Exhibit 99.1
Exhibit 99.1
TransAtlantic
Petroleum Ltd.
Annual Meeting of Shareholders
June 24, 2013
FORWARD LOOKING STATEMENTS
TransAtlantic
Petroleum Ltd.
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 market prices for natural gas, natural gas liquids and oil products; estimates of reserves and economic assumptions; the ability to produce and transport natural gas, natural gas liquids and oil; the results of exploration and development drilling and related activities; economic conditions in the countries and provinces in which we carry on business, especially economic slowdowns; actions by governmental authorities, receipt of required approvals, increases in taxes, legislative and regulatory initiatives relating to fracture stimulation activities, changes in environmental and other regulations, and renegotiations of contracts; political uncertainty, including actions by insurgent groups or other conflict; the negotiation and closing of material contracts; shortages of drilling rigs, equipment or oilfield services; 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, 2012 and our Quarterly Report on Form 10-Q for the three months ended March 31, 2013, which are available on our website at www.transatlanticpetroleum.com and www.sec.gov. See also TransAtlantic’s 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.
The SEC has generally permitted oil and gas companies, in their filings with the SEC, to disclose only proved reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions. We may use the terms “estimated ultimate recovery,” “EUR,” “probable,” “possible,” and “non-proven” reserves, “prospective resources” or “upside” or other descriptions of volumes of resources or reserves potentially recoverable through additional drilling or recovery techniques that the SEC’s guidelines may prohibit us from including in filings with the SEC. These estimates are by their nature more speculative than estimates of proved reserves and accordingly are subject to substantially greater risk of actually being realized by the Company. There is no certainty that any portion of estimated prospective resources will be discovered. If discovered, there is no certainty that it will be commercially viable to produce any portion of the estimated prospective resources.
Boe (barrel of oil equivalent) is derived by converting natural gas to oil in the ratio of six thousand cubic feet (Mcf) of natural gas to one barrel (bbl) of oil. Boe may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 Mcf:1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.
2
WELCOME
TransAtlantic
Petroleum Ltd.
Agenda
Chairman & CEO:
N. Malone Mitchell 3rd
Introduction
President:
Ian J. Delahunty
Operations
VP, CFO:
Wil F. Saqueton
Finance and Accounting
Chairman & CEO:
N. Malone Mitchell 3rd
President:
Ian J. Delahunty
Q&A
VP, CFO:
Wil F. Saqueton
VP, Legal:
Jeffrey S. Mecom
3
INTRODUCTION
TransAtlantic
Petroleum Ltd.
N. Malone Mitchell 3rd, Chairman & CEO
Current State of the Business
4
CURRENT STATE OF THE BUSINESS
TransAtlantic
Petroleum Ltd.
Strengths
Focused on increasing production and cash flow
Team now tailored for strategy
Successful wells delineating productive zones in Turkey
Strong balance sheet with very little net debt
Management aligned with investors
Challenges
Past guidance not achieved
Production declined as we enhanced the team
Strategy not clearly communicated
SEC filing delays were a distraction
Low trading volume results in price volatility
5
OPERATING AND FINANCIAL HIGHLIGHTS
TransAtlantic
Petroleum Ltd.
Results for three months ended: 3/31/2013 12/31/2012 3/31/2012
Production
Oil (BBLD) 2,660 2,862 2,463
Natural Gas (MCFD) 8,904 9,374 15,026
BOED 4,144 4,424 4,967
% Oil 64% 65% 50%
Prices
Oil (BBL) $103.00 $99.96 $108.14
Natural Gas (MCF) 10.12 9.87 7.64
Average Netback BOED $72.92 $65.53 $68.65
Financial ($ millions)
EBITDAX(1) $19.5 $22.2 $22.2
Net income(1) 3.0 (13.9) (1.5)
Capital Expenditures 18.7 29.8 14.2
Net debt 20.3 18.0 62.9
Net debt/capitalization 9% 8% 34%
(1) EBITDAX and net income are for continuing operations.
6
OPERATIONS REVIEW
TransAtlantic
Petroleum Ltd.
