TransAtlantic Petroleum Announces Closing of Oilfield Services Business Divestiture
HAMILTON, Bermuda, June 13, 2012 (GLOBE NEWSWIRE) -- TransAtlantic Petroleum Ltd. (TAT) (TSX:TNP) (NYSE Amex:TAT) is pleased to announce that on June 13, 2012, the Company closed the sale of its oilfield services business to a joint venture owned by Dalea Partners, LP ("Dalea", an affiliate of N. Malone Mitchell, 3rd, the Company's Chairman and Chief Executive Officer) and funds advised by Abraaj Investment Management Limited. Gross proceeds from the sale totaled approximately $167.2 million, comprised of approximately $155.7 million in cash and an $11.5 million promissory note from Dalea. The cash portion of the purchase price incorporated working capital adjustments as of April 1, 2012, the effective date of the transaction.
TransAtlantic used a portion of the net proceeds from the sale to pay off its $73.0 million credit agreement with Dalea, its $11.0 million credit facility with Dalea, its $0.9 million promissory note with Viking Drilling, LLC, and its $1.8 million credit agreement with a Turkish bank. TransAtlantic plans to use between approximately $50.0 million and $60.0 million of the remaining net proceeds to reduce borrowings under the Company's senior secured credit agreement with Standard Bank Plc and BNP Paribas (Suisse) SA. The Company currently has outstanding borrowings of $78.0 million under the senior secured credit agreement.
Commenting on the sale, Mr. Mitchell said, "Completing the Viking divestiture is a significant event for TransAtlantic. The sale immediately strengthens the Company's balance sheet and reduces administrative complexity just as we are evaluating the early stages of a development program in the Thrace Basin, continuing to test additional Thrace Basin structures, and testing potential resource plays in southeastern Turkey."
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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Forward Looking Statements
This news release contains statements regarding the sale of TransAtlantic's oilfield services business, 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.