TransAtlantic Petroleum Ltd.is pleased to announce that its wholly-owned subsidiary, TransAtlantic Worldwide, Ltd. ("TransAtlantic Worldwide"), has entered into an agreement ("Purchase Agreement") with Direct Petroleum Exploration, Inc. ("DPE") under which TransAtlantic Worldwide would acquire 100% ownership of Direct Petroleum Bulgaria EEOD ("Direct Bulgaria"), Direct Petroleum Morocco, Inc. and Anschutz Morocco Corporation (together the "Direct Morocco Subsidiaries"). Closing of the transaction, which is expected to occur by February 15, 2011, is subject to regulatory approvals, approval of DPE's shareholders and other customary closing conditions.
"The acquisition of Direct Bulgaria will add significant opportunities for the Company, and geographically it bridges our operations in Turkey and Romania. The deep gas potential evidenced by the Deventci discovery well and the significant shale potential in the Etropole formation provide near-term and long-term catalysts for the Company, without unnecessarily diverting resources from our core assets in Turkey. The addition of the interests in Morocco allows TransAtlantic to consolidate our ability to develop the prospects there," said Malone Mitchell, the Company's Chairman.
Under the terms of the Purchase Agreement, at closing TransAtlantic Worldwide will pay DPE $2.0 million in cash and the Company will issue to DPE 8,924,478 shares of the Company's common stock in a private placement. In addition, based on the achievement of three distinct defined milestones (primarily keyed to commercially viable success on certain licenses in Morocco and Bulgaria), DPE would be entitled to receive additional shares of the Company's common stock with an aggregate value of up to $26.0 million.
Upon the acquisition of the Direct Morocco Subsidiaries, the Company will own 100% of the working interests in all of its licensed interests in Morocco, including the Asilah and Ouezzane-Tissa exploration permits (subject to participation of 25% by the Moroccan government once production is achieved), thereby providing TransAtlantic with the option to further exploit its opportunities in Morocco.
On the Tselfat exploration permit in Morocco, the company and its partner ONHYM, have put the HR-33 well on an extended test to determine its commerciality. The crude oil produced during the test will be trucked approximately 200 km to the refinery operated by SAMIR at Mohammedia, Morocco.
