TransAtlantic Petroleum Ltd. (TSX: TNP) (NYSE
American: TAT) (the “Company” or “TransAtlantic”) today announced
the financial results for the quarter ended June 30, 2018 and
provided an operations update. Additional information can be found
on the Company’s website at http://www.transatlanticpetroleum.com.
Summary
- In update to the Company’s previously announced strategic
alternatives process, the special committee of the board of
directors has received several proposals to acquire the Company or
certain of its assets. Following evaluation of the proposals, the
special committee is currently in discussions with a potential
acquiror of the entire Company and expects to receive a formal
offer from such party and begin negotiating a letter of intent
within the next 30 days. There is no assurance that the Company
will receive an offer or enter into any agreement with such
party.
- Revenues for the second quarter of 2018 were $18.2 million, as
compared to $16.9 million for the first quarter of 2018 and $12.3
million for the second quarter of 2017.1
- Operating income for the second quarter of 2018 was $6.9
million, as compared to $4.8 million for the first quarter of 2018
and $2.1 million for the second quarter of 2017.
- Net loss was $1.0 million for the second quarter of 2018, as
compared to $1.8 million for the first quarter of 2018 and net
income of $0.6 million for the second quarter of 2017.
- Adjusted EBITDAX for the second quarter of 2018 was $8.7
million, as compared to $8.3 million for the first quarter of 2018
and $6.8 million for the second quarter of 2017.2
- Average daily net sales volumes were approximately 2,746
barrels of oil equivalent per day (“BOEPD”) in the second quarter
of 2018, as compared to 2,885 BOEPD in the first quarter of 2018
and 3,308 BOEPD in the second quarter of 2017.
- The Company’s year-to-date average daily net wellhead
production through July 2018 was approximately 2,885 BOEPD,
comprised of 2,772 barrels of oil per day (“BOPD”) and 0.7 million
cubic feet of natural gas per day (“MMCFPD”), and the Company’s
July 2018 average daily net wellhead production was approximately
3,103 BOEPD, comprised of 3,003 BOPD and 0.6 MMCFPD.
- Net debt as of June 30, 2018 was $11.5 million, as compared to
$8.2 million as of March 31, 2018.3
1 Beginning January 1, 2018, the Company adopted
Accounting Standards Update No. 2014-09, Revenue from Contacts with
Customers (Topic 606), requiring transportation and processing
expenses previously netted from revenue classified as expenses.
2 Adjusted EBITDAX is a non-GAAP financial
measure. See the reconciliation at the end of the press
release.
3 Net debt is a non-GAAP financial measure
consisting of total debt as reflected on the Company’s balance
sheet minus cash and cash equivalents as reflected on the Company’s
balance sheet. For June 30, 2018, total debt was $30.4 million, and
cash and cash equivalents was $18.9 million. For March 31, 2018,
total debt was $24.5 million, and cash and cash equivalents was
$16.3 million.
Second Quarter 2018 Results of
Operations
|
|
|
For the Three Months Ended |
|
|
June 30, 2018 |
|
|
March 31, 2018 |
|
|
June 30, 2017 |
|
Net Sales: |
|
|
|
|
|
|
|
|
|
|
|
Oil
(MBBL) |
|
241 |
|
|
|
248 |
|
|
|
290 |
|
Natural
gas (MMCF) |
|
56 |
|
|
|
67 |
|
|
|
66 |
|
Total net
sales (MBOE) |
|
250 |
|
|
|
260 |
|
|
|
301 |
|
Average
net sales (BOEPD) |
|
2,746 |
|
|
|
2,885 |
|
|
|
3,308 |
|
Realized Commodity
Prices: |
|
|
|
|
|
|
|
|
|
|
|
Oil
($/BBL unhedged) |
$ |
74.10 |
|
|
$ |
65.71 |
|
|
$ |
41.27 |
|
Oil
($/BBL hedged) |
$ |
66.37 |
|
|
$ |
60.32 |
|
|
$ |
41.38 |
|
Natural
gas ($/MCF) |
$ |
4.84 |
|
|
$ |
5.00 |
|
|
$ |
4.77 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues were $18.2 million for the three
months ended June 30, 2018, as compared to $16.9 million for the
three months ended March 31, 2018 and $12.3 million for the three
months ended June 30, 2017. The Company had a net loss of $1.0
million, or $0.02 per share (basic and diluted), for the three
months ended June 30, 2018, as compared to a net loss of $1.8
million, or $0.04 per share (basic and diluted), for the three
months ended March 31, 2018, and net income of $0.6 million, or
$0.01 per share (basic and diluted), for the three months ended
June 30, 2017. Capital expenditures and seismic and corporate
expenditures totaled $5.6 million for the three months ended June
30, 2018, as compared to $5.2 million for the three months ended
March 31, 2018 and $4.9 million for the three months ended June 30,
2017.
