capital (M) 3.4 20.4 (12.7) 10 6.8
Cash Flow
Operating Cash Flow (M) 3.9 6.3 11.7 12.4 12
Investing Cash Flow (M) (5.4) (11.2) (11) (13) (34.2)
FY2017 Annual Report: Valeura Energy Revenue down 5.8%

Valeura Energy (TSX:VLE) reported total revenue for the year-ended 31 December 2017 of CAD14.0m ($US11.2m), down 5.8%
from CAD14.9m ($US11.1m) in the previous year.
Fig 39: 2017 VLE Income Statement as reported

Dec 31 2017 2016 Change %
Revenue
Petroleum and natural gas sales 14,646 16,155 Down 9.3
Royalties -1,971 -2,102 Improved 6.2
Other Income 1,363 846 Up 61.1
369
14,038 14,899 Down 5.8
Expenses
Production 4,423 2,232 Up 98.2
Transaction costs 1,160 859 Up 35.0
7,362 3,967 Up 85.6
Foreign exchange loss 2,671 3,032 Down 11.9
Exploration and EvaluationImpairment 707 1,048 Down 32.5
24,841 21,245 Up 16.9
Loss for the period before income taxes -10,803 -6,346 Deterioration 70.2
Income taxes
Current tax expense 2,371
Deferred tax recovery -4,790 -260 Deterioration
1,742.3
-2,419 -260 Deterioration 830.4
Currency translation adjustments -6,019 -11,511 Improved 47.7
Net loss per share
Basic and diluted -12.0c -10.0c Deterioration 20.0
(thousands)
Fig 40: 2017 VLE Balance Sheet as reported

Dec 31 2017 2016 Change %
Assets
Current Assets
Cash 11,108 1,987 Up 459.0
Accounts receivable 4,052 4,601 Down 11.9
4,052 4,601 Down 11.9
Prepaid expenses and deposits 1,381 1,465 Down 5.7
Inventory 251
Assets held for sale 16,635
16,792 24,688 Down 32.0
Licence deposits 164 922 Down 82.2
Restricted Cash 3,173
3,337 922 Up 261.9
Exploration and evaluation assets 7,642 14,258 Down 46.4
Property plant and equipment 62,101 36,022 Up 72.4
370
69,743 50,280 Up 38.7
73,080 51,202 Up 42.7
89,872 75,890 Up 18.4
Current Liabilities
Accounts payable and accrued liabilities 13,371 4,267 Up 213.4
13,371 4,267 Up 213.4
Decommissioning obligations 19,206 8,132 Up 136.2
Deferred taxes 2,470 4,885 Down 49.4
21,676 13,017 Up 66.5
35,047 17,284 Up 102.8
Share capital 146,694 136,586 Up 7.4
54,825 58,606 Down 6.5
89,872 75,890 Up 18.4
Fig 41: 2017 VLE Cash Flow as reported

Dec 31 2017 2016 Change %
Operating activities:
Net loss for the year -8,384 -6,086 Deterioration 37.8
Exploration and Evaluation expense 707
Impairment 1,048
Unrealized foreign exchange loss (gain) -12 2,583 Deterioration
Transaction Costs 65
Deferred tax expense (recovery) -4,790 -260 Deterioration
1,742.3
Decommissioning costs incurred -270
Change in non-cash working capital 5,329 246 Up 2,066.3
Cash provided by operating activities 3,854 6,294 Down 38.8
Share issuance 10,972
Share issuance costs -864
10,108
Proceeds from stock option exercises 437
Cash provided by financing activities 10,108 437 Up 2,213.0
371
Statoil Farm-in proceeds 7,447
Property and equipment expenditures -5,873 -84 Deterioration
6,891.7
Exploration and evaluation expenditures -6,918 -9,451 Improved 26.8
-12,791 -9,535 Deterioration 34.1
Change in restricted cash -3,173
Change in non-cash working capital 5,754 -1,677 Recovery
Foreign exchange gain (loss) on cash held in foreign 531 -505 Recovery
currencies
Net change in cash 9,121 -4,986 Recovery
Cash beginning of year 1,987 6,973 Down 71.5
Cash end of year 11,108 1,987 Up 459.0
Margins %
Dec 31 2017 2016
EBITDA Margin -12.7 7.3
Earnings from Cont. Ops. Margin -77 -42.6
Net Income Margin -59.7 -40.8
372
Peer Group Analysis & Ranking

