TransAtlantic Petroleum Corp.

TransAtlantic Petroleum Corp.

May 15, 2008 17:45 ET

TransAtlantic Petroleum Corp. First Quarter 2008 Financial Results

CALGARY, ALBERTA--(Marketwire - May 15, 2008) - TransAtlantic Petroleum Corp. (TSX:TNP) today reported the following (all results in U.S. dollars):

Consolidated net loss for the quarter ended March 31, 2008 was $1.1 million or $0.02 per share, compared to a net loss of $1.5 million or $0.03 per share for the same quarter last year. The Company's consolidated net loss for the first quarter 2008 is primarily composed of international expenditures of $363,000 and general and administrative costs of $638,000. Cash used by operations in the first quarter of 2008 was $900,000 compared to $1.9 million for the comparable quarter of 2007. As of March 31, 2008, the Company had cash and cash equivalents of $1.2 million, current debt of $2.0 million and a working capital deficit of $1.2 million compared to cash and cash equivalents of $1.6 million, no debt and a working capital deficit of $2.3 million at March 31, 2007.

As a result of the sale of its U.S. operations in 2007, the Company continues to classify its remaining U.S. properties as "discontinued operations." Accordingly, revenues and expenses associated with the Company's U.S. cost center in the first quarter of 2008 and comparative periods are now reflected as components of "loss from discontinued operations" of $100,000 in the Company's interim financial statements for the period ended March 31, 2008.

The Company recently announced that it closed the first stage of a private placement transaction with Riata Management LLC and its affiliates ("Riata") under which Riata made an equity investment into the Company resulting in gross proceeds of Cdn $3.0 million. In the second stage of the private placement, which is subject to disinterested shareholder approval, the Company will issue 25 million common shares to Riata or certain associated persons at Cdn $0.36 per share for gross proceeds of Cdn $9.0 million. If the required shareholder approval is received, the second stage of the private placement is expected to close following the Company's annual and special shareholder meeting scheduled for May 20, 2008. For more information, please see the Company's press releases dated March 31 and April 9, 2008.

TransAtlantic is engaged in the exploration, development and production of crude oil and natural gas in Morocco, Turkey and Romania. Common shares of TransAtlantic are listed on the Toronto Stock Exchange under the symbol "TNP."

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, the ability of the Company to continue to develop and exploit attractive foreign initiatives.

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 the Company to operate effectively internationally, 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, 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.


Contact Information

  • TransAtlantic Petroleum Corp.
    Scott C. Larsen
    (214) 220-4323