Valeura Energy Inc. reported earnings and production results for the first quarter ended March 31, 2013. For the period, the company's natural gas revenues were CAD 4,848,000 against CAD 6,810,000 a year ago. Funds flow from operations were CAD 1,587,000 against CAD 2,939,000 a year ago. Net loss was CAD 818,000 against CAD 2,340,000 a year ago. Capital expenditures were CAD 6,445,000 against CAD 8,688,000 a year ago. Capital expenditures down 26% from the first quarter of 2012 due primarily to a decrease in fracing expenditures. For the period, the company reported production of Crude oil & NGLs of 53 bbl/d against 59 bbl/d a year ago. Natural Gas production was 4,787 Mcf/d against 9,074 Mcf/d a year ago. As a new initiative in the tight gas delineation and development program in the Tekirdag area on the TBNG-PTI lands, the corporation is planning to drill and frac two back-to-back horizontal wells at DTD-19H and BTD-4H commencing in June 2013, including one well into the Teslimkoy Formation and the other well into the underlying Upper Kesan Formation. This pilot program will be located in an area where there is 3D seismic control and experience with fracs in these formations in vertical wells. The wells will target prospective gross intervals of 100 to 150 metres in thickness in each formation at a true vertical depth of approximately 1,000 to 1,100 metres. The wells are expected to have a horizontal well length of 800 to 1,000 metres and will be completed with multi-stage fracs. The results will assist in shaping the ultimate tight gas development program on the TBNG-PTI lands in terms of overall cost effectiveness and access to certain areas close to the city of Tekirdag where pad drilling with vertical or horizontal wells may be required to minimize the surface footprint. In the Gaziantep area of the Anatolian Basin, a new completion and testing program commenced in early May to perforate additional pay and carry out longer term flow tests of the Alibey-1 horizontal well in Licence 4607 (Valeura 26%). New surface facilities have been constructed to handle fluids and trucking. The well is completed in the Mardin Formation and is an indicated heavy oil well. The program will increase the amount of perforated interval in the well and will be carried out in phases, whereby each test interval will be stimulated with an acid squeeze and individually tested.

Annual and Special Meeting of Shareholders

Valeura Energy Inc. announced that it has been awarded a new exploration license (Banarli License 5104) on a 100% working interest basis in the Thrace Basin of northwest Turkey. The Banarli License 5104, which was awarded to the company by the General Directorate of Petroleum Affairs of the Republic of Turkey, has a four-year initial term and covers an area of 118,598 gross acres (185 sections or 185 square miles) located near the centre and deepest part of the Thrace Basin. The company announced that the license is ideally located to test for a potential basin-centre gas play and to explore for unconventional tight gas and shale gas in those areas where the Mezardere shale source rocks are at depths below 3,000 meters and may be at pressures and temperatures sufficient to create an active 'kitchen' for hydrocarbon generation. The company also announced that the overlying Ergene, Danismen and Osmancik formations, which are also more deeply buried across the license, may also be prospective for conventional gas exploration. Under the Banarli license terms, a well will need to be spudded within the first year to keep the license in good stead. The company plans to initially carry out a targeted 2D seismic program to complement the existing 2D seismic coverage on the license. The license is unexplored with only two relatively shallow wells drilled, of which the latest, Karaca-1, was plugged and abandoned at a depth of 1,026 meters in November 2010.