TransAtlantic Petroleum Corp.
TSX : TNP.U

TransAtlantic Petroleum Corp.

November 07, 2007 12:11 ET

TransAtlantic Petroleum Corp. Announces Farmout of Guercif Exploration Permits in Morocco

CALGARY, ALBERTA--(Marketwire - Nov. 7, 2007) - TransAtlantic Petroleum Corp. (TSX:TNP.U) announces it has converted a portion of its Guercif Beni Znassen Reconnaissance License (13,750 square kilometers) into two exploration permits covering a total of 3,893 square kilometers (962,000 acres) in the Guercif area in northeastern Morocco.

Pursuant to a participation agreement between the Company (30%), Stratic Energy Corporation (20%) and Sphere Petroleum QSC (50%), Sphere will bear the entire cost of the initial three-year work program to earn its 50% interest in the two Guercif exploration permits. The interests of the Company, Sphere and Stratic are subject to the interest in the Guercif permits held by the national oil company of Morocco, Office National des Hydrocarbures et des Mines, who is carried during the exploration phase but pays its 25% share of costs in the development phase. The Company will continue as operator of the Guercif exploration permits during the initial three-year period.

The Guercif exploration permits are for an eight-year term divided into three periods. The initial three-year work program estimated to cost more than U.S. $3 million will include the re-entry of an existing well and the acquisition of 300 kilometers of 2D seismic. In addition, Sphere has posted the required bank guarantee for the initial work program with the Moroccan government and will reimburse the Company and Stratic their back costs.

Under the Moroccan Hydrocarbon Code, 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.

Sphere Petroleum QSC is an oil and gas exploration company with a focus on West and North Africa and the Middle East. The company was originally formed as a subsidiary of Sphere Investments Ltd. (SPH), an Australian company quoted on the Australian Stock Exchange. It was recently spun out and established as an independent, private company in Qatar. More information on Sphere is available at www.spherepetroleum.com.

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

This news release contains statements concerning drilling plans, plans to acquire seismic data, plans to conduct technical studies, estimates of the costs to drill or acquire the seismic and conduct studies 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, The Company's ability to access external sources of debt and equity capital, imprecision in estimating the timing and costs of drilling and development, the Company'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.

(NO STOCK EXCHANGE, SECURITIES COMMISSION OR OTHER REGULATORY AUTHORITY HAS APPROVED OR DISAPPROVED THE INFORMATION CONTAINED HEREIN.)

Contact Information

  • TransAtlantic Petroleum Corp.
    Scott C. Larsen
    President
    (214) 220-4323
    Website: www.tapcor.com