SOURCE: TransAtlantic Petroleum Ltd.

April 21, 2011 17:21 ET

TransAtlantic Petroleum Ltd. Reports Year End 2010 Financial Results

HAMILTON, BERMUDA--(Marketwire - Apr 21, 2011) - TransAtlantic Petroleum Ltd. (TSX: TNP) (NYSE Amex: TAT) announced today its financial results for the year ended December 31, 2010. The Company's financial results are prepared in accordance with U.S. GAAP, and the reporting currency is U.S. dollars.

Selected Financial Highlights

Oil and gas revenues for the year ended December 31, 2010 increased to $69.8 million from $27.7 million for the year ended December 31, 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 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 2010 increased to $15.7 million from $1.6 million in 2009. Net loss attributable to common shareholders for the year ended December 31, 2010 was $71.2 million, or $0.23 per share (basic and diluted), compared to $62.1 million, or $0.29 per share (basic and diluted), for year ended December 31, 2009. The following table sets forth selected financial data from the Company's Consolidated Statements of Operations and Comprehensive Loss.

U.S. dollars and shares in thousands, except per   For the year ended
 share amounts                                         December 31,
                                                    2010          2009
                                                ------------  ------------
Total revenues                                  $     85,563  $     29,269
Costs and expenses:
   Production                                         20,286        10,168
   Exploration, abandonment and impairment            32,615        24,791
   Seismic and other exploration                      12,319        10,538
   International oil and gas activities               23,658        12,349
   General and administrative                         29,730        16,129
   Depreciation, depletion, and amortization          28,219         7,942
   Accretion of asset retirement obligations             470           164
                                                ------------  ------------
Total costs and expenses                             147,297        82,081
                                                ------------  ------------
Operating loss                                  $     61,734  $     52,812

Total other expense (income)                           9,301         7,906
                                                ------------  ------------
Loss before income taxes                              71,035        60,718

Net loss attributable to common shareholders          71,152        62,146
Other comprehensive loss (gain)                        7,789        (9,601)
                                                ------------  ------------
Comprehensive loss                              $     78,941  $     52,545
                                                ============  ============

Net loss per share attributable to common
 shareholders                                   $       0.23  $       0.29
Basic and diluted weighted average number of
 shares outstanding                                  312,488       212,320

As of December 31, 2010, the Company had unrestricted cash and cash equivalents of $34.7 million and a working capital deficit of $60.2 million compared to cash and cash equivalents of $90.5 million and working capital of $80.9 million at December 31, 2009. The following table sets forth selected financial data from the Company's Consolidated Balance Sheets.

                                                     As of December 31,

U.S. dollars in thousands                            2010          2009
                                                 ------------  ------------

Current assets:
       Cash and cash equivalents                 $     34,676  $     90,484
       Accounts receivable                             33,186         9,753
       Prepaid and other current assets                 6,376         8,251
       Deferred income taxes                              991         1,580
                                                 ------------  ------------
Total current assets                                   75,229       110,068
Property and equipment, net                           367,225       177,264
Other long-term assets                                 29,893        19,751
                                                 ------------  ------------
Total assets                                     $    472,347  $    307,083
                                                 ============  ============

Current liabilities:
       Accounts payable                          $     16,811  $      8,460
       Short term debt                                106,673         7,501
       Accrued liabilities and other                   11,941        13,174
                                                 ------------  ------------
Total current liabilities                             135,425        29,135
                                                 ------------  ------------
Total liabilities                                     197,717        42,476
Total shareholders' equity                            274,630       264,607
                                                 ------------  ------------
Total liabilities and shareholders' equity       $    472,347  $    307,083
                                                 ============  ============

About TransAtlantic

TransAtlantic Petroleum Ltd. is a vertically integrated, international oil and gas 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.

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.


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