![]() Permian Basin, TX ‘38 SE Basin, Turkey ‘11 Applying old lessons to new frontiers January 11 Exhibit 99.1 |
![]() ![]() ![]() Disclaimer 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 Reports on Form 10-Q for the quarters ended March 31, 2010, June 30, 2010 and September 30, 2010 available at our website at www.transatlanticpetroleum.com and www.sec.gov. See also 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 The information contained herein is current as of the date hereof, but may become outdated or subsequently may change.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. 2 |
![]() ![]() ![]() ![]() ![]() Introduction to Chairman Malone Mitchell, A Best-In-Class Operator ‘85 ‘91 ‘94 ‘08 ‘06 Malone Mitchell 3 rd 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 Vertical Integration – “We’ve Done This Before” Survived and Thrived In Many Cycles WTI $/bbl EOT Built prior company (Lariat Services) to: $175mm in assets $139mm in 3rd party sales $33mm in 3rd party net income Key takeaways: Lower cost / stretches dollars Boost operational flexibility Profit from 3 rd party work * Page F38, ‘08 SandRidge Energy (NYSE: SD) Annual Report Zorlu 3 |
![]() Capitalize Good Ideas |
![]() ![]() ![]() ![]() ![]() TransAtlantic Prepared For Growth Mr. Mitchell and former Riata Energy executive Mr. Matthew McCann are appointed Chairman and Director, respectively Acquired rigs & equipment. Vertical integration begins. Acquired production and reserves when oil was < $40/bbl Raised CDN $162mm @ CDN $1.65 Acquired Energy Operations Turkey, LLC (Paleozoic Trend) Raised CDN $115mm @ CDN $2.35 Appointed Gary Mize as Chief Operating Officer (President in June) Closed acquisition of Zorlu’s E&P operations First Fracture Stimulation in Thrace Basin Raised US $85mm common equity @ US $2.80 Option to acquire Thrace Basin Natural Gas Turkiye Corporation and Pinnacle Turkey Inc. Equity invested (US) $192 mm Common share ownership 159.0 mm Ownership 47% Loans to company ~$82 mm 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. Mar 09 Jun 09 Apr 08- May 08 Dec 08 Jul 09 Nov 09 Aug 10 Jan 10 Oct 10 Exchange / Ticker NYSE-AMEX / TAT Toronto / TNP Market Capitalization (1) $1.12 billion Shares outstanding (2) Float 336.34 MM 189.82 MM Shareholder Breakdown Institutional: Retail: Directors & Officers: 27% 24% 49% 52-week High Low $4.10 $2.43 Average volume (3 months) 852,652 (1) As of January 3, 2011closing stock on the NYSE-AMEX price $3.32 (2) As of 9/30/10 Oct 10 5 Nov 10 |
![]() Why Turkey? 6 Royalty 12.5% Tax 20.0% Investment in Turkey increasing: Chevron Exxon Petrobras - 100 200 300 400 500 600 700 800 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 09 Crude Oil Consumption vs. Production 000 BOPD - 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 Natural Gas Consumption vs. Production 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 |
![]() Introduction to Thrace Basin Prolific Tertiary gas basin, Turkey’s most productive onshore gas province Approximately 1MM acres Conventional and unconventional gas Over 1,500 sq. km of 3D seismic Tight sand structures very suitable for fracture stimulation Located Northwest Industrial Corridor of Turkey Contains numerous re-entry opportunities of old “show wells” Marmara Sea 8 Includes Application Acreage and acreage held by TBNG/PTI |
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![]() Thrace Basin 10 Fracture stimulation program underway Successfully frac’d first well Technology delivers value Deep Inventory of Re-entries, which set up full scale development Net production 10 mmcf/d Additional production of 10mmcf/d awaiting connection to a pipeline (most early Q1) Conventional - Upside Deep prospects with large structural closures Extension of shallow gas play with 3D In fill opportunity Prospect inventory building Joint Venture Block with TPAO (National Oil Company of Turkey ) Successfully fractured stimulated Kepirtepe-1 well with an initial flow rate of approximately 4.0 mmcf/d |
