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| 8-K - FORM 8-K - TRANSATLANTIC PETROLEUM LTD. | d394966d8k.htm |
 Second Quarter
2012 Operations Review
August 10, 2012
Exhibit 99.1 |
 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
capacities;
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 market
prices
for
natural
gas,
natural
gas
liquids
and
oil
products;
estimates
of
reserves
and
economic
assumptions;
the
ability
to
produce
and
transport
natural
gas,
natural
gas
liquids
and
oil;
the
results
of
exploration
and
development
drilling
and
related
activities;
economic
conditions
in
the
countries
and
provinces
in
which we carry on business, especially economic slowdowns; actions by governmental
authorities, receipt of required approvals, increases in taxes, legislative and
regulatory initiatives relating to fracture stimulation activities, changes in environmental and other regulations, and renegotiations of contracts; political
uncertainty, including actions by insurgent groups or other conflict; the negotiation and
closing of material contracts; shortages of drilling rigs, equipment or oilfield
services; 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 |
 Recent
Highlights 3
Bahar-1 New Field Discovery
•
Oil and gas in Bedinan. Production inhibited by heavy drilling mud and packer failure.
•
Has produced oil and 1,200 btu natural gas during swabbing operations.
•
Shows also seen in Hazro, Mardin and Dadas.
First Horizontal Drilled Successfully
•
Alibey 1H drilled horizontally from previous vertical show well.
•
Logging operations concluded, well being completed.
•
Significant natural fracturing identified.
Viking Sale Closed, Outstanding Borrowings Reduced Significantly
•
Sale closed June 13, 2012.
•
As of June 30, 2012 the Company had outstanding borrowings on its credit facility of $32.8
million and cash on hand of approximately $27.9 million.
•
Available borrowing capacity of $44.7 million. |
 Turkey: Activity
Overview 4
Thrace Basin
Region Summary:
Conventional and tight natural gas
production with upside potential from
deep intervals and technological
application.
Proved Reserves:
13.2 Bcf
(1)
2Q12 Production:
11.6 MMcf/d
Thrace Basin
Southeast
Central
Southeast
Region Summary:
Conventional oil production provides low
decline base. Conventional and
unconventional upside opportunities.
Proved Reserves:
11.2 MMboe
(1)
2Q12 Production:
2.5 Mboe/d
Central
Region Summary:
Frontier basins offer under-explored, high
potential, oil and gas opportunities
Proved Reserves:
0.0 MMboe
2Q12 Production:
0.0 Mboe/d
(1)
Reflects DeGoyler and MacNaughton (“D&M”) reserve report, effective 12/31/2011
based on $108/barrel and $7.18/Mcf. BOE conversions are calculated by the Company.
Overview
Region Summary:
Extension of prolific Syrian and Iraqi oil
fields in the southeast and established
natural gas play in the northwest. All
lacking previous application of latest
technology.
Proved Reserves:
13.4 MMboe
(1)
2Q12 Production:
4.5 Mboe/d
Legend
Licenses
TransAtlantic Licenses, Joint Ventures
Farm-in |
 Turkey: Thrace
Basin 5
TBNG
West
Northwest
Joint Area
Operated Licenses
Non-Operated Licenses
Fields
Kayi Deep-1
TBNG
•
41.5% working interest.
•
13.2 MMcf/d (gross)
•
Frac results encouraging. Transition to
development program in 4Q12.
West
•
50-100% working interest.
•
0.4 MMcf/d (gross)
•
Initial drilling in process.
•
60 prospects identified with 10-60 Bcfe
targets
(1)
.
Joint Area
•
50% working interest.
•
5.7 MMcf/d (gross)
•
Identified 25 Bcf
(1)
of shallow prospects
on 4288.
Northwest
•
55-100% working interest.
•
4.2 MMcf/d (gross)
•
Several prospects identified from latest
seismic.
(1) Internal prospective resource estimate prepared 6/30/11
Legend |
 Thrace Basin Frac
Program: Play Concept & Strategy 6
Play Concept
•
Thick, stacked, blanket sands with significant gas in place.
•
Extensive well control from shallow production
•
Thermally
mature,
but
largely
untested,
source
rocks
provide
substantial
unconventional
potential
with
the
application of modern drilling and completion methods.
Assessment Strategy
1.
Prove rock is conducive to frac using low cost re-entries of existing shallow
wellbores. a.
Identify and test various zones (approximately 2,500-6,500 feet or 750-2,000
meters). b.
Determine appropriate mix of fluid and horsepower.
c.
Test multiple zone completions.
2.
Test deeper potential and additional structures with new wellbores
a.
Identify and test deeper zones (approximately 5,000-13,000 feet or 1,500-4,000
meters). b.
Test additional structures (Pancarkoy-1, Suleymaniye-2).
c.
Define opportunity set (number of productive zones, commingling potential, etc.).
3.
Test multi-stage vertical fracs
4.
