OilVoice - TransAtlantic Petroleum Reports 2Q Results and Updates Drilling Activity

TransAtlantic Petroleum Reports 2Q Results and Updates Drilling Activity

Friday, August 14, 2009

TransAtlantic Petroleum Corp. has announced today its financial results for the quarter ended June 30, 2009. The Company's financial results are prepared in accordance with U.S. GAAP and the reporting currency is U.S. dollars.

Selected Financial Highlights
Petroleum revenues for the second quarter of 2009 were $7.4 million, up from $47,000 in the second quarter of 2008. This increase is due to the acquisition of Incremental Petroleum Limited ("Incremental") and its operating revenues from the Selmo oil field in Turkey. Total production from the Selmo oil field for the three months ended June 30, 2009 was 143,735 gross barrels, or 1,580 barrels per day. The Company sold 124,368 barrels net of royalty at an average realized price of $59.59 per barrel during the second quarter of 2009.

The consolidated net loss for the second quarter of 2009 was $7.1 million, or $0.04 per diluted share, compared to consolidated net loss of $920,000, or $0.01 per diluted share for the second quarter of 2008. The net loss for the second quarter of 2009 is primarily composed of production expenses of $2.2 million, seismic and other exploration costs of $1.2 million, depreciation, depletion and amortization expense of $2.5 million, general and administrative expense of $3.1 million, international oil and gas activities expense of $2.2 million and interest and other expense of $1.7 million.

The consolidated net loss for the six months ended June 30, 2009 was $20.6 million, or $0.13 per diluted share, compared to consolidated net loss of $2.0 million, or $0.04 per diluted share, for the six months ended June 30, 2008. The net loss for the first six months of 2009 is primarily composed of production expenses of $3.2 million, seismic and other exploration costs of $3.6 million, depreciation, depletion and amortization expense of $3.8 million, general and administrative expense of $4.8 million, international oil and gas activities expense of $5.6 million, interest and other expense of $2.4 million and a foreign exchange loss of $4.2 million related to the Company's financing of the acquisition of Incremental in the first quarter of 2009.

As of June 30, 2009, the Company had cash and cash equivalents of $79.1 million, $2.8 million in short-term debt, $492,000 in long-term debt, and working capital of $64.4 million compared to cash and cash equivalents of $30.1 million, no debt, and working capital of $28.9 million at December 31, 2008.

Drilling Update
The Company is now drilling in Turkey, Morocco, and Romania. "Our pace of activity is beginning to accelerate as the crews become more familiar with the rigs and we near completion of shipping on our major supply and maintenance stock piles," said Malone Mitchell, the Company's chairman.

In southeastern Turkey, the Company has drilled the Atesler #1 well and encountered mud log and sample oil shows in the Mardin dolomite, the target formation. Completion efforts on the well are underway. The Company has also commenced drilling the S-54 well, its first well in the Selmo oil field, and is near total depth.

The Company has conducted operations on 4 wells in the Edirne gas field in the Thrace Basin in northwestern Turkey. Two wells were drilled and four wells, including the two wells drilled, were completed. The Company expects to begin selling gas from the Edirne gas field in the fourth quarter of 2009, subject to completion of a gas gathering facility.

In Morocco, the Company is one exploration well on the Ouezzane-Tissa exploration permit and one well on the Tselfat exploration permit. The Company has switched to an oil-based mud system to alleviate drilling problems encountered. "Our learning curve is improving. I do know that we will get better and that we have saved money utilizing our own equipment rather than outside contractors," Mr. Mitchell added.

In Romania, the Company has drilled two wells on the Izvoru license. The Company expects to complete those wells in the fourth quarter of 2009.