TransAtlantic Petroleum Corp.

TransAtlantic Petroleum Corp.

June 21, 2005 15:13 ET

TransAtlantic Petroleum Corp. Announces Divestment of Nigerian Interests

CALGARY, ALBERTA--(CCNMatthews - June 21, 2005) - TransAtlantic Petroleum Corp. (TSX:TNP.U) announces that effective June 20, 2005, it has sold its Bahamian subsidiary which owns the 30% interest in the concession OML 109, offshore Nigeria, to Summit Oil Limited. As part of the transaction, TransAtlantic will receive deferred payments of up to a maximum of US $16 million based on the success of the future exploration and development on the concession, and cash payments in excess of US $700,000. In addition, US $1.76 million out of the US $2.5 million reserved by TransAtlantic as an abandonment fund will be deposited into an escrow fund to address any Nigerian liabilities and claims relating to the Company's operations in Nigeria over the past 10 years, with the balance of approximately US $720,000 to be returned to the Company. TransAtlantic believes that the funds in escrow are in excess of any potential liabilities.

In a complex multi-party transaction, a new service contractor, Tetra Petroleum Services, has replaced Nexen as service contractor on OML 109. An affiliate of Tetra has purchased the existing Ejulebe production platform and facilities and Tetra is obligated to drill at least two (2) wells in adjacent fault blocks near the currently producing Ejulebe Field. If successful, it is anticipated these wells will put into immediate production through the existing Ejulebe facilities. Drilling is anticipated to commence in the next 30 days, subject to rig availability.

TransAtlantic is engaged in the exploration, development and production of crude oil and natural gas in Morocco, Turkey and the USA and is pursuing other selected foreign opportunities.

This press release includes projections and other "forward-looking" statements. All statements other than statements of historical facts included in this press release, including statements regarding projected reserves and upside potential are forward-looking statements. The statements involve risks that could significantly impact TransAtlantic Petroleum Corp. These projections and statements reflect the Company's current views with respect to future events and financial performance. No assurances can be given that these events will occur or that these projections will be achieved and actual results could differ materially from those projected. Important factors that could cause actual results to differ from the Company's expectations include, but are not limited to, adverse general economic conditions, operating hazards, drilling risks, inherent uncertainties in interpreting engineering and geological data, competition, reduced availability and costs of drilling and other well services, fluctuations in oil and gas prices, government regulation and foreign political risks, as well as other risks.


Contact Information

  • TransAtlantic Petroleum Corp.
    Scott C. Larsen
    (214) 220-4323
    5910 N. Central Expressway, Suite 1755, Dallas, Texas 75206