TransAtlantic Petroleum Corp.: Announces Farmout of Turkey Exploration Licenses With Exploration Well to Be Drilled Later This Year
CALGARY, ALBERTA–( EMWNews – March 31, 2008) – TransAtlantic Petroleum Corp. (TSX:TNP) announces it has farmed out Blocks 4173 and 4174, two of its exploration licenses in southeastern Turkey, to an oil and gas exploration company with operations in Turkey.
In exchange for a 75% interest in both the exploration licenses, the company will drill an exploration well before the end of this year to test the Bedinan Ordivician formation (approximately 3,700 meters) on one of the licenses. TransAtlantic will own a 25% interest in both licenses and will be carried through the costs of testing the well.
The company farming into the blocks will become the operator of Blocks 4173 and 4174. Transfer of the interests in the licenses is subject to government regulatory approval. If the exploration well leads to a commercial discovery, the license on which the well is drilled would be converted to a 20-year production lease (extendable for a further 20 years in two 10-year increments) which would bear a 12.5% royalty. Currently, the tax rate in Turkey on net corporate income is 20% (subject to a further 15% withholding tax on profits transferred out of Turkey).
In other news, the holder of the option on Block 4175 has determined not to exercise the option. TransAtlantic is continuing its planned geochemical sampling and analysis on Block 4175 and its ongoing discussions with other parties interested in developing the exploration potential of the block.
TransAtlantic is engaged in the exploration, development and production of crude oil and natural gas in Morocco, Turkey and Romania. Common shares of TransAtlantic are listed on the Toronto Stock Exchange under the symbol “TNP.”
This news release contains statements concerning drilling plans, plans to acquire seismic data, plans to conduct technical studies, estimates of the costs to drill or acquire the seismic and conduct studies and estimates of when such plans will be executed as well as other expectations, plans, goals, objectives, assumptions, information or statements 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, oil and gas prices remaining relatively consistent with their current prices, access to the fields, availability of drilling rigs and other equipment, obtaining drilling success consistent with expectations, regulatory approvals being obtained and estimated timelines being met and the actual costs being consistent with estimated costs.
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 the political stability of Turkey, reliance on Turkey’s current hydrocarbon and tax laws and regulations, operating hazards, drilling risks, inherent uncertainties in interpreting engineering and geological data, competition, reduced availability of drilling and other well services, volatility of oil and gas prices, fluctuations in currency and interest rates, The Company’s ability to access external sources of debt and equity capital, imprecision in estimating the timing and costs of drilling and development, the Company’s ability to secure adequate product transportation, changes in environmental and other regulations or the interpretation of such regulations, the ability to obtain necessary regulatory approvals, weather and general economic and business conditions.
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.
(NO STOCK EXCHANGE, SECURITIES COMMISSION OR OTHER REGULATORY AUTHORITY HAS APPROVED OR DISAPPROVED THE INFORMATION CONTAINED HEREIN.)
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