Fig 42: Global Peer Group Analysis (all figures in USD)
Name Relative Str. MCap PV $1000 Revenue Net Profit Total Assets
(6 mo) (1 yr)
RENOVA (9519) 97 370M 1,733.0 77.8M 19.1M 507.6M
BlackPearl Resources (PXX) 55 369.2M 1,203.7 97.8M 13.3M 685.3M
BP Castrol (5015) 47 355.5M 988.2 119M 19.2M 136M
Nichirek (5011) 46 349.1M 1,242.2 512.5M 35.4M 615.7M
Valeura Energy (VLE) 100 347.3M 8,175.9 10.9M (4.7M) 58.9M
Panhandle Oil and Gas Class A 41 347.2M 1,092.1 46.3M 3.5M 206.7M
(PHX)
Natural Gas Services (NGS) 44 331.1M 962.0 67.7M 19.9M 298.3M
Fuji Oil (5017) 59 326.1M 1,284.0 3.9B 145.9M 2.7B
San Juan Basin Royalty Trust (SJT) 66 323.9M 1,093.3 17.5M 13.9M 11.7M
Global Peer Group Analysis (continued)

Code Country Last Price P/E P/S P/Book Turnover % Disc to 52-
Code Rate (%) w Hi
9519 JP JPY1,092.0 4.9 7.5 277.2 41.0
PXX CA CAD1.41 28.2 3.8 20.3 16.1
5015 JP JPY1,688.0 3.1 3.4 50.9 26.2
5011 JP JPY1,202.0 0.7 70.4 19.3
VLE CA CAD5.21 31.8 8.1 75.1 37.0
PHX US $US20.70 97.1 7.4 2.9 49.4 19.4
NGS US $US25.30 16.3 4.9 1.3 73.0 14.7
5017 JP JPY455.0 0.1 195.6 29.5
SJT US $US6.95 23.1 18.4 41.4 123.9 34.1
Fig 43: Global Peer Group - Price Performance
373
Fig 44: Global Peer Group - Total Shareholder Return [TSR in USD]
Fig 45: Compare and Sort: Valeura Energy vs Oil & Gas - Exploration &
Production sector
Company Name Code MCap 52-W 52-W Rel. Str 6- PV$1000 P/NTA P/E Yield
(USD, M) High Low Mo 1 year (%)
Valeura Energy VLE 347 8.3 0.4 99 - 8.1 -
For Company searches, or for sorting by stocks and variables, an interactive version of current day's Table is
available here
Fig 46: BuySellSignals Fundamentals Valuation Table: Canadian Market

Canadia Lowest
- VLE Rank Rank 1 Rank 2 Rank 3
n Avg Rank
P/Earnings 3.9x - 79 1.6x 1.7x 1.8x -
DIAM CUI IDK
Price/Net Tangible Assets 0.5x 8.1x 1279 0.1x 0.1x 0.1x -

EFN.PR.E ALA.PR.I ALA.PR.G
Discount to 52-Wk High (%) 5.2 37 1136 97.5 95.8 94.4 0.01
NVCN NNA BLOX MG
Premium to 52-Wk Low (%) 80.9 1125.9 2509 0.04 0.1 0.2 5300
ENB.PR.A FFI.UN FAP COBC
Market Cap CAD 1.2 B 446.3 M 433 142.5 B 135.4 B 95.1 B 205,573
RY TD BNS LRT.UN
Revenue CAD 5B 14 M 1093 105.8 B 105.8 B 55.5 B

MFC MFC.PR.O BAM.A
EBITDA Margin 16.3 (12.7) 1178 89.96 88.96 88.5 (89.995)

BIG.D DF PSK CTX
Values in bracket are negative.
374
Fig 47: Independent Rating

+ BSS/News Bites:
Valeura Energy Inc. is placed 3/2080 in BSS News Bites'
ranking of Canadian performers in the past year, a percentile
ranking of 100.
Fig 48: Long-Term Fundamental

