8:08 am TransAtlantic Petroleum announced its capital expenditure budget for 2014; expected total net capital of $88.5 mln; expects to exit the year 2014 with a production rate of 6,000 -- 6,500 Boed. (TAT) :
TransAtlantic is focused on areas with known hydrocarbons and expects to target wells more efficiently in 2014 with the use of recently acquired 3D seismic. The Company believes its maintenance capital expenditures to sustain production flat at 5,000 Boed net (2013 year-end guidance) is approximately $37 mln. To maintain flat oil production of 3,000 Bopd net, TransAtlantic estimates a cost of $17 mln.
The Company estimates a cost of $20 mln to sustain flat natural gas production at 12 MMcf/d net. The Company plans to execute a $28 mln appraisal drilling campaign in the Bahar Field (100% working interest) in the Molla area of southeastern Turkey based on newly acquired 3D seismic. TransAtlantic expects to initially drill at least two vertical wells, including a vertical sidetrack of the Bahar-2H, to appraise the Bedinan and Hazro zones. Once the Company confirms geologic control, it may drill two-to-four horizontal development wells in the Bahar Field in 2014.
TransAtlantic will adjust its 2014 capital expenditures based on pending 3D seismic interpretation and drilling results. Actual expenditures are likely to deviate from the initial plan according to seismic interpretation, drilling results, commodity prices and cash flow.
TransAtlantic expects to fund its 2014 capital expenditures with cash on hand, cash flow and available credit.
TransAtlantic expects to exit the year 2014 with a production rate of 6,000 -- 6,500 Boed. The Company anticipates oil to comprise at least 70% of forecasted production.
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