Ian J. Delahunty, President
1. Objective
2. Team
3. Three-Part Strategy in Turkey
4. Bulgaria Update
5. Outlook
7
OBJECTIVES
TransAtlantic
Petroleum Ltd.
Optimize Assets to Increase Production and Cash Flow
• Utilize North American technology to more efficiently produce assets
- Horizontal drilling, stimulation and 3D seismic
• Manage from Dallas headquarters
• Deploy capital using proven industry expertise and decrease costs
• $130 million capital budget
• Accelerate capital program with consummation of joint venture
8
EXPERT TECHNICAL TEAM IN PLACE
TransAtlantic
Petroleum Ltd.
Technical Team Position Select Experience
Darcy Dorscher
Vice President, Production
International E&P experience in the Former Soviet Union, Kazakhstan, Qatar, India, Turkey and Madagascar
Mitch Whatley
Vice President, Drilling
Pioneer Natural Resources: Eagle Ford shale drilling; EnCana Oil and Gas: Deep Bossier and Haynesville shale drilling
Justin Davis
Vice President, Completions
SandRidge Energy: Piceance Basin operations manager, Permian Basin stimulation design
Will Bentley
Vice President, Land
Sandero Resources; Ted W. Walters & Associates
Gary Nilson
Chief Reservoir Engineer
Pioneer Natural Resources: Barnett Shale reservoir advisor, Vintage Petroleum; Devon Energy; Marathon Oil
THREE-PART STRATEGY UNDERWAY TO INCREASE PRODUCTION AND CASH FLOW IN TURKEY
TransAtlantic
Petroleum Ltd.
1) Molla Horizontal Program
• Completed third horizontal well in May
• Nine additional horizontal wells planned in Molla area this year
• Acquire 3D seismic over Molla area
2) Selmo Field Redevelopment
• Remodeled field using 3D seismic and increased well control, identified undepleted fault blocks
• Currently drilling first horizontal well into most prolific formation in the field
3) Thrace Basin Development
• Drilling first horizontal well in Thrace Basin South (recent vertical IP: 2.5 - 3 MMcfd); second horizontal well planned for late June 2013
• Effectively utilizing hydraulic fracturing in productive intervals of Thrace Basin South
• Recent discovery in Thrace Basin Central
FOCUS AREAS HAVE KNOWN PRODUCTION
TransAtlantic
Petroleum Ltd.
BULGARIAN JURASSIC OILFIELDS
KOYNARE PRODUCTION CONCESSION
SOFIA
BULGARIA
NORTH
CENTRAL
SOUTH
TEKIRDAG
THRACE
BASIN
ISTANBUL
ANKARA
TURKEY
DIYARBAKIR
SELMO
MOLLA
GAZIANTEP
SOUTHEAST
BASIN
200 kilometers
125 miles
Indicates 2013
focus area
11
1) MOLLA GEOLOGICAL TARGETS
TransAtlantic
Petroleum Ltd.
Oil shows – untested Selmo producing zone
Demonstrated horizontal success with Goksu-3H over 300 BOPD after ~5 months of production
Bahar-1 tested 150 BOPD
Potential resource play
Vertical discovery Bahar-1 IP ~600 BOPD post frac; currently fracing Bahar-2H
MIOCENE
PALEOCENE
CRETACEOUS
MARDIN GROUP
TRIASSIC
PALEOZOIC
SELMO
MIDYAT-GERCUS
SINAN
GARZAN
KIRADAG
KASTEL
SAYINDERE
KARABABA
DERDERE
SABUNSUYU
ULUDERE
HAZRO
DADAS
SHALE
III II I
HOT SHALE
BEDINAN
III II I
Target Zones
Open Hole Completion
Fracture Completion
12
1) MOLLA DISCOVERIES
TransAtlantic
Petroleum Ltd.
