TransAtlantic Petroleum Corp. was incorporated in 1985 under the laws of British Columbia and changed domicile to Alberta in 1997.
In 1992, The Company acquired a 30% interest in OML 109, a 215,000 acre concession located offshore Nigeria. TransAtlantic successfully drilled a discovery well in 1994 and an appraisal well in 1995 in the Ejulebe field on OML 109, and contracted with a service provider to develop the field. Production began in September 1998, and the Ejulebe field produced approximately 11 million barrels of crude oil as of December 2005. Following its participation in OML 109, TransAtlantic drilled several exploration wells offshore from Benin and onshore in Tunisia. Additionally, TransAtlantic attempted to exploit two onshore Egyptian oil and gas exploration blocks.
During 2005, 2006, and 2007, the Company focused on acquiring high-impact international properties, evaluating and acquiring lower-risk cash flow opportunities in the United States and disposing of its Nigerian property, which was sold in 2005. During 2005 and 2006, TransAtlantic acquired an exploration permit and a reconnaissance license in Morocco, three production blocks in Romania, three exploration licenses in Turkey, and two promote round licenses covering six blocks in the UK North Sea. During this same period, the Company acquired properties in Texas. TransAtlantic also participated as a non-operator in four other properties in Texas, Oklahoma, and Louisiana.
In 2007, the Company determined to exit its U.S. operations and focus on the development of its international properties. To that end, TransAtlantic acquired three additional exploration licenses in Turkey, converted a portion of its Moroccan reconnaissance license into two exploration permits, sold the Texas properties it operated, and offered its remaining non-operated U.S. properties for sale.
Entrepreneurial Partner
In 2008, TransAtlantic changed its operating strategy from prospect generator to a vertically integrated project developer. This followed the acquisition of 45% of the Company's shares by Mr. N. Malone Mitchell 3rd (TransAtlantic's Chairman), his family members, entities under Mr. Mitchell's control, and certain associates of Mr. Mitchell (collectively "Mitchell Group") in a series of private placements in April and May 2008.
To execute this new strategy, in August 2008 TransAtlantic announced plans to both:
acquire Longe Energy, a business entity which provides oil field drilling equipment and services formerly owned by Mitchell Group, by issuing TransAtlantic's stock to Mitchell Group; and
undertake a concurrent private placement pursuant to which Mitchell Group would invest an additional US $42.5 million in the Company.
The transformation also included a new strategic direction involving an integrated approach to business development rather than be limited to solely prospect generation. Both transactions closed in December 2008 and were approved by regulators and shareholders.
In March 2009, TransAtlantic closed the acquisition of Incremental Petroleum, formerly listed on the Australian Stock Exchange. The acquisition expands the Company's rig fleet from four to seven rigs and increases the highly qualified workforce of field staff, engineers, and geologists in one of the Company's target countries. Incremental's portfolio consists of the producing Selmo oil field ("Selmo"), Thrace gas field ("Thrace"), additional exploration acreage in Turkey, and various prospects in California, USA.
TransAtlantic entered into a credit agreement with Dalea Partners, LP ("Dalea"), an entity controlled by Mr. Mitchell, for the financing of the Incremental Petroleum transaction ("offer"). Under this arrangement, Dalea Partners, LP advanced to the Company funds sufficient to enable TransAtlantic Australia to acquire all of the Incremental shares under the offer, plus pay TransAtlantic Australia's transaction costs.
In June 2009, TransAtlantic raised aggregate gross proceeds of CDN $162 million from Mitchell Group and outside investors. As part of the transaction, Dalea converted its debt to equity.
In July 2009, TransAtlantic acquired Energy Operations Turkey, LLC ("EOT"). EOT's assets include a 50% interest in License 3118, where in 2008 EOT participated in two oil discoveries, interests in ten other exploration licenses, inventory and seismic data. The acquisition provides TransAtlantic with the opportunity to expand its operations, achieve scale, and extend its vertical integration strategy in southeastern Turkey.
In October 2009, the Company changed domicile to Bermuda and renamed the Company TransAtlantic Petroleum Ltd.
In November 2009, TransAtlantic raised aggregate gross proceeds of CDN $114 million from Mitchell Group and outside investors.
Today
TransAtlantic is applying technologies and practices developed in the mature sedimentary basins of the U.S. to the Company's underexplored, underdeveloped opportunities in Turkey, Romania, and Morocco. The Company has a balanced portfolio with meaningful growth potential from development drilling at Selmo oil field and Thrace gas field and exploration upside from six million net undeveloped acres in Turkey, Morocco, and Romania.
