TransAtlantic Petroleum announced it has reached agreement with Incremental Petroleum Limited to farm-in to Incremental's License 4262, covering 3,052 acres onshore southeastern Turkey. The agreement is subject to completion of formal documentation and approval by the Turkish General Directorate of Petroleum Affairs (GDPA).
In exchange for a 60% working interest, the Company will drill one exploration well on the Atesler prospect located on License 4262 to a depth of approximately 3,200 meters (10,500 feet). At casing point, Incremental and TransAtlantic will each elect whether to proceed to completion and will each bear their proportionate share of completion and infrastructure costs. The well will target a structural rollover to test the Mardin formation; the Atesler prospect is on trend with adjacent fields that have produced over 300 million barrels.
By drilling this well, the Company will also earn an undivided 75% working interest in four additional licenses covering 1,863 square kilometers (460,321 acres) located south of License 4262. The Company's participation in these licenses is conditioned upon extension of their term by the GDPA; such extension is subject to the parties commencing the drilling of the well on License 4262 by early November and submitting an acceptable work program for the extension period. Subject to GDPA's approval, the Company will become the operator of all five of the licenses.
Also in Turkey, pursuant to the farm-out it announced earlier this year, a well will be spudded on the Company's Licenses 4173 and 4174 in the fourth quarter and drilled to a depth of 3,700 meters (12,100 feet) to test the Bedinan Ordovician formation. The Company will retain a 25% interest and be carried through completion of the well.