TransAtlantic Petroleum Ltd. is a vertically integrated, international energy company engaged in the acquisition, development, exploration, and production of crude oil and natural gas. The Company holds interests in developed and undeveloped oil and gas properties in Turkey, Morocco, Bulgaria and Romania. The Company owns its own drilling rigs and oilfield service equipment, which it uses to develop its properties in Turkey and Morocco. In addition, the Company's drilling services business provides oilfield services and drilling services to third parties in Turkey and Iraq.
The Company's common stock trades on the Toronto Stock Exchange under ticker symbol TNP and the NYSE Amex under ticker symbol TAT.
TransAtlantic Petroleum Corp. was incorporated in 1985 under the laws of British Columbia and changed domicile to Alberta in 1997.
In 1992, The Company acquired a 30% interest in OML 109, a 215,000-acre concession located offshore Nigeria. TransAtlantic successfully drilled a discovery well in 1994 and an appraisal well in 1995 in the Ejulebe field on OML 109, and contracted with a service provider to develop the field. Production began in September 1998, and the Ejulebe field produced approximately 11 million barrels of crude oil as of December 2005. Following its participation in OML 109, TransAtlantic drilled several exploration wells offshore from Benin and onshore in Tunisia. Additionally, TransAtlantic attempted to exploit two onshore Egyptian oil and gas exploration blocks.
During 2005, 2006 and 2007, the Company focused on acquiring high-impact international properties, evaluating and acquiring lower-risk cash flow opportunities in the United States and disposing of its Nigerian property, which was sold in 2005. During 2005 and 2006, TransAtlantic acquired an exploration permit and a reconnaissance license in Morocco, three production blocks in Romania, three exploration licenses in Turkey, and two promote round licenses covering six blocks in the UK North Sea. During this same period, the Company acquired properties in Texas. TransAtlantic also participated as a non-operator in four other properties in Texas, Oklahoma, and Louisiana.
In 2007, the Company determined to exit its U.S. operations and focus on the development of its international properties. To that end, TransAtlantic acquired three additional exploration licenses in Turkey, converted a portion of its Moroccan reconnaissance license into two exploration permits, sold the Texas properties it operated, and offered its remaining non-operated U.S. properties for sale.
Entrepreneurial Partner
In 2008, TransAtlantic changed its operating strategy from prospect generator to a vertically integrated project developer. This followed the acquisition of 45% of the Company's shares by Mr. N. Malone Mitchell 3rd (TransAtlantic's Chairman), his family members, entities under Mr. Mitchell's control, and certain associates of Mr. Mitchell (collectively "Mitchell Group") in a series of private placements in April and May 2008.
To execute this new strategy, in August 2008 TransAtlantic announced plans to both: 1.acquire Longe Energy, a business entity which provides oil field drilling equipment and services formerly owned by Mitchell Group, by issuing TransAtlantic's stock to Mitchell Group; and
2.undertake a concurrent private placement pursuant to which Mitchell Group would invest an additional US $42.5 million in the Company.
The transformation also included a new strategic direction involving an integrated approach to business development rather than be limited to solely prospect generation. Both transactions closed in December 2008 and were approved by regulators and shareholders.
In March 2009, TransAtlantic closed the acquisition of Incremental Petroleum, formerly listed on the Australian Stock Exchange. The acquisition expands the Company's rig fleet from four to seven rigs and increases the highly qualified workforce of field staff, engineers, and geologists in one of the Company's target countries. Incremental's portfolio consists of the producing Selmo oil field ("Selmo"), Thrace gas field ("Thrace"), additional exploration acreage in Turkey, and various prospects in California, USA.
TransAtlantic entered into a credit agreement with Dalea Partners, LP ("Dalea"), an entity controlled by Mr. Mitchell, for the financing of the Incremental Petroleum transaction ("offer"). Under this arrangement, Dalea Partners, LP advanced to the Company funds sufficient to enable TransAtlantic Australia to acquire all of the Incremental shares under the offer, plus pay TransAtlantic Australia's transaction costs.
In June 2009, TransAtlantic raised aggregate gross proceeds of CDN $162 million from Mitchell Group and outside investors. As part of the transaction, Dalea converted its debt to equity.
In July 2009, TransAtlantic acquired Energy Operations Turkey, LLC ("EOT"). 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.
In October 2009, the Company changed domicile to Bermuda and renamed the Company TransAtlantic Petroleum Ltd.
