HAMILTON, Bermuda, July 7, 2014 (GLOBE NEWSWIRE) -- TransAtlantic Petroleum Ltd. (NYSE-MKT:TAT) (TSX:TNP) (the "Company" or "TransAtlantic") today provided an operational update on its current drilling program.
Operational Update
For the second quarter of 2014, TransAtlantic had average net production of approximately 5,000 BOEPD, an 8% increase over average net sales in the first quarter of 2014 and a 24% increase over average net sales in the second quarter of 2013. Average net production for the second quarter of 2014 was comprised of approximately 3,500 BOPD of oil and approximately 9.0 MMCFPD of natural gas. Net sales for the second quarter of 2014, which the Company plans to report in early August 2014, are expected to be slightly lower than net production. The Company currently has three active rigs in southeastern Turkey. TransAtlantic spudded five wells and completed four new wells in the second quarter of 2014.
Southeastern Turkey – Şelmo Field Development
TransAtlantic continued its horizontal drilling campaign in the Şelmo field and has spudded eight horizontal wells targeting the MSD zone. The Company recently achieved target depth of 8,100 feet on the Şelmo-85H (100% working interest), and has commenced completion operations. In June 2014, TransAtlantic completed the Şelmo-54H (100% working interest). The well had an initial production rate of 686 BOPD gross and is currently producing 659 BOPD gross nearly one month later. The Company expects to spud at least five additional horizontal wells in the Şelmo field in 2014.
TransAtlantic also continued its implementation of a secondary recovery program in the Şelmo field. Year-to-date, two wells have been converted to injection, more than 162,000 barrels of water have been injected into the field and facilities are being expanded to allow for continuous water injection. In the third quarter of 2014, the Company will commence its second phase of polymer injection into Şelmo wells to increase their oil recovery.
Southeastern Turkey – Molla Drilling Program
TransAtlantic reached target depth of 10,500 feet on the Bahar-2ST (100% working interest), on June 12, 2014 and is conducting a two-stage stimulation in the Bedinan formation. The Company is currently logging the upper Bedinan sands of the Bahar-3 (100% working interest) at a depth of approximately 11,100 feet and plans to drill an exploration well into the lower Bedinan formation, as seen in two ARCO wells located 20 miles west of the Bahar field. Multiple oil shows were encountered in each well and core samples were taken from the Bahar-3 Hazro and Bedinan sands for future use in completion and secondary recovery activities.
TransAtlantic recently spudded the Bahar-4 (100% working interest), and expects to spud at least two additional vertical wells targeting the Hazro and Bedinan formations on the Bahar structure in the second half of 2014.
Southeastern Turkey – Arpatepe Drilling
The Arpatepe-7 (non-operated, 50% working interest), a Bedinan appraisal well which had initial production of 330 BOPD gross (165 BOPD net) is currently producing 223 BOPD gross (112 BOPD net) by natural flow after 38 days of production. Following its success, TransAtlantic intends to spud a second appraisal well, the Arpatepe-8 (non-operated, 50% working interest), in the second half of 2014. The Company also plans to initiate a waterflood pilot test to assess the effectiveness of secondary recovery in the Arpatepe field.
Southeastern Turkey – Idil Exploration
TransAtlantic is preparing to drill a vertical exploration well on its Idil license in the second half of 2014. The Company's joint venture partner, Onshore Petroleum Company AS ("Onshore"), has been assigned a 50% interest in the Idil license and will fund 100% of TransAtlantic's initial exploration well, up to $3.5 million. Expenses over $3.5 million will be split equally between Onshore and TransAtlantic.
Northwestern Turkey – Thrace Basin Development
TransAtlantic expects to recommence drilling in the Thrace Basin with one rig in July 2014. The Company plans to drill two additional horizontal wells (41.5% working interest) in the Mezardere and Teslimkoy formations at a vertical depth of approximately 3,300 feet and five shallow, conventional, vertical wells (41.5% working interest) in the Osmanlı area based on 3D seismic shot in the fourth quarter of 2013. Current average gross production for the two horizontal Mezardere wells drilled in the first quarter of 2014 is approximately 750 MCFPD.
Bulgaria
TransAtlantic conducted a long-term pressure build-up test on the Deventci-R2 (50% working interest) in the second quarter of 2014 to evaluate its connectivity to the reservoir following the well's initial test of approximately 2.0 MMCFPD gross with condensates. On June 26, 2014, the Company submitted a request to the Bulgarian government to acidize the well.
Second Quarter 2014 Earnings Call
TransAtlantic will provide more detailed operational and financial results on its second quarter 2014 earnings call, which it expects to host in early August 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.)
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, 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.