TransAtlantic Petroleum Announces Receipt of Regulatory Approval for Divestiture of Oilfield Services Business
HAMILTON, Bermuda, June 7, 2012 (GLOBE NEWSWIRE) -- TransAtlantic Petroleum Ltd. (TAT) (TSX:TNP) (NYSE Amex:TAT) is pleased to announce that the Turkish Competition Authority has approved the Company's sale of its oilfield services business to Dalea Partners, LP ("Dalea", an affiliate of N. Malone Mitchell, 3rd, the Company's Chairman and Chief Executive Officer). The Company expects Dalea to assign the acquired interests to a joint venture owned by Dalea and funds advised by Abraaj Investment Management Limited. The transaction is expected to be completed during the week ending June 16, 2012.
TransAtlantic intends to use the cash proceeds of the sale to reduce short and long term debt including borrowings from Standard Bank Plc and BNP Paribas (Suisse) SA, Dalea and Viking Drilling, LLC. As of May 31, 2012, TransAtlantic and its subsidiaries had outstanding borrowings of approximately $78.0 million, $84.0 million and $0.9 million under the senior secured credit agreement, the Dalea credit agreements and the Viking note, respectively. Additionally, the Company had $1.7 million outstanding via a credit agreement with a Turkish bank.
TransAtlantic Petroleum Ltd. is an international energy company engaged in the acquisition, development, exploration and production of oil and natural gas. The Company holds interests in developed and undeveloped oil and gas properties in Turkey, Bulgaria and Romania.
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(NO STOCK EXCHANGE, SECURITIES COMMISSION OR OTHER REGULATORY AUTHORITY HAS APPROVED OR DISAPPROVED THE INFORMATION CONTAINED HEREIN.)
Forward Looking Statements
This news release contains statements regarding the sale of TransAtlantic's oilfield services business, planned use of proceeds, as well as other expectations, plans, goals, objectives, assumptions or information about future events, conditions, results of operations or performance that may constitute forward-looking statements or information under applicable securities legislation. Such forward-looking statements or information are based on a number of assumptions, which may prove to be incorrect. In addition to other assumptions identified in this news release, assumptions have been made regarding, among other things, the ability of the Company to continue to develop and exploit attractive foreign initiatives.
Although the Company believes that the expectations reflected in such forward-looking statements or information are reasonable, undue reliance should not be placed on forward-looking statements because the Company can give no assurance that such expectations will prove to be correct. Forward-looking statements or information are based on current expectations, estimates and projections that involve a number of risks and uncertainties which could cause actual results to differ materially from those anticipated by the Company and described in the forward-looking statements or information. These risks and uncertainties include but are not limited to the continuing ability of the Company to operate effectively internationally, reliance on current oil and gas laws, rules and regulations, volatility of oil and gas prices, fluctuations in currency and interest rates, imprecision of resource estimates, the results of exploration, development and drilling, imprecision in estimates of future production capacity, changes in environmental and other regulations or the interpretation of such regulations, the ability to obtain necessary regulatory approvals, weather and general economic and business conditions.
The forward-looking statements or information contained in this news release are made as of the date hereof and the Company undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
CONTACT: Chad Potter, VP, Financial and Investor Relations Phone: (214) 220-4323 Internet: http://www.transatlanticpetroleum.com Address: 16803 Dallas Parkway, Suite 200, Addison, Texas 75001
Source: TransAtlantic Petroleum Ltd. 2012 GlobeNewswire, Inc.