TransAtlantic Petroleum Corp.

TransAtlantic Petroleum Corp.

April 02, 2007 20:40 ET

TransAtlantic Petroleum Corp.: Year End 2006 Financial Results; Annual Information Form

CALGARY, ALBERTA--(CCNMatthews - April 2, 2007) - TransAtlantic Petroleum Corp. (TSX:TNP.U) today reported the following (all results in U.S. dollars):

Year End 2006 Results

TransAtlantic's consolidated revenues for the year ended December 31, 2006 were $1.6 million, which represented an increase of $200,000 (or 14%) from the $1.4 million reported for 2005. The increase in revenue is primarily due to higher oil and gas sales from the United States. The consolidated net loss for 2006 was $9.4 million or $0.25 loss per share (basic), compared to consolidated net loss of $3.8 million or $0.11 loss per share (basic) for 2005. Cash used in operations in 2006 was $4.1 million compared to $2.8 million in 2005.

Net revenue from crude oil and natural gas sales in the United States in 2006 of $1.6 million increased from 2005 sales of $1.4 million and was the result of higher sales volumes partially offset by lower commodity prices.

Lease operating expenses decreased 7% to $1.8 million in 2006. General and administrative costs of $2.3 million in 2006 were approximately the same as 2005. During the year, the Company incurred $260,000 of stock-based compensation expense. Finally, the Company incurred and expensed $2.3 million in costs related to the pre-acquisition, reconnaissance, evaluation and development of our international oil and gas activities including technical, professional and administrative costs.

Depreciation, depletion and accretion increased to $1.5 million for 2006 as compared $610,000 for 2005 related to lower reserves due to a substantially lower gas price at year-end 2006 compared to year-end 2005. An impairment charge of $3.1 million was recorded for 2006. This impairment results from a write-off of a well drilled in East Texas, a write-down relating to the sale of the Company's interest in the Bayou Couba property, and a reduction of reserves due primarily to a 46% lower gas price used to calculate the value of year-end 2006 reserves compared to 2005.

At year-end the Company had cash and short-term investments of $4.7 million and working capital of $2.2 million. Subsequent to year-end, the Company drilled and logged and is presently testing the SGU #96 well at the South Gillock property in South Texas. The expenditures incurred in connection with this well have had a significant adverse impact on the Company's working capital. Currently, the Company has entered into a non-binding letter of intent with Quest Capital Corp. for a $3.0 million standby bridge loan that, subject to lender and regulatory approval, due diligence and documentation, will be available by the middle of April 2007.

Annual Information Form

TransAtlantic Petroleum Corp. has filed its Annual Information Form on SEDAR which contains the National Instrument Form 51-101 F1 information (Statement of Reserves Data and other Oil and Gas Information). It has also filed National Instrument Forms 51-101 F2 and F3 on SEDAR. The information can be accessed electronically from the SEDAR system at

TransAtlantic Petroleum Corp. is a Calgary-based oil and natural gas company with operations in the United States, Romania, Morocco, Turkey and the U.K. North Sea. Common shares of TransAtlantic are listed on the Toronto Stock Exchange under the symbol TNP.U.

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