HAMILTON, Bermuda, Dec. 23, 2013 (GLOBE NEWSWIRE) -- TransAtlantic Petroleum Ltd. (TSX:TNP) (NYSE-MKT:TAT) (the "Company" or "TransAtlantic") today announced its capital expenditure budget for 2014 and outlook for its 2014 production exit rate. 2014 Capital Expenditure Budget TransAtlantic's Board of Directors has approved the following initial capital expenditure budget for Turkey for the twelve months ending December 31, 2014. The Company expects to establish a budget for Bulgaria, horizontal completions and other activity as geology and well results dictate.
|Area||Planned Wells||Drilling & Completions||Facilities, Recompletions, Seismic & Other||Expected Total Net Capital|
|Şelmo Field Development||9 – 11 wells||$26.0 MM||--||$26.0 MM|
|Şelmo Field Waterflood Pilot||--||--||$2.5 MM||$2.5 MM|
|Molla: Bahar Appraisal Campaign||6 – 8 wells||$28.0 MM||$2.0 MM||$30.0 MM|
|Molla: Mardin Drilling||3 – 6 wells||$8.0 MM||--||$8.0 MM|
|Molla: 3D Seismic Program||--||--||$4.0 MM||$4.0 MM|
|Arpatepe Appraisal and Waterflood||1 – 2 wells||$3.5 MM||$0.5 MM||$4.0 MM|
|Thrace Basin Development||14 – 22 wells||$10.5 MM||--||$10.5 MM|
|Thrace Basin Recompletions||15-25 recompletions||--||$3.5 MM||$3.5 MM|
|Total||33 – 49 wells 15-25 recompletions||$76.0 MM||$12.5 MM||$88.5 MM|
Based on the success of two recent MSD horizontal completions, which each had 7-day average initial gross production of 350 Boe/d in December 2013 and the LSD horizontal completion of Şelmo-13H, which had 30-day initial gross production of 200 Boe/d in August 2013, TransAtlantic plans to further develop the Şelmo Field (100% working interest) in southeastern Turkey by drilling between 9 and 11 horizontal development wells in 2014 for a cost of $26 million. A majority of the wells will target the MSD zone and will further delineate the structure revealed in the Company's static field model, which was developed in 2013 after it reprocessed existing 3D seismic. The Company's third horizontal MSD well, the Şelmo-36H, is currently awaiting completion. TransAtlantic intends to conduct three waterflood pilot tests in 2014 for a total cost of $2.5 million to assess the effectiveness of secondary recovery in the Şelmo Field.The Company plans to execute a $28 million appraisal drilling campaign in the Bahar Field (100% working interest) in the Molla area of southeastern Turkey based on newly acquired 3D seismic. TransAtlantic expects to initially drill at least two vertical wells, including a vertical sidetrack of the Bahar-2H, to appraise the Bedinan and Hazro zones. Once the Company confirms geologic control, it may drill two-to-four horizontal development wells in the Bahar Field in 2014. Also in the Molla area of southeastern Turkey, TransAtlantic plans to drill three-to-six Mardin appraisal and exploration wells (100% working interest) at a total cost of $8 million based on the interpretation of pending 3D seismic over the area. The Company continues to see strong production from the Göksu Field and anticipates successful Mardin wells will achieve initial production rates of 300 Bopd and EURs of 100k – 400k barrels of oil. TransAtlantic expects to select drilling locations for the Mardin exploration campaign late in the first quarter of 2014 and has heavily risked potential results from the Mardin zone in its forecasts. Approximately $4 million of capital expenditures are expected to be spent completing the Molla seismic program in the first quarter of 2014.
TransAtlantic intends to drill one or two appraisal wells in the Arpatepe Field (50% working interest) in southeastern Turkey for a net cost of $1.5 – 3.5 million. The Company also plans to execute one waterflood pilot test for a net cost of $0.5 million in the field to assess the effectiveness of secondary recovery.In northwestern Turkey, TransAtlantic plans to drill between eight and twelve conventional vertical wells in Thrace Basin South (41.5% working interest) for a total net cost of $2 million. Following on the success of the BTD-4H, the first commercial horizontal well in the Teslimkoy zone, which is currently producing 2 MMcf/d gross, the Company expects to drill three-to-five Mezardere horizontal wells and three-to-five Teslimkoy horizontal wells for a total net cost of $8.5 million. Based on the positive results of recent one-stage vertical well frac recompletions like the Kayı-14, which had 7-day initial gross production of 5 MMcfd in October 2013, TransAtlantic plans to continue its recompletion campaign by executing between 15 and 25 hydraulic fracture vertical well recompletions in 2014 for a total net cost of $3.5 million. In December 2013, the Company executed three recompletions into the Mezardere zone that resulted in average initial production rates of 1.5 MMcfd. In Bulgaria, TransAtlantic expects to drill additional wells in the Koynare Concession (50% interest) and begin construction of a pipeline. The concession sits directly between the largest oil and gas fields in the country. The Company is currently drilling the Deventci-R2 well in the Koynare Concession at a depth of more than 13,000 feet. A final budget for Bulgarian activities will depend on well results. TransAtlantic will adjust its 2014 capital expenditures based on pending 3D seismic interpretation and drilling results. Actual expenditures are likely to deviate from the initial plan according to seismic interpretation, drilling results, commodity prices and cash flow. TransAtlantic expects to fund its 2014 capital expenditures with cash on hand, cash flow and available credit.
OutlookTransAtlantic expects to exit the year 2014 with a production rate of 6,000 – 6,500 Boed. The Company anticipates oil to comprise at least 70% of forecasted production. Operations Update TransAtlantic intends to issue an update on its operations during the week of January 6, 2014. About TransAtlantic 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 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 acquisition and processing of seismic data, the issuance of a press release, 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 bbl of oil. A Boe conversion ratio of 6 Mcf to 1 bbl 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.
CONTACT: Taylor Miele Director of Investor Relations (214) 265-4746 Ian Delahunty President (214) 220-4323 TransAtlantic Petroleum Ltd. 16803 Dallas Parkway Addison, Texas 75001 http://www.transatlanticpetroleum.com