HAMILTON, Bermuda, July 9, 2015 (GLOBE NEWSWIRE) -- TransAtlantic Petroleum Ltd. (NYSE-MKT:TAT) (TSX:TNP) (the "Company" or "TransAtlantic") today provided an operational update on its current drilling program.
TransAtlantic's current net production rate is approximately 5,700 BOEPD, comprised of approximately 4,500 BOPD of oil and approximately 7.2 MMCFPD of natural gas. In the second quarter of 2015, TransAtlantic had average net production of approximately 5,900 BOEPD, a 6% decrease from net production in the first quarter of 2015 and an 18% increase over net production in the second quarter of 2014. Net production for the second quarter of 2015 was comprised of approximately 4,560 BOPD of oil and 8.0 MMCFPD of natural gas. In the second quarter of 2015, the Company resumed drilling on the Delvina-34 well in Albania, began drilling the Bahar-9 and drilled the South Goksu-1 wells in Southeast Turkey, and commenced workover activity in the Albanian oil fields.
Southeastern Turkey – Şelmo Field
TransAtlantic's second quarter net production in the Şelmo field averaged approximately 2,660 BOPD. The Company continues its waterflood program in the Şelmo field and is in the process of expanding the waterflood infrastructure to the western part of the field. Production in the Şelmo field was slightly lower than expected due to increased downtime related to maintenance during the quarter.
Southeastern Turkey – Molla Drilling Program
TransAtlantic's second quarter net production in the Molla area averaged approximately 1,130 BOPD. TransAtlantic is currently drilling the Bahar-9 well (100% working interest). The well will be drilled to a total depth of 10,600-feet. Currently, the Company is setting 7" intermediate casing at a depth of approximately 8,500 feet in the Mardin, which developed more porosity than offsetting wells. The well is targeting the Bedinan, Dadas, and Hazro zones.
In the second quarter of 2015, TransAtlantic drilled the South Goksu-1 well (50% working interest), a 5,900 foot exploratory well drilled two miles south of the Goksu field. The Company has plans to complete the well, which targets the Mardin formation, in the third quarter of 2015.
In the second quarter of 2015 the Company attempted to complete the Pinar-1 well, an 11,700-foot vertical exploration well drilled to test a separate 3D seismic structure west of the Bahar field. Log analysis indicates approximately 100 feet of potential pay zone in the Bedinan formation. However, due to irretrievable stuck casing issues encountered during completion operations, the well will be sidetracked at about 9,700 feet and the bottom 2,000 feet of the well re-drilled.
TransAtlantic expects to continue development of the Bahar field and exploration in the Molla Area with the spudding of 3 additional Bahar field wells in the second half of 2015.
Northwestern Turkey – Thrace Basin Development
TransAtlantic's first quarter net production from the Thrace Basin averaged approximately 8.0 MMCFPD. The Company is currently finalizing plans on its Thrace drilling program for the second half of 2015.
TransAtlantic's current production in Albania is approximately 1,340 BOPD gross and 860 BOPD net. The Company is currently drilling the Delvina-34H1, a Cretaceous, deviated well, at a depth of 6,533 feet with a proposed target depth of 13,000 feet. Late in the second quarter of 2015, TransAtlantic began a workover program in its Albanian oil fields with the installation of 13 new downhole pumps and is experiencing positive production results to date.
On June 10, 2015 TransAtlantic placed additional zero premium collars with a floor price of $66.50 for a portion of its Turkey oil production through 2016. On July 8, 2015 the overall hedge portfolio was valued at approximately $34 million. The Company continues to closely monitor the commodity price environment and will adjust its position as opportunities arise.
Second Quarter 2015 Earnings Call
TransAtlantic will provide additional operational and financial results on its second quarter 2015 earnings call, which it expects to host in early August 2015.
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, Albania 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 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: Lizzy Chesnut Investor Relations (214) 265-4716 TransAtlantic Petroleum Ltd. 16803 Dallas Parkway Addison, Texas 75001 (214) 220-4323 http://www.transatlanticpetroleum.com
Source:TransAtlantic Petroleum Ltd.