TransAtlantic Petroleum Corp.

TransAtlantic Petroleum Corp.

May 18, 2006 15:54 ET

TransAtlantic Petroleum Corp.: Announces Award of Exploration Permit in Morocco

CALGARY, ALBERTA--(CCNMatthews - May 18, 2006) - TransAtlantic Petroleum Corp. (TSX:TNP.U) announces that the Company has been awarded the Tselfat exploration permit covering 2,000 square kilometers (500,000 acres) in northern Morocco. Tselfat has three fields, Haricha, Brou Draa and Tselfat, that produced from the early 1920s to 1970s, with limited production continuing into the 1990s. While production estimates for the three fields is difficult, historical data suggests cumulative production is in the range of 4 million barrels of oil and 10 billion cubic feet (bcf) of gas.

The Tselfat permit provides several exciting opportunities including redevelopment of the existing fields, extensions of known productive horizons, and exploration of higher impact targets at depth. This award represents a substantial expansion of the Company's activities in Morocco.

Commercial Terms

During the exploration phase, TransAtlantic will operate and bear 100% of the costs to earn a 75% interest. The national oil company of Morocco, National des Hydrocarbures et des Mines ("ONHYM"), is carried for 25% of the costs during the exploration phase. The Company (75%) and ONHYM (25%) will each pay their share of costs in the development phase. Currently, royalties are 10% on oil and 5% on gas, there is a 10 year holiday on corporate tax, and operations are exempted from VAT and custom duties.

Historical Production

The Haricha Field was discovered in the early 1950's on a large surface anticline with hydrocarbon seeps. The field was developed with 30 wells drilled to a depth of less than 2,000 meters and produced approximately 3.5 million barrels of oil and 9.5 bcf of gas from porous Jurassic age sandstones. The field is a complex structural trap formed by a thrust fault that has not been fully exploited. Based on available 2-D seismic, potential exists for a deeper sub-thrust play below the known productive horizon.

The Bou Draa field was discovered in 1934. The Bou Draa structure is a large surface anticline generated by a regional thrust fault. The surface anticline, that has a topographic expression extending for approximately 10 kilometers, was discovered by wells drilled on hydrocarbon seeps. Over 140 shallow wells were drilled in a 6 square kilometer area and produced less than 1 million barrels recorded production of light oil from fractured carbonates and sandstones. It is believed that hydrocarbon reserves can be recovered using horizontal drilling techniques, artificial stimulation and reservoir pressure maintenance. Further upside potential exists in subthrust reservoirs in Jurassic age sandstones.

The Tselfat field was discovered in 1918 by wells drilled on a surface anticline with hydrocarbon seeps. More than 90 shallow wells were drilled and produced less that 0.50 million barrels of oil recorded production from Jurassic carbonate reservoirs.

The Bou Draa field is located near the city of Sidi Kacem where there is an active refinery built originally built to refine oil from the Bou Draa and Haricha Fields.

Proposed Work Program

The Company will commence a review of all the existing well data on the Tselfat permit, reprocess much of the 2D seismic and initiate a field program. In addition, the Company will shoot a 3D survey over the Bou Draa and Haricha fields that will be followed by an exploratory well to test the previously untested Jurassic formations in the sub-thrust.

TransAtlantic is engaged in the exploration, development and production of crude oil and natural gas and has interests in the USA, Morocco, Turkey, Romania and the North Sea. More information about TransAtlantic can be found at its website:

This news release contains statements concerning drilling plans, plans to acquire seismic data, estimates of the costs to drill or acquire the seismic and estimates of when such plans will be executed as well as other expectations, plans, goals, objectives, assumptions, information or statements about future events, conditions, results of operations or performance that may constitute forward-looking statements or information under applicable securities legislation. Such forward-looking statements or information are based on a number of assumptions which may prove to be incorrect. In addition to other assumptions identified in this news release, assumptions have been made regarding, among other things, oil and gas prices remaining relatively consistent with their current prices, access to the fields, availability of drilling rigs and other equipment, obtaining drilling success consistent with expectations, regulatory approvals being obtained and estimated timelines being met and the actual costs being consistent with estimated costs.

Although the Company believes that the expectations reflected in such forward-looking statements or information are reasonable, undue reliance should not be placed on forward-looking statements because the Company can give no assurance that such expectations will prove to be correct. Forward-looking statements or information are based on current expectations, estimates and projections that involve a number of risks and uncertainties which could cause actual results to differ materially from those anticipated by the Company and described in the forward-looking statements or information. These risks and uncertainties include but are not limited to the political stability of Morocco, reliance on Morocco's current hydrocarbon and tax laws and regulations, operating hazards, drilling risks, inherent uncertainties in interpreting engineering and geological data, competition, reduced availability of drilling and other well services, volatility of oil and gas prices, fluctuations in currency and interest rates, TransAtlantic's ability to access external sources of debt and equity capital, imprecision in estimating the timing and costs of drilling and development, TransAtlantic's ability to secure adequate product transportation, changes in environmental and other regulations or the interpretation of such regulations, the ability to obtain necessary regulatory approvals, weather and general economic and business conditions.

The forward-looking statements or information contained in this news release are made as of the date hereof and the Company undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.


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