TransAtlantic Petroleum Ltd. (TSX:TNP) (NYSE
American:TAT) (the “Company” or “TransAtlantic”) today provided an
operational update, announced the conversion of its West Molla
block from an exploration license to a production license,
announced the appointment of new external auditors, and provided an
update that its marketing process is ongoing.
Operational Update
Total production for the second quarter of 2018
was approximately 2,777 barrels of oil equivalent per day
(“BOEPD”). The Company’s current average seven-day net production
rate is approximately 3,082 BOEPD, comprised of approximately 2,984
barrels of oil per day (“BOPD”) and approximately 585 thousand
cubic feet per day (“MCFPD”) of natural gas. The increase in
production is primarily due to workovers and new well completions
in Southeast Turkey, which commenced in January 2018.
In January 2018, the Company commenced a planned
drilling program in Southeast Turkey. In the Selmo field,
commercial production of 68 BOPD was established in the Company’s
Selmo-81H2 well following its vertical completion. In the Molla
area, the Company’s Yeniev-1 well was drilled to a total depth of
10,306 feet. The Company’s initial log analysis indicates
prospective pay in the Bedinan, Hazro and Mardin zones for this
well. Completion operations are currently ongoing. The first zone
tested in the Bedinan was perforated on June 26, 2018. This well
tested at a flowing oil rate of approximately 700 BOPD and is
currently flowing approximately 390 BOPD at 16/64 choke size to
temporary production facilities.
The Company continues testing at its Cavuslu
well following the discovery of hydrocarbons in the lower Bedinan
formation and in the Dadas shale. The well has produced a
cumulative 184 barrels of oil from the Dadas shale. The
Company intends to test two additional zones in this well.
Following this testing, we expect to begin long term production in
one or more of the tested zones.
Drilling in the Bahar-8 well is ongoing, with
the intermediate section being cased. Drilling will continue
through the Bedinan zone. Following this well, the Company intends
to move the rig to its Bahar-10 well location.
The Company expects to spud its Karli-1 well, a
gas exploration well in the Thrace Basin, in the third or fourth
quarter of 2018.
The Company expects to commence rework
operations on the Devenci R-1 well in Bulgaria in the third quarter
of 2018.
West Molla License
Conversion
On June 12, 2018, the Company was awarded a
production license for the M44-b2-1 block, which covers 37,700
acres continuous to our acreage in West Molla in Southeast Turkey.
This license includes the Company’s Catak, Pinar, and Yeniev
wells.
Appointment of External
Auditors
As described in the Company’s June 13, 2018
Current Report on Form 8-K, on June 12, 2018, PMB Helin Donovan,
LLP (“PMB Helin”) notified the Company that, because of reasons
unrelated to the Company, PMB Helin decided that it will no longer
provide audit services to public companies, including the Company,
and would no longer seek re-appointment as the Company’s
independent registered public accounting firm for the year ending
December 31, 2018. Accordingly, PMB Helin resigned as the
Company’s independent registered public accounting firm effective
June 12, 2018. On June 22, 2018, the Audit Committee of the
Company’s Board of Directors approved the appointment of RBSM
LLP (“RBSM”) to serve as the Company’s independent registered
public accounting firm for the year ending December 31, 2018. The
Company does not anticipate that the change in auditors will
materially affect its ability to comply with its public reporting
requirements.
Strategic Alternatives and Marketing
Process Remains Ongoing
The Company’s previously announced strategic
alternatives process is ongoing and the Special Committee of the
Board of Directors continues to work with its advisors and
interested parties. The Company will provide a further update at
the appropriate time.
About TransAtlantic
The Company is an international oil and natural
gas company engaged in the acquisition, exploration, development,
and production of oil and natural gas. The Company holds interests
in developed and undeveloped properties in Turkey and Bulgaria.
(NO STOCK EXCHANGE, SECURITIES
COMMISSION, OR OTHER REGULATORY AUTHORITY HAS APPROVED OR
DISAPPROVED THE INFORMATION CONTAINED HEREIN.)
Forward-Looking Statements
This news release contains statements concerning
the marketing of the Company, the Company’s ability to comply with
public reporting requirements, the Company’s drilling program, the
evaluation of the Company’s prospects in Turkey and Bulgaria, the
drilling, completion, and cost of wells, the production and sale of
oil and natural gas, as well as other expectations, plans, goals,
objectives, assumptions, and information about future events,
conditions, results of operations, and 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.
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, access to sufficient
capital; market prices for natural gas, natural gas liquids, and
oil products; estimates of reserves and economic assumptions; the
ability to produce and transport natural gas, natural gas liquids,
and oil products; the results of exploration and development
drilling and related activities; economic conditions in the
countries and provinces in which the Company carries on business,
especially economic slowdowns; actions by governmental authorities;
receipt of required approvals; increases in taxes; legislative and
regulatory initiatives relating to fracture stimulation activities;
changes in environmental and other regulations; renegotiations of
contracts; political uncertainty, including actions by insurgent
groups or other conflict; outcomes of litigation; the negotiation
and closing of material contracts; and other risks described in the
Company’s filings with the SEC.
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.
Note on BOE
Barrels of oil equivalent, or BOE, are derived
by the Company by converting natural gas to oil in the ratio of six
thousand cubic feet of natural gas (“MCF”) to one stock tank
barrel, or 42 U.S. gallons liquid volume (“BBL”), of oil. A BOE
conversion ratio of six MCF to one 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.
Contacts:
Chad D. BurkhardtVice President, General Counsel
and Corporate Secretary(214) 265-4705
TransAtlantic Petroleum Ltd.16803 Dallas
ParkwayAddison, Texas
75001http://www.transatlanticpetroleum.com