HAMILTON, Bermuda, March 18, 2013 (GLOBE NEWSWIRE) -- TransAtlantic Petroleum Ltd. (TSX:TNP) (NYSE-MKT:TAT) (the "Company" or "TransAtlantic") today announces the Company's intent to file a Form 12b-25 to provide an additional fifteen days to file its Annual Report on Form 10-K for the year ended December 31, 2012 (the "Form 10-K").
On Thursday, March 14, 2013, the Company identified prior period errors that relate to the allocation of well costs to the Company's depletion schedule during the years 2009, 2010, and 2011. The prior period errors identified have resulted in the understatement of depletion expense during 2009, 2010, 2011, and 2012. Depletion is a non-cash expense.
The Company, in conjunction with its independent registered public accounting firm, is currently evaluating the impact of the identified prior period errors on current and prior period financial statements. The Company intends to file the Form 10-K with the Securities and Exchange Commission as soon as the evaluation is complete and its independent registered public accounting firm has finalized their audit and review procedures. There can be no assurance that additional issues will not be identified during the course of the audit process, and such items could be material to the Company's financial condition and results.Intent to Hire Third-Party Accounting Consultant TransAtlantic intends to immediately commence the process of hiring a third-party accounting consulting firm to assist and supplement the in-house accounting staff with a thorough review of all prior period accounting and documentation. N. Malone Mitchell, 3 rd, TransAtlantic's Chairman and Chief Executive Officer, said, "I am disappointed to report another delay in our regulatory filings. The Board and I share our external shareholder frustrations on this matter, and have decided that it is in the best interests of all shareholders to bring in external assistance. This will not only provide fresh, independent opinion, but will also allow the Company's accounting team to focus its efforts on current and future period accounting statements to, hopefully, prevent delays to future filings. It is unfortunate that these accounting issues have also overshadowed what I believe are exciting, though early, drilling results in southeastern Turkey that could provide meaningful production and reserve growth in the months and years ahead." Fourth Quarter 2012 Operating Results For the three months ended December 31, 2012, total net sales were approximately 407 thousand barrels of oil equivalent ("Mboe"), compared to net sales of approximately 494 Mboe for the same period last year and approximately 384 Mboe in the third quarter of 2012. During the three months ended December 31, 2012, the Company sold an average of 4,421 boe per day. Total net sales were comprised of approximately 263 thousand net barrels ("Mbbls") of oil at an average rate of approximately 2,856 net barrels ("Bbls") per day and approximately 864 net million cubic feet ("MMcf") of natural gas at an average rate of approximately 9.4 net MMcf per day.