TransAtlantic Petroleum Corp.
TSX : TNP.U

TransAtlantic Petroleum Corp.

September 27, 2007 14:51 ET

TransAtlantic Petroleum Corp. Announces Final Government Approval of Production Licenses in Romania

CALGARY, ALBERTA--(Marketwire - Sept. 27, 2007) - TransAtlantic Petroleum Corp. (TSX:TNP.U) announces it has received final approval from the Romanian Government for the three production licenses in Romania awarded to the Company last year.

The three production licenses, Izvoru, Vanatori and Marsa, are all located in the Moesian Platform within 100 kilometers west of Bucharest. All three fields were discovered by the former national oil company and were prematurely abandoned. Each license covers approximately 1,200 acres, is for a term of up to thirty (30) years so long as production is established in the initial three (3) years. TransAtlantic owns 100% working interest in each of the licenses subject to a royalty ranging from 3.5% to 13.5% based on the level of field production. The corporate tax rate in Romania is 16%. All of the licenses are close to existing infrastructure. Oil produced from the licenses will be sold at world market prices; gas is currently priced at $5.50 per mcf.

The licenses were awarded based on committed work programs. In anticipation of final approval of the licenses, the Company shot a 3D seismic survey over the Izvoru license and 2D surveys over the Vanatori and Marsa licenses in late 2006. The Company is in the process of completing its engineering reservoir study on the Izvoru license which incorporates the results of the 3D survey. The Company plans to re-establish production at the Izvoru field in early 2008.

The Izvoru field produced 1.4 million barrels of oil (177,000 tons) from 26 wells according to government records. Discovered in 1968, this field produced from a Sarmatian (Tertiary age) limestone reservoir at a depth of approximately 4,000 feet. In addition, one of four wells which penetrated a deeper Albian (Cretaceous age) carbonate reservoir tested oil; this formation is productive in nearby fields. Based on third party engineering studies, the combined Sarmatian and Albian formations contained original resources in place of approximately 22 million barrels of oil (2.8 million tons). Completion difficulties and water production resulted in limited flow rates and recoveries leading to field abandonment in 1998.

The other two fields, Vanatori and Marsa, were both discovered in the 1970's and both produced oil or gas. Five wells were drilled in the Vanatori Field; two of which produced a total of 1.3 Bcf of gas over 6 years from the Sarmatian formation at depths of approximately 5,600 feet. There is also deeper Cretaceous potential at Vanatori. In the Marsa Field, five wells were drilled of which three were productive. Between 1974 and 1983, these wells produced a cumulative 0.3 Bcf of gas from the Meotian (Tertiary age) reservoir at a depth of approximately 2,100 feet.

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 Romania, reliance on Romania'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