![]() Thrace Unconventional Gas Fracing Unlocks The Potential 11 N – S Regional Cross-Section of Western Thrace Basin N Thick sedimentary basin with tremendous upside from fracture stimulation of tight sands and “show wells” Reservoirs Hamitabat (3500-4500 m) Ceylan (3000-4000 m) Mezardere (2000-3500 m) “Tuffs” (found throughout Mezardere & Ceylan) Thrace Basin Formations |
![]() Unconventional Gas Play: Potential in the Mezardere 12 Isopach contour interval = 500 m Maturation contour interval = 0.2% MEZARDERE(for licence#3791) Poro: 0.06 Sw: 0.5 Pay: 250 ft D: 2,100 m 6,900 ft P: 3,400 psi T: 190 oF 40 BCF/Section Potential Gas in Place in Mezardere Calculations are based on the area below: Area: 640 acres |
![]() Unconventional Gas Play: Drillable Structures in the Hamitabat and Mezardere 13 HAMITABAT (for licence#4861) Poro: 0.06 Sw: 0.5 Pay: 250 ft D: 4,600 m 15,100 ft P: 7,500 psi T: 350 oF 55 BCF/Section Potential Gas in Place in Hamitabat Calculations are based on the area below: Area: 640 acres |
![]() ![]() ![]() ![]() ![]() Introduction to Southeast Turkey Paleozoic Trend Syrian Trend Selmo TransAtlantic Application 14 Bakuk |
![]() 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° 15 Selmo Oil Field (100% Interest) Upside Opportunity – 2P reserves: 19.7mmbls (1) Vertically integrated to reduce costs by half Wells now cost < than $1 mm Directional tools will enable us to drill from pads (Feb ‘11) Fraced S-57 in MSD with positive results Current production 2,400 Bopd (1) - DeGolyer & MacNaughton Reserve Report, effective 12/31/09 64 57 70 Wells drilled or drilling Next wells to be drilled KEY: Selmo Pay Zone Feet Description MSD 75 Dolomite LSL 250 Limestone LSD 75 Dolomite 72 69 62 58 52 53 51 61 Flowed 450bopd 54 45 ST 49 56 60 71 68 44 ST: Good potential from MSD & Top LSL horizons. SWEET SPOT: Good potential from MSD & Top LSL horizons. . 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. Western Flank: Focus Area • Good well spacing, under developed • Low BS+W area • Targeting, LSL & LSD Horizons • Completions improved by utilizing TA’s own equipment MSD Depth Structure 48 56 71 S57-First Frac of MSD |
![]() Paleozoic Trend: Bedinan Sandstone |
![]() Paleozoic Trend Unconventional Potential: Dadas Shale core-I taken 8330-8353’ in Dadas-I member. TOC 7 to 9% (in Goksu Core) 3.5% Avg. Thickness 50m to 145m Porosity 0.5-6% (average 3%) Maturity shows oil/gas window at Goksu 17 Will frac Goksu-1 Jan 2011 Directional tools available Feb 2011 |
![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() 3D Seismic Area 18 Bakuk-101 Syrian Trend Area Bakuk Gas Discovery TransAtlantic 50% No oil leg found in re-entry of Bakuk-2 Gas Pipeline to South and North (construction underway to the South) almost complete (first sale Q1) 3D acquired on S. Bakuk Bakuk Structural Model |
![]() SURFACE ELEVATION Bakuk Surface Elevation Bakuk-1 Bakuk-101 19 ~ 25,000 acres |
![]() ![]() ![]() Karaca Anticline Alpha Akcadag Anticline Beta Potential Exploration Targets 2D Seismic Exploration Pipeline Prospects and Leads at Malatya Basin Underexplored Tertiary Basin Four Surface Anticlines 2D Seismic Shooting Exploratory Well Planned 20 |
![]() ![]() ![]() Syrian Trend Exploration Midyat 21 • Green lines are 2010 2D program; • Red is Test Spread on Line 3 • Yellow ellipses are Gravity Anomalies (potential structures) from 2009 Gravity Survey • ’83-vintage Line HTM-8395 shown in orange • Now drilling stratagraphic test |
![]() ![]() ![]() ![]() ![]() Romania Exploration 22 COYOTE TREND Gas Prone Gas Prone Bulgarian Jurassic Oilfields Oil Prone Oil Prone TransAtlantic’s Acreage: 1.4 million gross / 0.7 million net Coyote / Wolf (Jurassic oil play) Large resource potential in shale gas play 2011 plan being developed Shale well planned “Summer 2011” Shale Potential |
