HAMILTON, Bermuda, March 27, 2014 (GLOBE NEWSWIRE) -- TransAtlantic Petroleum Ltd. (TSX:TNP) (NYSE-MKT:TAT) (the "Company" or "TransAtlantic") today announced that its wholly owned subsidiary, TransAtlantic Worldwide, Ltd. ("TransAtlantic Worldwide"), has signed a non-binding term sheet with San Leon Energy plc ("San Leon"), a publicly traded oil and gas company based in Dublin, Ireland and Hutton Energy plc ("Hutton"), a private oil and gas company based in London, England.
The term sheet provides that TransAtlantic Worldwide would fund $5.0 million of past expenses in nine concession blocks in the Republic of Poland. In exchange, TransAtlantic Worldwide would receive a 50% interest in the nine Polish concessions, which contain approximately 1.9 million gross acres. The $5.0 million payment for past expenses would be repaid to TransAtlantic Worldwide by San Leon and Hutton from 50% of their initial production of their net interests. TransAtlantic Worldwide would operate the nine concessions, associated corporate entities and banking facilities, and would fund 100% of the cost to drill and complete two wells and re-enter and stimulate four wells. Upon realizing accumulated sales of 150,000 BOE, net to its 50% interest, TransAtlantic Worldwide would pay its partners a $5.0 million success fee.
The transaction is subject to the completion of satisfactory due diligence, definitive agreements and corporate, government, and regulatory approvals. A more detailed discussion of the proposed transaction is available on TransAtlantic's website at http://www.transatlanticpetroleum.com/news.aspx.
TransAtlantic's Chairman and CEO Malone Mitchell 3rd commented, "We see an exciting opportunity to target conventional oil and gas in the southern Permian Basin of Poland, which is a prolific producing basin throughout much of northern Europe. Poland has excellent fiscal terms and prices. We believe that our initial $10.0 – 15.0 million investment in two wells and four recompletions will be recompensed by resulting reserves."
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 transfer of interests in exploration licenses, the execution of agreements, 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.