Ranking: 2 out of 5
Valeura Energy is ranked number 34 out of 309 listed oil & gas
- exploration & production companies [that traded today] in
Canada with a market capitalization of CAD446.3 million
(US$347.3 million).
In the oil & gas - exploration & production companies it has
the 101st highest total assets and 88th highest revenues.
Stocks are scored on a set of

parameters reflecting
fundamental analytical tools
involving valuation, size and
financial performance. They
are ranked according to the
average values of those
parameters. The highest
ranking is 5 and the lowest
ranking is 1.
375
Fig 49: At a glance Fig 50: Profiles

Yrs Since Russell Hiscock
Name Designation Appointment Chairman & Director
Russell Hiscock Chairman, Director - Since appointment as Director: The present value of
Steve Bjornson Chief Financial Officer 8 Yrs CAD1,000 invested on the appointment date of January 12,
2018 at close price of CAD3.84 is CAD1,357, for a capital gain
Tim Marchant Director 3 Yrs of CAD357.
Jim McFarland Director - Steve Bjornson
William Thomas Director 8 Yrs CFO
Fanagan Steve Bjornson is a chartered accountant with more than 27
years of finance, business development, strategic planning
Claudio Independent Director 8 Yrs and tax experience, operating in Canada, France, and
Ghersinich Trinidad. In this period, he successfully negotiated 15 public
and private merger and acquisitions. He was previously the
Ronald Royal Independent Director 8 Yrs
interim-CEO of Northern Hunter Energy Inc., a predecessor
Abdel Badwi Independent Director 8 Yrs company of Valeura Energy Inc. He has held the position of
CFO at Vermilion Resources Ltd., Clear Energy Inc. and
Lyle Martinson Chief Operating - Sound Energy Trust. In addition, Mr. Bjornson is a past director
Officer of Bulldog Oil & Gas Inc., Bulldog Resources, and Aventura
Energy.
Lyle Martinson Vice President -
Education: Bachelor of Commerce, University of Calgary,
1983; Chartered Accountant, Alberta, 1987.
CAD4,789.
William Thomas Fanagan

Director
CAD4,789.
376

(continued)
Tim Marchant Ronald Royal
Director Independent Director
Ron Royal is a professional engineer with more than 36 years
of experience with Imperial Oil Limited and ExxonMobil's
international upstream affiliates. Prior to retiring in 2007, he
was President & General Manager of Esso Chad and resided
in N'Djamena, Chad from 2002 to 2007. During this period, he
oversaw the development of the Chad Development
Dr. Tim Marchant holds a Ph.D in Geology and has more than Project, one of the oil industry's largest investments in Sub-
35 years of senior executive experience in the oil and gas Sahara Africa. Previously, he was General Manager &
industry in Canada and internationally, with extensive Production Manager of Esso REP in France. He currently
experience in international operations and foreign growth serves as a Director of Oando Energy Resources Inc., and
strategies. In a career that spanned 29 years with Amoco Gran Tierra Energy Inc. In the past, he has served on the
and BP, he held senior executive positions in Canada and a Board of Directors of Caracal Energy Inc., Esso REP, Esso
number of countries in the Middle East including Egypt, Saudi Chad, Tchad Oil Transportation Company, and Cameroon
Arabia, Abu Dhabi and Kuwait. Dr. Marchant is currently Oil Transportation Company. In 2003, he was awarded the
Adjunct Professor of Strategy and Energy Geopolitics at the title "Chevalier de l'Ordre National du Chad" for his
Haskayne School of Business, University of Calgary. He also contribution to the economic development of Chad.
serves as a non-executive director of Vermilion Energy Inc. Creation of shareholder value in Valeura Energy:
and Cub Energy Inc. Year of appointment: 2010
Creation of shareholder value in Valeura Energy: In the last 5 years the average annualized return to
Since appointment as Director: The present value of shareholders was 42.1%. The present value of CAD1,000
CAD1,000 invested on the appointment date of April 15, 2015 (PV1000) invested 5 years ago is now CAD5,789, a gain of
at close price of 71.0c is CAD7,338, for a capital gain of CAD4,789.
CAD6,338.
Claudio Ghersinich
Jim McFarland Independent Director
Director Claudio Ghersinich is an independent businessman and
Jim McFarland is professional engineer with more than 45 professional engineer with more than 31 years of oil and gas
years of broad experience in the oil and gas industry in experience. He is President and CEO of Carrera Investments
Canada and internationally in both large integrated oil and Corp. (an investment company). He is a co-founder and
gas companies and smaller listed E&P companies. Most former Executive VP and VP Business Development of
recently, he co-founded and was the past President & CEO Vermilion Energy Trust. He has also served on the Board of
of Valeura Energy Inc. until his retirement on December 31, Directors of various public companies including Verenex
2017, and prior to that, co-founded and was President & CEO Energy Inc., Vermilion Energy Trust, Aventura Energy Inc.,
of Verenex Energy Inc., which was active in Libya. He has Bulldog Energy Inc., Bulldog Resources Inc., and Pegasus Oil
served in other senior executive roles as Managing Director and Gas Inc., as well as several private and non-profit
of Southern Pacific Petroleum NL in Australia and President & organizations. These companies have operated assets in
COO of Husky Oil Limited, and held a number of Vice Canada, Europe, Libya, Trinidad, Argentina, and Australia.
Presidential roles in his earlier 23-year career with Imperial Oil Creation of shareholder value in Valeura Energy:
Limited and other ExxonMobil affiliates in Canada, the USA Year of appointment: 2010
and Western Europe. He is currently a director of MEG Energy In the last 5 years the average annualized return to
Corp. and Pengrowth Energy Corporation, serves on the shareholders was 42.1%. The present value of CAD1,000
Program Committee of the World Petroleum Council and is a (PV1000) invested 5 years ago is now CAD5,789, a gain of
past director of Verenex Energy Inc., Vermilion Energy Trust, CAD4,789.
Aventura Energy Inc., Southern Pacific Petroleum NL and
Central Pacific Minerals NL. In 2003 he was awarded the
Australian Centenary Medal for "outstanding service through
business and commerce".
377

