TransAtlantic Petroleum Corp.

TransAtlantic Petroleum Corp.

November 12, 2007 11:56 ET

TransAtlantic Petroleum Corp. Announces Sale of Texas Properties and Amendment to Loan Agreement

CALGARY, ALBERTA--(Marketwire - Nov. 12, 2007) - TransAtlantic Petroleum Corp. (TSX:TNP.U) announces it has sold its interests in the South Gillock and State Kohfeldt Units located in Galveston County, Texas for $4 million. The sale covers the unitized Big Gas Sand formation and related shallow leasehold rights, and the Company will retain its deep leasehold rights covering approximately 2,700 acres. In addition, the Company has sold its interests in the Jarvis Dome property in Anderson County, Texas for $250,000. These two divestitures are part of the Company's overall strategy to reduce its U.S. operations and to focus on its operations in Romania, Morocco and Turkey.

The Company acquired the South Gillock and State Kohfeldt Units in April 2005 for $3.5 million in cash and stock. The Company conducted an extensive workover program on the units in late 2005 and early 2006 in an attempt to increase production from existing wells but achieved only limited success. Earlier this year, the Company drilled the SGU #96 well to exploit the gas cap in the South Gillock Unit; however, the results of the SGU #96 have been disappointing. In addition to the cash consideration, the sale relieves the Company of an estimated $2 million in plugging and abandonment liabilities. The Company will seek to farmout its deep rights to a partner to test the lower and middle Frio as well as the Vicksburg.

The sale of the Jarvis Dome property included approximately 900 acres of leases (some nearing expiration) and production of approximately 40 mcf per day.

The Company also announces it has paid down $2 million in principal on its short-term loan agreement with Quest Capital Corp. and extended the maturity date for the outstanding principal loan balance of $2 million from November 30, 2007 to March 31, 2008 under existing terms.

TransAtlantic is engaged in the exploration and development of crude oil and natural gas in the U.S., Morocco, Turkey, Romania and the U.K. North Sea. More information about TransAtlantic can be found at its website:

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 reliance on the current hydrocarbon and tax laws and regulations of the U.S., 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