TransAtlantic Petroleum Corp. (TSX:TNP.U) announces that it has signed a memorandum of understanding to acquire a producing salt dome unit located onshore in Galveston County, Texas. This acquisition is in furtherance of the Company's objectives of building a base of domestic US production while at the same time pursuing foreign initiatives.
The property being purchased is a faulted trap on the flank of a large salt dome covering approximately 6,000 acres with 61 wells on it. It currently produces a total of approximately 60 barrels equivalent per day from four wells. The Company believes the property has significant upside potential and plans to reenter existing wells and drill new wells to exploit the remaining reserves. The Company will pay $3.1 million cash and issue 500,000 shares (at market) and 500,000 warrants (exercise price $1 per share) for the property. The transaction is subject to completion of due diligence including satisfactory environmental reports, mutually agreeable documentation and appropriate regulatory approvals. The transaction is scheduled to close by March 15th.
TransAtlantic is engaged in the exploration, development and production of crude oil and natural gas the USA has interests in Nigeria and is pursuing other foreign opportunities.
(NO STOCK EXCHANGE, SECURITIES COMMISSION OR OTHER REGULATORY AUTHORITY HAS APPROVED OR DISAPPROVED THE INFORMATION CONTAINED HEREIN.)
Scott C. Larsen - (214) 220-4323
Address: 2200 Ross Ave., Suite 4560E
Dallas, Texas 75201
This press release includes projections and other "forward-looking" statements. All statements other than statements of historical facts included in this press release, including statements regarding projected reserves and upside potential are forward-looking statements. The statements involve risks that could significantly impact TransAtlantic Petroleum Corp. These projections and statements reflect the Company's current views with respect to future events and financial performance. No assurances can be given that these events will occur or that these projections will be achieved and actual results could differ materially from those projected. Important factors that could cause actual results to differ from the Company's expectations include, but are not limited to, adverse general economic conditions, operating hazards, drilling risks, inherent uncertainties in interpreting engineering and geological data, competition,reduced availability and costs of drilling and other well services, fluctuations in oil and gas prices, government regulation and foreign political risks, as well as other risks.