SOURCE: TransAtlantic Petroleum Ltd.

May 31, 2011 17:56 ET

TransAtlantic Petroleum Ltd. Reports First Quarter 2011 Financial Results and Announces Conference Call

HAMILTON, BERMUDA--(Marketwire - May 31, 2011) - TransAtlantic Petroleum Ltd. (TSX: TNP) (NYSE Amex: TAT) announced today its financial results for the three months ended March 31, 2011. The Company's financial results are prepared in accordance with U.S. GAAP, and the reporting currency is U.S. dollars.

Selected Financial Highlights

Total revenues for the three months ended March 31, 2011 increased 160% to $32.2 million from $12.4 million for the three months ended March 31, 2010. The increase was the result of increased production in the Selmo oil field, additional production in the Arpatepe oil field and new production in the Thrace Basin gas fields. The increase was also due to the increase in the average price received for our oil production. In addition, oilfield services revenue for the first quarter of 2011 increased 218% to $3.5 million from $1.1 million for the first quarter 2010. Net loss for first quarter March 31, 2011 was $22.6 million, or $0.07 per share (basic and diluted), compared to a net loss of $11.3 million, or $0.04 per share (basic and diluted), for the same period in 2010. The following table sets forth selected financial data from the Company's consolidated statements of operations and comprehensive loss:

                                                For the three months ended
(in thousands, except per share amounts)                March 31,
                                                    2011          2010
                                                ------------  -------------
Total revenues                                  $     32,244  $      12,392
Costs and expenses:
  Production                                           4,107          4,198
  Exploration, abandonment and impairment              9,798          4,483
  Seismic and other exploration                        1,516            419
  Oilfield services                                    5,525          3,716
  General and administrative                          10,361          6,000
  Depreciation, depletion, and amortization            9,347          3,970
  Other                                                  214             46
                                                ------------  -------------
Total costs and expenses                              40,868         22,832
                                                ------------  -------------
Operating loss                                  $      8,624  $      10,440

Total other (income) expense                          13,451             58
                                                ------------  -------------
Loss before income taxes                              22,075         10,498

Net loss                                              22,606         11,340
Other comprehensive loss                              (2,299)         1,957
                                                ------------  -------------
Comprehensive loss                              $     20,307  $      13,297
                                                ============  =============

Net loss per share                              $       0.07  $        0.04
Basic and diluted weighted average number of
 shares outstanding                                  341,142        303,335

At March 31, 2011, the Company had unrestricted cash and cash equivalents of $20.2 million, $78.3 million in short-term debt, $66.8 million in long-term debt and a working capital deficit of $49.5 million compared to unrestricted cash and cash equivalents of $34.7 million, $106.7 million in short-term debt, $30.1 million in long-term debt, and a working capital deficit of $60.2 million at December 31, 2010. The following table sets forth selected financial data from the Company's consolidated balance sheets:

                                                            As of
                                                   March 31,   December 31,
(in thousands)                                        2011         2010
                                                  ------------ ------------

Current assets:
  Cash and cash equivalents                       $     20,200 $     34,676
  Accounts receivable                                   36,499       33,186
  Prepaid and other current assets                       4,888        7,367
                                                  ------------ ------------
Total current assets                                    61,587       75,229
Property and equipment, net                            407,764      367,225
Other                                                   29,743       29,893
                                                  ------------ ------------
Total assets                                      $    499,094 $    472,347
                                                  ============ ============

Current liabilities:
  Accounts payable                                $     16,641 $     16,811
  Short term debt                                       78,253      106,673
  Accrued liabilities and other                         16,242       11,941
                                                  ------------ ------------
Total current liabilities                              111,136      135,425
                                                  ------------ ------------
Total liabilities                                      215,929      197,717
Total stockholders' equity                             283,165      274,630
                                                  ------------ ------------
Total liabilities and stockholders' equity        $    499,094 $    472,347
                                                  ============ ============

Selected Production Highlights

Net oil and gas production, after royalty, for the first quarter of 2011 increased 142% to approximately 353,000 barrels of oil equivalent ("Boe") compared to approximately 146,000 Boe for the first quarter of 2010. The Company produced approximately 219,000 net barrels of crude oil in the first quarter 2011 at an average rate of 2,433 net barrels per day.

For the first quarter of 2011, the Company's average realized oil price was approximately $107 per barrel, and the Company's average realized natural gas price was approximately $7.29 per thousand cubic feet.

Conference Call

The Company will host a conference call to discuss this release on Wednesday, June 1, 2011 at 8:30 a.m. Eastern, 7:30 a.m. 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 71771413. A replay will be available until 11:59 p.m. Eastern on July 1, 2011. The number for the replay is 800-642-1687, or 706-645-9291 for international calls, and the pass code is 71771413.

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.

Annual Meeting of Shareholders

The Company will conduct its 2010 Annual Meeting of Shareholders on Monday, June 27, 2011 at the Hotel Palomar in Dallas, Texas. The meeting is scheduled to begin at 10:00 a.m. local time.

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, Bulgaria 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's drilling services business provides oilfield services and drilling services to third parties in Turkey and Iraq.


This news release contains statements regarding the annual meeting of shareholders, as well as other 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.

Boe is derived by the Company by converting natural gas to oil in the ratio of six thousand cubic feet (mcf) of natural gas to one barrel (bbl) of oil. A boe conversion ratio of 6 mcf to 1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Boe may be misleading, particularly if used in isolation.

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