HAMILTON, Bermuda, Jan. 6, 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.
Operational Update
TransAtlantic's current 7-day average production rate is approximately 7,000 BOEPD, comprised of approximately 5,500 BOPD of oil and approximately 9.0 MMCFPD of natural gas. The Company currently has two active rigs, one in southeastern Turkey and one in the Thrace Basin of northwestern Turkey. In the first quarter of 2015, TransAtlantic expects to resume drilling with one rig in Albania and release the rig currently drilling in the Thrace Basin of northwestern Turkey.
In the fourth quarter of 2014, TransAtlantic had average net sales of approximately 6,000 BOEPD, a 19% increase over net sales in the third quarter of 2014 and a 37% increase over net sales in the fourth quarter of 2013. Net sales for the fourth quarter of 2014 were comprised of approximately 4,600 BOPD of oil, approximately 8.2 MMCFPD of natural gas, and included 43 days of Albanian production after the closing of the Stream Oil & Gas Ltd. acquisition on November 18, 2014.
TransAtlantic had a Turkey production rate of 6,268 BOEPD on December 30, 2014, at the midpoint of its annual guidance. The Company spudded eight wells (five oil and three gas) and put eleven new wells on production (five oil and six gas) in the fourth quarter of 2014. TransAtlantic spudded a total of 31 wells and put 30 new wells on production in 2014.
Southeastern Turkey – Şelmo Field Development
TransAtlantic conducted a horizontal drilling campaign in the Şelmo field in 2014, in which it spudded 12 wells and put 13 new wells on production. In the fourth quarter of 2014, the Company spudded two wells and put three new wells on production in the field. The three most recently completed wells had an average initial production rate of 276 BOPD.
TransAtlantic continues its secondary recovery program in the Şelmo field. In the fourth quarter of 2014, the Company conducted a second phase of polymer injections in the field and is monitoring field response. In 2015, TransAtlantic expects to convert several additional wells to injection as part of its waterflood operations.
Southeastern Turkey – Molla Drilling Program
TransAtlantic is currently drilling the Pinar-1 (100% working interest), an 11,700-foot vertical well that will test a structure west of the Bahar field. The Company's Bahar-6 well (100% working interest), is producing more than 600 BOPD and 500 MCFPD nearly two months after initial production. TransAtlantic put three Bahar wells on production in 2014 and they are currently producing a combined total of more than 1,100 BOPD. The Company intends to continue its Bahar drilling program with one rig in the first quarter of 2015.
Southeastern Turkey – Idil Exploration
TransAtlantic drilled the Ebyat-2 (50% working interest), a 7,880-foot vertical exploration well on its Idil license, in the fourth quarter of 2014. The Company plans to complete and test several intervals of the well in the first quarter of 2015. TransAtlantic's 50% joint venture partner, Onshore Petroleum Company AS, is expected to fund 100% of TransAtlantic's expected share of the well cost.
Northwestern Turkey – Thrace Basin Development
TransAtlantic is currently drilling a seventh vertical well as part of its 2014 conventional gas drilling campaign in northwest Turkey (41.5% working interest). The Company drilled three Thrace wells in the fourth quarter of 2014 and put two new wells on production. The two most recent wells had initial production rates of 4.0 MMCFPD (41.5% working interest) and 0.6 MMCFPD (50% working interest). TransAtlantic expects to finish drilling the current well in mid-January and subsequently release the rig.
Albania
In the first quarter of 2015, TransAtlantic expects to resume drilling of the Delvina-34H1 well (100% working interest), a Cretaceous, deviated well with proposed target depth of approximately 13,000 feet. The Company has established a core of essential personnel in the country and anticipates commencing oilfield upgrades in the first half of 2015.
Fourth Quarter 2014 Earnings Call
TransAtlantic will provide additional operational and financial results on its fourth quarter 2014 earnings call, which it expects to host in early March 2015. The Company expects to issue its 2015 annual capital expenditure guidance in the first quarter of 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.)
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 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.