Turkish
Projects
Projects
Turkey
Thrace Selmo Arpatepe


Acres
Asset Interest Gross Net
Selmo Oil Field 100% 11,108 11,108
Thrace Basin 55%-100% 1,052,559 773,263
Bakuk (License 4069) 50% 96,000 48,000
Paleozoic Trend 50% 95,991 47,996
Southeast 98% 620,860 607,160
Tuz Golu Basin 100% 870,020 870,020
Gurun Basin 97% 367,581 355,356
Malatya Basin 100% 716,288 716,288
Adana (Zorlu-Non Thrace Licenses) Basin 100% 120,674 120,674
TOTAL 3,951,081 3,549,866
Commercial Terms
Licensing Regime


Acres
Asset Interest Gross Net
Selmo Oil Field 100% 11,108 11,108
Thrace Basin 55%-100% 1,052,559 773,263
Bakuk (License 4069) 50% 96,000 48,000
Paleozoic Trend 50% 95,991 47,996
Southeast 98% 620,860 607,160
Tuz Golu Basin 100% 870,020 870,020
Gurun Basin 97% 367,581 355,356
Malatya Basin 100% 716,288 716,288
Adana (Zorlu-Non Thrace Licenses) Basin 100% 120,674 120,674
TOTAL 3,951,081 3,549,866
Commercial Terms
Licensing Regime


Selmo Oil Field


Interest: 100%
Basin: Southeast
Acres: 11,108

Selmo is located in southeastern Turkey and north of the prolific Zagros fold belt, which encompasses the oil fields of Iran and Iraq. Selmo is the second largest oil field in Turkey (by cumulative production) and is estimated to have approximately 600 million barrels ("mmbls") of oil in place, with approximately 85 mmbls produced to date. API of 34 degrees.

Selmo was discovered by Mobil in 1964 and began producing in the same year. Mobil operated the field until 1992 when the field was sold to Petrom, the Romanian state oil company. Petrom operated the field for five years before selling it to Valentia Exploration in 2001, which subsequently sold the field to Incremental Petroleum in 2005.

When TransAtlantic closed the acquisition of Incremental Petroleum in March 2009, 47 wells had been drilled in the Selmo production license, 23 of which were still producing with an average recovery per well of 1.7 mmbls.

The Company is currently running two drilling rigs. For the most recent information regarding Selmo oil field, please download TransAtlantic's investor presentation. For photos of Selmo oil field, please visit the gallery.

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Thrace Basin


Interest: 50% - 100%
Basin: Thrace
Acres: 1,419,125 / 1,065,519

The Thrace Basin is located in the North West part of Turkey. The Thrace Basin is the largest and thickest Tertiary sedimentary in onshore Turkey and is the country's most productive onshore gas province.

Turkey's relatively high gas prices, established infrastructure, good quality reservoirs, and low-cost drilling generate excellent economics for Thrace's conventional gas play.

Frac Potential

With the acquisition of Zorlu and the JV with TPAO, the company has identified a number of wells to re-enter and fracture stimulate tight sands that previously tested gas.Many of these wells sit on structures. If commercial flow rates are achieved by the fracture stimulation, then the company would move to commercialize the structure.

The Company plans to be very active in the Thrace Basin. For the most recent information regarding Thrace Basin, please download TransAtlantic's investor presentation. For photos of Thrace Basin, please visit the gallery.

Return to the Turkey Project Page Bakuk (License 4069)
Interest: 50%
Acres: 96,000 / 48,000

During April and May 2010, with our partner and operator, Tiway Turkey, Ltd. ("Tiway"), we drilled a successful natural gas well, the Bakuk-101, with potential production of up to 10.0 million cubic feet of natural gas per day. Bakuk-101 is located on License 4069, which covers 96,000 acres in southeastern Turkey. We are now evaluating options for further appraisal of the reservoir. As a result of drilling the Bakuk-101 well, we have earned a 50% interest in License 4069.




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Paleozoic Trend



In July 2009, TransAtlantic acquired Energy Operations Turkey, LLC ("EOT") for $7.75 million. EOT's assets include a 50% interest in License 3118, where in 2008 EOT participated in two oil discoveries, interests in ten other exploration licenses, inventory and seismic data. The acquisition provides TransAtlantic with the opportunity to expand its operations, achieve scale, and extend its vertical integration strategy in southeastern Turkey.

License 3118 is located near the city of Diyarbakir in southeastern Turkey. In April and September 2008, EOT participated in the drilling of the Arpatepe-1 and Arpatepe-2 wells, which represent Turkey's first and second economic discoveries of crude oil from deeper, Paleozoic sandstone formations. The wells, which flowed naturally from Bedinan sandstones and were not stimulated, had initial production rates of 440 and 190 gross barrels per day from limited perforations. In early March 2010, the Company acidized Arpatepe-1 which resulted in a production increase to 500 BOPD.

Currently, we are acquiring 270 sqkm of 3D and expect to re-commence drilling after the shoot. For the most recent information regarding License 3118 / Arpatepe, please download TransAtlantic's investor presentation. For photos of Arpatepe, please visit the gallery.

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Commercial Terms



Royalties are 12.5% and corporate income tax is 20%. Licenses have a four-year term. If a well has not been drilled by the end of the third year, a bond of $50,000 must be posted to extend the license. If the Company drills in the fourth year, the bond is returned. If not, the bond is forfeited. License awards are based upon a committed work program that may involve some or all of geological and geophysical work, seismic reprocessing and interpretation, and contingent shooting of seismic and drilling.



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Licensing Regime



The licensing process in Turkey for oil & gas concessions occurs in three stages: permit, license, and lease. Under a permit, the Government grants the non-exclusive right to conduct geological investigation over an area. The size and term of the permit are subject to discretion of the General Directorate of Petroleum Affairs ("GDPA"), the regulator of oil & gas activities under the Ministry of Energy and Natural Resources.

A license grants exclusive rights for petroleum exploration. A license has a term of four years and requires drilling activities in the third year. This obligation may be deferred into a future year by posting a cash bond. After the initial four years, the license may be extended for up to two, two-year extensions. No single company may own more than eight licenses within a district. Rentals are due annually based on hectares under license.

Upon a discovery on a license, the license holder applies to convert the productive area to a lease, not to exceed 25,000 hectares. Under both a license and a lease, the lessee may produce oil & gas. The term of a lease is for 20 years. Annual rentals are due based on hectares under lease.



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