In November 2009, TransAtlantic raised aggregate gross proceeds of CDN $114 million from Mitchell Group and outside investors.
In August 2010, TransAtlantic closed the acquisition of Zorlu Enerji Elektrik Üretim A.S;. ("Zorlu") and Zorlu Holding A.S;. The acquisition gives the Company a working interests ranging from 50% to 100% of 18 exploration licenses and one production lease, consisting of approximately 1.3 million gross acres (1.0 million net acres) in the Thrace Basin in northwestern Turkey and 730,000 gross and net acres in central Turkey. Production from the licenses totals an average of approximately 7.0 million cubic feet of natural gas per day, net to Amity and Petrogas' interest, with an additional estimated 10.0 million cubic feet per day of natural gas production awaiting connection to a pipeline.
In October 2010, the Company raised US $85 million in a Registered Direct Offering, and the company Fractured Stimulated its first well in the Thrace Basin.
In November 2010, the Company option to acquire Thrace Basin Natural Gas Turkiye Corporation and Pinnacle Turkey Inc.
Today
TransAtlantic is applying technologies and practices developed in the mature sedimentary basins of the U.S. to the Company's underexplored, underdeveloped opportunities in Turkey, Romania, and Morocco. The Company has a balanced portfolio with meaningful growth potential from development drilling at Selmo oil field and The Thrace Basin and exploration upside from seven million net undeveloped acres in Turkey, Morocco, and Romania.
Development
•Maximizing returns by reducing drilling and operating costs.
•Pursue projects that will permit development from existing cash flow, without the need to tie up excessive capital "building reserves."
Exploration
•Prioritizing opportunities, balancing risk with reward and near-with longer-term projects, resulting in advancing projects with asymmetric upside.
•Working to reduce costs by utilizing the Company's own equipment, planning for "scale," and partnering out risk.
Joint Venture Opportunities
•Seek to lower risk and accelerate activity.
•Expand TransAtlantic's opportunities.
Goal
•Create a fully funded, international, vertically integrated E&P company.
Mitchell Group & associates own approximately 47% of TransAtlantic Petroleum Ltd. The following information highlights Mitchell Group's history, rich track record, and may provide scope in applying past successes to TransAtlantic's future.
Entrepreneurial History In 1985, Mr. Malone Mitchell 3rd founded Riata Energy, an oil & gas Company based in Amarillo, TX. Within the first five years, Riata acquired fourteen small oil producers and completed its first successful well. In the early 1990's, Riata expanded geographically through asset purchases in the Piceance Basin of Colorado and the Permian Basin of West Texas. The Company implemented a vertically integrated strategy, which increased Riata's focus on oil field services and midstream assets to reduce finding and production costs.
Through asset purchases from several major oil & gas companies in 1991, Pakenham field was established. In 1994, Riata sold Pakenham field to Chevron for $97 million. In 1995, Riata acquired 200,000 acres of prospective acreage in the Pinon Field. Soon after, Riata became the sole operator in the area through a purchase from FINA.
In 1997, Riata purchased its first rig through an operating subsidiary, Lariat Services. Over the subsequent few years, Riata expanded its rig fleet to increase exploration and development. Additionally, Riata acquired and built-out gathering systems and treating plants through its midstream services subsidiary, ROC Gas Company. In 2003, Riata purchased an initial interest in Petrosource, an integrated CO2 Company. In 2005, Riata began development of its Piceance Basin acreage. In January 2006, Riata filed an S-1 to go public. However, in July 2006, Mr. Mitchell sold a $500 million controlling stake to Mr. Tom Ward, former co-founder of Chesapeake Energy (NYSE: CHK).
In November 2006, Riata Energy purchased National Energy Group for $1.5 billion from American Real Estate Partners, an entity controlled by Carl Icahn. National Energy Group's core assets were in the Val Verde and Permian Basins of West Texas, including overlapping or contiguous interests in Riata's properties. Soon after, Riata's headquarters were moved to Oklahoma City, OK and SandRidge Energy became the Company's new name.
SandRidge made its initial public offering in November 2007, offering 28 million common shares for $26.00/share. At time of IPO, Mr. Mitchell was the second largest shareholder of SandRidge's common stock. The Company trades on the New York Stock Exchange under ticker SD.
