TransAtlantic Petroleum Announces Second Quarter 2013 Financial Results and Provides an Operations Update

TransAtlantic Petroleum Announces Second Quarter 2013 Financial Results and
Provides an Operations Update

HAMILTON, Bermuda, Aug. 7, 2013 (GLOBE NEWSWIRE) -- TransAtlantic Petroleum
Ltd. (TSX:TNP) (NYSE:TAT) (the "Company" or "TransAtlantic") today announced
financial results for the quarter ended June 30, 2013 and provided an
operations update.

Highlights

  *TransAtlantic's current production is 4,058 Boe/d
  *Net income from continuing operations for the second quarter of 2013 was
    $2.9 million
  *Adjusted EBITDAX from continuing operations for the second quarter of 2013
    was $17.6 million (Adjusted EBITDAX is a non-GAAP financial measure that
    is defined and reconciled to net income at the end of this press release)


Second Quarter 2013 Results

                             For the Three Months Ended
                             June 30, 2013 June 30, 2012 March 31, 2013
Net Sales:                                              
Oil (Mbbls)                   230           233           239
Natural gas (MMcf)            816           1,081         801
Total net sales (Mboe)       366           413           373
Total net sales (Boe/d)      4,022         4,538         4,144
                                                       
Realized Commodity Pricing:                             
Oil ($/bbl unhedged)          $94.13        $97.49        $103.00
Oil ($/bbl hedged)           $92.03        $94.17        $97.76
                                                       
Natural gas ($/Mcf unhedged) $9.57         $8.49         $10.12
Natural gas ($/Mcf hedged)   $9.57         $8.49         $10.12

Total revenues were $31.8 million for the three months ended June 30, 2013, as
compared to $34.4 million for the same period in 2012 and $35.5 million for
the three months ended March 31, 2013. Net income from continuing operations
for the three months ended June 30, 2013 was $2.9 million, or $0.01 per share
(basic and diluted), as compared to net income from continuing operations of
$8.6 million, or $0.02 per share (basic and diluted), for the three months
ended June 30, 2012 and net income from continuing operations of $3.0 million,
or $0.01 per share (basic and diluted) for the three months ended March 31,
2013. Net income for the second quarter of 2013 included $4.8 million of
unrealized mark-to-market derivative gains and a $5.0 million revaluation of
contingent consideration. These items were offset by $11.9 million of
exploration, abandonment and impairment charges (only approximately $0.5
million of which represented cash expenses during the quarter) and $2.5
million of foreign exchange losses.

Adjusted EBITDAX from continuing operations for the three months ended June
30, 2013 was $17.6 million, as compared to $21.7 million for the three months
ended June 30, 2012 and $19.5 million for the quarter ended March 31, 2013.

Operational Update

TransAtlantic's current production is 4,058 Boe/d. The Company is currently
operating five drilling rigs: three in southeastern Turkey and two in the
Thrace Basin in northwestern Turkey.

Southeastern Turkey – Molla Area

TransAtlantic has completed the shooting of 125 km^2 (48 square miles) of its
planned 800 km^2 (300 square mile) Molla 3D seismic program and progresses at
a rate of approximately 5 km^2 (2 square miles) per day. The Company has shot
seismic over the Turkish Petroleum Corporation (TPAO) discovery to the
northwest of its acreage and has begun processing data to evaluate offset well
locations. The Company expects to shoot 3D seismic of the Bahar Field in
September 2013.

TransAtlantic is currently drilling the 3,000-foot lateral portion of the
Göksu-5H (100% working interest), the fifth horizontal well drilled on its
Mardin program in southeastern Turkey. The Company expects the Göksu-5H to be
drilled and completed for approximately $3.5 million to a total measured depth
of approximately 8,700 feet.

The Company recently tested the Oba-1H (100% working interest), a Mardin
horizontal well with a total measured depth of 9,650 feet and a 2,600-foot
lateral. The well was drilled and completed for $3.3 million. The Oba-1H
produced oil with a high percentage of water. TransAtlantic expects to execute
a remediation plan to isolate the water zones in an effort to lower the amount
of water produced. The Company has secured a coil tubing unit to perform the
completion and production operations. The unit has arrived in Turkey and is
expected to be operational in September 2013. The Company will also perform a
workover on Alibey-1H (100% working interest) with the coil tubing unit.

