SOURCE: TransAtlantic Petroleum Ltd.

November 15, 2010 21:32 ET

TransAtlantic Petroleum Ltd. Announces Third Quarter 2010 Earnings Update

HAMILTON, BERMUDA--(Marketwire - November 15, 2010) - TransAtlantic Petroleum Ltd. (TSX: TNP) (NYSE Amex: TAT) is pleased to announce its results for the quarter ended September 30, 2010. 

Selected Financial Highlights
Total oil and gas revenue increased to $45.5 million in the nine months ended September 30, 2010 from $17.8 million realized in the same period in 2009. The increase was the result of increased production in the Selmo oil field, additional production in the Arpatepe oil field and new production in existing and newly acquired Thrace Basin gas fields. In addition, we recorded $9.7 million in oilfield services revenue during the nine months ended September 30, 2010, compared to $288,000 during the same period in 2009. Net loss attributable to common stockholders for the nine months ended September 30, 2010 was $39.9 million, or $0.13 per share (basic and diluted), compared to $33.5 million, or $0.18 per share (basic and diluted), for the nine months ended September 30, 2009.

  For the Three Months Ended Sept. 30,     For the Nine Months Ended Sept. 30,  
U.S. dollars and shares in thousands, except per share amounts 2010     2009     2010     2009  
Total revenues $ 24,228     $ 9,258     $ 55,224     $ 18,045  
Costs and expenses:                              
  Production   5,347       3,058       14,242       6,244  
  Exploration, abandonment and impairment   3,415       4,584       21,214       5,285  
  Seismic and other exploration   3,364       2,573       6,111       6,141  
  International oil and gas activities   2,970       4,318       9,828       9,885  
  General and administrative   6,553       4,725       19,587       10,090  
  Depreciation, depletion and amortization   7,463       2,364       16,599       6,147  
  Accretion of asset retirement obligation   69       122       174       234  
Total costs and expenses   29,181       21,744       87,755       44,026  
Operating loss   4,953       12,486       32,531       25,981  
Total other (income) expense   6,050       (40 )     3,929       6,357  
Loss before income taxes   11,003       12,446       36,460       32,338  
Net loss attributed to common stockholders   12,088       13,143       39,862       33,530  
Other comprehensive gain   (22,120 )     (5,456 )     (14,659 )     (13,399 )
Comprehensive (income) loss $ (10,032 )   $ 7,687     $ 25,203     $ 20,131  
Net loss per share attributed to common stockholders $ 0.04     $ 0.05     $ 0.13     $ 0.18  
Basic and diluted weighted average number of shares outstanding   305,564       253,637       304,520       191,533  

At September 30, 2010, the Company had cash and cash equivalents of $56.6 million, $105.1 million in short-term debt, $59.0 million in long-term debt and negative working capital of $39.1 million.

  As of
U.S. dollars in thousands September 30, 2010   December 31, 2009
Current assets:          
  Cash and cash equivalents $ 56,618   $ 90,484
  Accounts receivable   24,305     9,753
  Prepaid and other current assets   8,646     9,831
Total current assets   89,569     110,068
Property and equipment, net   388,017     177,264
Other   23,456     19,751
Total assets $ 501,042     307,083
Current liabilities:          
  Accounts payable $ 12,749   $ 8,460
  Short term debt   105,130     7,501
  Accrued liabilities and other   10,837     13,174
Total current liabilities   128,716     29,135
Total liabilities   187,712     42,476
Total stockholders' equity   313,330     264,607
Total liabilities and stockholders' equity $ 501,042   $ 307,083

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, and Romania. 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.

Forward-Looking Statements
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. 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

  • Contact:
    Matt McCann
    Scott C. Larsen
    Executive Vice President
    Phone: (214) 220-4323
    5910 N. Central Expressway
    Suite 1755
    Dallas, Texas 75206