(continued)
Abdel Badwi
Independent Director
Abby Badwi is an international energy executive and
professional geologist with more than 36 years of experience
in the exploration, development and production of oil and
gas fields in North America, South America, Europe, Asia, and
the Middle East. He is currently Vice Chairman of Bankers
Petroleum Ltd., an oil and gas company with heavy oil
operations in Albania, where he previously served as
President and CEO from 2008 to 2013. He is also executive
chairman of Americas Petrogas Inc., interim CEO and
director of ArPetrol Ltd., and director of Kuwait Energy
(Private). Prior to these roles, he served as President, CEO,
and director of Rally Energy Corp. which had heavy oil
operations in Egypt and other assets in Pakistan and
Canada, and which was sold in 2007. He has been an officer
and director of several Canadian public and private
companies.
Year of appointment: 2010
CAD4,789.
Lyle Martinson
Chief Operating Officer & Vice President
Lyle Martinson is a professional engineer with more than 39
years of management, operations, and engineering
experience in the oil and gas industry in Canada and
internationally. Most recently, he held the position of Drilling
and Operations Manager for Verenex Energy Area 47 Libya
Limited, based in Tripoli. Prior to joining Verenex, he had a
successful 28-year career with Chevron Corporation in
Canada, the US Gulf of Mexico, California, Australia, and
Indonesia, including 22 years in leadership roles managing
organizations and projects of varying size and complexity. In
his last assignment with Chevron, he was Manager of Well
Engineering and Operations at Chevron Canada Resources.
He has experience with both onshore and offshore
operations, gas production, light oil and heavy oil
production, EOR projects and exploratory well drilling. Lyle is
a member of the Association of Professional Engineers and
Geoscientists of Alberta (APEGA). Education: B.Sc. Civil
Engineering, University of Saskatchewan, 1978.
Since appointment as COO: The present value of CAD1,000
invested on the appointment date of April 18, 2018 at close
price of CAD4.97 is CAD1,048, for a capital gain of CAD48.
378
Index
Section 1. Valeura Energy (VLE) 1

Company Overview 1
Figure 1: Activities 1
Fig 2: Stock Summary 1
Fig 3: Financials Summary 1
Section 2. Analysis 2
Introduction with Trends 2
Bullish Signals 2
Fig 4: Bullish Indicators 2
Bearish Signals 2
Fig 5: Quarterly Revenue & Net Income 3
Fig 6: Bearish Indicators 3
Fig 7: Global Rank [out of 47,635 stocks] 3
Fig 8: Other Listings 3
Section 3. Period-based Shareholder Returns 4