![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() Morocco 23 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 Meknes Mediterranean Oil fields 3D Rabat Spain Recent discoveries HKE-1 Asilah (GRB-1) now drilling Ouezzane-Tissa HKE-1 being completed Tselfat – 3D defined prospects Successful completion of HR-33 bis (first sales Jan 5th) Asilah GRB -1 now drilling 2011 plan being developed HR-33 bis |
![]() Viking International |
![]() ![]() ![]() “We’ve Done This Before” 25 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 3rd 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 |
![]() ![]() ![]() 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 |
![]() 28 Thank You |
![]() Appendix |
![]() Turkey’s Energy Profile Area 783,562 km² Comparative Area Slightly larger than Texas ‘09 Population Est. 76.8 million ’09 GDP (Nominal) $617.1 billion Fitch Sovereign BB, with positive outlook Risk Rating ’09 Proved Reserves 0.3 billion BBLS / 300 BCF ‘09 Daily Consumption 580k BOPD / 3.39 BCF/d ‘09 Daily Production 53k BOPD / .10 BCF/d ‘09 Gas Import Partners Russia (74%), Iran (21%) Royalty 12.5% Tax 20% Gas is currently priced at ~ $8/MCF, BOTAS Oil is sold at world market prices Investment in Turkey increasing: Source: IEA, CIA - The World Fact Book, and IHS Crude Oil Consumption vs. Production 000 BOPD BCF/d Natural Gas Consumption vs. Production 29 Exxon Mobil Petrobras Chevron ’09 Average BOPD Consumption 580k Production 53k Net Imports 527k ’09 Average BCF/d Consumption 3.39 Production .08 Net Imports 3.29 |
![]() Romania’s Energy Profile Area 238,391 km² Comparative Area Slightly larger than Oklahoma ‘09 Population Est. 22.2 million ’09 GDP (Nominal) $161.5 billion Fitch Sovereign BB+ with stable outlook Risk Rating ‘09 Proved Reserves 0.6 billion BBLS / 2.2 BCF ‘09 Daily Consumption 214k BOPD / 1.63 BCF/d ‘09 Daily Production 117k BOPD / 1.10 BCF/d Royalty 3.5% - 13.5% (oil) 3.0% - 13.0% (gas) Tax 1-year tax holiday, then 16% Oil is sold at world market prices Gas is deregulated; priced at 80% of imported price (Gazprom) Source: IEA, CIA - The World Fact Book, and IHS 30 Crude Oil Consumption vs. Production 000 BOPD EU Member Natural Gas Consumption vs. Production BCF/d ’09 Average BCF/d Consumption 1.63 Production 1.10 Net Imports 0.53 ’09 Average BOPD Consumption 214k Production 117k Net Imports 97k |
![]() Morocco’s Energy Profile Source: IEA, CIA - The World Fact Book, and IHS Area 446,550 km² Comparative Area Slightly larger than California ‘09 Population Est. 31.3 mm ’09 GDP (Nominal) $88.9 billion Fitch Sovereign BBB- with stable outlook Risk Rating ‘09 Proved Reserves 750k BBLS / 53 BCF ‘09 Daily Consumption 187k BOPD ‘09 Daily Production 0.5k BOPD Royalty 10% (oil), 5% (gas) Tax 10-year tax holiday, then 30% Oil is sold at world market prices Gas is deregulated for end user sales, regulated if sold to the Moroccan government for power generation Onshore Drilling History – Morocco Is Underexplored 31 Crude Oil Consumption vs. Production Wells 168 105 74 75 14 26 ’09 Average BOPD Consumption 187.0k Production 0.4k Net Imports 186.6k BOPD 0000 |
![]() ![]() ![]() ![]() Proven Management Team 32 Name & Title Age Years Exp. Experience Malone Mitchell Chairman Matt McCann Chief Executive Officer Gary Mize President Scott Larsen Executive Vice President Hilda Kouvelis, CPA Chief Financial Officer 25 15 35 25 25 49 42 57 57 46 ’85 -’06, built Riata Energy into one of the largest privately held energy companies in the US ‘06, sold controlling stake in Riata, which was later renamed SandRidge Energy (NYSE: SD) Founded Mitchell Group in early ‘07, which includes Longfellow Energy and Riata Management Prior to involvement with Riata Energy and Mitchell Group, Mr. Mitchell worked in the oil field services industry and was employed with his family's ranching and aviation businesses B.S., Oklahoma State University Appointed CEO and Board Member in ’08 General Counsel for Riata Management since ’07 Vice President, Legal & Corporate Secretary for SandRidge Energy (NYSE: SD), ‘05-’07 General Counsel for