Adjusted EBITDAX for the three months ended June
30, 2018 was $8.7 million, as compared to $8.3 million for the
three months ended March 31, 2018 and $6.8 million for the three
months ended June 30, 2017.
Impact of Foreign Currency
Exchange
During the three months ended June 30, 2018,
accumulated other comprehensive loss increased $9.1 million to a
total of $136.2 million as of June 30, 2018, due primarily to
foreign exchange rate changes in Turkey compared to the U.S.
Dollar. The financial statement impact is 100% non-cash and is
reflected in other comprehensive (loss) income on the Consolidated
Statement of Comprehensive (Loss) Income and in shareholder’s
equity on the Summary Consolidated Balance Sheets. This adjustment
impacts the value of comprehensive income and shareholders’ equity
but does not impact net income or earnings per share.
The Company records its foreign operations’
assets, liabilities, and transactions in the functional currency,
which for Turkey is the New Turkish Lira and for Bulgaria is the
Bulgarian Lev. For more information regarding the effects of
foreign currency exchange on Company operations and reported
financial results, please refer to the Annual Report on Form 10-K
for the year ended December 31, 2017, filed with the Securities and
Exchange Commission (the “SEC”) on March 21, 2018, and the
Quarterly Report on Form 10-Q for the quarter ended June 30, 2018,
filed with the SEC on August 8, 2018.
Strategic Alternatives
Process
On January 16, 2018, the Company announced the
formation of a special committee of the board of directors to
market the Company and explore strategic alternatives to increase
shareholder value. Since that time, the special committee has
received several proposals to acquire the Company or certain of its
assets. Following evaluation of the proposals, the special
committee is currently in discussions with a potential acquiror of
the entire Company and expects to receive a formal offer from such
party and begin negotiating a letter of intent within the next 30
days. There is no assurance that the Company will receive an offer
or enter into any agreement with such party. The Company will
provide a further update at the appropriate time.
Costs associated with the strategic alternatives
process, which include professional expenses and travel, were
approximately $0.6 million for the three months ended June 30, 2018
and approximately $0.9 million for the six months ended June 30,
2018.
Operational Update
During the second quarter of 2018, the Company
spud one well and continued workover and recompletion production
optimizations in southeastern Turkey.
In January 2018, the Company announced a planned
drilling program in Southeast Turkey. This drilling program
consisted of a six-well development program in the Selmo field and
a two-well development program in the Molla area. Due to the
Company’s recent success with the Yeniev-1 well, the increase in
oil prices over the past six months, and optimism regarding the
potential of the Company’s licenses in the Thrace Basin’s Basin
Center Gas Accumulation (“Thrace Basin BCGA”), the Company has
adjusted its drilling program and capital expenditure allocations
for the remainder of 2018.
The following summarizes the Company’s
operations by location during the second quarter of 2018 and the
Company’s drilling plans by location for the remainder of 2018:
Southeastern Turkey
Selmo
In the second quarter of 2018, the Company
vertically completed the Selmo-81H2 well and established commercial
production of 68 BOPD.
Workover and recompletion production
optimizations in the Selmo field are ongoing, but the Company does
not expect to drill additional wells in the Selmo field in the
second half of 2018.
Molla
Bahar
The Company spud the Bahar-8 well targeting the
Bedinan, Hazro, and Mardin formations in June 2018 and completed
drilling and casing the well in July 2018. Oil shows were observed
in all targeted zones. the Company expects to complete the Bahar-8
well in the third quarter of 2018.
After drilling the Bahar-8 well, the Company
moved the rig to the Bahar-10 well location and spud the Bahar-10
well on August 5, 2018. In the fourth quarter of 2018, the Company
plans to drill an additional well on the southeastern flank of the
Bahar field to test the Dadas Sand, Mardin, and Bedinan
formations.
Other
In the second quarter of 2018, the Company
drilled the Yeniev-1 well to a total depth of 10,306 feet. Oil
shows while drilling and log analysis indicate prospective pay in
the Bedinan, Hazro, and Mardin formations. The Company perforated
the first zone in the Bedinan formation on June 28, 2018. The
initial production rate for this zone was 730 BOPD from a 24/64
choke and the current production rate is 375 BOPD from a 16/64
choke.