In December 2006, Mr. Mitchell resigned from daily management at SandRidge. From 1985-2006, Mr. Mitchell built Riata Energy into one of the largest privately held energy companies in the United States. Riata's key characteristics and milestones include:
(1) 2006 Revenue and EBITDA of approximately $388mm and $93mm, respectively.
(2) 1 TCF in proved reserves.
(3) Operated for BP, Chevron, Conoco, Exxon, Occidental, amongst others.
(4) Executed the largest farm-out agreement in Exxon's history, covering approximately 200 square miles, which committed Riata to drilling 25 wells per year.
(5) 300 miles of gas gathering pipeline.
(6) Greater than 34,000 horsepower of gas compression.
(7) At one time, Riata owned and operated the second largest under-balanced drilling Company in the world.
(8) In 2006, Lariat Services (Riata's field services and drilling subsidiary) owned or operated 43 drilling rigs, had assets, sales, and third- party net income of $175mm, $139mm and $33mm, respectively.
(9) In 2006, Riata completed approximately one well per day.
New Ventures
Shortly after stepping down from SandRidge, Mr. Mitchell founded Mitchell Group in an effort to return to the entrepreneurial stage of the energy industry. Substantially all of the key management who worked for Mr. Mitchell at Riata/SandRidge left the Company and joined him at Mitchell Group.
The Case for International
In early 2008, Mitchell Group determined that greater, conventional opportunities existed internationally. Mitchell Group began targeting investments with the following features:
Company specific:
(1) Management/technical team with an international record and in-country staff.
(2) Large, undeveloped, onshore acreage base.
(3) Potential to reproduce Riata's vertically integrated drilling & service business, Lariat Services.
Country specific:
(4) Feature attractive fiscal terms, including tax and royalty rates.
(5) Known petroleum systems but only sparsely explored.
(6) Import a meaningful share of oil & gas (e.g., Turkey is dependent on Russian oil and gas).
(7) Improve results through technology and scale.
(8) Introduce service business with very little competition.
Mitchell Group's International Vehicle: TransAtlantic Petroleum Ltd.
In 2008 through 2010, Mitchell Group invested over US $192 million in TransAtlantic. Mr. Mitchell became the Company's Chairman and former Riata Energy executive, Matt McCann, became TransAtlantic's CEO and member of the Board of Directors. Mitchell Group's commitment to TransAtlantic extends beyond just financial. The Group has committed key operational and technical resources, including former successful managers from Riata and National Energy Group.
Malone Mitchell 3rd
Chairman and Chief Executive Officer
From 1985-2006, Malone built Riata Energy into one of the largest privately held energy companies in the United States. In 2006, he sold controlling stake in Riata Energy. Later, Riata Energy was renamed SandRidge Energy (NYSE:SD). Near the time of sale, SandRidge Energy had 1 Tcf in proved reserves, 300 miles of gas-gathering pipeline, greater than 34,000 horsepower of gas compression, and owned or operated 43 drilling rigs.
Shortly after stepping down from SandRidge, Malone founded Mitchell Group. Mitchell Group includes Riata Management and Private Energy, Oilfield Service, Investment, and Consumer Business in North America, South America, and Asia.
Malone is CEO of TransAtlantic and spends a considerable portion of his time in country (Turkey, Morocco, Bulgaria and Romania).
Malone graduated from Oklahoma State University in 1983 with a Bachelor of Science degree.
Gary Mize
President / Chief Operating Officer
Mr. Mize joined TransAtlantic in January 2010.
Mr. Mize began his career as an engineer with Exxon in 1974. He worked for Exxon in a multitude of capacities, including as a drilling engineer, completions engineer, reservoir engineer supervisor, production supervisor, operations supervisor, manager of Exxon's onshore gas production, and finally as the Technical Manager for all engineering and geosciences for the South East division.
After leaving Exxon in 1994, Mr. Mize joined Manti Resources of Corpus Christi, Texas, as Executive Vice President where he remained until late 2009. At Manti, Mr. Mize oversaw the evolution of its business from focusing on exploitation in South Texas to a full cycle exploration.
Mr. Mize graduated from the University of Oklahoma with a B.S. degree in Petroleum Engineering.
Scott Larsen
Executive Vice President
Scott served as President from 2008 to 2010 when he moved to head up Business Development. His primary focus has been the acquisition of new companies and the rationalization of the Company's portfolio of properties. Previously, he served as TransAtlantic's Chairman and Chief Executive Officer from 2004-2008. From 2002-2004, he served as Vice President of Operations, and has been involved in the Company's international activities since inception in 1994.
