TAT - Earnings call transcript Q3 2018 | TransAtlantic Petroleum Ltd

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good day, ladies and gentlemen, and welcome to the TransAtlantic Petroleum Third Quarter 2018 Earnings Conference Call. [Operator Instructions].

As a reminder, this conference call is being recorded. I would now like to introduce your host for today's conference, Mr. Chad Burkhardt, Vice President and General Counsel. begin. may you Sir,

Chad Burkhardt

Petroleum's XXXX TransAtlantic Conference Third to Earnings Quarter Call. Welcome

Principal Malone call Anda, Chairman and Officer; today, the Mitchell, myself. our and and we President Fabian On Officer; have our Financial Executive and Vice Accounting Chief

to number release, forward-looking cause statements. today's identified statements differ which such the there of Please and materially forecasts, forward-looking statements, and discussed duty note statements. regarding During which the recognize in the actual on and we should and by a you expectations, include future yesterday goals, that and as statements, issued our company's performance forward-looking make of beliefs, assumptions close our we may no place earnings law, the statements, will except update projections factors filings. undue undertake reliance call, results Please factors certain that our underlying press that, to from after are such any in not SEC had business required we including

Now I'll Malone Mitchell. the to call turn over

Malone Mitchell

of Tudor, received parties committee world. who presentations by the for and marketing refer engaged bids the the market, made board continued then for Good It's our call. discuss the been a since to to had intend we've I the conduct public to morning, This were the Pickering Chad. Thank during year, activities strategic Holt were call process, both you, purchase prior bids a tepid discuss directors. while come TPH, morning. of turn to discuss of credit financials. our process and the considered the throughout result interest to activity, contacted over the special in to unacceptable and Fabian discuss And back who Extensive then our then take limited interested quarterly to merger year, your a the All as this as company. I'll company we'll & Associates and and we U.S. future proposed the questions. of solicit Earlier were

this the not refer outstanding my that fund or my on of I equity the the the XX% and on of of affiliates, I at higher, were purchase intend investment company. debt. controlled I withdrawal offer the Following equity in we had partners the securing and my attempt may of or future. by partners which I buy fund contingent X. process, did to family, to gave November significantly affiliates, shares when my approximately my of companies affiliates unsuccessful through for I to by purchase of a and investment several mean transaction. Accordingly, securing notice contingent sell was We

barrels approximately in Moving Thus operations. these located Bahar production drilling and were producing per the the The quarter. third XX at might oil far, one oil FXa in the production that for drilled flow several the northwest Post-drilling from of barrels on formation seismic would Hazro with Yeniev-X, formation. defined Approximately well produce well. through nonproductive drilled to in in on Bedinan discovery volumes. placed the to Bedinan indicate superior which and been Yeniev Pinar-X produced very field Bahar the Bedinan of field currently low wells to wells field structure will this productive structurally of from continues fracked encountered today. successfully are on field. was the by be day water in and discovery have higher have and out Future the which been was well be XXX natural have we field, the two XX,XXX analysis cleaned sidetrack be two Both position. placed a of in Yeniev wells, field. and side in and the Selmo zone recently field, on Bahar-X five just XXXX,

Mardin Yeniev the reservoirs high-porosity and potential upper months west The formation of located the feet and higher was position drilling equivalent the at these difficulties as cemented the approximately well. in formation approximately a is also of its we the its and sand in result information, at Southeast in formation, this recently completion of Hazro paid Mardin drilling high-permeability than Hazro production. in and and zones, Yeniev-X difficulties X caused Despite on primary first drilling a Bedinan Turkey. cost West Bedinan zones X,XXX the in encountered well While drilling Mardin were upper the producing encountered pipe as formations structural the Yeniev-X Yeniev-X. the slightly out Upper

slightly cost than lower Yeniev-X current well. However, track the well

production begin next operations the to expect well this days. XX within on We

oil approximately call over are the I'll producing that to We oil. turn and equivalent, over currently per X,XXX Anda. of now net is Fabian day XX% barrels

