Permian Basin, TX ‘38 SE Basin, Turkey ‘10 Applying old lessons to new frontiers June ‘10 Exhibit 99.1 |
Disclaimer 2 Forward-Looking Statements Outlooks, projections, estimates, targets, and business plans in this presentation or any related subsequent discussions are forward-looking statements. Actual future results, including TransAtlantic Petroleum Ltd.’s own production growth and mix; financial results; the amount and mix of capital expenditures; resource additions and recoveries; finding and development costs; project and drilling plans, timing, costs, and capacities; revenue enhancements and cost efficiencies; industry margins; margin enhancements and integration benefits; and the impact of technology could differ materially due to a number of factors. These include changes in long-term oil or gas prices or other market conditions affecting the oil, gas, and petrochemical industries; reservoir performance; timely completion of development projects; war and other political or security disturbances; changes in law or government regulation; the outcome of commercial negotiations; the actions of competitors; unexpected technological developments; the occurrence and duration of economic recessions; unforeseen technical difficulties; and other factors discussed here and under the heading “Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2009 and our Quarterly Report quarter TransAtlantic’s 2009 audited financial statements and the accompanying management discussion and analysis. Forward-looking statements are based on management’s knowledge and reasonable expectations on the date hereof, and we assume no duty to update these statements as of any future date. The information set forth in this presentation does not constitute an offer, solicitation or recommendation to sell or an offer to buy any securities of the Company. The information published herein is provided for informational purposes only. The Company makes no representation that the information and opinions expressed herein are accurate, complete or current. The information contained herein is current as of the date hereof, but may become outdated or subsequently may change. Nothing contained herein constitutes financial, legal, tax, or other advice. ended March 31, 2010 available at our website at www.transatlanticpetroleum.com and www.sec.gov. See also TransAtlantic’s 2009 |
Introduction to Chairman Malone Mitchell, A Best-In-Class Operator $10.5 Riata Energy EBITDA CAGR +72.2% $92.6 ‘85 ‘91 ‘94 ‘08 ‘06 Malone Mitchell 3 founded Riata Energy with $500 Acquired interest in Pakenham Field (West Texas). Birth of vertical integration. After drilling 34 wells, sold Pakenham Field to Chevron for $97mm Purchased >200,000 prospective acres in Pinon Field Refined vertical integration strategy Mr. Mitchell sold controlling stake to Chesapeake Energy (NYSE: CHK) Co- Founder for $500mm. Riata Energy is renamed SandRidge Energy (NYSE: SD). Mr. Mitchell & Family sold an additional $500mm stake in SandRidge (NYSE: SD) ’99 –‘06 ‘95 USD in mm 3 Survived and Thrived In Many Cycles WTI $/bbl EOT rd EBITDA Revs |
4 Built prior company (Lariat Services) to: $175mm in assets $139mm in 3 party sales $33mm in 3 party net income Key takeaways: Lower cost / stretches dollars Boost operational flexibility Profit from 3 party work * Page F38, ‘08 SandRidge Energy (NYSE: SD) Annual Report 3yr Avg F&D Cost ($/Mcfe) Mean: $1.25 Riata was the low cost leader in finding reserves Riata As of 12/31/04 John S. Herold Database Wells Drilled CAGR +49.5% Net Production CAGR +38.4% 23 115 Pinon Field Wells Drilled Pinon Field Annual MMcf Vertical Integration – “We’ve Done This Before” rd rd rd |
