TransAtlantic Petroleum Ltd. (TAT) Q2 2012 Earnings Call August 10, 2012 10:00 AM ET Executives Malone Mitchell – Chairman and CEO Wil Saqueton – VP and CFO Analysts Neal Dingmann – SunTrust Jonathan Fite – KMS Investments Arvin Malik – KMS Investments Jamie Somerville – TD Securities Presentation Operator
We have not yet recovered our fracked load or run tubing [ph] in this well, so it’s too early to make any meaningful estimate of reserves or economic profile. We are moving our frac crew to Southeast Turkey for the next 60 to 75 days or so to work through nearly a year’s backlog of wells needing fracs in that area.This will give us time to evaluate the BTD–3 well further and to drill wells to commence the 50–acre development wells in our Tekirdag Field Area. We would expect to have an accumulated backlog by the time the frac crew returns. By near year–end, we expect to have two frac crews in country, so we won’t have this either/or situation from our fracs. It is likely that despite connecting and optimizing existing gas wells, remove water and hook up additional wells, we could see further gas production declines in the third quarter of this year. In the southeast, our drilling for the first half of the year has generally resulted in reserves a little better than our pre–drill estimates. We have approximately 15 wells to frac in Selmo, and our objective is to do two to three of these wells per week. We do not have an external reserve estimate on this but the average of our 2011 fracs indicate that an average incremental gross increase of around 40,000 barrels at 100 barrels of oil production per day is releasable. We currently produce about 2,600 barrels or more per day gross at Selmo. Due to drilling opportunities and obligations for deeper wells we’ve made a rig out Selmo in July and do not expect to resume new drilling there until the fourth quarter. Our Goksu discovery continues to perform well and we have one rig operating to drill the initial horizontal test to the Mardin formation. We reentered and drilled a short horizontal leg [ph], about 1,000 feet in the Alobay [ph] well and western blocks of the southeastern basin.
Mechanically, the operation went pretty well and we encountered oil shows and fractured swarms and porosities as we had hoped. We cased the well for 3[ph] days and ran full set of Selmo Shale image logs and are currently having those analyzed by [inaudible] Mississippi Group in the United States which we think is the best analog to this particular formation.Once we receive these definitive results, we can better understand the reservoir characteristics and plan a completion. After four months effort, we secured a location for our Goksu number three, there’s a multi–well pad. We expect to begin drilling that well this month. On this well we’ll be setting 7 inch through the curve and drilling to plan approximately 3,000 foot lateral open hole. But we still don’t know what the right completion will be, and that could be anything from open hole to cased and fracked. So we’re going to have to evaluate the data and fill our way through these completions in this Mardin formation. This was approximately 1,500 feet south of Goksu–1 and 2 wells, so it’s typically lower risk. We are completing the Bahar–1 well now, back to perforating the well, the well flows on 1,200 btu gas. Some of it pressured. The buildup on the well and the simple completion process has indicated high skin damage factor for the well. Just this morning, about an hour ago or so, we received the preliminary lab analysis for the Bedinan rock and we expect to utilize this to design and stimulate the Bedinan while our high–pressure type equipment is in the southeast. We’re not so [inaudible] or frac. Read the rest of this transcript for free on seekingalpha.com