TransAtlantic plugged back the Bahar-2H (100% working interest) horizontal
well at a total measured depth of approximately 8,700 feet. The Hazro
formation tested between 170 and 200 Bbl/d of oil with no water and the
Company is currently installing production equipment. TransAtlantic expects to
produce from this interval through the completion of the Molla 3D project.

The Company completed drilling the Çatak-1 (100% working interest), an
11,000-foot vertical Bedinan well which encountered oil shows in the Mardin,
Hazro, Dadas shale and first and third Bedinan sands. The Hazro F4, Bedinan 1
and Bedinan 2 formations were cored and are being transported to Houston for
analysis. The main Bedinan target was encountered 100 feet high to the Bahar-1
and indicates an encouraging expansion of the Bahar field structure 2.4 km
(1.5 miles) southwest of the Bahar-1.

TransAtlantic is preparing to spud a vertical Bedinan exploration well, the
Ambarcık-2 (50% working interest) on its 50%-owned Arpatepe license. The
Company expects to drill and complete the well for between $3.4 and $3.8
million to a depth of 9,750 feet. The Ambarcık-2 will test the Mardin and
Bedinan formations on a structure located 5 km (3 miles) northeast of the
Arpatepe Field. The well is interpreted to be updip from the Ambarcık-1, which
was drilled in 1989 and had oil shows in both formations. The Company also
expects to spud the Arpatepe-7 (50% working interest) well in the Arpatepe
field, which has an expected depth of 8,200 feet to target the Bedinan zone.
Additionally, TransAtlantic is preparing to spud a well on its recently
acquired acreage in East Molla to test its Cretaceous and Paleozoic potential.

Southeastern Turkey – Selmo Area

The Selmo-13H, which was completed in July 2013 and has an 1,800-foot lateral,
is currently producing approximately 200 Bbl/d of oil. The well is on a
restricted flow capacity test to determine the optimum long-term pumping rate,
as the well is the first of its kind in the Selmo Field. TransAtlantic
completed its third water disposal well in the field in anticipation of the
need to move greater volumes associated with its horizontal program.

The Company has commenced drilling the Selmo-22H2 (100% working interest),
which is targeting the MSD zone and expects the well to cost $2.7 million to
drill and complete to a total measured depth of approximately 7,500 feet with
a 1,400-foot lateral.

Northwestern Turkey – Thrace Basin

TransAtlantic recently completed its first horizontal well in the Thrace
Basin, the DTD-19HK (41.5% working interest), with a seven-stage fracture
stimulation of its 1,600-foot lateral section. The well cost approximately
$3.5 million to drill and complete in the Kesan formation in the southern
Thrace Basin. The Company is currently cleaning out the horizontal section and
will run production tubing to put the well on a long term test.

The Company spud its second horizontal well in the Thrace Basin, the BTD-4H
(41.5% working interest), which is targeting the Teslimkoy formation in the
southern Thrace Basin. TransAtlantic expects to spend $1.5 million drilling
the BTD-4H to a total measured depth of approximately 6,300 feet with an
expected lateral of 2,800 feet.

The Company recently performed a fracture stimulation on the TDR-14, a
vertical well targeting the Kesan formation at a depth of approximately 5,700
feet, and the well is flowing on test production at 1 MMcf/d.

TransAtlantic recently drilled the Göçerler-7 (50% working interest), a
directional well targeting the Osmancık formation at a depth of approximately
4,400 feet in central Thrace Basin. The well encountered approximately 20
meters (65 feet) of net pay and will be cased for completion. TransAtlantic
set an internal record for two-day continuous drilling of 3,257 feet. The
average rate of penetration with directional tools was 68 feet per hour. The
Göçerler-7 is expected to cost $1.5 million to drill and complete.

Based on the evaluation of core samples from the Hayrabolu-10 well and the
results of the Pancarköy-1 well, the Company now believes that the deeper
horizons of the central Thrace Basin have limited potential.

TransAtlantic continues to move forward with its hydraulic fracture
stimulation campaign targeting bypassed unconventional pay in the Thrace
Basin. The most recent recompletion yielded further positive results in the
Mezardere formation with initial production of 800 Mcf/d following a small
fracture stimulation.Results remain encouraging for the Mezardere play and
TransAtlantic expects to continue to stimulate bypassed pay in existing wells
to assess the economics and reserves associated with a potential new drilling
campaign.