Capitalize A Good Idea 5 Identify Greater, conventional opportunities exist internationally Big, contiguous acreage blocks Good fiscal terms Opportunity for high rate wells Target Countries Large net importers of oil & gas Under-explored Known petroleum systems Good fiscal terms Respect for Rule of Law Acquire Management/technical team with international experience acquiring attractive onshore acreage Fund Mitchell Group delivers capital, management, and technical expertise Execute Achieving scale and reproducing Riata’s vertically integrated drilling & services business is key to success |
TransAtlantic 6 Prepared For Growth Mar09 Jun09 Apr08- May08 Dec08 Jul09 Nov09 Capital invested (CDN) $187.3mm Common share ownership 156.1mm Ownership 51.3% Zorlu bridge loan commitment $100.0mm Commitment to Execute Ownership includes Mitchell Group & associates Excludes 296,666 of open market purchases and option exercises. Mr. Mitchell does not have voting or investment control over shares held by associates. Mar10 May10 Jan10 TransAtlantic Petroleum is a vertically integrated, international exploration & production company focused on Turkey, Morocco, and Romania Key statistics (as of 6/23/10) Exchange / Ticker Toronto / TNP NYSE-AMEX / TAT $/share (US) $3.49 Shares outstanding 304.4mm Market cap (US) $1,062mm Float 147.0mm shares % of shares outstanding 48% 52 week range $1.50 - $4.10 Average daily volume ~600,000 Mr. Mitchell and former Riata Energy executive Mr. Matthew McCann are appointed Chairman and Director, respectively Acquired rigs & equipment. Vertical integration begins. Acquired production when oil was at < $40/bbl oil (Selmo oil field and Thrace Basin) Raised CDN $162mm Acquired Energy Operations Turkey, LLC (Paleozoic Trend) Raised CDN $115mm Appointed Gary Mize as Chief Operating Officer Cash and undrawn revolver of $38mm and $30mm, respectively Announced US $100mm acquisition of Zorlu’s E&P operations |
Why Turkey? 7 Crude Oil Consumption vs. Production Royalty 12.5% Tax 20.0% Investment in Turkey increasing: Chevron Exxon Petrobras ’08 Avg. BOPD Consumption 696k Production 42k Net Imports 654k 000 BOPD Turkey imports >70% of its gas consumption from Russia Gas priced at ~$8/mcf Known petroleum systems and attractive geology Opportunity for modern technology to make a difference No stimulation history |
Becoming Turkey’s Best Public Oil & Gas Company 8 Land Over 7mm gross acres* Development & exploration balance Oil & Gas balance Investment Thesis Technology 3D seismic PDC & directional drilling Fracture stimulation Integration Oil field services Midstream capacity Cost – availability – value capture Sivas Basin Apricot Basin Paleozoic Trend Diyarbakir Southeast Basin Thrace Basin Istanbul Salt Lake Basin Ankara Selmo 4175 |
Introduction to Thrace Basin 9 Black Sea Marmara Sea Istanbul office Edirne wells Zorlu-Amity yard TransAtlantic acreage Gross/Net 1.7mm 1.1mm Prolific Tertiary gas basin, Turkey’s most productive onshore gas province Shallow and deep gas potential |
Thrace Shallow Gas (55% Interest) 3D is Key 10 Current activity Ortakci-2 discovery Bademlik-1 rig up Commenced 3D on Zorlu acreage 3D is Key o 100% success on initial 14 prospects from 3D o >200km ² of 3D seismic, of which 100km ² is ready for interpretation o 8 locations mapped Superior Economics o Quick to drill o Capex/well $0.7m o IPR 1,200-1,500 MCF/d o 2-6 months payout (@ $8/MCF) Reserves o Net 2P reserves: 21 BCF (1) |
Thrace Deep Gas Fracing Unlocks The Potential 11 N – S Regional Cross-Section of Western Thrace Basin Thick sedimentary basin with tremendous upside from fracture stimulation of tight sands and “show wells” Fracture stimulation equipment arrives mid- year Technology delivers value 2,000 ft. Horizontal Well 100 ft. Vertical Well 2,000 ft. Horizontal Well 222 ft² of contact 20 x vertical 270 x vertical 13.5 x horizontal 1,013 x vertical 50 x horizontal Reservoir Contact From Various Types of Wells and Fracing (1) 100 ft. Vertical Well (1) - Schlumberger |
