TransAtlantic Petroleum Enters Agreement for the Sale of Thrace Basin Natural Gas Corporation

TransAtlantic Petroleum (TSX:TNP) (NYSE-MKT:TAT) (the “Company” or “TransAtlantic”) announced that is has entered into a share purchase agreement with Valeura Energy Netherlands B.V. (“Valeura”) for the sale of its wholly-owned subsidiary, Thrace Basin Natural Gas (Turkiye) Corporation (“TBNG”).
As quoted in the press release:

Pursuant to the Share Purchase Agreement, Valeura will pay $22.0 million, subject to closing adjustments, to TransAtlantic Worldwide in exchange for the transfer of all of the equity interests in TBNG. Concurrent with its acquisition of TBNG, Valeura will sell the deep rights on certain of its Turkish joint venture lands to Statoil Banarli Turkey B.V. (“Statoil”).
N. Malone Mitchell, 3^rd, the Chairman of the Board of Directors and Chief Executive Officer of the Company, stated, “We are glad to enter into the transaction with Valeura to sell our interest in TBNG. Valeura has been a good joint venture partner. They have brought significant technical support to the joint venture and we look forward to Valeura and Statoil proving the deeper productivity of the Thrace Basin.”
Mr. Mitchell also noted that “the sale of TBNG represents the equivalent to TransAtlantic of the sale of approximately 379 net barrels of oil equivalent per day (‘BOEPD’) (99% gas) when using the September 2016 production rate. We intend to use the sale proceeds received to increase our cash reserves and fund drilling operations in our Southeast Turkey oilfields, which we believe will more than offset the decrease in production resulting from the sale of TBNG.  This sale accomplishes the important second step of our planned financial restructuring.”
TransAtlantic’s current 7-day average net production rate is approximately 4,632 BOEPD, comprised of approximately 4,080 barrels of oil per day (“BOPD”) and 3.3 million cubic feet of natural gas per day (“MMCFPD”).

Click here for the full text release.