TransAtlantic expects to commence the Osmanlı 3D seismic shoot of
approximately 234 km^2 (90 square miles) in August 2013. The Company has the
sole right to develop wells with the acquired seismic data unless its partners
pay 150% of their interest in seismic costs in addition to their interest in
well costs.

Bulgaria

TransAtlantic expects to spud the Deventci-R2 well in the next 60-90 days. The
Company is finalizing a joint venture agreement in Bulgaria.

Outlook

TransAtlantic expects to exit the third quarter of 2013 with sales of
approximately 4,350 Boe/d. Year to date, the Company has drilled 14 wells and
completed 9 wells of its capital program. TransAtlantic expects to drill and
complete 38 total wells in 2013.

Note on December 31, 2012 Proved Reserves, PV-10 and Standardized Measure

During review procedures associated with mid-year reserve analysis,
TransAtlantic discovered that the future lease operating expenses used in its
reserves calculation were overstated, resulting in an immaterial
understatement of its present value of estimated future net revenues ("PV-10")
and standardized measure of discounted future net cash flows ("Standardized
Measure") as of December 31, 2012. The correction resulted in a proved reserve
volume increase of approximately 19 Mboe, related to one of its fields where
the economic life exceeds its remaining lease term. For the year ended
December 31, 2012, this change in volumes had a negligible impact on the
consolidated GAAP financial statements.A reconciliation of the reported and
corrected PV-10 and Standardized Measure are presented below:

                                                               
U.S. Dollars in thousands                   As Reported Change   As Corrected
Total PV-10:                                 $511,078    $52,679  $563,757
Future income taxes:                         (106,411)   (15,395) (121,806)
Discount of future income taxes a 10% per    31,210      5,437    36,647
annum:
Standardized measure:                        $435,877    $42,721  $478,598

Conference Call

The Company has scheduled a conference call for Thursday, August 8, 2013 at
7:30 a.m. Central (8:30 a.m. Eastern) to discuss second quarter 2013 financial
results.

Investors who would like to participate in the conference call should dial
(877) 878-2762 or (678) 809-1005 approximately 10 minutes prior to the
scheduled start time and ask for the TransAtlantic conference call. The
conference ID is 22972280. A replay will be available through August 15, 2013
and may be accessed by dialing (855) 859-2056 or (404) 537-3406. The
conference ID is 22972280.

An enhanced webcast of the conference call and replay will be available
through the Company's website at www.transatlanticpetroleum.com. To access the
live webcast and replay, click on "Investors," select "Events &
Presentations," and click on "Listen to webcast" under the event listing. The
webcast requires Microsoft Windows Media Player or RealOne Player.

Quarterly Report on Form 10-Q

The Company expects to file its Quarterly Report on Form 10-Q for the three
months ended June 30, 2013 on August 7, 2013.



TransAtlantic Petroleum Ltd.
Consolidated Statements of Comprehensive Income (Loss)
(Unaudited)

                                For the Three Months For the Six Months Ended
                                 Ended June 30,       June 30
U.S. Dollars and shares in
thousands, except per share      2013        2012     2013         2012
amounts
                                                               
Revenues:                                                       
Oil and natural gas sales        $29,455     $31,890  $62,180      $66,557
Sales of purchased natural gas   1,966       2,001    4,240        3,663
Other                            342         537      855          1,714
Total revenues                   31,763      34,428   67,275       71,934
Costs and expenses:                                             
Production                       3,328       4,293    8,855        7,928
Exploration, abandonment and     11,885      6,883    15,749       9,679
impairment
Cost of purchased natural gas   1,866      1,900    4,046       3,636
Seismic and other exploration   1,090       848      1,333        1,511
Revaluation of contingent        (5,000)     --      (5,000)      --
consideration
General and administrative      6,893       9,280    14,416       18,557
Depreciation, depletion and      9,581       9,382    18,557       18,551
amortization
Accretion of asset retirement    124         164      253          415
obligations
Total costs and expenses        29,767      32,750   58,209       60,277
Operating income                 1,996      1,678    9,066       11,657
Other income (expense):                                         
Interest and other expense      (955)       (2,018)  (1,845)      (5,277)
Interest and other income        307         348      682          482
Gain on commodity derivative     4,278       14,304   3,502        1,869
contracts
Foreign exchange (loss) gain     (2,543)     (1,073)  (3,030)      3,199
Total other income (expense)    1,087       11,561   (691)        273
Income from continuing           3,083       13,239   8,375        11,930
operations before income taxes
Current income tax expense       (528)      (422)    (1,867)     (2,442)
Deferred income tax benefit      348         (4,247)  (573)        (2,388)
(expense)
Net income from continuing       2,903       8,570    5,935        7,100
operations
Net income (loss) from
discontinued operations, net of  --          16,536   (93)         14,379
taxes
Net income                       $2,903      $25,106  $5,842       $21,479
Foreign currency translation     (13,543)    1,141    (16,379)     14,504
adjustment 
Comprehensive (loss) income     $(10,640)   $26,247  $(10,537)    $35,983
Basic and diluted net income per                                
common share:
From continuing operations       0.01        0.02   0.02         0.02
From discontinued operations     0.00        0.05     0.00         0.04
Basic weighted average number of 368,936     366,536  368,911      366,486
shares outstanding
Diluted weighted average number  368,936     368,855  368,911      368,288
of shares outstanding



