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.
Outlook
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 forecasted production.
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.
Conference Participation
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.)
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, 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.