Valeura Energy Inc (LON:VLE) has agreed a deal to sell its shallow conventional gas business in Turkey for US$15.5mln in cash.
It will also receive US$2.5mln in future royalty payments.
The company noted that the sale will boost its already strong cash position, which at the end of September stood at US$31mln.
The cash pile supports the group’s plan to grow through acquisition. A value-driven M&A strategy aims to add near-term/mid-term production growth and cash flow, the company added.
"I am pleased to announce the pending sale of our mature, conventional gas business as a way to strengthen our balance sheet and increase our cash to pursue higher-value growth opportunities,” Sean Guest, Valeura chief executive said in a statement.
Guest added: “We are pursuing near/mid-term opportunities through the mergers and acquisition market intended to add significant growth potential and at the same time, we are continuing in our commitment to Turkey, as we appraise our 20 Tcfe unrisked mean prospective resource deep tight gas play.
“In all instances, our priority is to add cash-flow generation to the portfolio, along with opportunities for smart re-investment to generate incremental value for shareholders."