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

                                            For the Six Months Ended June 30,
U.S. Dollars in thousands                    2013             2012
                                                            
Net cash provided by operating activities    $55,722          $48,013
from continuing operations
Net cash used in investing activities from   (60,451)         (29,628)
continuing operations
Net cash provided by (used in) financing     7,000            (125,547)
activities from continuing operations
Net cash (used in) provided by discontinued  (55)             119,537
operations
Effect of exchange rate changes on cash     (1,064)          388
Net increase in cash and cash equivalents   $1,152           $12,763



TransAtlantic Petroleum Ltd.
Summary Consolidated Balance Sheets

                                           As of
U.S. Dollars in thousands                   June 30, 2013 December 31, 2012
                                           (Unaudited)   
ASSETS                                                   
Current assets:                                          
Cash and cash equivalents                  $15,920       $14,768
Accounts receivable                        39,355        52,769
Prepaid and other current assets           2,009         2,339
Deferred income taxes                      3,680         1,895
Assets held for sale                       534           1,619
Total current assets                       61,498        73,390
Property and equipment, net                 254,849       256,152
Total other assets                         27,680        28,716
Total assets                               $344,027      $358,258
                                                        
LIABILITIES & SHAREHOLDERS' EQUITY                       
Current liabilities:                                     
Accounts payable                          $30,870       $28,498
Accrued liabilities and other              23,203        30,790
Derivative liabilities                    1,516         3,908
Liabilities held for sale                 7,169         8,416
Total current liabilities                  62,758        71,612
Total liabilities                          139,856       144,431
Total shareholders' equity                 204,171       213,827
Total liabilities and shareholders' equity $344,027      $358,258



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 2013         2012          2013         2012
                                                               
Net income from continuing $2,903       $8,570        $5,935       $7,100
operations
Adjustments:                                                    
Interest and other, net   648          1,670         1,163        4,795
Income tax expense         180          4,669         2,440        4,830
Exploration, abandonment,  11,885       6,883         15,749       9,679
and impairment
Seismic expense            1,035        806           1,143        989
Foreign exchange loss      2,543        1,073         3,030        (3,199)
(gain)
Share-based compensation  497          608           878          1,103
Unrealized derivative gain (4,762)      (15,077)     (5,238)      (4,116)

Accretion of asset         124          164           253          415
retirement obligation
Depreciation, depletion,   9,581        9,382         18,557       18,551
and amortization
Revaluation of contingent  (5,000)      --            (5,000)      --
consideration
Net other items           (2,003)      2,986         (1,815)      3,807
Adjusted EBITDAX from      $17,631      $21,734       $37,095      $43,954
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 gains and losses, foreign exchange gains and losses, non-cash
share-based compensation expense and significant non-recurring expenses.

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 and impairment of oil and natural gas
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. 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 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 drilling, completion and
cost of wells, the production and sale of oil and natural gas, the acquisition
of seismic data, 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, 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 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, and renegotiations of contracts; political uncertainty, including
actions by insurgent groups or other conflict; outcomes of litigation; 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, are 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: Taylor Miele
         Director of Investor Relations
         (214) 265-4746
        
         Wil Saqueton
         VP & CFO
         (214) 220-4323
        
         TransAtlantic Petroleum Ltd.
         16803 Dallas Parkway
         Addison, Texas 75001
         http://www.transatlanticpetroleum.com

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