On Nov. 8,TransAtlantic Petroleum Ltd. has announced it has entered into an agreement to acquire Thrace Basin Natural Gas Turkiye Corp. and Pinnacle Turkey, Inc., collectively known as “TBNG”, for $100 million in cash and 18.5 million common shares.
TBNG currently produces approximately 25.0 million cubic feet of natural gas per day in the Thrace Basin and holds interests in a total of approximately 600,000 net onshore acres and 360,000 net offshore acres in Turkey.
TransAtlantic expects to form a special purpose entity to complete the acquisition, with third party investors providing $100 million in funding toward the purchase price. Those investors would hold approximately 65% of TBNG's current production and acreage. The company will pay 18.5 million of our common shares for approximately 35% of TBNG's current production and acreage and 100% of TBNG's oil field service equipment and related assets, which includes five drilling rigs. TransAtlantic paid a $10.0 million option fee to the owner of TBNG and have until February 11, 2011 to exercise the option. In the event the company does not exercise the option, $5.0 million of the option fee will be returned to us.
Management Comments
"Over the past two decades Thrace Basin Natural Gas has built the most efficient operation I have seen. The acquisition of Thrace Basin Natural Gas and Pinnacle would be the final component in our Thrace Basin strategy. We would complete our presence in the Thrace Basin with additional acreage and an operational base on the southern flank of the basin. This would expand our inventory of shallow gas targets and is a very attractive area for deeper conventional and unconventional gas. In addition, the oil field service equipment will serve us well as we continue to ramp up our activity in Turkey. I can't overstate how pleased I would be to have the employees of Thrace Basin Natural Gas join the TransAtlantic team," said N. Malone Mitchell, 3rd, the Company's Chairman.
About TransAtlantic
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, 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 provides oilfield services and contract drilling services to third parties in Turkey.
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