SOURCE: TransAtlantic Petroleum Ltd.

November 02, 2009 08:00 ET

TransAtlantic Petroleum Ltd. Announces Third Quarter 2009 Earnings Conference Call and Provides Operational Update

DALLAS, TX--(Marketwire - November 2, 2009) - TransAtlantic Petroleum Ltd. (TSX: TNP) (OTCBB: TATPF) announced today that it has scheduled a conference call for Friday, November 13, 2009, at 8:30 a.m. Eastern, 7:30 a.m. Central. The purpose of the conference call is to discuss results for the Company's third quarter ended September 30, 2009 and provide a general operational update. The call will be open to the public. Instructions to access the call follow at the end of this announcement.

Operational Update

The Company continues drilling operations in Turkey, Morocco, and Romania. In Turkey, the Company is currently drilling the S-62 well, its third well in the Selmo oil field. The Company has completed the S-53, its second well in the field. It appears that the S-53 will produce more than 250 barrels of oil per day (BOPD), with a water cut of less than 10%. "I believe the results from the S-53 are indicative of the type of results we expect for Selmo wells. As we drill more wells in the field, we are refining our drilling and completion methods. I am now spending the majority of my time in Turkey as we continue to work toward optimizing our operations," said Malone Mitchell, the Company's Chairman. The first well the Company drilled in Selmo, the S-54, was completed open hole and has produced at less than 50 BOPD with a high water cut. The Company is conducting further completion efforts to attempt to isolate the oil productive zone from the zones contributing to the high water cut. The Company will also attempt to stimulate the oil productive zone.

In the Thrace Basin, the Company is constructing the gathering system and facilities necessary to begin selling natural gas from its discoveries in the Edirne gas field. "Construction is going very well. We look forward to the start of production sales in December, which should contribute substantial cash flow," said Matthew McCann, the Company's Chief Executive Officer. Once gas sales commence, the Company will resume drilling in the Thrace Basin, with five wells planned and an additional two wells under consideration in the next campaign. The Company is presently acquiring an additional 100 square kilometers of 3D seismic on the western portion of the Edirne license using its own seismic equipment. "With this new seismic data covering a previously unexplored portion of the Edirne license, we expect to identify numerous prospects using the same processing method that achieved a 100% success rate drilling on the portion of the license already covered by 3D seismic," Mr. Mitchell said.

The Company has processed 2D seismic on its License 4175 in southeastern Turkey. The processing indicates a large structure consistent with the Kerberan surface anticline, which is anticipated to contain both Mardin and Paleozic aged formations. The Company plans to drill a well to test the structure in the first half of 2010.

After testing the Mardin formation, the Company abandoned its Atesler #1 well as a dry hole on License 4262. The Atesler well was a farm-in obligation committed in mid-2008, prior to the Company's acquisition of Incremental Petroleum. As a result of the farm-in and the Incremental acquisition, the Company earned a significant acreage position along the Syrian border.


The Company has drilled three wells (two on the Izvoru license and one on the Marsa license) and is currently drilling a well on the Vanatori license. These four wells will be completed as a group beginning later this month. In addition, by mid-November the Company expects to spud the first of three wells on the Sud Craiova block (50% working interest). The Sud Craiova wells will target shallow tertiary-aged sandstones, which are expected to be gas bearing, at a depth of less than 1,000 meters. Provided these wells are successful, the Company and its partner in the license plan to better identify this potential by acquiring 3D seismic over the prospect area during 2010.


On the Tselfat license (the oil trend) in northern Morocco, the Company is currently completing the HR-33 well, which was drilled to a total depth of 3,521 feet. After perforating in the Haricha sands, oil and gas is being swabbed from the well. The Company next plans to ensure that all perforations are open and set production equipment on the well. On the Ouezzane license, the Company is currently drilling the OZW-1 well. The Company has had considerable difficulty drilling this well but, barring further complications, expects to reach total depth in the next 30 days.

Bank Financing and 2010 Capital Budget

The Company is in the final stages of documenting a senior revolving line of credit with an initial borrowing base of approximately $30 million. The Company is also in the process of preparing its capital expenditure budget for 2010. Capital expenditures for 2010 are expected to range between $115 million and $135 million. The anticipated expenditures are balanced between development of the Company's Selmo, Thrace, and Arpatepe assets, exploration on potential high impact blocks in Turkey, lower risk exploration on the Tselfat permit (oil trend) in Morocco, seismic acquisition on exploration blocks in Turkey and Romania, and limited acquisitions of equipment. "Our planned expenditures for 2010 reflect the opportunities we have, particularly in Turkey, where we plan to have four rigs running for most of the year. We have a fair bit of flexibility in the preliminary budget. For example, there are a number of exploratory wells that we would like to drill in 2010. A portion of the budget is keyed off of drilling success in the Sud Craiova block in Romania. In addition, we may acquire fracture stimulation equipment, if the opportunity and need arises," said Mr. Mitchell. Mr. Mitchell concluded, "We continue to look at potential strategic acquisitions of production and acreage that would build shareholder value."

Conference Call on November 13, 2009

To access the conference call, please contact the conference call operator at 888-677-8769, or 913-312-1500 for international calls, approximately 10 minutes prior to the scheduled start time, and ask for the TransAtlantic conference call. The pass code is 4946758. A replay will be available until 12:00 a.m. Central on December 13, 2009. The number for the replay is 888-203-1112, or 719-457-0820 for international calls, and the pass code is 4946758.

An enhanced webcast of the conference call and replay will be provided by and will be available through TransAtlantic's web site. To access the conference call and replay, click on "Investors," select "Events," and click on "Link" 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. Additional information about the Company may be obtained by visiting the Company's website at


Forward-Looking Statements

This news release contains statements regarding the future drilling, testing, completion and production of oil and natural gas wells, the acquisition of seismic data, the acquisition of oil field equipment, the construction of a natural gas gathering system, the documentation of a line of credit, capital expenditures and budgets, the timing for such drilling, testing, completion and production of oil and natural gas wells, acquisition of seismic data, acquisition of equipment, construction of a natural gas gathering system, documentation of a line of credit, capital expenditures and budgets, as well as other expectations, plans, goals, objectives, assumptions or information about future events, conditions, results of operations or performance that constitute forward-looking statements or information under applicable securities legislation, including the Private Securities Litigation Reform Act of 1995. Forward-looking statements are generally identifiable by the terminology used such as "plans," "expects," "estimates," "budgets," "intends," anticipates," "believes," "projects," "indicates," "targets," "objective," "could," "should," "may" or other similar words. 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; the risks associated with drilling of oil and natural gas wells; ability to find, acquire, market, develop, and produce new reserves; the risk of drilling dry holes; oil and natural gas price volatility; uncertainties in the estimation of proved, probable, and possible reserves and in the projection of future rates of production and reserve growth; inaccuracies in assumptions regarding items of income and expense and the level of capital expenditures; operating hazards attendant to the oil and natural gas business; drilling and completion losses that are generally not recoverable from third parties or insurance; potential mechanical failure or underperformance of significant wells; climatic conditions; availability and cost of material and equipment; the risks associated with operating in a limited number of geographic areas; actions or inactions of third-party operators of properties; the ability to obtain necessary regulatory approvals; diversion of management's attention from existing operations while pursuing acquisitions; availability of capital; regulatory developments; environmental risks; uncertainties in the capital markets; fluctuations in currency and interest rates; general economic and business conditions (including the effects of the worldwide economic recession); and industry trends. These and other risks are described in the Company's Annual Report on Form 10-K and other filings filed with the U.S. Securities Exchange Commission and Canadian securities regulators. 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.

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