Riata Energy, ‘01-’05 Represented Riata Energy while practicing law with Sprouse, Smith & Rowley, P.C., ‘95-’01 B.S. in Business Administration, University of Vermont; J.D. from Oklahoma University Appointed President in ’10 Previously Executive Vice President for Manti Resources ‘94-’09 From ’74-’94, worked for Exxon in a multitude of capacities including manager of Exxon's onshore gas production, and finally as the Technical Manager for all engineering and geosciences for the South East division. B.S. in Petroleum Engineering from Oklahoma University Appointed to Board in ’05 Previously Vice President of Operations ‘02-’04; CEO ’04-’08; focused on International since ‘94 Former General Counsel to Humble Exploration Company Former Partner at Vineyard, Drake & Miller B.A. in Biology, Rutgers University; J.D. from Rutgers Law School Appointed Vice President and CFO in ‘07 Majority of her career at FINA Inc. in various capacities including Controller and Treasurer; Financial Controller for international operations PetroFina S.A.,‘98-’00 MBA in Corporate Finance & Investment Analysis, University of Texas at Dallas; B.B.A. in Accounting, Angelo State University |
![]() ![]() ![]() ![]() Research Links TransAtlantic Petroleum Ltd. http://www.transatlanticpetroleum.com SEC Filings (sign up for alerts) http://ir.transatlanticpetroleum.com/sec.cfm Investor Presentation (.pdf download) http://www.transatlanticpetroleum.com/s/Presentation.asp Fact Sheet (.pdf download) http://www.transatlanticpetroleum.com/s/FactSheet.asp Analyst Coverage http://www.transatlanticpetroleum.com/s/Analysts.asp Events http://www.transatlanticpetroleum.com/s/Events.asp FAQ http://www.transatlanticpetroleum.com/s/StockInfo.asp Viking International Limited http://www.viking-intl.com TransAtlantic Turkey http://www.transatlanticpetroleum.com/s/Turkey.asp Photo Gallery http://www.transatlanticpetroleum.com/s/TurkeyPhotoGallery.asp Country Profile Links http://www.transatlanticpetroleum.com/s/CountryProfile.asp TransAtlantic Romania http://www.transatlanticpetroleum.com/s/Romania.asp Photo Gallery http://www.transatlanticpetroleum.com/s/RomaniaPhotoGallery.asp Country Profile Links http://www.transatlanticpetroleum.com/s/CountryProfile.asp TransAtlantic Morocco http://www.transatlanticpetroleum.com/s/Morocco.asp Photo Gallery http://www.transatlanticpetroleum.com/s/MoroccoPhotoGallery.asp Country Profile Links http://www.transatlanticpetroleum.com/s/CountryProfile.asp 33 |
![]() 34 Viking Turkey Drilling Services & Equipment (by name and depth capacity) Cementing Equipment Completion Units Well Test Units Mud Logging Mobile Underbalanced Drilling Units (20,000 hp) Nitrogen Units Acid Stimulation Fracture Stimulation Heavy Dirt & Construction Equip. Cased Hole Wireline * Managed under contract 4,000m 7,000m* 7,000m* 4,000m 4,000m 2,500m 2,000m I-17 Zorlu Rig |
![]() ![]() ![]() ![]() ![]() ![]() 35 Viking Morocco Drilling Services & Equipment o Rig I-7 o Depth capacity (ft) 6,500 o Drill pipe size 3 ½ “ o Horsepower 530 o Rig I-8 o Depth capacity (ft) 13,000 o Drill pipe size 4 ½ “ o Horsepower 1,300 Cementing & Mud Logging Equipment o 2 Twin 450 Horsepower Recirculation Pump Unit o1 Batch Mixing Trailer o1 Batch Mixing Skid o2 Bulk Cement Tank Transport Truck o4 Bulk Silos o2 Mud Logging Units Heavy Trucks o 4 Haul o 2 Rig-up o 1 Srv. & Lube o 5 Roadwinch o 2 Dump o 2 Water o 1 Gang Heavy Dirt Equipment o 1 Roller o 1 Motor Grader o 2 Loader o 1 Bull Dozer o 2 Backhoe Trailers o 3- 50-ton Lowboys o3 30-ton Lowboys 1 |
![]() ![]() ![]() ![]() ![]() ![]() ![]() 36 2 Complete Crews Acquisition Technology o6,200 – Channel, OYO GSR Wireless Recording System (current) Source / Survey Technology oTigerNav Vibrator Guidance Systems oTrimble 5800 Receiver and Base Units Camp oOffices and Communication Trailers Vehicles oComplete Suite of Support Vehicles and Equipment Haulers Microseismic planned |
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