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TransAtlantic Petroleum Ltd. Announces Second Quarter 2012 Financial Results

TransAtlantic Petroleum Ltd. Announces Second Quarter 2012 Financial Results

HAMILTON, Bermuda, Aug. 14, 2012 (GLOBE NEWSWIRE) -- TransAtlantic Petroleum
Ltd. (TSX:TNP) (NYSE Amex:TAT) (the "Company" or "TransAtlantic") announces
financial results for the quarter ended June 30, 2012.

Selected Highlights

  *Adjusted EBITDAX from continuing operations for the second quarter of 2012
    totaled $21.2 million (Adjusted EBITDAX is a non-GAAP financial measure
    that is defined and reconciled to net income later in this press release);
  *Second quarter of 2012 results were impacted by $15.1 million of
    unrealized mark-to-market derivative gains, $1.3 million of foreign
    exchange losses, a $2.0 million non-cash expense related to a contingent
    liability on a property in Bulgaria, a $1.2 million non-cash expense
    related to inventory count adjustments, $15.1 million net income from
    discontinued operations, and other items totaling $0.2 million of expense
    reductions.
  *Net debt (outstanding borrowings less cash and cash equivalents) reduced
    to $4.9 million at June 30, 2012, allowing a change to the going concern
    assumption in TransAtlantic's Quarterly Report on Form 10-Q.

Second Quarter 2012 Results

For the three months ended June 30, 2012, total net sales increased to
approximately 413 thousand barrels of oil equivalent ("Mboe"), compared to net
sales of approximately 362 Mboe for the same period last year and
approximately 452 Mboe in the first quarter of 2012. During the three months
ended June 30, 2012, the Company sold an average of 4,544 boe per day. Total
net sales were comprised of approximately 233 thousand net barrels ("Mbbls")
of oil at an average rate of approximately 2,564 net bbls per day and
approximately 1,081 net million cubic feet ("MMcf") of natural gas at an
average rate of approximately 11.9 net MMcf per day.

For the quarter ended June 30, 2012, the Company's average realized price
(unhedged) was $97.45 per bbl of oil and $8.48 per thousand cubic feet ("Mcf")
of natural gas, compared to an average realized price of $109.28 per bbl and
$7.34 per Mcf in the quarter ended June 30, 2011 and $108.38 per bbl and $7.60
per Mcf in the quarter ended March 31, 2012.

Total revenues increased to $32.5 million for the three months ended June 30,
2012 compared to $31.6 million realized in the same period in 2011 and $34.9
million for the three months ended March 31, 2012. Net income from continuing
operations for the three months ended June 30, 2012 was $7.9 million, or $0.02
per share (basic and diluted), compared to a net loss of $1.9 million, or
$0.01 per share (basic and diluted), for the three months ended June 30, 2011
and $2.6 million, or $0.01 per share (basic and diluted) for the three months
ended March 31, 2012. Reported net income for the second quarter of 2012
included $15.1 million of unrealized mark-to-market derivative gains, $1.3
million of foreign exchange losses, a $2.0 million non-cash expense related to
a contingent liability on a property in Bulgaria, a $1.2 million non-cash
expense related to inventory count adjustments, $15.1 million net income from
discontinued operations, and other items totaling $0.2 million of expense
reductions.

Adjusted EBITDAX from continuing operations for the three months ended June
30, 2012 was $21.2 million compared to $17.7 million for the three months
ended June 30, 2011 and $22.4 million for the quarter ended March 31, 2012.

Change of Going Concern Assumption

TransAtlantic's financial statements have included a "going concern"
assumption since the Company's Annual Report on Form 10-K, filed on April 21,
2011. Following the close of the sale of TransAtlantic's oilfield services
business on June 13, 2012, the Company used a portion of the net cash proceeds
of $155.7 million to pay off its $73.0 million credit agreement with Dalea,
its $11.0 million credit facility with Dalea, its $0.9 million promissory note
with Viking Drilling, LLC, and its $1.8 million credit agreement with a
Turkish bank. Subsequently, TransAtlantic used $45.2 million of the proceeds
to reduce borrowings under its senior secured credit agreement ("credit
facility") with Standard Bank Plc and BNP Paribas (Suisse) SA.