Fabian Anda

Malone. Thanks,

in release filed published we XX-Q and quarter our communicate in As our press third results. XXXX regarding yesterday our operating

by in year, XX% third addition, compared up and was prior resulting increase of Our of by MBOE million. driven to revenue million, last an driven million higher per resulted revenues in an higher quarter the revenues of XX% the an $X.X year $X.XX price our realized our average BOE, in volumes in $XX.XX in increase $XXX,XXX price in $XX.X same revenues From increase from XX.X of sequentially average resulting quarter realized $X.X sales at per quarter of last in BOE, of higher quarter $XX.X million. up same

of a expenses, volumes sales revenues result XXXX, in requiring different higher in of new was a adopted in increase our regulation other five expenses. transportation an reporting of MBOE, The increase $XXX,XXX. partially resulting of reported, addition, classification In also

year. our continued same As production effects XX% The quarter of down reporting decrease efforts of conversions production our down in due were far as is and $X.X to expenses million primarily sequentially expenses cost reduction. last and XX%

G&A. to Moving

up The G&A marketing we compare quarter the quarter materially from expenses million second down sequentially quarter. process-related same last X% to were recording prior not of $X.X Cash G&A XX% and third expenses Our from year. different primarily due was the quarter to decrease XXXX. when

flow. cash sheet and balance our to moving Now

quarter, paid our term third down on DenizBank million $X.X the we During loan.

And X, million. at XX November $XX.X debt $XX.X debt September Our as our forma pro was million. net gross XXXX, is of

Our surplus at a of a $X.X XX, of decreased million XXXX, September working from to working consolidated XX, capital XXXX. $X.X million capital June surplus at

of In of cash million. $XX.X operating months was provided from by net operations continuing nine XXXX the results, terms activities

As with remain field approximately $XX.X investments These our primarily being drilling, prior quarters, during capital as and in the we completion far CapEx. in quarter, million aligned and investing third million expenditures, workovers, for $X competent million. the drilling quarter $XX.X were the

the expect $XX of primarily million. We to XXXX going for remainder be on to expenditures million capital drilling. range in capital be to field $X are net of the our expenditures These

EBITDAX. to Moving

prior was increase in an $X.X adjusted oil due than XX% third to EBITDAX and Our quarter, quarter primarily million. was $XX.X revenues our of gas This higher million.

$XXX,XXX. to In decrease expenses our last our the and higher production quarter million G&A and increased $X our same expenses. in Compared addition, EBITDAX year, revenues we XX% decrease in in due a expenses of of to primarily increase production have an a

Now for current our talk indices nominating about place have And I well. a want foreign a exchange to current we as TL oil hedge briefly of hedges basically XX% rate We're positions. cover of to our our have - our revenue. production. coverage we hedges We

to the the lira. Turkish expenditures that revenue settled of to ended the losses This XX% settled impact end December At for and statement. most in dollars. - company XXXX, company the December Turkish impact are XX, the to in revenue company noncash. September gains dollar Turkish loss the the U.S. risen declined expenses this company XX.X%. of the XXXX. in XX, compared the TRY company standards, September exchange X.XX financial statement lira resulted U.S. of X.XX the U.S. XX, dollars, to streams And currency $X rate consolidated conversions GAAP converts into operating to foreign are create and oil Turkish U.S. X capital reporting These However, about and third on XXXX, of lira primarily the TRY income since Talking operations September $X operating as XX. quarter. Approximately From of in value company the X exchange, lira by was exchange Turkey. are million and in of and the located of XX, USD at of XX% foreign currency loss Most XXXX, loss was has months

ended the $XX.X accumulated the oil million Turkish for comprehensive a resulted months the into balance loss. income the recorded far in XX, loss devaluation sheet lira effect, of As the X as September

Our oil and most gas properties assets. affected were the

of total September oil to proven I unproven accumulative on proven accumulated the months XX, in amortization a of properties loss approximately all as XX million, offset of and comprehension was depreciation, ended reduction the noncash. loss The million. of was and Malone. call back which nine million. hand had by partially will the $XXX gross September now The $XX properties depletion For decrease $XX was

Malone Mitchell

accumulated bottom basis XXXX, looking $XXX you're when line Thank I when other you, so and reiterate, see the on financials, written million again, $XX in far, the just says million. you been comprehensive near noncash a the accumulatively, to want down have loss, by assets our Fabian. at again, that

of noncash. All that's

of, Now few looking well volatile a the operations, foresight over and days. kind been to Nostradamus have forward this oil of, our bit as requires as proposed prices last

remains TransAtlantic However, good in shape.

