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| 8-K - FORM 8-K - TRANSATLANTIC PETROLEUM LTD. | d374244d8k.htm |
| EX-99.1 - TRANSATLANTIC PETROLEUM LTD. INVESTOR PRESENTATION - TRANSATLANTIC PETROLEUM LTD. | d374244dex991.htm |
 Annual General
Meeting Chairman’s Strategy Overview
June 28, 2012
Exhibit 99.2 |
 Forward Looking
Statements 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
capacitie
s; 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
changes
in
long-term
oil
or
gas
prices
or
other
market
conditions
affecting
the
oil,
gas,
and
petrochemical
industries;
reservoir
performance;
timely
completion
of
development
projects;
war
and
other
political
or
security
disturbances;
changes
in
law
or
government
regulation;
the
outcome
of
commercial
negotiations;
the
actions
of
competitors;
unexpected
technological
developments;
the
occurrence
and
duration
of
economic
recessions;
unforeseen
technical
difficulties;
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,
2011
and
our
Quarterly
Report
on
Form
10-Q
for
the
quarter
ended
March
31,
2012
available
at
our
website
at
www.transatlanticpetroleum.com
and
www.sec.gov.
See
also
TransAtlantic’s
2011
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outdated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
being
actually
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
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 |
 What Was the
Plan? 3
Identify
countries
with
the
Right
Rock...
•
Compared
only
to
its
neighbor’s
geology,
Turkey’s
rocks
are
less
exciting
and
thus they
have
been
underexplored.
•
Compared
to
geology
in
North
America
the
cup
is
full
(with
application
of
technology).
...and
the
Right
Government
•
Turkey
has
fair
and
balanced
government
that
is
bureaucratic
and
pro-business.
•
Good
fiscal
terms:
12.5%
royalty,
no
production
tax,
20%
corporate
income
tax.
•
Attractive
lease/license
terms.
Large
acreage
blocks
with
very
manageable
work
commitments.
No
production
sharing
agreements.
Bring
North
American-style
oilfield
services
and
pricing
•
Turkey’s
legacy
oilfield
services
equipment
had
limited
capabilities
to
drill
targets
deeper
than
7,000
feet
(2,100
meters).
•
No
in-country
stimulation
equipment
and
less
than
10
fracs
ever
executed.
•
No
in-county
natural
gas
compression. |
 Making
Great
Progress,
But
Still
Plenty
of
Road
Ahead
4
Thrace
Basin
Proof
of
Concept
Program
Moving
Into
Development
Mode
•
Proved
the
formations
are
conducive
to
frac.
•
Added
1,000
additional
meters
of
gas
saturated
sands
to
opportunity
set
through deep
testing.
Zones
below
~2,500
meters
are
not
looking
viable.
•
First
multi-zone
and
multi-stage
fracs
showing
promise.
•
Completion
activity
to
increase
during
second
half
of
2012
as
development
program begins to ramp up.
Early Stages of Potential Stacked Resource Plays in Southeast Turkey
•
Mardin
discovery
at
Goksu
showing
indications
of
Mississippian
Lime-style
resource potential.
•
Dadas
shale
testing
increasing.
Evidence
of
productive
potential.
Still
VERY
early
but could be a company and country changer.
Seismic
Identifying
High
Impact
Exploration
Prospects
•
Large
structures
identified
along
Syrian
border,
the
only
area
in
Turkey
with
the
same geologic opportunity set as Syria and northern Iraq.
•
Latest
Thrace
Basin
3D
identified
several
targets
of
varying
size. |
 Acknowledging
Our
Mistakes
&
Learning
From
Them
5
Patience is a Virtue
•
Most
international
activity
simply
takes
longer
than
similar
procedures
in
North
America.
Must
plan
for
longer
than
expected
activity
times
and
expect
delays.
•
As
the
only
company
forging
ahead,
we
have
set
the
learning
curve.
No
ability
to
learn
from
what
others
are
doing
to
increase
development
pace.
Knowledge Transfer is Critical to Ensure Staying Power
•
Ex-pats
are
critical
in
early
activity.
But
costs
and
turnover
are
high.
•
Use
ex-pats
to
train
locals
to
impart
a
meaningful
knowledge
transfer
to
locals
that
have
the
best
understanding
of
local
customs
and
standards.
•
Cycle
locals
through
affiliated/sister
companies
in
North
America
to
provide
first
hand experience of technology and pace.
Partner Selection is Critical
•
Pick
partners
that
understand
the
“Win-Win”
concept.
•
Seek
smart
partners
that
generate
their
own
prospects/concepts
and
drive
progress
rather
than
inaction. |
 6
The
Way
Forward |
 Four Point
Near-Term Plan 7
Viking Sale Proceeds Clean-up Balance Sheet and Simplifies Reporting
•
Significant
reduction
in
outstanding
debt,
including
the
short-term
portion
responsible
for
the
“going
concern”
qualification.
•
Dalea
and
Viking
borrowings
eliminated.
Borrowings
under
revolving
credit
facility
to
be
meaningfully
reduced.
•
Eliminates
process
necessary
for
intercompany
elimination
of
profit.
Reorganize and Restructure Credit Facility
•
Adjust
terms
to
allow
more
flexibility
(upstreaming
of
cash,
transfer
among
subsidiaries, etc).
•
Reduce
administrative
requirements.
Execute Joint Ventures to Bring Forward Unrecognized Value
•
Shift
some
or
most
of
the
cost
burden
of
exploration
to
others.
•
Redeploy
excess
proceeds
to
facilitate
additional
value
capture.
People
–
Right
People
in
the
Right
Spots
•
Continue
to
high-grade
and
optimize
human
capital
in
all
departments.
•
Plan
well
ahead
for
eventual
CEO
transition
to
facilitate
smooth
hand-off. |
 Longer-term
Plan 8
Transition Thrace Basin Program To Development
•
Drive
low-risk,
repeatable
production
growth.
•
Robust
gas
price
and
well
productivity
yields
healthy
recycle
ratio
allowing
growth
within cash flow.
Develop Additional Resource Plays
•
Test
and
define
new
resource
potential
in
Turkey,
Bulgaria
and
Romania.
•
Evaluate
under-explored/overlooked
play
concepts
using
a
North
American
viewpoint.
Continue High Impact Exploration
•
Apply
cutting-edge
seismic
to
under-explored
regions.
•
Balance
high-risk
exploration
with
lower-risk
production
growth
to
soften
impact
from unsuccessful ventures.
•
Partner-out risk.
Keep
Concentrated
Focus
While
Seeking
Strategic
New
Step-out
Regions
•
Never
rest
on
our
laurels.
•
Continually
evaluate
neighboring
plays
and
operators
to
allow
swift,
but
selective,
opportunism. |