Shallow & Deep Gas Acquisition of Zorlu’s E&P Operations 12 Thrace Basin Formations Terms $100mm, of which $20mm will be allocated to future gas distribution networks Financed via bridge loan from Company Chairman, Malone Mitchell Expected closing in 3Q, following regulatory approval Key Assets Zorlu as a strategic partner Increase prospective acreage in the Thrace Basin from 0.2mm to 1.7mm gross acres Targets include shallow and deeper gas, both conventional and unconventional Current production of 7mmcf/d Additional production of 10mmcf/d awaiting connection to a pipeline Upside Fracture stimulation Numerous re-entry candidates Deep prospects with large structural closures Extension of shallow gas play |
13 TransAtlantic & TPAO Explore For Unconventional Resources Partner Summary Agreement with the National Oil Company of Turkey Initial Phase – participate in 2 licenses (3791 and 3165) in Thrace Basin and SE Turkey Targeting tight sands and shale formations Initial work program targets several structures with old show wells TransAtlantic operates through facilities, TPAO operates production Molla License Abdul Aziz-1 Black Sea Marmara Sea Thrace - Re-Entries Identified SE Turkey – First Re-Entry |
Introduction to Southeast Turkey IRAQ SYRIA TURKEY IRAN 14 TransAtlantic Application Exposure to over 2.1mm and 1.6mm gross/net acres, respectively Southeast Turkey is the northern extension of the Arabian Basin Large anticlines hold large opportunities in Turkey, Syria, and Iraq |
Introduction to Selmo Oil Field (100% Interest) 15 Current activity Drilling S-55 Completing S-69 Reduced water production by over 50% Optimizing drilling and completion methods Selmo Pay Zone Feet Description MSD 75 Dolomite LSL 250 Limestone LSD 75 Dolomite History Discovered by Mobil in 1964 and located near the prolific Zagros fold belt, which encompasses the oil fields of Iran and Iraq Second largest oil field in Turkey (by cumulative production) and is estimated to have greater than 600 mmbls of oil in place, with ~ 85 mmbls produced to date. API of 34° Upside Opportunity – “Drill Baby Drill” 2P reserves: 19.7mmbls (1) Plan to down-space to 40-acre spacing (~250k per well) Vertically integrated to reduce costs by half o Acidizing equipment to provide upside completion opportunity o Drilling campaign kicked off in Q3:09 (production up 30%+) o Currently drilling 10th infill well o ~18 infill wells in ‘10 (1) - DeGolyer & MacNaughton Reserve Report, effective 12/31/09 |
53 Western Flank: Focus Area •Good well spacing, under developed •Low BS+W area •Targeting MSD,LSL & LSD Horizons •Completions improved by utilising TA’s own equipment 52 Eastern Flank: Producing horizons limited to MSD and very upper part of LSL only. Northern Flank: •Under developed •Good well spacing area •55 Targeting complete MSD and LSL horizons SWEET SPOT: Good potential from MSD & Top LSL horizons. S-69 is under completion. 44 ST: Good potential from MSD & Top LSL horizons. 51 61 Flowed 450bopd 45 ST 62 54 69 58 72 48 64 57 70 68 KEY: • Wells Drilled • Next Wells to be drilled 49 60 56 71 Enhancing Productivity By Drilling In The North & West |
Introduction to Paleozoic Trend 16 History Acquired Energy Operations Turkey, LLC ("EOT") for $7.75 million. 50% interest in License 3118 (“Arpatepe”) Purchase included the Arpatepe-1 and Arpatepe-2 wells Wells flowed naturally from Bedinan sandstones at 440 and 190 gross bopd from limited perforations Acidized Arpatepe-1 in early March resulting in a production increase to 500 BOPD (now at 350 BOPD) Activities (Current and Future) Completed Arpatepe-3 (50%) on line soon ~100 bopd Completed Arpatepe-2 (50%), ~100 bopd Evaluating Goksu-1 re-entry (100%) Completing Pinabarsi-1 (50%) 3D Acquisition in Q3 (to optimize well locations) 6+ planned wells in 2010/Q1 2011 – post 3D Modern acidizing equipment working in July Fracture stimulation equipment mid-year Resource potential from Dadas shale Top of Mardin Top of Mardin Top of Bedinan Top of Bedinan Paleozoic Trend Geologic Column |
