TransAtlantic Petroleum Announces Third Quarter 2012 Financial Results

TransAtlantic Petroleum Announces Third Quarter 2012 Financial Results

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

Selected Highlights

  *Adjusted EBITDAX from continuing operations for the third quarter of 2012
    totaled $22.9 million (Adjusted EBITDAX is a non-GAAP financial measure
    that is defined and reconciled to net income later in this press release);
  *Third quarter of 2012 results were impacted by $6.3 million of unrealized
    mark-to-market derivative losses, $0.1 million of foreign exchange losses,
    $6.5 million of net income from discontinued operations, and other
    expenses or deductions totaling $0.8 million.

Third Quarter 2012 Results

Total revenues increased to $33.0 million for the three months ended September
30, 2012 compared to $32.0 million realized in the same period in 2011 and
$32.5 million for the three months ended June 30, 2012. Net income from
continuing operations for the three months ended September 30, 2012 was $0.5
million, or $0.00 per share (basic and diluted), compared to a net loss of
$4.8 million, or $0.01 per share (basic and diluted), for the three months
ended September 30, 2011 and $8.6 million, or $0.02 per share (basic and
diluted) for the three months ended June 30, 2012. Reported net income for the
third quarter of 2012 included $6.3 million of unrealized mark-to-market
derivative losses, $0.1 million of foreign exchange loss, $6.5 million of net
income from discontinued operations, and other expenses or deductions totaling
$0.8 million.

Adjusted EBITDAX from continuing operations for the three months ended
September 30, 2012 was $22.9 million compared to $19.7 million for the three
months ended September 30, 2011 and $22.5 million for the quarter ended June
30, 2012.

For the three months ended September 30, 2012, total net sales decreased to
approximately 384 thousand barrels of oil equivalent ("Mboe"), compared to net
sales of approximately 460 Mboe for the same period last year and
approximately 413 Mboe in the second quarter of 2012. During the three months
ended September 30, 2012, the Company sold an average of 4,168 boe per day.
Total net sales were comprised of approximately 229 thousand net barrels
("bbls") of oil at an average rate of approximately 2,492 net bbls per day and
approximately 928 net million cubic feet ("MMcf") of natural gas at an average
rate of approximately 10.1 net MMcf of natural gas per day.

For the quarter ended September 30, 2012, the Company's average realized price
(unhedged) was $105.81 per bbl of oil and $8.14 per thousand cubic feet
("Mcf") of natural gas, compared to an average realized price of $104.43 per
bbl and $6.53 per Mcf in the quarter ended September 30, 2011 and $97.45 per
bbl and $8.48 per Mcf in the quarter ended June 30, 2012.


TransAtlantic Petroleum Ltd.
Consolidated Statements of Operations
(unaudited)
                         For the Three Months Ended For the Nine Months Ended
                          Sept. 30,                 Sept. 30,
U.S. dollars and shares
in thousands, except per  2012        2011           2012       2011
share amounts
                                                            
Revenues:                                                    
Oil and natural gas       $31,786     $31,621        $98,323    $91,052
sales
Other                    1,167       417            2,093      1,586
Total revenues           32,953      32,038         100,416    92,638
Costs and expenses:                                          
Production               4,542       3,329          12,470     12,036
Exploration, abandonment  2,104       3,944          11,783     15,787
and impairment
Seismic and other         1,725       3,174          2,401      7,799
exploration
Contingent consideration  --          --             --         1,250
and contingency changes
General and               6,744       8,949          25,301     27,514
administrative
Depreciation, depletion   8,147       11,368         26,698     22,613
and amortization
Accretion of asset        164         341            579        893
retirement obligation
Total costs and expenses 23,426      31,105         79,232     87,892
Operating income         9,527       933            21,184     4,746
Other (expense) income:                                      
Interest and other        (1,086)     (3,314)        (6,363)    (10,471)
expense
Interest and other        1,019       466            1,501      938
income
(Loss) gain on commodity  (7,146)     6,460          (5,277)    (2,697)
derivative contracts
Foreign exchange (loss)   (133)       (9,129)        3,066      (9,206)
gain
Total other expense      (7,346)     (5,517)        (7,073)    (21,436)
Income (loss) from
continuing operations     2,181       (4,584)        14,111     (16,690)
before income taxes
Current income tax        (1,440)     970            (3,882)    (2,692)
(expense) benefit
Deferred income tax       (272)       (1,190)        (2,660)    773
(expense) benefit
Net income (loss) from    469         (4,804)        7,569      (18,609)
continuing operations.
Net income (loss) from    122         (428)          (4,540)    (28,897)
discontinued operations.
Gain on disposal of      6,437       --             33,651     --
discontinued operations
Income tax provision    (34)        (1,180)        (8,207)    (1,698)
Net income (loss) from    6,525       (1,608)        20,904     (30,595)
discontinued operations
Net income (loss)        $6,994      $(6,412)     $28,473    $(49,204)
Other comprehensive       3,146       (38,271)       17,650     (48,673)
income (loss)
Comprehensive income      $10,140     $(44,683)    $46,123    $(97,877)
(loss)
Basic and diluted net
income (loss) per common                                     
share:
From continuing           $0.00       $(0.01)      $0.02      $(0.05)
operations
From discontinued         $0.02       $0.00          $0.06      $(0.09)
operations
Basic weighted average
number of shares          367,960     365,472        366,981    352,682
outstanding
Diluted weighted average
number of shares          370,020     365,472        368,869    352,682
outstanding