Formation Overview
• Fractured carbonate present across the region
• Initial vertical discoveries bolstered by recent application of horizontal drilling processes
• 1P reserves: 0.6 MMbbls(1); 2P reserves: 2.9 MMbbls(1)
Goksu-4H (Horizontal, western extension)
• Cost: $2.5 million; IP 250 BOPD; ~3.5 month payback
Goksu-3H (Horizontal, 1,600’ lateral)
• Cost: $3.5 million; Cum. production > 70,000 bbls
• ~3.5 month payback
• Flowing ~250 BOPD after 5 months of production
Goksu-2 (Vertical)
• Cost: $2.0 million; Cum. production > 60,000 bbls
• ~3.5 month payback; IP 400-500 BOPD, Feb. 2012
• Currently producing ~30 BOPD
Goksu-3H
BOPD, BWPD, PSI, % Water
2,500
2,000
1,500
1,000
500
0
10/1/2012 12/1/2012 2/1/2013 4/1/2013 6/1/2013
BOPD BWPD FTP WC Cum Oil
80,000
70,000
60,000
50,000
40,000
30,000
20,000
10,000
0
BBL OIL (CUM)
(1) DeGolyer and MacNaughton reserves as of 12/31/2012, based on $108.30/barrel and $8.94/Mcf. Payback periods assume 1Q13 oil price of $103.00/barrel.
13
1) MOLLA GRAVITY MAP
TransAtlantic
Petroleum Ltd.
Field discoveries align well with gravity data; meaningful structural and stratigraphic running room
Bahar Field
(2P Reserves: 2.5 MMbo)
Kastel Field
(EUR 15 MMbo)
Bati Raman Field
Largest oil field in Turkey
Mardin Potential
Goksu Field
(2P Reserves: 2.9 MMbo)
Molla 3D
TAT 100%
Arpatepe JV (TAT 50%)
Proved Structures
Gravity-Indicated Structures
(1) DeGolyer and MacNaughton reserves as of 12/31/2012, based on $108.30/barrel and $8.94/Mcf.
14
1) MOLLA AREA
TransAtlantic
Petroleum Ltd.
TransAtlantic’s
Selmo Field
Shell/TPAO Dadaş Joint Venture
Shell/TPAO Saribugday-1
TPAO Dadaş Discovery Well
Perenco’s
Kestal Field
(EUR 15 MMbo)
TransAtlantic’s
Bahar Field
TransAtlantic’s
Molla Field
TransAtlantic
3D Seismic Area
Mardin Potential
TransAtlantic’s
Goksu Field
TransAtlantic’s
Arpatepe Field
TransAtlantic’s
May 2013 Acquisition
Bati Raman Field
Largest oil field in Turkey
15
2) SELMO FIELD REDEVELOPMENT
TransAtlantic
Petroleum Ltd.
Selmo vertical pad drilling site.
Selmo Background
• Second largest field in Turkey (~600-800 million barrels of oil in place, ~87 million barrels cumulative production)
• 100% working interest
• Discovered by Mobil in 1964
• 2012: drilled 9 development wells and performed 10 fracture stimulations, average production 2,222 BBLD
• Currently 48 producing wells in the field
• Recently spud first horizontal well in Selmo Field
• 2013 budget includes five horizontal wells
16
2) SELMO FIELD REMODELING
TransAtlantic Petroleum Ltd.
Remodeling Will Result in Improved Targets
• Extensive work done to remodel Selmo and identify bypassed oil; field is extremely fractured
• New dynamic model incorporates updated substructure mapping with production and pressure histories to determine areas of the field that will benefit most from a horizontal drilling campaign
• Horizontal wellbores will likely allow more uniform pressure drawdown across the wellbore length and prevent water coning or premature breakthrough of water
17
2) SELMO FIELD REMODELING, CONTINUED
TransAtlantic Petroleum Ltd.
Selmo Horizontal Well Location
Present-Oil-Contact @ 3300 ssft
18
3) THRACE BASIN DEVELOPMENT
TransAtlantic Petroleum Ltd.