Paleozoic Trend 17 Block 4173 Block 4173 100% 100% Block 4174 Block 4174 100% 100% Block 3118 Block 3118 50% 50% LEGEND Field Prospect Exploration 40 Acres Goksu Molla oil field (Mardin) Kastel oil field (Mardin) Tested oil (75 bopd) (Bedinan) Source Kitchen Migration Ambarcik Tested Oil (Bedinan) Arpatepe 1, 2, 3 Strategy 3D seismic is desirable to identify sweet spots for optimum well placement Potential NNE-SSW favorable depositional trends 270 sqkm acquisition to commence in Q3 Find more wells like Arpatepe-1 Possible Outline of 3D Seismic Survey 2010 Objectives Bedinan sandstone (primary) Hazro sandstone (secondary) Dadas shale (Woodford equivalent) Modern completions unlock value |
2010 Exploration Upside - 4175 18 4175 IRAQ Karatcho Karatcho Rumilan Rumilan Sazaba Sazaba Souedieh Souedieh DNO-Tawke DNO&#45; Tawke -Tawke Tawke Field Field TURKEY Interest 100% Acres 117,691 Location Near the town of Cizre, close to the Iraq border Play Type Anticline – Paleozoic / Mesozoic / Cenozoic Opportunity - Giant oil fields of the Zagros fold belt extend from NW Iraq into NE Syria and SE Turkey - ~100 km from the DNO Tawke discovery Activity - Processed 2D seismic, which indicated large structure consistent with the Kerberan surface anticline - Kaletepe prospect is anticipated to contain both Mardin and Paleozoic aged formations - Currently rigging up on Kaletepe-1 |
20 Bakuk License Overview & Neighbor Fields Leads from 2D Seismic Bakuk-1 Bakuk-101 3D Seismic Area |
21 Bakuk-101A • TransAtlantic 50% • Twin of Bakuk-1 • Encountered gas in marly Sst of Germav Fm. • Testing gas at clearly commercial rates Bakuk-1 w/ Bakuk-101A Casing 7” Casing Shoe @ 3148’ (960m) Bakuk-1 (~3.2 MMscfd) Bakuk-101A Sinan Fm. Germav Fm. Bakuk-1 (~1 MMscfd) |
SURFACE ELEVATION Bakuk Surface Elevation Bakuk-1 Bakuk-101 |
Romania Exploration |
Romania Exploration Gas Prone Gas Prone Bulgarian Jurassic Oilfields Oil Prone Oil Prone Coyote / Wolf (Jurassic oil play) Shale Gas potential TransAtlantic’s Acreage: 1.4 million gross / 0.7 million net |
Morocco Exploration |
Morocco 22 Basin Structures (numerous gas fields) Oil Oil Trend 3D Atlantic Ocean TransAtlantic’s Acreage: 4.2 million gross / 2.5 million net East Area Basin Structures Gas Pipeline Thrusted Structures West Area Ouezzane-Tissa HKE-1 exploratory encountered gas; will be re- drilled Tselfat – 3D defined prospects Drilled BTK-1 Currently drilling GUW-1 Meknes Mediterranean Oil fields 3D Rabat Spain Asilah Permit: Area of recently shot 2D seismic Recent discoveries BTK-1, GUW-1 HKE-1 |
10 Km 20 Km Morocco – Oil Trend 3D Arb Line NW SE Time: Sec. Depth Ft. 900 1200 1500 1800 2000 2400 2600 2900 3200 T T UJ Zone Producing Zone H Field LJ Zone Producing Zone BD Field UJ 23 0 History Discovered first oil in the 1910s In 2008, TransAtlantic shot 175 ² km of 3D seismic Status Defined multiple prospects revealed by 3D seismic and existing 2D seismic BTK-1 first 3D prospect that has been drilled GUW-1 is the second Primary production may originate from Tertiary clastics (TR), Upper Jurassic clastics (UJ), Lower Jurassic carbonates (LJ), and Triassic clastics (T) |
Viking International |
“We’ve Done This Before” Packenham Field Grew production from 40 mcf/d to 30,000 mcf/d Pinon Field ’85 ’90 ’95 ’00 ’05 ‘10 Riata Energy Malone Mitchell 3 founded Riata Energy with $500 TransAtlantic Established new vision Vertical Integration Strategy Since beginning our vertical integration strategy with a single tubing trailer, we’ve constructed over 50 rigs and drilled thousands of wells rd |
We’ve Done This Before – Encore Development Maximizing returns by reducing drilling and operating costs Pursuing projects that 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-term with longer-term projects, resulting in advancing projects with asymmetric upside Working to reduce costs by utilizing our own equipment, planning for “scale,” and partnering out risk Joint Venture Opportunities Seek to lower risk and accelerate activity Expand our opportunities GOAL Create a fully funded, international, vertically integrated E&P company 26 |