our We have The we low 'XX net painful XXXX that areas costs developing very cut G&A and and that has operating million, fields. cut. in stayed was expenses other low and in $XX in debt, approximately

will our adjust drilling prices. the budgets in match we oil to However, changes

us This expect well to well, begin on target will the XD up near of rigging top Mardin currently down at the Saturday. drilling and that Yeniev-X the are level. We of The Yeniev results the on tell mapping will seismic the our the formations we'll running this well we Bedinan more east somewhat of in but field dip drill room this about our formation, formation. to and this well Bedinan

difficulties set we this formations We Mardin. near to now open well completion We in from Yeniev the of the side oil per of tested availability well XX of information well from of Bulgaria, an perforations expect be mitigate will on da Mardin the to this first work received day waiting lower the XXXX. increase more to attempt originally feet through end intermediate the barrels from permission quarter encountered Vinci-X approximately recently be to to some Cavuslu oil and to to the the try casing sidetrack large of test in the of where of a Mardin been preemptively fault. expect We've begin deliverability wells. the the flipstocking #X on rig in XX,XXX zone the upper limited We results two on drilling to the will prior

to the do Southeast from in year-end And identified Mardin to X oil Bahar of expect early our in we formation, the Molla of in Southeast drilling X have this lower expect also while see #X approximately field. either Bahar Cavuslu-X. we Bahar December. production to updip oil is located before spud that X miles of designated license, of We wells That that test we've shales well seen the formations and the oil field exploration

test will our it East Sands located on and Dadas Sand Secondarily, be in test well. we Or first horizons we than field. well Tarragon-X block would as our This a that Bedinan interpret may formation. seismically the have alternatively, the spud we Bahar productive and to Blackeye well Molla interpreted Dadas is thicker down-dip

Bahar We processing XX drilling from and undertaking continue barrels and wells Thrace now of rig on gather, of Board process have sell of progress we Molla larger gas your activity fields. centralized on a scheduled be activity Bulgaria. of that, in Valeura NGLs will that With constructing questions. November and Basin the and XXX Directors monitor to at together Xth approved The several to Yeniev welcome we the in flare now and the would this XXXX the time, Equinor's in daily plant with a after we that

Operator

Asset Instructions]. Lin of our Chen [Operator from Lin first with line the Management And question comes

Chen Lin

First, just fiscal little the let me understand bit more. term Bulgaria

what et you to a if own track And coming expect or you cetera? close So government? in refinery, easy find XXX%. tax And project, you that, are to type it Is pay that the oil delivered? royalty to can and well, for how the a the you it of get to pipeline, also, a

Malone Mitchell

a you XX%. changes we little increases fiscal a bit are out your for over a rate times at R maximum investment, bit They're, the you good. what several Bulgaria question, as it refer factor, to Chen. amount starts industry, after different. the at royalty an your to a time. X.X%. in but very in the And The government recovered of royalty Thank terms so They're It of

have. expenses acquired. Now recover And we the incurred that but the allowed that cost we've includes not cost we also we expenses pool prior incurred the to that the are pool were predecessor only the company by

approximately to at first revenue royalty the X.X% the So if this we would well. for successful pay government to to our we're be $XX forecast million of with

a that It is have. depreciation is in somewhat the depletion Now of life But by production tax over is license we the allowance. Bulgaria that offset rate XX%.

that's So lesser amount. a

think net that value So immediate company little for the less than I kind company to XX% - sales. a of first the about total think the the easiest the way results future for would the to is of oil of the receive

Moving to large We're day. to on second fluid fault. will X-way downthrone barrels question, of very fault. X,XXX that's closure defined on attempting the was seismically the tested a side your the well productive wellbore the XD Down-dip, redrill seismically, very a of per wet the but to original side this upthrone untested of

alternative facility. be refinery a that is we're other successful, the from our this in able reservoir build truck initial in with would trucking expect generally this on until basis you So of quality. would But the facilities. is successful vast the we be from long-term would well and we the oil limited know Bulgaria, levels to field. we bigger to trucking high oil truckle, that on expect there's refineries. would expect to a would there if that the basis, would we were majority that very refinery and long-term by facilities production if We But We