TransAtlantic Petroleum Ltd.
Summary Consolidated Statements of Cash Flows
(unaudited)
                                        For the Nine Months Ended
U.S. dollars in thousands                September 30, 2012 September 30, 2011
                                                          
Net cash provided by operating           $50,655            $32,691
activities from continuing operations
Net cash used in investing activities    (41,460)           (52,718)
from continuing operations
Net cash provided (used in) by financing (125,719)          18,607
activities from continuing operations
Net cash provided by (used in)           126,963            (9,363)
discontinued operations
Effect of exchange rate changes on cash  614                (1,761)
and cash equivalents
Net increase (decrease) in cash and cash $11,053            $(12,544)
equivalents


TransAtlantic Petroleum Ltd.
Summary Consolidated Balance Sheets
                                         As of
U.S. dollars in thousands                 September 30, 2012 December 31, 2011
                                         (unaudited)        
ASSETS                                                      
Current assets:                                             
Cash and cash equivalents                $26,169            $15,116
Accounts receivable                      56,114             46,328
Prepaid and other current assets         6,689              8,338
Deferred income taxes                    2,364              2,124
Assets held for sale                     1,547              128,117
Total current assets                     92,883             200,023
Property and equipment, net              260,476            235,429
Other                                    23,646             13,187
Total assets                             $377,005           $448,639
                                                           
LIABILITIES & SHAREHOLDERS' EQUITY                          
Current liabilities:                                        
Accounts payable                        35,316             26,178
Short term debt                         --                 80,732
Accrued liabilities and other           38,816             27,023
Derivative liabilities                  4,315              3,716
Liabilities held for sale               9,472              26,813
Total current liabilities                87,919             164,462
Total liabilities                        156,600            277,366
Total shareholders' equity               220,405            171,273
Total liabilities and shareholders'       $377,005           $448,639
equity


Reconciliation of Net Income to Adjusted EBITDAX
                         For the Three Months Ended For the Nine Months Ended
                          September 30,             September 30,
U.S. dollars in           2012        2011           2012       2011
thousands
                                                            
Net income (loss) from    $469        $(4,804)     $7,569     $(18,609)
continuing operations
Adjustments:                                                 
Interest and other, net  67          2,848          4,862      9,533
Income tax benefit       1,712       220            6,542      1,919
Exploration, abandonment, 2,104       3,944          11,783     15,787
and impairment
Seismic and other         1,746       2,698          1,900      5,675
exploration
Foreign exchange loss     133         9,129          (3,066)    9,206
(gain)
Share-based compensation 403         389            1,506      1,346
Derivative loss (gain)   7,146       (6,460)        5,277      2,697
Accretion of asset        164         341            579        893
retirement obligation
Depreciation, depletion,  8,147       11,368         26,698     22,613
and amortization
Revaluation of contingent --          --             --         1,250
consideration
Bulgaria license penalty --          --             2,000      --
Inventory book to         --          --             1,223      --
physical adjustment
Net other items          842         --             1,426      --
Adjusted EBITDAX from     $22,933     $19,673        $68,299    $52,310
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
         (214) 220-4323
         http://www.transatlanticpetroleum.com
         16803 Dallas Parkway
         Suite 200
         Addison, Texas 75001

TransAtlantic Petroleum Ltd. Logo
 
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