Mr. Jim McFarland reports

VALEURA ANNOUNCES CLOSING OF TBNG ACQUISITION AND ISSUANCE OF COMMON SHARES PURSUANT TO SUBSCRIPTION RECEIPTS FINANCING

Valeura Energy Inc. has completed 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:

1. The acquisition of its joint venture partner, Thrace Basin Natural Gas (Turkiye) Corp. (TBNG) for $22-million (U.S.) in cash, effective March 31, 2016, which after closing adjustments, was reduced to a cash payment of $20.9-million (U.S.) (which includes $3.1-million (U.S.) held in escrow pending a final reconciliation of the closing statement of adjustments);
2. The issuance of 14,629,000 common shares of the corporation pursuant to 14,629,000 subscription receipts previously issued by the corporation in connection with the underwritten private placement offering of subscription receipts, which closed on Nov. 3, 2016, and the release from escrow of approximately $11-million in gross proceeds.

Valeura financed the acquisition of 100 per cent of the shares of TBNG by Valeura Energy Netherlands BV, a wholly owned affiliate of Valeura, with a combination of funds from the offering and earlier payments of $18-million (U.S.) received from Statoil Banarli Turkey BV under the previously announced Banarli farm-in and West Thrace deep rights sale transactions.

As the final link in the chain of transactions, the corporation will now proceed with the sale of an additional 10-per-cent participating interest to Statoil in the deep rights below 2,500 metres on the West Thrace lands for $3-million (U.S.).

Upon the closing of the subsequent West Thrace deep rights sale, expected in the second quarter of 2017, Valeura will retain a 31.5-per-cent participating interest and Statoil will have a 50-per-cent participating interest in the deep formations on the West Thrace lands. Valeura will retain an 81.5-per-cent participating interest in the shallow formations on the West Thrace lands and an 81.5-per-cent participating interest in all formations on other TBNG joint venture lands.

"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 on board a large and well-respected partner to help fund the exploration for a deep, basin-centred gas play in the Thrace basin, an exciting, high-impact concept we have championed for several years", said Jim McFarland, president and chief executive officer of Valeura. "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 [the second quarter of] 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," added Mr. McFarland.

About Valeura Energy Inc.

Valeura Energy is currently engaged in the exploration, development and production of petroleum and natural gas in the Thrace basin of northwest Turkey.

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