Action Plan
• Drilling first of four horizontal wells in Thrace Basin South (DTD-19H, 42% working interest)
• Last five frac’s in South Thrace Basin successful; continue to walk toward Mezerdere, Kesan and Teslimkoy ramp-up
• Recent discovery in Thrace Basin Central (Yildirim-1 exploration well); building 11.5km/7 mile pipeline to tie-in to nearby field
• Shooting 3D on Osmanli structure in South near Thrace area “kitchen”
NORTH
CENTRAL
SOUTH
N S W E
BULGARIA
GREECE
TURKEY
Kirklareli
Istanbul
Tekirdag
0 10 20 30 Kilometers
0 10 Miles
Bursa
Legend
Licenses
TransAtlantic Licenses, Joint Ventures
Farm-in
Production Leases
19
3) THRACE BASIN KITCHEN
TransAtlantic Petroleum Ltd.
Thrace Basin North
Thrace Basin Central
Yildirim
Hayrabolu
Osmanli
Tekirdag
Thrace Basin South
20
3) THRACE BASIN GEOLOGICAL TARGETS
TransAtlantic
Petroleum Ltd.
Conventional gas 400 – 1500 meters
Unconventional gas IP 1.5 MMCFD post frac
Unconventional gas IP 4 MMCFD post frac Late June: to drill BTD -4H
Unconventional gas IP 1 MMCFD post frac Currently drilling DTD-19H
ERGENE
DANSMEN
OSMANKIK
ORGANIC RICH SHALE
MEZARDERE
TESLIMKOY
KESAN
SOGUCAK
HAMITABAT
BASEMENT
Target Zones
Fracture Completion
21
3) THRACE BASIN SOUTH: HORIZONTAL DRILLING
TransAtlantic
Petroleum Ltd.
Tekirdag Horizontal Drilling
Drilling first horizontal well in Tekirdag (DTD-19H, 42% working interest)
Targeting Kesan formation (5,600 ft, productive zone); AFE $1.5 million
Plan to drill three additional Tekirdag horizontal wells
Upper Mezardere TS-18 Frac zone Structure Map (SSTVD-m)
Upper Mezardere TDR Region
Upper Mezardere Yagci Region
Upper Mezardere BTD Region
22
3) THRACE BASIN SOUTH: RECENT DISCOVERY
TransAtlantic
Petroleum Ltd.
Yildirim-1 Exploration Well
Cost $1.5 million, successful two-stage frac, at 600MCFD, ~8 month payback
Reservoir limit test indicated isolated reservoir; four appraisal wells planned on structure
Building 11.5km/7 mile pipeline to tie into nearby Atakoy field
Mese-1
Yildirim-1
Structural Closure
8500 Acres
Koz-1
Tuna-1
Payback period assumes 1Q13 natural gas price of $10.12/MCF.
23
3) THRACE BASIN CENTRAL
TransAtlantic
Petroleum Ltd.
Karababa
Atakoy
Karanfil-
Gelindere
Hayrabolu-
Kazanci
Wells Drilled in 2012 (1000-2000m)
Recent Multi-Objective Deep Wells 2500-4050
Contingent Multi-Objective Deep Wells 3000-4250
24
BULGARIA UPDATE
TransAtlantic
Petroleum Ltd.
ETROPOLE SHALE
KOYNARE CONCESSION
160,000 ACRES
DEVENRCI-R1
STEFENETZ CONCESSION (APPLICATION)
395,000 ACRES
PESHTENE-R11
Action Plan
Koynare Concession – First in History of Bulgaria
Finalizing 50% JV
Expect to drill Deventci-R2 in 2H13
Conventional gas discovery in Jurassic-aged Orzirovo
If successful, plan to build pipeline to connect to central grid at +/-$9/Mcf, shoot additional 3D seismic of the multiple structures along Koynare fault trend
Sales would begin in 2014
Stefanetz Concession Application
November 2011 drilled a ~10,500 foot (3,200 meter) Peshtene-R11 exploration well to core and test Etropole formation
Awaiting revision to parliamentary legislation regarding hydraulic fracture stimulation
Near the best oil and natural gas fields in the country and existing natural gas infrastructure
25
 |
2013 PLANNED DRILL WELLS
If we drill and complete our proposed well count in the second half of 2013, we expect to have a year-end exit rate of more than 5,000 BOED.
Drilling rig on location in the Thrace Basin.