Evaluate individual zone productivity for horizontal potential and test if/where
applicable. 5.
Evaluate off-structure (stratigraphic) potential of blanket sands.
In Process
In Process
In Process
In Process
In Process
TBD
TBD |
 Thrace Basin Frac
Program: Development Concept 7
For illustrative purposes only. Not to scale or representative of a specific location..
Ceylan
Horizontals
Mezardere
Horizontals
Teslimkoy
Horizontals |
 Thrace Basin Frac
Program: Assessment Timeline 8
Prove Frac-ability
Test Deep & New Structures
Test Multi-Stage Verticals
Test Horizontal Potential
Test Off-structure Potential
Development |
 Thrace Basin Frac
Program: Key Results Summary 9
Well Name
License
Concept
Month
Net Pay
(Meters)
Porosity
(%)
Peak 24-
Hour Rate
(MMcf/d)
Initial 7-day
Average
(MMcf/d)
Kayi 15
3931
Teslimkoy
Sep-11
20
17
0.6
0.5
BTD 2
3931
Teslimkoy
Oct-11
9
16
4.3
3.3
Aydede 2
3931
Mezardere
Nov-11
4
20
2.2
1.4
DTD 7
3931
Teslimkoy
Nov-11
9
14
0.2
0.1
Kayi 14
3931
Teslimkoy
Dec-11
13
17
5.0
3.7
Dogu Yagci 1
3931
Mezardere
Dec-11
10
14
2.0
1.5
Aydede 1
3931
Mezardere
Dec-11
10
15
0.9
0.7
DTD 11
3931
Teslimkoy
Jan-12
3
11
1.1
0.8
Karya Derin 1
3931
Teslimkoy
Feb-12
7
12
0.1
N/A
TDR 5
3931
Teslimkoy
Feb-12
9
14
3.0
2.1
Senova 1
3858
Teslimkoy
Feb-12
4
18
0.2
N/A
Kuzey Kayi 2
3931
Teslimkoy
Feb-12
3
12
0.8
0.6
DTD 10
3931
Mezardere
Mar-12
5
11
0.2
0.2
Kayi 12
3931
Mezardere
Mar-12
6
15
0.3
0.2
BTD 1
3931
Mezardere
Mar-12
3
12
-
-
TDR 4
3931
Teslimkoy
Mar-12
3
17
1.6
1.2
DTD 4
3931
Teslimkoy
Mar-12
3
12
0.3
0.2
Dogu Karya-1
3934
Kesan
May-12
4
10
0.2
0.04
TDR-8*
3860
Kesan
May-12
3
9
-
-
Kayi-7
3931
Teslimkoy
Jun-12
5
15
0.4
0.4
Guney Kayi-1
3931
Teslimkoy
Jun-12
22
11
0.6
0.4
DTD-1
3931
Teslimkoy
Jul-12
10
16
-
-
TDR-8*
3860
Teslimkoy
Jul-12
8
11
0.3
0.2
Koseilyas-1
3934
Teslimkoy
Jul-12
8
12
1.3
0.7
*TDR-8 underwent two separate completions, one each in the Kesan & Teslimkoy
formations. The fracs encountered a water bearing zone. TDR-8 is awaiting further testing after isolating the zone. |
 Thrace Basin
Frac Program: Location Map 10
Frac Wells
Quarter
3Q11
4Q11
1Q12
2Q12
3Q12
Wells-Non-Frac
Pipeline
TransAtlantic Licenses, JV
3858
TGT-PIN-CV |
 Turkey:
Southeast 11
Overview
•
Extension of prolific Iraqi and Syrian oil
trends. Houses Turkey’s most
productive fields including
TransAtlantic’s Selmo field.
•
Conventional oil production provides
low decline base.
•
New field discoveries in 2011 and 2012
(Goksu and Bahar wells).
•
Selmo frac program planned for late
3Q12.
•
Conventional and unconventional
upside opportunities including large
shale play potential. Numerous large
anticlines identified.
•
Bedinan, Dadas, Hazro, Jurassic,
Mardin, and Triassic targets.
Dadas Shale
•
Upper Silurian (Woodford equivalent)
•
Roughly equal in size to the Barnett.
•
Source rock for conventional fields.
•
Early work indicates oil, liquids and gas
windows. Evaluating second core.
TransAtlantic Licenses, Joint Ventures
Dadas Deposition Area
Legend
Zagros/Bitlis
Suture
Paleozoic Kitchen Area
Silurian/Ordovician sources Mature
Mardin/Midyat Uplift
Paleozoic source rocks immature
Paleozoic Kitchen Area
Silurian /Ordovician sources Mature
Bakuk
5043 (prod.)
Arpatepe
5003 (prod.)
Selmo
829 (prod.)
SE TURKEY
Syria |
 •
Bahar-1 located in northwestern portion of original Molla
licenses. Recent license award extends potential
inventory.
