TransAtlantic Petroleum Corp.
TSX : TNP.U

TransAtlantic Petroleum Corp.

October 24, 2005 18:24 ET

TransAtlantic Petroleum Corp.: Announces US $4.25 Million Bought Deal Financing

CALGARY, ALBERTA--(CCNMatthews - Oct. 24, 2005) -

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES

TransAtlantic Petroleum Corp. (TSX:TNP.U) announced that it has reached agreement for a US $4.25 million bought deal underwritten private placement financing with Canaccord Capital Corporation and Quest Securities Corporation (the "Underwriters"). Pursuant to the financing, TransAtlantic will issue 5,000,000 Units at US $0.85 per Unit. Each Unit will consist of one common share and one half of one common share purchase warrant. Each whole warrant will entitle the holder to acquire one common share at a price of US $1.05 for a period of 24 months following the closing of the financing, provided however, if the volume weighted average closing price of TransAtlantic's common shares exceeds US $1.40 per share for 20 consecutive trading days, the Company will be entitled to accelerate expiration of the warrants (thereby requiring the warrant holder to exercise the warrant within 30 days of being notified of the accelerated expiration).

In connection with issuance of the Units, the Company will pay the Underwriters a commission of 7.5% of the gross proceeds raised (of which up to one half may be paid in Units on the same terms as the financing Units at the election of the Underwriters) and issue to the Underwriters 375,000 broker warrants exercisable on the same terms as the warrants forming part of the financing Units.

The additional capital will be used for TransAtlantic's ongoing exploration and production activities. The financing is subject to completion of definitive agreements and due diligence, as well as approval by the Toronto Stock Exchange and other applicable regulatory agencies.

At the conclusion of this transaction, TransAtlantic will have outstanding approximately 37.5 million shares and 11.3 million share purchase warrants consisting of 500,000 exercisable at US $1.00, 2.9 million exercisable at US $1.05 and 7.9 million exercisable at US $1.50 per share. TransAtlantic expects the financing to close November 8, 2005.

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 shall not constitute an offer to sell or the solicitation of any offer to buy the securities in any jurisdiction. The securities offered will not be and have not been registered under the United States Securities Act of 1933 and may not be offered or sold in the United States, or to a U.S. Person, absent registration or an applicable exemption therefrom.

(NO STOCK EXCHANGE, SECURITIES COMMISSION OR OTHER REGULATORY AUTHORITY HAS APPROVED OR DISAPPROVED THE INFORMATION CONTAINED HEREIN.)

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
    President
    (214) 220-4323
    5910 N. Central Expressway, Suite 1755, Dallas, Texas 75206
    http://www.tapcor.com