TransAtlantic Petroleum Announces Revised 2014 Capital Expenditure Budget,
Appointment of Senior Management and Participation in Louisiana Energy
Conference on June 11, 2014
HAMILTON, Bermuda, June 4, 2014 (GLOBE NEWSWIRE) -- TransAtlantic Petroleum
Ltd. (NYSE-MKT:TAT) (TSX:TNP) (the "Company" or "TransAtlantic") today
announced its revised 2014 capital expenditure budget, appointment of senior
management and management's participation in the Louisiana Energy Conference
on June 11, 2014.
Revised 2014 Capital Expenditure Budget
TransAtlantic's board of directors has approved a revised capital expenditure
budget of $106.0 million for the twelve months ending December 31, 2014, a 20%
increase over the previously announced budget of $88.5 million. The additional
capital will be used to support drilling, based on results in the second half
of 2014, as determined by management. The Company expects to establish a
budget for Bulgaria and other activity as geology and well results dictate.
Following the success of the seven most recent MSD horizontal completions in
the Şelmo field of southeastern Turkey (100% working interest), which have a
current average production rate of approximately 295 BOPD, the Company plans
to drill 11 horizontal development wells in the Şelmo field in 2014.
TransAtlantic will continue its waterflood pilot and polymer injections to
increase oil production in the Şelmo field.
In the Bahar Field (100% working interest) in the Molla area of southeastern
Turkey, the Company plans to drill six vertical wells to appraise the Bedinan
and Hazro zones. TransAtlantic recently spud the first two Bahar wells based
on newly acquired 3D seismic. Once the Company confirms geologic control, it
will evaluate horizontal development in the Bahar field.
Also in the Molla area of southeastern Turkey, TransAtlantic plans to drill
one Mardin exploration well in the Göksu field (100% working interest) based
on the pending interpretation of 3D seismic over the area.
Following the success of the Arpatepe-7 well (50% working interest), which had
an initial production rate of 330 BOPD gross (165 BOPD net), TransAtlantic
intends to drill a second appraisal well in the Arpatepe Field in southeastern
Turkey. The Company also plans to initiate a waterflood pilot test in the
Arpatepe field to assess the effectiveness of secondary recovery.
In the Thrace Basin of northwestern Turkey, TransAtlantic drilled two
successful horizontal wells in the Mezardere formation (41.5% working
interest) in early 2014 and previously drilled two successful wells in the
Teslimkoy formation (41.5% working interest) in 2013. The four wells had an
average 30-day initial production rate of 2.1 MMCFPD gross. In 2014, the
Company expects to drill a total of five horizontal wells and seven shallow,
conventional, vertical wells (41.5% working interest) in the Thrace Basin.
TransAtlantic plans to continue its recompletion campaign by executing
approximately 15 vertical well recompletions in 2014.
In Bulgaria, TransAtlantic drilled and perforated the Deventci-R2 well in the
Koynare Concession (50% interest). The well tested approximately 2.0 MMCFPD
gross with condensates. The Company is currently conducting a long-term
pressure build-up test to evaluate connectivity to the reservoir. Following
well testing, TransAtlantic expects to request government approval to
stimulate the well. A final budget for Bulgarian activities will depend on
well activity and results.
The Company may adjust its 2014 capital expenditures based on pending 3D
seismic interpretation and drilling results. Actual expenditures may deviate
from the initial plan according to seismic interpretation, drilling results,
commodity prices and cash flow. TransAtlantic expects to fund its 2014 capital
expenditures with cash on hand, cash flow and available credit.
TransAtlantic expects to exit the year 2014 with a production rate of 6,000 –
6,500 BOEPD. The Company anticipates oil to comprise at least 70% of
Senior Management Appointment
On May 27, 2014, TransAtlantic's board of directors appointed Todd C. Dutton
as president and James R. Huling as chief operating officer of the Company.
TransAtlantic's management will participate on the international panel of the
2014 Louisiana Energy Conference in New Orleans, Louisiana on Wednesday, June
11, 2014 at 3:15 p.m. Central Time.
About TransAtlantic Petroleum Ltd.
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.)
This news release contains statements concerning the drilling, completion and
cost of wells, the production and sale of oil and natural gas, secondary
recovery operations, the acquisition and processing of seismic data,
participation in an industry conference, 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 barrel of oil. A BOE conversion ratio of 6 MCF to 1 barrel 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 Beach
Director of Investor Relations
Vice President & Chief Financial Officer
TransAtlantic Petroleum Ltd.
16803 Dallas Parkway
Addison, Texas 75001
TransAtlantic Petroleum Ltd. Logo
Press spacebar to pause and continue. Press esc to stop.