The Yeniev-1 well is a discovery on a new
structure in the Molla area, opening up potentially significant
drilling locations and potentially leading to additional
development drilling. The Company expects to drill two additional
wells to further delineate this structure in the second half of
2018.
The Company continues to test the Cavuslu-1 well
following the discovery of hydrocarbons in the Bedinan and Dadas
formations. The Company recently completed the Mardin zone at 25-40
BOPD after acid stimulation. The Company will test this isolated
zone for approximately 30 days. Following this testing, the Company
expects to begin long-term production in one or more of the tested
zones.
On June 12, 2018, the Company was awarded a
production license for the M44-b2-1 block, which covers 37,700
acres contiguous to its acreage in West Molla. This license
includes the Catak, Pinar, and Yeniev wells.
The Company expects to fracture stimulate the
Bedinan formation in the Pinar-1 well during the third quarter of
2018.
The Company has completed the 3D seismic
processing and initial interpretation of its East Molla 3D seismic
and has identified several prospects, which the Company expects to
drill in the first half of 2019, contingent on financing.
Northwestern Turkey
Thrace Basin
Thrace Basin BCGA
The Company continues to evaluate its prospects
in the Thrace Basin BCGA in light of the recent positive production
test results at the Yamalik-1 exploration well operated by Valeura
Energy Inc. (“Valeura”) with their partner Equinor ASA (formerly
Statoil ASA) (“Equinor”). The Yamalik-1 exploration well is located
on a license 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% working interest, 87.5% net revenue
interest) is in the Thrace Basin BCGA and analogous to the Valeura
and Equinor acreage. The Company expects to spud the Karli-1 well,
a gas exploration well in the Thrace Basin BCGA, in the fourth
quarter of 2018. The Company will test zones and depths at the
Karli-1 well equivalent to those tested at the Yamilik-1 well.
Other
The Company expects to resume production
operations on the Yildurm-1 well in the second half of 2018
Bulgaria
The Company has prepared plans to side track and
re-drill the Devinci R-1 well, which the Company plans to commence
in the third quarter of 2018.
The Company’s year-to-date average daily net
wellhead production through July 2018 was approximately 2,885
BOEPD, comprised of 2,772 BOPD and 0.7 MMCFPD, and the Company’s
July 2018 average daily net wellhead production was approximately
3,103 BOEPD, comprised of 3,003 BOPD and 0.6 MMCFPD.
Conference
Call
Due to the continuation of the strategic
alternatives process, the Company has decided not to hold an
earnings call to discuss its results for the second quarter of
2018.
Quarterly Report on Form
10-Q
On August 8, 2018, the Company filed its
Quarterly Report on Form 10-Q for the quarter ended June 30,
2018.
TransAtlantic Petroleum
Ltd.Consolidated Statements of Comprehensive
Income (Loss) (Unaudited)(U.S.
Dollars and shares in thousands, except per share
amounts)
|
|
|
|
|
|
|
For the Three MonthsEnded |
|
|
For the Six MonthsEnded |
|
|
June 30, |
|
|
June 30, |
