TransAtlantic Petroleum Corp.

TransAtlantic Petroleum Corp.

October 09, 2007 13:13 ET

TransAtlantic Petroleum Corp. Announces Farmout of Turkey Exploration License

CALGARY, ALBERTA--(Marketwire - Oct. 9, 2007) - TransAtlantic Petroleum Corp. (TSX:TNP.U) announces it has farmed out Block 4175, one of its exploration licenses in southeastern Turkey.

Under the terms of the agreement, the farmee will fund the next portion of the Company's work program obligation on Block 4175. This work entails reprocessing of 2D seismic in the vicinity of the license and conducting geochemical studies. Upon completion of this phase of the work program, the farmee has the option to acquire 75% interest in the license by drilling an exploration well to evaluate an untested prospective Palaeozoic formation.

The Company will continue as operator of Block 4175 until exercise of the drilling option by farmee. Transfer of the interest in the license would be subject to regulatory approval. If the exploration well leads to a commercial discovery, the license would be converted to a 20-year production lease (extendable for a further 20 years in two 10-year increments) which would bear a 12.5% royalty. Currently, the tax rate in Turkey on net corporate income is 20% (subject to a further 15% withholding tax on profits transferred out of Turkey).

TransAtlantic is engaged in the exploration, development and production of crude oil and natural gas in the U.S., Morocco, Turkey, Romania and the U.K. North Sea. Common shares of TransAtlantic are listed on the Toronto Stock Exchange under the symbol TNP.U.

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 Turkey, reliance on Turkey'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.


Contact Information

  • TransAtlantic Petroleum Corp.
    Scott C. Larsen
    (214) 220-4323