SOURCE: TransAtlantic Petroleum Ltd.

February 10, 2011 14:55 ET

TransAtlantic Petroleum Ltd. Announces Exercise of Option to Acquire Thrace Basin Natural Gas and Pinnacle Turkey

HAMILTON, BERMUDA--(Marketwire - February 10, 2011) - TransAtlantic Petroleum Ltd. (TSX: TNP) (NYSE Amex: TAT) announced today that TransAtlantic Worldwide, Ltd. ("TransAtlantic Worldwide"), a wholly owned subsidiary of TransAtlantic Petroleum Ltd., has exercised the option under the previously announced November 8, 2010 Option Agreement to acquire Thrace Basin Natural Gas Turkiye Corporation ("TBNG") and Pinnacle Turkey, Inc. ("PTI"). Total consideration for the acquisition will be $100.0 million in cash and the issuance of 18.5 million shares of TransAtlantic Petroleum Ltd. common stock. The effective date of the acquisition will be October 1, 2010.

TBNG and PTI currently produce an aggregate of approximately 25.0 million cubic feet of natural gas per day in the Thrace Basin region of northwestern Turkey and hold interests in approximately 600,000 net onshore acres and 360,000 net offshore acres in the Thrace Basin and approximately 305,000 net onshore acres in the Gaziantep region of southeastern Turkey. 

The Company expects that third party investors will provide between $90.0 and $100.0 million cash in funding toward the purchase price. Those investors would acquire approximately between 59.5% and 65% of TBNG and PTI's current production and acreage. Included in the third party investor group is Valeura Energy, Inc. (TSX-V: VLE), with which the Company and TransAtlantic Worldwide have entered into an agreement whereby Valeura would acquire approximately 40% of TBNG and PTI's current production in consideration for approximately $61.5 million in cash. The Company would issue 18.5 million of its common shares in consideration for approximately 35% of TBNG and PTI's current production and acreage and 100% of TBNG's oil field service equipment and related assets, which includes five drilling rigs. TransAtlantic Worldwide may elect to pay up to an additional $10.0 million in cash towards the purchase price, which would increase its interest to approximately 41.5% of TBNG and PTI's current production and acreage. TransAtlantic Worldwide previously paid a $10.0 million option fee, which will be applied to the purchase price.

Closing of the TBNG and PTI acquisition, which is subject to regulatory approval, stock exchange approval and customary closing conditions, is expected to occur in the second quarter of 2011.

Conference Call on February 16, 2011
The Company will host a conference call on Wednesday, February 16, 2011 at 8:30 am Eastern, 7:30 Central. To access the conference call, please contact the conference call operator at 877-878-2762, or 678-809-1005 for international calls, approximately 10 minutes prior to the scheduled start time, and ask for the TransAtlantic conference call. The pass code is 44063314. A replay will be available until 11:59 p.m. Eastern on March 15, 2011. The number for the replay is 800-642-1687, or 706-645-9291 for international calls, and the pass code is 44063314.

An enhanced webcast of the conference call and replay will be provided by and will be available through the Company's web site. To access the conference call and replay, click on "Investors," select "Events," and click on "Webcast" found below the event listing. The webcast requires Microsoft Windows Media Player or RealOne Player. If you experience problems listening to the broadcast, please contact via phone at 800-990-6397 or email at

About TransAtlantic
TransAtlantic Petroleum Ltd. is a vertically integrated, international energy company engaged in the acquisition, development, exploration, and production of crude oil and natural gas. The Company holds interests in developed and undeveloped oil and gas properties in Turkey, Morocco, Romania, and California. The Company owns its own drilling rigs and oilfield service equipment, which it uses to develop its properties in Turkey and Morocco. In addition, the Company provides oilfield services and contract drilling services to third parties in Turkey and plans to provide similar services in Morocco.

Forward-Looking Statements
This news release contains statements regarding the acquisition of companies, funding for the acquisition of companies, the timing of such acquisition of companies and funding for the acquisition of companies, as well as 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. If one or more of these risks or uncertainties materialize (or the consequences of such a development changes), or should underlying assumptions prove incorrect, actual outcomes may vary materially from those forecasted or expected.

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