|
|
2018 |
|
|
2017 |
|
|
2018 |
|
|
2017 |
|
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oil and
natural gas sales |
$ |
18,100 |
|
|
$ |
12,283 |
|
|
$ |
34,761 |
|
|
$ |
28,051 |
|
Sales of
purchased natural gas |
|
1 |
|
|
|
- |
|
|
|
1 |
|
|
|
654 |
|
Other |
|
97 |
|
|
|
58 |
|
|
|
362 |
|
|
|
72 |
|
Total revenues |
|
18,198 |
|
|
|
12,341 |
|
|
|
35,124 |
|
|
|
28,777 |
|
Costs and
expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production |
|
2,803 |
|
|
|
2,714 |
|
|
|
5,672 |
|
|
|
5,801 |
|
Transportation and processing |
|
1,138 |
|
|
|
- |
|
|
|
2,331 |
|
|
|
- |
|
Exploration, abandonment and impairment |
|
191 |
|
|
|
2 |
|
|
|
231 |
|
|
|
108 |
|
Cost of
purchased natural gas |
|
1 |
|
|
|
- |
|
|
|
1 |
|
|
|
568 |
|
Seismic
and other exploration |
|
59 |
|
|
|
65 |
|
|
|
218 |
|
|
|
80 |
|
General
and administrative |
|
3,786 |
|
|
|
3,181 |
|
|
|
7,123 |
|
|
|
6,771 |
|
Depreciation, depletion and amortization |
|
3,276 |
|
|
|
4,255 |
|
|
|
7,735 |
|
|
|
8,752 |
|
Accretion
of asset retirement obligations |
|
43 |
|
|
|
47 |
|
|
|
89 |
|
|
|
95 |
|
Total costs and expenses |
|
11,297 |
|
|
|
10,264 |
|
|
|
23,400 |
|
|
|
22,175 |
|
Operating income |
|
6,901 |
|
|
|
2,077 |
|
|
|
11,724 |
|
|
|
6,602 |
|
Other income
(expense): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss on
sale of TBNG |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(15,226 |
) |
Interest
and other expense |
|
(2,091 |
) |
|
|
(2,288 |
) |
|
|
(4,873 |
) |
|
|
(4,659 |
) |
Interest
and other income |
|
377 |
|
|
|
188 |
|
|
|
631 |
|
|
|
481 |
|
(Loss)
gain on derivative contracts |
|
(3,141 |
) |
|
|
676 |
|
|
|
(3,866 |
) |
|
|
1,664 |
|
Foreign
exchange (loss) gain |
|
(1,938 |
) |
|
|
1,116 |
|
|
|
(3,996 |
) |
|
|
(1,007 |
) |
Total other expense |
|
(6,793 |
) |
|
|
(308 |
) |
|
|
(12,104 |
) |
|
|
(18,747 |
) |
Income (loss)
from operations before income taxes |
|
108 |
|
|
|
1,769 |
|
|
|
(380 |
) |
|
|
(12,145 |
) |
Income
tax expense |
|
(1,114 |
) |
|
|
(1,203 |
) |
|
|
(2,401 |
) |
|
|
(3,338 |
) |
Net income
(loss) |
|
(1,006 |
) |
|
|
566 |
|
|
|
(2,781 |
) |
|
|
(15,483 |
) |
Other
comprehensive income (loss): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign
currency translation adjustment |
|
(9,109 |
) |
|
|
2,132 |
|
|
|
(11,452 |
) |
|
|
23,051 |
|
Comprehensive
(loss) income |
$ |
(10,115 |
) |
|
$ |
2,698 |
|
|
$ |
(14,233 |
) |
|
$ |
7,568 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings
(loss) per common share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic net
earnings (loss) per common share |
$ |
(0.02 |
) |
|
$ |
0.01 |
|
|
$ |
(0.06 |
) |
|
$ |
(0.33 |
) |
Weighted
average common shares outstanding |
|
50,420 |
|
|
|
47,412 |
|
|
|
50,397 |
|
|
|
47,355 |
|
Diluted
net earnings (loss) per common share |
$ |
(0.02 |
) |
|
$ |
0.01 |
|
|
$ |
(0.06 |
) |
|
$ |
(0.33 |
) |
Weighted
average common and common equivalent sharesoutstanding |
|
50,420 |
|
|
|
47,826 |
|
|
|
50,397 |
|
|
|
47,355 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TransAtlantic Petroleum
Ltd.Summary of Consolidated Statements of Cash
Flows (Unaudited)(in thousands of U.S.