Molla
Selmo
Thrace
Bulgaria
Total
Area
Field
Basin
1H13
Horizontal
3
—
—
—
3
Vertical
—
—
3
—
3
2H13
Horizontal
7
5*
4*
—
16
Vertical
4*
—
11
1
16
Total
Horizontal
10
5
4
—
19
Vertical
4
—
14
1
19
Grand Total
14
5
18
1
38
Note: Based on completion date. * Indicates one well well currently being drilled.
26
 |
OPERATIONS OUTLOOK
TransAtlantic
Petroleum Ltd.
Optimize Assets to Increase Production and Cash Flow
• Utilize North American technology to more efficiently produce assets
• Deploy capital using proven industry expertise and decrease costs
• Accelerate capital program with consummation of joint venture
Three-Part Strategy Underway in Turkey
1) Molla horizontal program; completed three wells
2) Selmo field redevelopment; drilling first horizontal well
3) Thrace Basin development; drilling first horizontal well in Thrace Basin South; recent discovery in Thrace Basin Central
27
 |
FINANCIAL REVIEW
TransAtlantic
Petroleum Ltd.
Wil F. Saqueton, VP, CFO
1. Changes to facilitate accurate and timely SEC filings
2. Plans to reduce external audit fees
3. Status of credit facilities
28
 |
1) ACCURATE AND TIMELY SEC FILINGS
TransAtlantic
Petroleum Ltd.
Completed Actions
• Over the past 18+ months, we have provided training to accountants in Turkey on fundamental U.S. accounting procedures and U.S. GAAP
• In March 2013, we hired Pt. Platinum Consulting to augment Dallas accounting staff and to
- Provide resources with appropriate expertise to review areas with highest likelihood of remaining prior period material misstatements
- Assist with remediation of internal control deficiencies
• In May 2013, Chris Elmore joined as VP of Accounting and Corporate Controller
- 12+ years of Big 4 Accounting experience; vast majority with KPMG-Dallas
- 3 years of auditing public and private E&P companies including CWEI, EXCO and Parallel Petroleum
We believe our issues with prior period errors are behind us
29
 |
1) ACCURATE AND TIMELY SEC FILINGS
Items in Process
• Relocate and staff accounting resources to support operational shift to Dallas
• Phase 1
- AFE support
- Joint Interest Billings and (some) partners support
- Viking invoice approvals and upload
Bringing two current Turkish
accountants to Dallas on trial basis
starting with July close
- Consolidations and financial reporting accountant
- Internal controls management
Working to staff locally (Dallas,
Houston, Oklahoma City)
• Phase 2
• Will explore bringing an international tax resource in-house
• Will explore moving more general accounting functions from Turkey to Dallas
30
2) REDUCE EXTERNAL AUDIT FEES
TransAtlantic
Petroleum Ltd.
$3,000,000
$2,500,000
$2,000,000
$1,500,000
$1,000,000
$500,000
$-
Overages due to prior period errors
Ineffective controls
Base audit and reviews
2012 Actual 2013 Estimate 2014 Target
Estimated Savings
• Elimination of prior period errors = $700,000 of estimated savings (by 2013)
• Establish effective internal controls = $750,000 of estimated savings (by 2014)
31
3) CREDIT FACILITIES
TransAtlantic
Petroleum Ltd.
Standard Bank and BNP Paribas SA
• Current Borrowing Base = $56.9 million
• Commitment = $78.0 million
- TransAtlantic’s voluntary commitment reduction from $120 million resulted in ~$700,000 annual cash savings
- Commitment decreases to $67.5 million in Dec. 2013; by $7.5 million per quarter thereafter
• Interest Rate and Fees
- Interest rate = LIBOR + 5.50%
- Commitment fees: Unused = 2.20% (was 2.75%), Unavailable = 1.10% (was 1.65%)
- Negotiated reductions result in ~$250,000 annual cash savings
- Agency fees = $100,000 annually
We expect to refinance this debt within the next 6 to 9 months
32
3) CREDIT FACILITIES
TransAtlantic Petroleum Ltd.
