Press release from GlobeNewswire (a Nasdaq OMX company)
TransAtlantic Petroleum Ltd. Provides Operational Update
Monday, July 22, 2013
TransAtlantic Petroleum Ltd. Provides Operational Update13:05 EDT Monday, July 22, 2013
HAMILTON, Bermuda, July 22, 2013 (GLOBE NEWSWIRE) -- TransAtlantic Petroleum Ltd. (TSX:TNP) (NYSE-MKT:TAT) (the "Company" or "TransAtlantic") today provided an operational update on its current drilling program.
The Company increased its rig count from two to five rigs in July 2013 and significantly increased its drilling activity in accordance with its three-part strategy in Turkey.
Southeastern Turkey – Selmo Field Redevelopment
TransAtlantic recently completed the Selmo-13H (100% working interest), the first horizontal well the Company has drilled in the Selmo Field. The well was drilled to a total measured depth of 7,966 feet in 22 days at a cost of approximately $2.2 million (15% below AFE and 50% below initial engineering estimates). Initial tests indicate that the well will produce approximately 200-525 barrels of oil per day ("BOPD") from the LSD zone from a natural completion. This was TransAtlantic's first completion in the LSD zone. As a result of the success of Selmo-13H, TransAtlantic will likely add additional LSD horizontal wells to its 2013 drilling schedule. The Company also plans to drill at least four additional horizontal wells in the MSD formation of the Selmo Field this year.
Southeastern Turkey – Molla Drilling Program
TransAtlantic recently completed the Bahar-2H horizontal well (100% working interest) which was the Company's first attempt to drill a horizontal well within the targeted Bedinan H-1 sand that was encountered in the Bahar-1 well. The Company was unable to encounter and stay within the target zone. A two-stage frac resulted in uneconomic production. TransAtlantic is currently plugging back to test the Hazro section, which tested 150 BOPD in the Bahar-1, and depending on results of the test, may elect to re-drill the well below 8,000 feet as a vertical Bedinan H-1 well.
Bahar-1 production has gradually declined to approximately 230 BOPD with no water production. The Company recently ran gas lift equipment on the well to increase production. Since December 1, 2012, the Bahar-1 has produced approximately 60,000 barrels of oil.
TransAtlantic will continue to delineate the Bedinan zone with vertical wells until 3D seismic of the area is available, which the Company expects will be in early 2014. TransAtlantic commenced an 800 square kilometer (300 square mile) 3D seismic program over Molla and the surrounding areas in May 2013.
TransAtlantic is currently drilling the Catak-1 (100% working interest), a vertical well targeting the Dadaş shales and Bedinan sandstones from approximately 9,500 to 11,000 feet. The Catak-1 is presently at a depth of 10,300 feet and is preparing to core the Dadaş and Bedinan formations. The well encountered multiple oil shows in the Mardin, Hazro, and Dadaş shale. The Company is encouraged by the mud logs and shows observed on the well.
In July 2013, TransAtlantic spud the Goksu-5H (100% working interest), the third horizontal well targeting the Mardin zone at a total measured depth of approximately 5,700 feet. The Goksu-5H is expected to cost $2.5 million and achieve target depth by the end of the month. The Company plans to drill five additional Mardin wells in the Molla area this year.
Northwestern Turkey – Thrace Basin Development
TransAtlantic recently drilled its first horizontal well in the Thrace Basin. The DTD-19HK (42% working interest) targeted the Kesan formation at a vertical depth of approximately 3,600 feet and total measured depth of 5,336 feet in Thrace Basin South. The well cost approximately $1.5 million. The Company expects to complete a seven-stage fracture stimulation on the DTD-19HK in the next several weeks and plans to drill three additional horizontal wells in Thrace Basin South.
TransAtlantic recompleted several Thrace Basin wells with hydraulic fracture stimulation in the second quarter of 2013 with the following results:
|Well||Target||Result (7-day avg)|
|MCFD: thousand cubic feet per day of natural gas|
(1) K-6 well tested at 3,500 MCFD and was put on
long term production with choke.
The Company also recompleted the Baglik-1, which tested at 2,000 MCFD and recompleted a well in Thrace Basin North that is producing 500 MCFD. These projects have increased TransAtlantic's Thrace Basin gross natural gas production to 25 million cubic feet per day, the highest level in recent Company history.
In the third quarter, the Company plans to drill the Göçerler-7, a conventional, vertical well targeting the Osmancık formation at a depth of approximately 5,500 feet in Thrace Basin Central.
In Thrace Basin North, TransAtlantic plans to drill six shallow, vertical natural gas prospects using efficient drilling techniques in 2013.
TransAtlantic Petroleum Ltd. is an international energy producer 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.)
This news release contains statements concerning the drilling and completion of wells, the production and sale of oil and natural gas, the acquisition of seismic data, 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 we carry 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.
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