As of June 30, 2012 the Company had outstanding borrowings on the credit
facility of $32.8 million, cash and cash equivalents of approximately $27.9
million, and $44.7 million of availability under its credit facility. As a
result, management believes that the conditions that led to the substantial
doubt about our ability to continue as a going concern at December 31, 2011 no
longer exist at June 30, 2012.

TransAtlantic Petroleum Ltd.
Consolidated Statements of Operations
(unaudited)

                          For the Three Months Ended For the Six Months Ended
                           June 30,                  June 30,
U.S. dollars and shares in
thousands, except per      2012         2011          2012        2011
share amounts
                                                              
Revenues:                                                      
Oil and natural gas sales $31,876    $30,755     $66,537   $59,431
Other                     652         844          926        1,247
Total revenues            32,528      31,599       67,463     60,678
Costs and expenses:                                            
Production                5,032       4,156        8,667      8,258
Exploration, abandonment   6,884       4,463        9,680      11,695
and impairment
Seismic and other          768         1,725        1,432      3,977
exploration
Contingent consideration   --         1,250        --        1,250
and contingency changes
General and                9,613       9,319        19,361     18,404
administrative
Depreciation, depletion    9,434       8,477        18,603     13,107
and amortization
Accretion of asset         163         338          415        552
retirement obligation
Total costs and expenses  31,894      29,728       58,158     57,243
Operating income          634         1,871        9,305      3,435
Other (expense) income:                                        
Interest and other         (2,018)     (3,560)      (5,277)    (7,157)
expense
Interest and other income 348         177          621        334
Gain (loss) on commodity   14,304      154          1,869      (9,157)
derivative contracts
Foreign exchange gain      (1,344)     165          2,928      169
(loss)
Total other (expense)      11,290      (3,064)      141        (15,811)
income
Income (loss) from
continuing operations      11,924      (1,193)      9,446      (12,376)
before income taxes
Current income tax benefit (422)       (1,124)      (2,442)    (3,662)
(expense)
Deferred income tax        (3,642)     461          (1,783)    2,335
benefit (expense)
Net income (loss) from     7,860       (1,856)      5,221      (13,703)
continuing operations.
Net income (loss) from     (5,969)     (17,293)     (6,146)    (26,377)
discontinued operations
Gain on disposal of        27,214      --          27,214     --
discontinued operations
Income Tax Provision      (6,193)     (666)        (8,173)    (890)
Net income (loss) from     15,052      (17,959)     12,895     (27,267)
discontinued operations
Net income (loss)          $22,912    $(19,815)   $18,116   $(40,970)
Other comprehensive income 345         (14,812)     14,719     (12,513)
(loss)
Comprehensive income       $23,257    $(34,627)   $32,835   $(53,483)
(loss)
Basic and diluted net loss                                     
per common share:
From continuing            $0.02      $(0.01)     $0.01     $(0.04)
operations
From discontinued          $0.04      $(0.05)     $0.04     $(0.08)
operations
Basic weighted average
number of shares           366,536     351,165      366,486    346,181
outstanding
Diluted weighted average
number of shares           368,855     351,165      368,288    346,181
outstanding
                                                              
                                                              

TransAtlantic Petroleum Ltd.
Summary Consolidated Statements of Cash Flows
(unaudited)

                                                  For the Six Months Ended
U.S. dollars in thousands                          June 30, 2012 June 30, 2011
                                                               
Net cash provided by operating activities from     $46,959     $35,263
continuing operations
Net cash used in investing activities from         (26,880)     (32,037)
continuing operations
Net cash provided by (used in) financing           (125,757)    8,630
activities from continuing operations
Net cash provided by (used in) discontinued        118,053      (20,179)
operations
Effect of exchange rate changes on cash and cash   388          (49)
equivalents
Net increase (decrease) in cash and cash           $12,763     $(8,372)
equivalents
                                                               
                                                               

TransAtlantic Petroleum Ltd.
Summary Consolidated Balance Sheets

                                           As of
U.S. dollars in thousands                   June 30, 2012 December 31, 2011
                                           (unaudited)   
ASSETS                                                   
Current assets:                                          
Cash and cash equivalents                  $27,879     $15,116
Accounts receivable                        48,084       42,694
Prepaid and other current assets           9,665        8,810
Deferred income taxes                      1,712        2,124
Assets held for sale                       2,098        128,117
Total current assets                       89,438       196,861
Property and equipment, net                242,913      235,724
Other                                      23,738       13,187
Total assets                               $356,089    $445,772
                                                        
