Shares of Calgary-based Marsa Energy (CVE:MEP) rocketed higher today after recognizing reserves for the first time at the Poyraz Ridge field in the Ortakoy block in Turkey, with first gas sales expected next year.
The stock more than doubled to 70 Canadian cents in Toronto Wednesday, placing year-to-date gains at 133 percent.
The company announced earlier today the results of an independent reserves and economic evaluation of its Poyraz Ridge field, which was discovered in the second quarter of 2013.
The report, by DeGolyer and MacNaughton and effective November 30, is highlighted by proved plus probable reserves of 21.2 billion cubic feet of gas, which has a net present value of US$85.7 million, at a 10 percent discount rate and after Turkish income taxes.
"With the discovery of the Poyraz Ridge gas field, Marsa Energy has made one of the most significant finds in the Thrace basin in the last 10 years." said president and chief executive officer Blair Anderson.
"Our exceptional success with the drill bit, which in combination with acquiring a Gas Wholesalers Licence and obtaining approval from Botas (Turkey's state pipeline company) to tie into their Inter-Turkey Greece Italy connector pipeline transecting the Ortakoy Block, has enabled Marsa to convert contingent resource into significant high value 1P, 2P and 3P reserves on the Poyraz Ridge field."
Marsa also unveiled the results of a prospective resource estimate of the Eocene formations on the entire Ortakoy block, with a best estimate of 421.6 billion cubic feet of gross prospective raw natural gas.
Meanwhile, testing results of the Poyraz S4-1 and Poyraz N3-1 wells that were drilled in the third quarter of last year were also released, but the company said they are not expected to add material reserves in the future as pressure analysis indicated limited reservoir capacity.
The Poyraz Ridge field is located in the Ortakoy block in the Thrace basin on the Gallipoli Peninsula in the northwest, or European side, of Turkey. Marsa holds a 100 percent working interest in the block through its Turkish subsidiary and is the operator on site.
"In 2015, we are focussed on tying the Poyraz Ridge field into the Botas gas grid with a view to having first gas sales in Q1 2016," added Anderson.
He said that further drilling to explore nearby lookalike structures will also be conducted, which is expected to add to its reserve base and allow the company to retain the majority of the block upon conversion to a production license later this year.