TransAtlantic Petroleum Corp.
TSX : TNP.U

TransAtlantic Petroleum Corp.

December 22, 2006 17:44 ET

TransAtlantic Petroleum Corp.: Announces Sale of Bayou Couba Assets and ANEC Debentures to Dune Energy, Inc.

CALGARY, ALBERTA--(CCNMatthews - Dec. 22, 2006) - TransAtlantic Petroleum Corp. (TSX:TNP.U) announces that it has sold its interests in the Bayou Couba prospect and in debentures it held of American Natural Energy Corporation ("ANEC"), the operator of the Bayou Couba prospect, to Dune Energy, Inc. ("Dune")(AMEX:DNE) for total consideration of U.S. $2 million. The sale included TransAtlantic's 10% working interest and related interests in the Bayou Couba project, St. Charles Parish, Louisiana held by its subsidiary, TransAtlantic Petroleum (USA) Corp., and certain 8% Convertible Secured Debentures issued by ANEC in the principal face amount of $3.0 million held by TransAtlantic (the "Debentures"). The Debentures have matured and are now in default. TransAtlantic previously reserved against the Debentures reducing their value on its books to U.S. $900,000.

In addition, TransAtlantic continues to own 2,237,136 common shares of ANEC, which represents approximately 4.4% of the issued and outstanding common shares of ANEC. TransAtlantic acquired and holds such common shares for investment purposes and has no current plans to acquire additional securities, or control over additional securities, of ANEC, although TransAtlantic may acquire or dispose of securities of ANEC from time to time in the future.

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

This news release contains statements regarding expectations, plans, goals, objectives, assumptions or information 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 when expected 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 continuing ability of ANEC to operate as a going concern, reliance on current oil and gas laws, rules and regulations, volatility of oil and gas prices, fluctuations in currency and interest rates, imprecision of resource estimates, Dune's ability to access external sources of debt and equity capital, imprecision in estimating the timing, costs and levels of production and drilling, the results of exploration, development and drilling, imprecision in estimates of future production capacity, 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