•
New field discovery in the Bedinan
o
Same producing horizon as Arpatepe.
o
Has not previously been productive in the area.
o
Productivity inhibited by heavy drilling mud and
packer failure. Has produced oil and 1,200 btu gas
during swabbing operations.
•
Shows in Hazro, Mardin, Bedinan, and Dadas.
•
Collected 40 feet (12 meters) of Dadas core.
Turkey: Southeast –
Molla –
Bahar Discovery
12
Bahar-1
Bedinan Structure Map
Molla Overview (100% Working Interest)
Bahar-1 |
 Turkey:
Southeast
–
Molla
–
Goksu
13
Goksu Overview
•
Goksu-2 production (Mardin Lime) holding
steady at over 200 bbl/d on 16/64”
choke.
•
Goksu-3H expected to spud during 3Q12 as the
first horizontal in the area and TAT’s second
horizontal drilled in Turkey.
•
Planning Dadas horizontal to spud later in 2012
or early 2013.
Bahar-1
Goksu
1
&
2
GOKSU 2 (Mardin)
600
500
400
300
200
100
0
2/1/2012
3/1/2012
4/1/2012
5/1/2012
6/1/2012
7/1/2012
40000
35000
30000
25000
20000
15000
10000
5000
0
BOPD
BWPD
FTP
WC
Cum Oil
5046
2D initial
lines
4845
4174 |
 Turkey:
Southeast – Dadas Shale Overview
14
Dadas Shale Characteristics
•
Devonian-Silurian age. Areal extent similar to Barnett Shale core.
•
Basal member (Dadas 1) is the primary oil source rock for regional
hydrocarbon production.
•
Indications of oil window (south) transitioning to gas window (north).
•
TransAtlantic’s acreage primarily in expected oil and liquids windows.
•
Plan to spud first horizontal test later in 2012 or early 2013.
Goksu-1R Core Analysis
•
Approximately 30 feet of core taken (2010).
•
Vertical depth: 8,350 feet (2,500 meters)
•
Total Organic Content: 7-9%
•
Porosity: 0.5-6.0%
•
T
max
: 435°
C
•
R
0
: 0.7-0.8%
Shale Comparison
Attribute
Dadas
Woodford
Eagle Ford
Bakken
Age
Silurian
Silurian
Cretaceous
Mississippian
Depth (ft)
7,000-10,000
6,000-14,500
4,000-14,000
8,000-11,000
Gross Thickness
300-800
300-400
100-350
150
TOC (%)
3.0-12.0
6.0-6.5
4.0-5.5
6.0-8.0
T
max
(°
C)
350-460
300-400
425-455
420-430
R
0
(%)
0.5-1.0%
1.1-3.0%
0.5-2.6%
0.4-1.7%
Porosity (%)
0.5-10%
3-12%
4-15%
8-12%
Permeability
0.3-1.0 md
0.2 md
<0.13 md
0.005-0.2 md
Oil Gravity (API)
40-60
30-65
40-60
40-45
EUR (Mboe)
TBD
150-2,000
300-1,500
500-1,500 |
 Turkey:
Southeast – Molla Development Concept
15
For illustrative purposes only. Not to scale or representative of a specific location..
|
 Turkey:
Central 16
Adana
Sivas
Overview
Gaziantep
Other
•
100% working interest, subject to farm-
in via exploration agreement (Shell).
•
~1.6 million acres
•
Frontier basins offer under-explored,
high potential, oil and gas
opportunities.
•
Seeking exploration partners.
•
61.5%-100% working interest.
•
~450,000 acres
•
Prospective for Mardin Lime. First
horizontal underway.
•
Multiple petroleum systems.
•
Identified shallow amplitude play in
untested Miocene sands
•
Biogenic gas and deeper Miocene
carbonate potential.
•
Relatively unexplored tertiary basin
with working petroleum systems.
•
Seismic and aeromag in process.
Legend
TransAtlantic Licenses, Joint Ventures |
 Turkey: Central
– Gaziantep –
Alibey-1H
17
•
Re-entry of vertical oil show well.
Lateral drilled into Mardin Lime.
•
Similar concept/target as plan for
Goksu 3H.
•
TAT’s first in-country horizontal.
•
Logging concluded, well awaiting
completion.
Overview
Alibey-1H
Fracture swarms
with oil shows |
 Hedge
Profile 18
As of 6/30/2012
3-way Collars
Collars
Floor/Ceiling Mid-Point
1,500
1,250
1,000
750
500
250
0
445
960
400
380
831
726
1,016
$100.25
$99.63
$88.44
$150
$125
$100
$75
$50
$25
$0
2H12
2013
2014
2015
0
$85.84 |
 Investor Contact
Information Chad W. Potter, CFA
VP –
Finance / Investor Relations
(214) 265-4746
chad.potter@tapcor.com
Wil F. Saqueton
VP –
Chief Financial Officer
(214) 265-4743
wil.saqueton@tapcor.com
16803 Dallas Parkway
P.O. Box 246
Addison, TX 75001-0246
19 |