TransAtlantic Petroleum Announces Engagement of Financial Advisor to Market the Company and Provides Updates on Drilling Prog...
January 16 2018 - 5:01PM
TransAtlantic Petroleum Ltd. (TSX:TNP) (NYSE
American:TAT) (the “Company” or “TransAtlantic”) today announces
the formation of a strategic committee of the board of directors
and engagement of a financial advisor to market the Company and
explore strategic alternatives to increase shareholder value.
In addition, the Company provides an update on the Company’s
previously announced drilling program and the Company’s evaluation
of its prospects in the Thrace Basin.
Strategic Committee
The Company has formed a strategic committee of
the board of directors, headed by Mel Riggs, in order to conduct a
marketing process of the Company. N. Malone Mitchell, 3rd,
Chairman and Chief Executive Officer of the Company, stated, “We
believe it is time to go forward with a strategy to market the
Company so that it can pursue a stronger capital structure for
future development.” The strategic committee has engaged Tudor
Pickering Holt & Co. to act as financial advisor. In
addition, the Company’s legal counsel, Akin Gump Strauss Hauer
& Feld LLP, will be advising the Company in this process.
There is no assurance that the strategic
alternatives process will result in the Company completing a sale
of the Company or its assets. Except as described below, the
Company does not intend to make any further announcements regarding
strategic alternatives unless and until a final decision has been
made by its board of directors. The Company will provide a
management presentation and investor update in the first two weeks
of February. At that time, the Company will provide further
views on the timeline of this process.
Update on Drilling Program and 3-D
Seismic Program
As previously disclosed, on November 28, 2017,
DenizBank A.S. (the “Lender”) entered into an additional $20.4
million term loan (the “2017 Term Loan”) with the Turkish branch of
TransAtlantic Exploration Mediterranean International Pty Ltd
(“TEMI”), a subsidiary of the Company under the Company’s current
credit agreement with the Lender. The 2017 Term Loan is in addition
to the Company’s term loan currently outstanding with the Lender,
as described in the Company’s previous periodic reports filed with
the Securities and Exchange Commission.
With receipt of proceeds from the 2017 Term
Loan, the Company has launched a new drilling program. The
Company has executed a drilling contract with Viking International
Ltd. and is currently in the process of mobilizing Rig I-34 from
southwest Turkey to the Company’s Selmo 81H2 location. The Company
estimates that the rig mobilization will be completed and the well
will spud in the first week of February 2018 dependent on weather
and other conditions. The Company has identified a number of
additional well locations to follow.
The Company has acquired approximately 116
square miles of new 3D seismic data during the summer of 2017 as an
extension to the Company’s existing 3D seismic coverage in the
Molla Area of southeast Turkey. The new 3D seismic data is being
processed with anticipated completion in April 2018. The new 3D
seismic data is being merged with the Company’s existing seismic
data to create one continuous 3D seismic survey across all of the
Company’s acreage in the Molla Area.
Update on the Evaluation of Prospects in
the Thrace Basin
The Company is continuing to evaluate its
prospects in the Thrace Basin in Turkey in light of the recent
positive production test results at the Yamalik-1 exploration well
operated by Valeura with their partner Statoil. The Yamalik-1
exploration well is directly adjacent to the Company’s 120,000 net
acres in the Thrace Basin of which the Company believes
approximately 50,000 net acres (100% WI, 87.5% NRI) is analogous to
the Valeura and Statoil acreage.
About TransAtlantic
Petroleum
The Company 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 marketing of the Company, the entry 2017 Term Loan and the use
of proceeds therefrom, the Company’s drilling program, the 3D
seismic program, and the evaluation of the Company’s prospects in
the Thrace Basin in Turkey, the Molla Area of Southeast Turkey, and
Bulgaria, as well as other expectations, plans, goals, objectives,
assumptions, and information about future events, conditions,
results of operations, and 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.
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, access to sufficient
capital; 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 products; 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; renegotiations of
contracts; political uncertainty, including actions by insurgent
groups or other conflict; outcomes of litigation; the negotiation
and closing of material contracts; and other risks described in the
Company’s filings with the SEC.
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.
Enquiries:
Chad D. BurkhardtVice President, General Counsel
and Corporate Secretary+1 (214) 265-4705TransAtlantic Petroleum
Ltd.16803 Dallas ParkwayAddison, Texas
75001http://www.transatlanticpetroleum.com
Tudor Pickering Holt & Co. (London
office)TransAtlantic@tphco.com+44 20 7268 2857
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