Dollars)
|
|
|
For the Six Months Ended June 30, |
|
|
2018 |
|
|
2017 |
|
Net cash provided by
operating activities |
$ |
12,234 |
|
|
$ |
13,577 |
|
Net cash provided by
(used in) investing activities |
|
(11,446 |
) |
|
|
6,092 |
|
Net cash provided by
(used in) financing activities |
|
1,735 |
|
|
|
(15,555 |
) |
Effect of exchange rate
changes on cash |
|
(4,104 |
) |
|
|
(1,713 |
) |
Net increase (decrease)
in cash, cash equivalents, and restricted cash |
$ |
(1,581 |
) |
|
$ |
2,401 |
|
|
|
|
|
|
|
|
|
TransAtlantic Petroleum
Ltd.Summary Consolidated Balance
Sheets(in thousands of U.S. Dollars, except share
data)
|
|
|
June 30, 2018 |
|
|
December 31, 2017 |
|
|
(unaudited) |
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
Current
assets: |
|
|
|
|
|
|
|
Cash and
cash equivalents |
$ |
18,715 |
|
|
$ |
18,926 |
|
Accounts
receivable, net |
|
|
|
|
|
|
|
Oil
and natural gas sales |
|
17,997 |
|
|
|
15,808 |
|
Joint interest and other |
|
1,121 |
|
|
|
1,576 |
|
Related party |
|
1,153 |
|
|
|
1,023 |
|
Prepaid
and other current assets |
|
7,333 |
|
|
|
3,866 |
|
Inventory |
|
6,198 |
|
|
|
7,494 |
|
Total current assets |
|
52,517 |
|
|
|
48,693 |
|
Property and
equipment: |
|
|
|
|
|
|
|
Oil and
natural gas properties (successful efforts method) |
|
|
|
|
|
|
|
Proved |
|
173,942 |
|
|
|
193,647 |
|
Unproved |
|
15,969 |
|
|
|
24,445 |
|
Equipment
and other property |
|
12,525 |
|
|
|
14,075 |
|
|
|
202,436 |
|
|
|
232,167 |
|
Less accumulated depreciation, depletion and
amortization |
|
(114,109 |
) |
|
|
(129,183 |
) |
Property
and equipment, net |
|
88,327 |
|
|
|
102,984 |
|
Other long-term
assets: |
|
|
|
|
|
|
|
Other
assets |
|
661 |
|
|
|
2,247 |
|
Note
receivable - related party |
|
6,287 |
|
|
|
6,726 |
|
Total
other assets |
|
6,948 |
|
|
|
8,973 |
|
Total
assets |
$ |
147,792 |
|
|
$ |
160,650 |
|
LIABILITIES,
SERIES A PREFERRED SHARES AND SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
|
Current
liabilities: |
|
|
|
|
|
|
|
Accounts
payable |
$ |
5,588 |
|
|
$ |
4,853 |
|
Accounts
payable - related party |
|
3,388 |
|
|
|
3,141 |
|
Accrued
liabilities |
|
11,990 |
|
|
|
10,014 |
|
Derivative liability |
|
2,882 |
|
|
|
2,215 |
|
Asset
retirement obligations - current |
|
4 |
|
|
|
- |
|
Loans
payable |
|
19,175 |
|
|
|
15,625 |
|
Total current liabilities |
|
43,027 |
|
|
|
35,848 |
|
Long-term
liabilities: |
|
|
|
|
|
|
|
Asset
retirement obligations less current portion |
|
4,143 |
|
|
|
4,727 |
|
Accrued
liabilities |
|
7,838 |
|
|
|
8,810 |
|
Deferred
income taxes |
|
16,957 |
|
|
|
19,611 |
|
Loans
payable |
|
11,200 |
|
|
|
13,000 |
|
Total long-term liabilities |
|
40,138 |
|
|
|
46,148 |
|
Total
liabilities |
|
83,165 |
|
|
|
81,996 |
|
Commitments and
contingencies |
|
|
|
|
|
|
|
Series A
preferred shares, $0.01 par value, 426,000 shares authorized;
426,000shares issued and outstanding with a liquidation preference
of $50 per share as ofJune 30, 2018 and December 31, 2017 |
|
21,300 |
|
|
|
21,300 |
|
Series A
preferred shares-related party, $0.01 par value, 495,000
sharesauthorized; 495,000 shares issued and outstanding with a
liquidation preference of$50 per share as of June 30, 2018 and
December 31, 2017 |
|
24,750 |
|
|
|
24,750 |
|
Shareholders'
equity: |
|
|
|
|
|
|
|
Common
shares, $0.10 par value, 100,000,000 shares authorized;
50,591,375shares and 50,319,156 shares issued and outstanding as of
June 30, 2018 andDecember 31, 2017, respectively |
|
5,059 |
|
|
|
5,032 |
|
Treasury
stock |
|
(970 |
) |
|
|
(970 |
) |
Additional paid-in-capital |
|
575,591 |
|
|
|
575,411 |
|
Accumulated other comprehensive loss |
|
(136,218 |
) |
|
|
(124,766 |
) |
Accumulated deficit |
|
(424,884 |
) |
|
|
(422,103 |
) |
Total shareholders' equity |
|
18,578 |
|
|
|
32,604 |
|
Total
liabilities, Series A preferred shares and shareholders'
equity |
$ |
147,792 |
|
|
$ |
160,650 |
|
|
|
Reconciliation of Net Loss to Adjusted
EBITDAX (Unaudited)(in thousands of U.S.