Fig 10: PRESENT VALUE OF CAD1000 INVESTED IN THE PAST [3 Mo, 1 Yr, 3 Yrs] 4
Fig 11: 5-Year Moving Annual Return 4
Fig 12: Total Shareholder Returns, Annualised [TSR %] 5
Fig 13: PRESENT VALUE OF CAD1000 INVESTED 5 YEARS AGO 6
Fig 14: PRESENT VALUE OF USD1000 INVESTED 5 YEARS AGO 6
Section 4. Price Volume Dynamics (Past quarter) 7

Fig 15: The Best 3 weeks 7
Fig 16: The Worst 3 weeks 7
Fig 17: Weekly Price Change (%) and Volume Index (Last 3 months) 7
Fig 18: Price Volume Trend: Trailing Quarter 8
Fig 19: Fibonacci Retracement 8
Fig 20: Trailing 3 months 9
Fig 21: Trailing Price Change % 9
Volatility 9
Fig 22: Price High Low Close 9
Fig 23: YTD Comparison Stock Sector Index (%) 9
Fig 24: Relative Strength 9
Fig 25: Price/Moving Avg Price [P/MAP200] 10
Fig 26: Turnover Rate & Period 10
Fig 27: CAD1 buys USD 0.78 today: Appreciation of USD from 0.86 twenty-eight years ago 10
Fig 28: Year-on-Year Comparison (Trailing year - ended 30 Apr) 10
Stock Exchange Listings 11
Section 5. Regulatory Announcements 12

Fig 29: Acquisitions 12
Fig 30: Natural Reserves/Resources Discovery 12
Fig 31: Changes in Board 12
Fig 32: Management Issues 12
Fig 33: Exchange Activity 13
Fig 34: Meetings 14
Fig 35: Financial Results announcements 14
379
Index (continued)
Fig 36: Funding/Capital 15
Fig 37: Share Capital 16
Section 6. Press Releases 17
Section 7. Financials 21
Fig 38: Five-Year History (All figures in CAD) 23
Fig 39: 2017 VLE Income Statement as reported 23
Fig 40: 2017 VLE Balance Sheet as reported 24
Fig 41: 2017 VLE Cash Flow as reported 25
Section 8. Peer Group Analysis & Ranking 27

Fig 42: Global Peer Group Analysis (all figures in USD) 27
Fig 43: Global Peer Group - Price Performance 27
Fig 44: Global Peer Group - Total Shareholder Return [TSR in USD] 28
Fig 45: Compare and Sort: Valeura Energy vs Oil & Gas - Exploration & Production sector 28
Fig 46: BuySellSignals Fundamentals Valuation Table: Canadian Market 28
Fig 47: Independent Rating 29
Fig 48: Long-Term Fundamental Ranking: 2 out of 5 29
Section 9. Board and Management & creation of shareholder value 30

Names, Positions, Biographies, Performance
Fig 49: At a glance 30
Fig 50: Profiles 30
380
Glossary
Annual Return (Fig 11): Capital Gain/Loss from n Years Ago to n-1 Years Ago:
Dividends Paid In a 12-Month Period/Price at the Beginning of the Capital Gain or Loss over 1 Year/Price 1 Year Ago (%)
Period + Capital Gain or Loss over 1 Year/Price 1 Year Ago (%)
Current Ratio: EBIT Margin :
Current Assets/Current Liabiliites (times) Earnings Before Interest and Tax/Revenue (%)
Moving Average Price (n periods) (Fig 4, 25): PVCAD1000 (Fig 9, 10, 13, 14):
Sum of Prices for each Period/Number of Periods Present value of CAD1000 invested 1 year/'n' years ago
Price Close/Moving Avg Price (Fig 4, 25): Price/Earnings (Fig 43, 46):
Latest Price/Moving Average Price Share Price/Earnings Per Share (times)
Price/NTA (Fig 6, 7, 43): Price/Sales (Fig 43):
Closing Share Price/Net Tangible Assets Per Share (times) Share Price/Sales Per Share (times)
Relative Price Change [RPC] (Fig 28): Relative Strength (n-th Period) (Fig 4, 24, 2, 7, 42):
Relative price change is price change of stock with respect to Price close today/Price close 'n' periods ago, then ranked by
Benchmark Index percentile within the entire market.
Return on Assets: Return on Equity (Shareholders' Funds) (Fig 7):
Net Profit/Total Assets (%) Net Profit/Net Assets (%)
TSR (Fig 12, 44, 2): Total Liabilities/Total Assets:
TSR is expressed as an annualized rate of return for shareholders after Total Liabilities/Total Assets
allowing for capital appreciation and dividends
Turnover (Fig 4, 20): Turnover Period (Fig 28):
Last Price * Volume Time Period required for trading all Outstanding Shares
Turnover Rate (Fig 43, 26): Volume Index (VI) (Fig 17, 20):
Canadian Dollar value of annual trading volume as a percentage of Number of shares traded in the period/Average number of shares
market capitalisation traded for the period
Volume Weighted Average Price (VWAP) (Fig 28):
The Volume Weighted Average Price (VWAP) is the summation of
turnover divided by total volume in the same period.
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Table of Contents

