Winter weather conditions have inhibited equipment movement and thus limited the pace of completions in the Thrace Basin. TransAtlantic has nine wells currently awaiting frac and three completion operations in progress. The Company recently completed the DTD-19 well in the Tekirdag Field Area as the Company's first five-stage frac. The DTD-19 has been flowing back load water, with early choked gas production in excess of 1 MMcf per day. The initial completion of the lowest section of the Kazanci-5 well in the Hayrabolu area was not successful. The Hayrabolu-10, TransAtlantic's second deep test of the Hayrabolu structure, is currently drilling below 9,000 feet.
The Durukoy-1 exploration well on the Idil license has been plugged and abandoned after finding non-commercial hydrocarbon accumulations. The Company expects to drill the Ebyat prospect on the Idil license in the fall of 2013.Outlook TransAtlantic's Board of Directors approved a preliminary capital expenditure budget for 2013 of approximately $131 million. Spending during 2013 is expected to consist of approximately $101 million of drilling and completion expense (over 60 gross wells and including approximately 17 horizontal wells), $19 million of seismic expense, and $11 million on infrastructure and other expense. This compares to capital expenditures in 2012 of approximately $80 million. The Company expects net sales during the three months ending March 31, 2013 to average approximately 4,200 boe per day, with crude oil comprising approximately sixty percent of daily volumes. Reserves Summary DeGolyer and MacNaughton evaluated the Company's reserves as of December 31, 2012 in accordance with the reserves definitions of Rule 4-10(a) (1)-(32) of Regulation S-X of the SEC and in accordance with National Instrument 51-101 and the Canadian Oil and Gas Evaluators Handbook. On a volumetric basis the Company's proved reserves (1P) declined from year-end 2012 due primarily to production of existing reserves and negative performance revisions in certain fields. The present value of future reserve-based cash flows discounted at a 10% annualized rate ("PV-10") decreased from year-end 2011 primarily due to volumes produced during 2012 and reduced expectations at certain fields, partially offset by increased natural gas prices.
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