Dollars)
|
|
|
For the Three Months Ended |
|
|
For the Six Months Ended |
|
|
June 30,2018 |
|
|
Mar 31,2018 |
|
|
June 30,2017 |
|
|
June 30,2018 |
|
|
June 30,2017 |
|
Net loss |
$ |
(1,006 |
) |
|
$ |
(1,775 |
) |
|
$ |
566 |
|
|
$ |
(2,781 |
) |
|
$ |
(15,483 |
) |
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
and other, net |
|
1,714 |
|
|
|
2,528 |
|
|
|
2,100 |
|
|
|
4,242 |
|
|
|
4,178 |
|
Current
and deferred income tax expense |
|
1,114 |
|
|
|
1,287 |
|
|
|
1,203 |
|
|
|
2,401 |
|
|
|
3,338 |
|
Exploration, abandonment, and impairment |
|
191 |
|
|
|
40 |
|
|
|
2 |
|
|
|
231 |
|
|
|
108 |
|
Seismic
and other exploration expense |
|
59 |
|
|
|
159 |
|
|
|
65 |
|
|
|
218 |
|
|
|
80 |
|
Foreign
exchange loss (gain) |
|
1,938 |
|
|
|
2,058 |
|
|
|
(1,116 |
) |
|
|
3,996 |
|
|
|
1,007 |
|
Share-based compensation expense |
|
117 |
|
|
|
101 |
|
|
|
278 |
|
|
|
218 |
|
|
|
414 |
|
(Gain)
loss on commodity derivative contracts |
|
3,141 |
|
|
|
725 |
|
|
|
(676 |
) |
|
|
3,866 |
|
|
|
(1,664 |
) |
Cash
settlements on commodity derivative contracts |
|
(1,860 |
) |
|
|
(1,339 |
) |
|
|
32 |
|
|
|
(3,200 |
) |
|
|
32 |
|
Accretion
of asset retirement obligation |
|
43 |
|
|
|
46 |
|
|
|
47 |
|
|
|
89 |
|
|
|
95 |
|
Depreciation, depletion, and amortization |
|
3,276 |
|
|
|
4,459 |
|
|
|
4,255 |
|
|
|
7,735 |
|
|
|
8,752 |
|
Loss on
sale of TBNG |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
15,226 |
|
Net other
items |
|
|
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
30 |
|
Adjusted EBITDAX |
$ |
8,727 |
|
|
$ |
8,289 |
|
|
$ |
6,756 |
|
|
$ |
17,015 |
|
|
$ |
16,113 |
|
|
Adjusted EBITDAX (“Adjusted EBITDAX”) is a
non-GAAP financial measure that represents net loss plus interest
and other, net, current and deferred income tax expense,
exploration, abandonment, and impairment, seismic and other
exploration expense, foreign exchange loss (gain), share based
compensation expense, loss (gain) on commodity derivative
contracts, cash settlements on commodity derivative contracts,
accretion of asset retirement obligation, depreciation, depletion,
and amortization, loss on sale of TBNG, and net other items.
The Company believes Adjusted EBITDAX assists
management and investors in comparing the Company’s performance on
a consistent basis without regard to depreciation, depletion, and
amortization and impairment of oil and natural gas properties and
exploration expenses, among other items, which can vary
significantly from period to period. In addition, management uses
Adjusted EBITDAX as a financial measure to evaluate the Company’s
operating performance.
Adjusted EBITDAX is not a measure of financial
performance under GAAP. Accordingly, it should not be considered as
a substitute for net income or income prepared in accordance with
GAAP. Net income or income may vary materially from Adjusted
EBITDAX. Investors should carefully consider the specific items
included in the computation of Adjusted EBITDAX.
About TransAtlantic
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 Company’s strategic alternatives process, the Company’s
drilling program, the evaluation of the Company’s prospects in the
Selmo field and the Molla area of southeastern Turkey, the Thrace
Basin in northwestern Turkey, and Bulgaria, the drilling,
completion, and cost of wells, the production and sale of oil and
natural gas, the holding of an earnings conference call, and the
issuance of an operations update, 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.
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 of natural gas (“MCF”) to one stock tank
barrel, or 42 U.S. gallons liquid volume (“BBL”), of oil. A BOE
conversion ratio of six MCF to one 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.
Contacts:
Chad D. BurkhardtVice President, General Counsel
and Corporate Secretary(214) 265-4705
TransAtlantic Petroleum Ltd.16803 Dallas
ParkwayAddison, Texas
75001http://www.transatlanticpetroleum.com
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