Rpt. 65470444 VALEURA ENERGY INC 3-5

Rpt. 63004105 VALEURA ENERGY INC 6 - 37

Rpt. 65336362 VALEURA ENERGY INC 38 - 40

Rpt. 65296377 VALEURA ENERGY INC 41 - 118

Rpt. 65253809 VALEURA ENERGY INC 119 - 122

Rpt. 65255382 VALEURA ENERGY INC 123 - 154

Rpt. 65180819 VALEURA ENERGY INC 155 - 222

Rpt. 65164203 VALEURA ENERGY INC 223 - 233

Rpt. 64670744 VALEURA ENERGY INC 234 - 311

Rpt. 65089796 VALEURA ENERGY INC 312 - 323

These reports were compiled using a product of Thomson Reuters www.thomsonreuters.com

Rpt. 65075109 VALEURA ENERGY INC 324 - 335

Rpt. 64975692 VALEURA ENERGY INC 336 - 339

Rpt. 64966252 VALEURA ENERGY INC 340 - 346

Rpt. 64948026 VALEURA ENERGY INC 347 - 381

These reports were compiled using a product of Thomson Reuters www.thomsonreuters.com

Rating Update¹ for Valeura Energy Inc

Stock downgraded to Above Average from Good

Ticker Company Name Exchange Industry Sector

C1. SADIF overall Rating (SMR) and its drivers Highlights

Valeura Energy Inc has a a fair prospect, with an overall

Looking forward, its quality declines but our estimates

Overall, we expect Valeura Energy Inc to be an above

SMQ SMD SMC 3.780 CAD 0.43 - 8.27 323.803M CAD

14.74 -31.76 2.68

EPS ² Earnings Yield Div Announc. Date

T1. Quarterly EPS

Financials Information Outlook Year Q1 Q2 Q3 Q4

T2. Quarterly BVS

Newsletter & Investment Management Portal 1

T4. History of up(down)grades ³

Date Trend SADIF Rating

Newsletter & Investment Management Portal 2

SMD SMQ SMC

A company's business quality based on its ratings

A company's overall quality rating based on its

A company's governance quality based on its

ratings for earnings quality, compensation policy

financial strength. outperformance likelihood and price attractiveness.

Newsletter & Investment Management Portal 3

Valeura Energy Inc. – Mergers & Acquisitions

REFERENCE CODE: 2385527C-E6FD-4374-8128-6D3F07E24789

COMPANY OVERVIEW AND KEY FACTS

VALEURA ENERGY INC.

Address Bow Valley Square 1, Suite 1200

Telephone 1 403 237 7102

Fax 1 403 237 7103

Exchange / Ticker TSE / VLE

© MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED

Source: Financial Deals MARKETLINE Source: Financial Deals MARKETLINE

© MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED

COMPANY OVERVIEW AND KEY FACTS ............................................ 2

TABLE OF CONTENTS .......................................................................... 4

LIST OF TABLES .................................................................................... 5

LIST OF FIGURES .................................................................................. 5

MERGERS & ACQUISITIONS ................................................................ 6

CAPITAL RAISING ............................................................................... 17

About MarketLine Financial Deals Database ................................................................................... 22

Deal Definition and Methodology ..................................................................................................... 24

About MarketLine ............................................................................................................................... 31

© MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED

© MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED

MERGERS & ACQUISITIONS