(Alliance News) - Shares rose in Valeura Energy Inc on Wednesday as it reported an increase in output and revenue for the fourth quarter of 2019.
Shares in the Calgary, Canada-based natural gas producer were 17% higher at 37.92 pence on Wednesday in London.
For the three months to the end of December, Valeura's average production was 646 barrels of oil equivalent per day, up 22% from 531 barrels the quarter before.
The company said its performance demonstrated how its shallow gas work programme of well workovers and recompletions can offset natural declines.
Valeura said that price realisations were "relatively stable" through 2019, but for the fourth quarter it was an average of USD7.40 per million cubic feet of gas, down 23% from USD9.64 the prior quarter.
Despite the lower average price, Valeura said that revenue for the quarter increased, allowing the company to cover all operating, general and administrative costs of the company.
Looking ahead, Valerua said it remains encouraged by the potential for its deep gas play at the Thrace Basin in Turkey.
Technical evaluation and reservoir modelling work is ongoing, and is expected to do so for the next two months, to be used for defining the forward appraisal programme for the deep play in 2020.
Valeura said it expects to announce its 2020 work programme and capital expenditure outlook within the first quarter of 2020.
By Dayo Laniyan; dayolaniyan@alliancenews.com
Copyright 2020 Alliance News Limited. All Rights Reserved.