Yapi Kredi (Turkish Bank)
• We have secured an 80 million Turkish Lira (TL)
(US $42.1 million) line of credit for our Thrace Basin Natural Gas (TBNG) subsidiary
- Cash = 60 million TL (US $31.6 million)
- Non-cash = 20 million TL (US $10.5 million)
• Unsecured
- No collateral, no covenants
• No fees
• Two year tenor for each borrowing
• Interest rate negotiated upon each borrowing
Hydraulic fracture stimulation of the Bahar-1 well in the Molla area.
We will utilize YK facility to fund TBNG exploration and development as needed
Note: Based on 6/19/13 conversion rate of US $1 = $1.90 TL.
33
Q&A
TransAtlantic
Petroleum Ltd.
N. Malone Mitchell 3rd, Chairman & CEO
Ian J. Delahunty, President
Wil F. Saqueton, VP, CFO
Jeff S. Mecom, VP Legal
34
 |
INVESTOR CONTACT INFORMATION
TransAtlantic
Petroleum Ltd.
Taylor B. Miele
Director of Investor Relations (214) 265-4746 taylor.miele@tapcor.com
Wil F. Saqueton
VP - Chief Financial Officer (214) 265-4743 wil.saqueton@tapcor.com
Ian J. Delahunty
President (214) 265-4780 ian.delahunty@tapcor.com
35
EBITDAX RECONCILIATION
TransAtlantic
Petroleum Ltd.
$US millions
For the three months ended: 3/21/2013 12/31/2012 3/31/2012
Net income from continuing operations $3.0 $(13.9) $(1.5)
Less:
Interest and other, net 0.5 1.1 3.1
Income tax expense 2.3 0.0 0.2
Exploration, abandonment, and impairment 3.9 28.2 2.8
Seismic 0.1 2.4 0.2
Foreign exchange loss 0.5 2.0 (4.3)
Share-based compensation 0.4 1.0 0.5
Unrealized derivative gain (0.5) (0.5) 11.0
Accretion of asset retirement obligation 0.1 0.1 0.2
Depreciation, depletion and amortization 9.0 1.5 9.2
Net other items 0.2 0.3 0.8
Adjusted EBITDAX from continuing operations $19.5 $22.2 $22.2
This presentation references estimated EBITDAX, which is a non-GAAP financial measure that represents earnings from continuing operations before income taxes, interest, depreciation, depletion, amortization, impairment, abandonment and exploration expense.
The Company believes EBITDAX assists management and investors in comparing the Company’s performance and ability to fund capital expenditures and working capital requirements on a consistent basis without regard to depreciation, depletion and amortization, impairment of natural gas and oil properties and exploration expenses, which can vary significantly from period to period. In addition, management uses
EBITDAX as a financial measure to evaluate the Company’s operating performance. EBITDAX is also widely used by investors and rating agencies.
EBITDAX is not a measure of financial performance under GAAP. Accordingly, it should not be considered as a substitute for net income, income from operations, or cash flow provided by operating activities prepared in accordance with GAAP. Net income, income from operations, or cash flow provided by operating activities may vary materially from EBITDAX. Investors should carefully consider the specific items included in the computation of EBITDAX. The Company has disclosed EBITDAX to permit a comparative analysis of its operating performance and debt servicing ability relative to other companies.
36
TransAtlantic
Petroleum Ltd.
PV-10 RECONCILIATION
The PV-10 value of the estimated future net revenue are not intended to represent the current market value of the estimated oil and natural gas reserves we own. Management believes that the presentation of PV-10, while not a financial measure in accordance with U.S. GAAP, provides useful information to investors because it is widely used by professional analysts and sophisticated investors in evaluating oil and natural gas companies. Because many factors that are unique to each individual company impact the amount of future income taxes estimated to be paid, the use of a pre-tax measure is valuable when comparing companies based on reserves. PV-10 is not a measure of financial or operating performance under U.S. GAAP.
PV-10 should not be considered as an alternative to the standardized measure as defined under U.S. GAAP.
The following table provides a reconciliation of our PV-10 to our standardized measure:
$US thousands
Total PV-10:
$511,075
Future income taxes:
(106,411)
Discount of future income
31,213
taxes at 10% per annum:
Standardized measure:
$435,880
37