An attorney by training with over 30 years experience in the oil & gas industry, Scott served previously as general counsel for Humble Exploration, an independent exploration company. Additionally, he spent several years as a partner in Vineyard, Drake & Miller, a business litigation law firm and served as general counsel for Summit Partners Management Co., a venture capital and management company.
He received a B.A. in Biology from Rutgers College and a J.D. degree from Rutgers School of Law.
Wil F. Saqueton
Vice President & Chief Financial Officer
Mr. Saqueton joined TransAtlantic in May 2011.
Mr. Saqueton began his career at Price Waterhouse LP providing audit and tax services from 1992-1995. From 1995 until 2006, Mr. Saqueton held a number of positions of increasing scope and responsibility at at Intel Corporation, beginning as a Senior Financial Analyst and earning promotions to Finance Manager, Operations Controller-Americas and finally to Strategic Controller of the Chipset Group, Intel's second largest business unit generating $4 billion annual revenue.
From 2006 through 2010, Mr. Saqueton served as Vice President and Chief Financial Officer of Just Brakes headquartered in Dallas, Texas. In 2009, he was recognized as a finalist for the Dallas Business Journal's CFO of the Year.
Mr. Saqueton earned an MBA from the University of California, Davis, a BS in Commerce from Santa Clara University and his CPA license from the state of California.
Jeff Mecom
Vice President, Legal
Jeff was appointed Corporate Secretary in 2006 and Vice President in 2007.
From 1995-2005, Jeff served as Vice President, Legal & corporate Secretary with Aleris International, a NYSE-listed international metals recycling and processing company. Previously, he served as in-house counsel to an independent energy company and lectured at the Estonian Business School in Tallinn, Estonia.
Jeff received his B.A. in economics from the University of Texas at Austin and his J.D. degree from the University of Texas School of Law
| 11/23/11 | TransAtlantic Petroleum Ltd. Reports Incident at Selmo Field | HAMILTON, BERMUDA, Nov 23, 2011 (MARKETWIRE via COMTEX) --TransAtlantic Petroleum Ltd. (TSX: TNP) (NYSE Amex: TAT) reports that today at approximately 10:30 pm (local time) one or more armed individual(s) attacked workers at the Company's Selmo field operations in southeastern Turkey. TransAtlantic is sorry to report that three workers were killed in the incident, which at this time appears to be an isolated event. The Company is working with local authorities to investigate the incident a... | |  |
| 11/09/11 | TransAtlantic Petroleum Ltd. Announces Third Quarter 2011 Earnings and Operations Update | |
| 10/26/11 | TransAtlantic Petroleum Ltd. Announces Third Quarter 2011 Earnings and Operations Update Conference Call | HAMILTON, BERMUDA, Oct 26, 2011 (MARKETWIRE via COMTEX) -- TransAtlantic Petroleum Ltd. (TSX: TNP) (NYSE Amex: TAT) announced today that it plans to issue its third quarter 2011 financial results news release on Wednesday, November 9, 2011 after the close of trading. The Company has scheduled a conference call for Thursday, November 10, 2011, at 10:00 a.m. Eastern (9:00 a.m. Central) to provide an operations update and discuss the Company's financial results for the quarter ended September 3... | | |
| 10/05/11 | TransAtlantic Petroleum Ltd. Announces Its Intent to Sell Its Drilling Services Business, the Engagement of PPHB as Its Financial Advisor, the Extension of Dalea Credit Agreement Maturity Date, and Increased Turkish Natural Gas Prices | |
| 09/22/11 | TransAtlantic Petroleum Ltd. Announces Agreement With LNG Energy and Commencement of Etropole Test Well in Bulgaria | |
| 09/07/11 | TransAtlantic Petroleum Ltd. Provides Operational Update and Announces New Vice President, Financial and Investor Relations | |
| 08/09/11 | TransAtlantic Petroleum Ltd. Announces Second Quarter 2011 Earnings and Operations Update and Appointment of New CFO | |
