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TransAtlantic Petroleum Ltd. Provides Operations Update And Announces Delay In Filing Quarterly Report On Form 10-Q

Sale of Oilfield Services Business

On June 13, 2012, TransAtlantic closed the sale of its oilfield services business to a joint venture owned by Dalea Partners, LP ("Dalea", an affiliate of N. Malone Mitchell, 3rd, the Company's Chairman and Chief Executive Officer) and funds advised by Abraaj Investment Management Limited. Gross proceeds from the sale totaled approximately $167.2 million, comprised of approximately $155.7 million in cash and an $11.5 million promissory note from Dalea. The Company immediately used a portion of the proceeds to pay off its $73.0 million credit agreement with Dalea, its $11.0 million credit facility with Dalea, its $0.9 million promissory note with Viking Drilling, LLC, and its $1.8 million credit agreement with a Turkish bank. Subsequently, TransAtlantic used $45.2 million of the proceeds to reduce borrowings under its senior secured credit agreement ("credit facility") with Standard Bank Plc and BNP Paribas (Suisse) SA. As of June 30, 2012 the Company had outstanding borrowings on the credit facility of $32.8 million and cash on hand of approximately $27.9 million.

Derivative Profile

As of June 30, 2012, TransAtlantic had outstanding derivative contracts hedging a portion of its future oil production as set forth in the table below. No changes have been made to the Company's derivative portfolio subsequent to June 30, 2012. 

      Weighted Average Weighted Average Weighted Average
Type Period Quantity (bbl/day) Floor ($/bbl) Ceiling ($/bbl) Additional Call ($/bbl)
Collar July 1, 2012 to December 31, 2012 960 $64.69 $106.98 NM
Collar January 1, 2013 to December 31, 2013 400 $75.00 $125.50 NM
Collar January 1, 2014 to December 31, 2014 380 $75.00 $124.25 NM
3-way collar July 1, 2012 to December 31, 2012 240 $70.00 $100.00 $129.50
3-way collar July 1, 2012 to December 31, 2012 205 $85.00 $97.13 $162.13
3-way collar January 1, 2013 to December 31, 2013 831 $85.00 $97.13 $162.13
3-way collar January 1, 2014 to December 31, 2014 726 $85.00 $97.13 $162.13
3-way collar January 1, 2015 to December 31, 2015 1,016 $85.00 $91.88 $151.88

Conference Call

The Company has scheduled a conference call for Friday, August 10, 2012 at 10:00 a.m. Eastern (9:00 a.m. Central) to discuss the Company's operations update.

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