Chen Lin

with I many It water Thrace months announced information. on don't they lot I have Valeura in of the shutting have people you - I their have working know have well. the testing question too. has a extensively. Second ground just been for Basin.

you're have with of your you Basin? to of point the any share insight willing Thrace do about you public So view

Malone Mitchell

they the would I And publications, fracked. put that manner affirm recovered, frac the their they've Valeura's outlook. initial considered to water relative well was was answers that formation. Well, size small be and would it than water understanding which it the the into my still is The from in the it less of is very fracked, while

that So they published. have - they information that's the

they're our is think intend that's do completions to wells North reasonable. I traditional much drilling. much American they It and larger understanding the that more on

their know from think gave And So have been. what that answers we what they would affirm in the call. not that and we results I they've the surprising seen understand, it's

Chen Lin

may Finally, be seam next a told gas me rig and after that available well. for well this his the period

you in two drilling another use that wells your in So to what's Which in, wait work rig rig plan both? next them plan the to first, or for contract plan? big - you as to after press with release, you do now to So said your or put in they're the - right to Bulgaria want results rig wells? or you the

Malone Mitchell

a a have Bulgaria size of with It's of We same drilling approximately sufficient well that in contracted we basis. The from because have favorable the size. is cost-term the relationship contractor. rig

option the We after the have continue to rig Bulgaria well. that

received made got that storage have we've casing now and the We decision time. have Basin not which our we yard I Valeura that will a our But Carlisle first Thrace say Thrace well, is would discussed well, regard our rig the at using. have with on be this in in to that. Basin Equinor that and for

Operator

our comes And from the Equity. of Instructions]. with question line Paul [Operator Troiano Scarsdale next

Paul Troiano

Just to well that million for $XX-or-so is Basin clarify, the XXXX, the in budget budget? BCGA Thrace in

Malone Mitchell

in got, wells. budget, We've the development seven

is wells, fairly in Turkey, initial Southeast, the where the we approved, on. BlackEye and has we'll pricing only those in those and of Southeast mindful to exploration of be we wells, those X go our which and licenses. the - of Southeast we've one - have fields #X oil and take is as We're the board our standpoint, development board the a in expect We wells board from the

improved the in only But we wells in So in of X board. as X have XXXX. today, that have budget, we certainly anticipating we occasion said that's the to we have group authorized the but by final

Paul Troiano

you. Got

the so BCGA - the sorry, deep So I'm does include - include that does that well? Thrace

Malone Mitchell

drill Again, that decided cash within have. we've exploration Yes. That's of pool wells. to capital and in the we the flow

harder the to be need of drill we going So before we to that's And the depends flow will cash wells or on or whether whether to focus later. it whether development that stabilize to say that build on of number sooner well. kind it's

Paul Troiano

Yes.

was an Valeura you do it was guys to a say, expensive significantly quite anything - I drilled. that do less? Was well that million and want I well Okay. Equinor Is That or can mean, think you $XX for it something. learned?

Malone Mitchell

prudent And Well, think we would of is study on a they wells their learn from doing amount undertaking are wells. that development that think wells. and of they to I to their to us tests try watch it they try the doing early expect to of require are ongoing and would amount what on an in certainly significant basis, don't that. they're science

the concur number I we think are for relatively said, $XX for And are they've less time. that of with stimulations do then million. of complexity contribute the this And think target easy we and to than It's and cost some undertaking in it's of at the ongoing well us are previously certainly prudent It's try some they point the drilling. basin that would in science from hopefully, own. learn our the to study that. under

Operator

questions this to over now any closing turn further Malone call Mitchell I'm I to the showing for And time. remarks. back like would no at

Malone Mitchell

Well, thank again, you, for support. your

day. Good your a take company. and markets operations. Let's our hope rest equity This and calling interest and thank good and the this of the rationality attention in in price area still is Petroleum wish you week TransAtlantic that for very the good a and And holiday we some very the oil morning, We stabilize. for very, period. you of weekend

Operator

This program. a thank you day. and And Everyone, gentlemen, wonderful conclude all may disconnect. today's have today's you in Ladies for conference. does participating

TransAtlantic Petroleum (TAT) 15 Nov 182018 Q3 Earnings call transcript