TransAtlantic Petroleum Corp.
TSX : TNP.U

TransAtlantic Petroleum Corp.

August 27, 2007 08:01 ET

TransAtlantic Petroleum Corp. Announces Farmout of Tselfat Permit in Morocco

CALGARY, ALBERTA--(Marketwire - Aug. 27, 2007) - TransAtlantic Petroleum Corp. (TSX:TNP.U) announces that the Company has reached agreement to farmout 50% of its interest in the Tselfat exploration permit to Sphere Petroleum QSC.

In exchange for an option to acquire 50% of the Company's interest in the Tselfat permit, Sphere will fund the costs to acquire a 110 sq. km. 3D seismic survey to be shot over the Haricha field and northern portion of the Brou Draa field in early 2008 and will also fund the cost of additional geological studies. It is estimated the 3D survey and the studies will cost approximately U.S. $4.5 million over the next year. Upon its exercise of the option, Sphere will (i) fund the drilling and testing of an exploratory well; and (ii) replace the Company's bank guarantee deposited with the Moroccan government. The exploratory well will be drilled to a depth of at least 2,000 meters (6,500 feet) to test a previously undrilled subthrust prospect. The Company will remain as operator of the permit through this exploration phase which extends to May 2009.

Sphere Petroleum QSC is a rapidly expanding 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.

The Tselfat exploration permit covers 900 square kilometers (222,000 acres) and is located onshore in northern Morocco. It was awarded to the Company in May 2006 for a period of 8 years. The permit contains three previously produced but now abandoned oil and gas fields: Haricha, Tselfat and a portion of the Bou Draa Field, all of which were discovered in the 1950's or earlier. The Company believes the 3D seismic survey and the geological studies will provide additional data for the potential redevelopment of the Haricha field and will define the deeper prospectivity on the permit.

The national oil company of Morocco, Office National des Hydrocarbures et des Mines ("ONHYM"), is carried for 25% of the costs during the exploration phase of the permit. Provided Sphere exercises the option, the Company (37.5%), Sphere (37.5%) and ONHYM (25%) will each pay their share of costs in the development phase. 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.

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