| 08/03/11 | TransAtlantic Petroleum Ltd. Announces Second Quarter 2011 Earnings and Operations Update Conference Call | |
| 06/08/11 | TransAtlantic Petroleum Ltd. Completes Acquisition of Thrace Basin Natural Gas | |
| 05/31/11 | TransAtlantic Petroleum Ltd. Reports First Quarter 2011 Financial Results and Announces Conference Call | |
| 05/19/11 | TransAtlantic Petroleum Ltd. Announces Amendment and Restatement of Senior Credit Facility, Amendment of Dalea Credit Agreement, and Notice of Noncompliance With NYSE Amex Continued Listing Standards | |
| 05/17/11 | TransAtlantic Petroleum Ltd. Announces Preliminary Financial Results for First Quarter of 2011; Delay in Filing Quarterly Report on Form 10-Q | HAMILTON, BERMUDA, May 17, 2011 (MARKETWIRE via COMTEX) --TransAtlantic Petroleum Ltd. (TSX: TNP) (NYSE Amex: TAT) today reported its preliminary financial results for the quarter ended March 31, 2011. TransAtlantic Petroleum Ltd. (the "Company") is providing these preliminary and unaudited results in an effort to keep its shareholders informed about the performance of the Company while it works to complete its Quarterly Report on Form 10-Q for the quarter ended March 31, 2011. Form 1... | | |
| 05/06/11 | TransAtlantic Petroleum Ltd. Announces Appointment of Malone Mitchell as CEO, Provides Financing Update and Schedules Conference Call | HAMILTON, BERMUDA, May 06, 2011 (MARKETWIRE via COMTEX) --TransAtlantic Petroleum Ltd. (TSX: TNP) (NYSE Amex: TAT) announced today that the Company's board of directors has appointed its chairman, N. Malone Mitchell, 3rd, to serve as the Company's chief executive officer effective today. Matthew McCann tendered his resignation as chief executive officer, but will remain employed with the Company in an advisory capacity until a date to be mutually determined. Mr. McCann remains on the Compa... | | |
| 04/28/11 | TransAtlantic Petroleum Ltd. Announces Signing of Share Purchase Agreement to Acquire Thrace Basin Natural Gas, Compliance With NYSE Listing Standards and Addresses Going Concern Qualification | HAMILTON, BERMUDA, Apr 28, 2011 (MARKETWIRE via COMTEX) --TransAtlantic Petroleum Ltd. (TSX: TNP) (NYSE Amex: TAT) announced today that on April 23, 2011, TransAtlantic Worldwide, Ltd. ("TransAtlantic Worldwide"), a wholly owned subsidiary of TransAtlantic Petroleum Ltd. (the "Company"), and Mustafa Mehmet Corporation ("MMC") entered into a definitive share purchase agreement (the "Purchase Agreement"). The Purchase Agreement follows the Option Agreement the Company entered into on Novembe... | | |
| 04/21/11 | TransAtlantic Petroleum Ltd. Reports Year End 2010 Financial Results | HAMILTON, BERMUDA, Apr 21, 2011 (MARKETWIRE via COMTEX) --TransAtlantic Petroleum Ltd. (TSX: TNP) (NYSE Amex: TAT) announced today its financial results for the year ended December 31, 2010. The Company's financial results are prepared in accordance with U.S. GAAP, and the reporting currency is U.S. dollars. Selected Financial Highlights Oil and gas revenues for the year ended December 31, 2010 increased to $69.8 million from $27.7 million for the year ended December 31, 2009. The i... | | |
| 04/06/11 | TransAtlantic Petroleum Ltd. Receives Notice of Noncompliance With NYSE Amex Continued Listing Standards | |
| 04/01/11 | TransAtlantic Petroleum Ltd. Announces Preliminary Financial Results for 2010; Delay in Filing Annual Report on Form 10-K | |
| 03/17/11 | TransAtlantic Petroleum Ltd. Provides Year End 2010 Operations Update and Reserves Summary | |
| 03/11/11 | TransAtlantic Petroleum Ltd. Announces Conference Call for Year End 2010 and an Operations Update | |
| 02/21/11 | TransAtlantic Petroleum Ltd. Closes on Acquisition of Direct Bulgaria and Direct Morocco | |
| 02/10/11 | TransAtlantic Petroleum Ltd. Announces Exercise of Option to Acquire Thrace Basin Natural Gas and Pinnacle Turkey | |
| 02/03/11 | TransAtlantic Petroleum Ltd. Announces Expansion into Bulgaria and Increased Presence in Morocco | |
| 01/10/11 | TransAtlantic Petroleum Ltd. Provides Operational Update and Announces Departure of CFO | |