Operational Updates | Drilling & Completions | Seismic | Key Wells

TransAtlantic to Grow Turkish Ops in 2H; Three More Wells

Share Print Bookmark    |    Friday,July 10,2015

TransAtlantic Petroleum Ltd. provided an operational update on its current drilling program.

Operational Update

TransAtlantic's current net production rate is approximately 5,700 BOEPD, comprised of approximately 4,500 BOPD of oil and approximately 7.2 MMCFPD of natural gas. In the second quarter of 2015, TransAtlantic had average net production of approximately 5,900 BOEPD, a 6% decrease from net production in the first quarter of 2015 and an 18% increase over net production in the second quarter of 2014. Net production for the second quarter of 2015 was comprised of approximately 4,560 BOPD of oil and 8.0 MMCFPD of natural gas. In the second quarter of 2015, the Company resumed drilling on the Delvina-34 well in Albania, began drilling the Bahar-9 and drilled the South Goksu-1 wells in Southeast Turkey, and commenced workover activity in the Albanian oil fields.

Southeastern Turkey -- Şelmo Field

TransAtlantic's second quarter net production in the Şelmo field averaged approximately 2,660 BOPD. The Company continues its waterflood program in the Şelmo field and is in the process of expanding the waterflood infrastructure to the western part of the field. Production in the Şelmo field was slightly lower than expected due to increased downtime related to maintenance during the quarter.

Southeastern Turkey -- Molla Drilling Program

TransAtlantic's second quarter net production in the Molla area averaged approximately 1,130 BOPD. TransAtlantic is currently drilling the Bahar-9 well (100% working interest). The well will be drilled to a total depth of 10,600-feet. Currently, the Company is setting 7" intermediate casing at a depth of approximately 8,500 feet in the Mardin, which developed more porosity than offsetting wells. The well is targeting the Bedinan, Dadas, and Hazro zones.

In the second quarter of 2015, TransAtlantic drilled the South Goksu-1 well (50% working interest), a 5,900 foot exploratory well drilled two miles south of the Goksu field. The Company has plans to complete the well, which targets the Mardin formation, in the third quarter of 2015.

In the second quarter of 2015 the Company attempted to complete the Pinar-1 well, an 11,700-foot vertical exploration well drilled to test a separate 3D seismic structure west of the Bahar field. Log analysis indicates approximately 100 feet of potential pay zone in the Bedinan formation. However, due to irretrievable stuck casing issues encountered during completion operations, the well will be sidetracked at about 9,700 feet and the bottom 2,000 feet of the well re-drilled.

TransAtlantic expects to continue development of the Bahar field and exploration in the Molla Area with the spudding of 3 additional Bahar field wells in the second half of 2015.

Northwestern Turkey -- Thrace Basin Development

TransAtlantic's first quarter net production from the Thrace Basin averaged approximately 8.0 MMCFPD. The Company is currently finalizing plans on its Thrace drilling program for the second half of 2015.

Albania

TransAtlantic's current production in Albania is approximately 1,340 BOPD gross and 860 BOPD net. The Company is currently drilling the Delvina-34H1, a Cretaceous, deviated well, at a depth of 6,533 feet with a proposed target depth of 13,000 feet. Late in the second quarter of 2015, TransAtlantic began a workover program in its Albanian oil fields with the installation of 13 new downhole pumps and is experiencing positive production results to date.

Hedge Update

On June 10, 2015 TransAtlantic placed additional zero premium collars with a floor price of $66.50 for a portion of its Turkey oil production through 2016. On July 8, 2015 the overall hedge portfolio was valued at approximately $34 million. The Company continues to closely monitor the commodity price environment and will adjust its position as opportunities arise.