LIABILITIES & SHAREHOLDERS' EQUITY                       
Current liabilities:                                     
Accounts payable                           34,146       26,056
Short term debt                            --          80,732
Accrued liabilities and other              32,154       19,481
Derivative liabilities                     1,180        3,716
Liabilities held for sale                  9,372        26,714
Total current liabilities                  76,852       156,699
Total liabilities                          144,497      269,568
Total shareholders' equity                 211,592      176,204
Total liabilities and shareholders' equity $356,089    $445,772
                                                        

Reconciliation of Net Income to Adjusted EBITDAX

                          For the Three Months Ended For the Six Months Ended
                           June 30,                  June 30,
U.S. dollars in thousands 2012         2011          2012        2011
                                                              
Net income (loss) from     $7,860     $(1,856)    $5,221    $(13,703)
continuing operations
Adjustments:                                                   
Interest and other, net   1,670       3,383        4,656      6,823
Income tax benefit        4,064       663          4,225      1,327
Exploration, abandonment,  6,884       4,463        9,680      11,695
and impairment
Seismic and other          510         939          693        2,428
exploration
Foreign exchange loss      1,344       (165)        (2,928)    (169)
Share-based compensation  608         400          1,103      957
Derivative (gain) loss    (14,304)    (154)        (1,869)    9,157
Accretion of asset         163         338          415        552
retirement obligation
Depreciation, depletion,   9,434       8,477        18,603     13,107
and amortization
Revaluation of contingent  --         1,250        --        1,250
consideration
Bulgaria License Penalty  2,000       --          2,000      --
Inventory book to physical 1,223       --          1,223      --
adjustment
Net other items           (237)       --          584        --
Adjusted EBITDAX from      $21,219    $17,738     $43,606   $33,424
continuing operations
                                                              

Adjusted EBITDAX is a non-GAAP financial measure that represents earnings from
continuing operations before income taxes, interest, depreciation, depletion,
amortization, impairment, abandonment, and exploration expenses, unrealized
derivative losses and non-cash share-based compensation expense.

The Company believes Adjusted EBITDAX assists management and investors in
comparing the Company's performance and ability to fund capital expenditures
and working capital requirements on a consistent basis without regard to
depreciation, depletion and amortization, impairment of natural gas and oil
properties and exploration expenses, which can vary significantly from period
to period. In addition, management uses Adjusted EBITDAX as a financial
measure to evaluate the Company's operating performance. Adjusted EBITDAX is
also widely used by investors and rating agencies.

Adjusted EBITDAX is not a measure of financial performance under GAAP.
Accordingly, it should not be considered as a substitute for net income,
income from operations, or cash flow provided by operating activities prepared
in accordance with GAAP. Information regarding income taxes, interest,
depreciation, depletion, amortization, impairment, abandonment, and
exploration expense is unavailable on a forward looking basis. Net income,
income from operations, or cash flow provided by operating activities may vary
materially from Adjusted EBITDAX. Investors should carefully consider the
specific items included in the computation of Adjusted EBITDAX. The Company
has disclosed Adjusted EBITDAX to permit a comparative analysis of its
operating performance and debt servicing ability relative to other companies.

About TransAtlantic

TransAtlantic Petroleum Ltd. is an international energy company engaged in the
acquisition, development, exploration and production of oil and natural gas.
The Company holds interests in developed and undeveloped oil and natural gas
properties in Turkey, Bulgaria and Romania.

The TransAtlantic Petroleum Ltd. logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=12745

(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 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 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; the results of exploration and development
drilling and related activities; economic conditions in the countries and
provinces in which we carry 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, and
renegotiations of contracts; political uncertainty, including actions by
insurgent groups or other conflict; the negotiation and closing of material
contracts; shortages of drilling rigs, equipment or oilfield services.

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, 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 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.

CONTACT: Chad Potter, VP, Financial and Investor Relations
         Phone: (214) 220-4323
         Internet: http://www.transatlanticpetroleum.com
         Address: 16803 Dallas Parkway
                  Suite 200
                  Addison, Texas 75001

TransAtlantic Petroleum Ltd. Logo