HAMILTON, Bermuda, Jan. 6, 2014 (GLOBE NEWSWIRE) -- TransAtlantic Petroleum Ltd. (TSX:TNP) (NYSE-MKT:TAT) (the "Company" or "TransAtlantic") today provided an operational update on its current drilling program.
TransAtlantic ended the fourth quarter of 2013 with seven-day average production of 8,481 BOEPD gross and 5,084 BOEPD net. Net production on December 30, 2013 reached 5,198 BOEPD. Seven-day average net production was comprised of 3,001 BOPD of oil and 12.5 MMCFPD of natural gas. The Company currently has three active rigs in southeastern Turkey, one active rig in the Thrace Basin in northwestern Turkey and one active rig in Bulgaria. TransAtlantic spudded eight wells in the fourth quarter of 2013 and 35 total wells in 2013. The Company plans to drill between 33 and 49 wells in 2014.
Southeastern Turkey – Şelmo Field Development
TransAtlantic recently completed the first of four stages of the Şelmo-36H1 (100% working interest), its third horizontal well targeting the MSD zone at a true vertical depth of approximately 5,750 feet and a total cost of $2.8 million. The first stage had one-day initial production of 300 BOPD gross. The Company will complete the additional stages and its fourth horizontal MSD well in January 2014. The two MSD horizontal wells that TransAtlantic completed in December 2013 each have current average gross production of 375 BOPD. The Company plans to continue development drilling in the Şelmo Field in 2014 with approximately ten additional horizontal wells targeting both the MSD and LSD fractured carbonate zones.
In the first quarter of 2014, TransAtlantic plans to initiate its first Şelmo Field waterflood pilot test to assess the field's potential for secondary recovery. The Company expects to execute at least two additional waterflood pilot tests in 2014.
Southeastern Turkey – Molla Drilling Program
TransAtlantic continues to make progress on its 800 square kilometer (300 square mile) 3D seismic program over Molla and the surrounding areas. The Company is currently shooting seismic over the Göksu Field. To date, approximately 690 square kilometers (266 square miles) have been shot and the data is being processed in Dallas, Texas.
In the first half of 2014, TransAtlantic expects to drill at least two wells in the Bahar Field (100% working interest), including a vertical sidetrack of the Bahar-2, to de-risk the geology in preparation for horizontal drilling. The Company plans to complete the Catak-1 (100% working interest) using hydraulic fracture stimulation to target the Hazro and Bedinan formations in early 2014.
TransAtlantic tested the Mardin zone of the Tepe-1 (100% working interest) in the fourth quarter of 2013, but the well did not encounter hydrocarbons and was plugged and abandoned at a total cost of $4.3 million.
Southeastern Turkey – Arpatepe Drilling
In the fourth quarter of 2013, TransAtlantic drilled the Ambarcık-2 (50% working interest) exploration well to a total depth of 9,700 feet. Drilling and estimated completion costs for the well are $4.6 million gross ($2.3 million net). The Ambarcık-2 targeted the Mardin and Bedinan formations and is currently awaiting completion. The Company expects the well to be completed and tested in the first quarter of 2014 and plans to drill one or two appraisal wells and conduct a waterflood pilot test in the field in 2014.
Northwestern Turkey – Thrace Basin Development
TransAtlantic successfully drilled and completed its third horizontal well in the southern Thrace Basin, the BTD-5H (41.5% working interest), to a measured depth of 5,822 feet (true vertical depth of 3,295 feet) with a four-stage hydraulic fracture stimulation. The BTD-5H is the Company's second horizontal well in the Teslimkoy formation and it is currently producing 2.5 MMCFPD.
TransAtlantic most recently drilled the Kayı-16 (41.5% working interest), a 3,800-foot vertical well targeting the Mezardere and Teslimkoy formations in just six days. The Company plans to drill its first Mezardere horizontal well and an additional Mezardere vertical well in the first quarter of 2014.
TransAtlantic completed its $5.0 million, 234 square kilometer (90 square mile) 3D seismic program in the Osmanlı area of the southern Thrace Basin in December 2013 and expects to receive processed data in the first quarter of 2014.
TransAtlantic is currently drilling the Deventci-R2 (50% working interest) in the Koynare Concession at a depth of more than 14,000 feet. The well is targeting the Dolni Lukovit zone at a depth of approximately 14,100 feet. The well encountered the Orzirovo Formation, Etropole Shale and Dolni Lukovit zones as expected and had mud log gas shows in each zone. The Company successfully ran and cemented a 7-inch drilling liner at the top of the target formation at 13,717 feet and expects to reach target depth and test the well between 13,717 feet and 14,100 feet early in the first quarter of 2014. The Company's joint venture partner will assume 75% of TransAtlantic's initial $40.0 million work program in Bulgaria.
Fourth Quarter 2013 Earnings Call
TransAtlantic will provide more detailed operational and financial results on its fourth quarter 2013 earnings call, which it expects to host in mid-March 2014.
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, the hosting of an earnings conference call, 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 Miele Director of Investor Relations (214) 265-4746 Ian Delahunty President (214) 220-4323 TransAtlantic Petroleum Ltd. 16803 Dallas Parkway Addison, Texas 75001 http://www.transatlanticpetroleum.com
Source:TransAtlantic Petroleum Ltd.