Attached files
| file | filename |
|---|---|
| 8-K - 8-K - TRANSATLANTIC PETROLEUM LTD. | d783802d8k.htm |
| EX-99.1 - EX-99.1 - TRANSATLANTIC PETROLEUM LTD. | d783802dex991.htm |
 September 2, 2014
September 2, 2014
ALBANIA ACQUISITION
ARRANGEMENT AGREEMENT TO ACQUIRE STREAM OIL & GAS LTD.
ALBANIA ACQUISITION
ARRANGEMENT AGREEMENT TO ACQUIRE STREAM OIL & GAS LTD.
Exhibit 99.2 |
 FORWARD
LOOKING STATEMENTS 2
Cover Photo: Gorisht field in Albania.
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 or Stream Oil & Gas Ltd.’s 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 TransAtlantic’s Annual Report
on Form 10-K for the year ended December 31, 2013 which is available at
www.transatlanticpetroleum.com and www.sec.gov. See also TransAtlantic’s audited
financial statements and the accompanying management discussion and analysis. See
Stream’s financial statements and company profile at www.sedar.com.
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 actually being 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.
Note on Possible Reserves:
possible reserves are those additional reserves that are less certain to be recovered
than probably reserves. There is a 10% probability that the quantities
actually recovered will equal or exceed the sum of proved plus probable plus possible reserves.
Note on BOE: BOE (barrel of oil equivalent) 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. |
 ALBANIA
ACQUISITION OBJECTIVE 3
Albania To Be a Third Source of Production and Income
Growth; Provides Reservoir and Geographical
Diversification
•
Large oil in place; known location
•
Exploitation, not exploration
•
2015 –
analyze, resize, streamline operation, reactivate
wells, expand waterflood
•
2016+ –
focused horizontal development
•
Gas highly prospective, but markets need development
Photo: Gorisht field in Albania. |
 4
ALBANIA ACQUISITION SUMMARY
1
Reserves as of November 30, 2013, independent reserves evaluation by Deloitte LLP, in
accordance with the provisions of NI51-101 and the Canadian Oil & Gas Evaluation Handbook.
Ten
year
forward
prices
range
from
US$78.96
to
US$89.53
per
BO
and
US$9.70
to
US$11.82
per
MCF.
TransAtlantic
expects
to
finalize
purchased
reserves
at
year-end
2014.
2
Production is for the three months ended May 31, 2014.
TransAtlantic
to acquire 100% of Stream Oil & Gas Ltd. (“Stream”) (TSX Venture:
SKO) Albanian Assets
•
Three oil fields, one gas field, one exploration license
•
25 year prod. licenses with unlimited 5-yr extensions
•
Approximately 75,000 net acres
•
Stream’s
reported
net
proved
reserves:
20.9
MMBOE
1
Note: TransAtlantic
expects proved reserves to decrease at year-end
2014 due to unaccomplished 2014 work program.
•
Production: 1,522 BOPD gross, 973 BOPD net
2
•
Prices: oil: 68-75% of Brent, gas: ~$9/MCF
•
Fiscal terms: 12% royalty until 100% cost
recovery;
13-16% royalty and 50% net profit tax
after
100% recovery; VAT exempt
Summary of Terms
•
US$41.2 million (C$0.67/US$0.62 per share) plus balance sheet assumption
•
To
be
paid
85%
upon
transaction
closing,
15%
upon
final
required
approvals
within
nine
months |
 THREE OIL
FIELDS IN ALBANIA Source: Albanian National Agency of Natural Resources.
Oil trapped in carbonate reservoirs
Cakran Field
Ballsh Field
5
1
Fields contain other previously producing wells, some of which are no longer active.
The actual penetration of the reservoir, mechanical success and current
wellbore condition of these wells is uncertain. Structural Traps of Fractured
Carbonates Cretaceous-Paleocene Age
Gorisht Field (~800 BOPD gross, ~400 BOPD net)
•
Discovered
1965,
25,000
BOPD
at
peak
(15
o
API)
•
150
producing
wells
1
; 3,000 net acres; two pilot
waterfloods
have mitigated decline
•
Well depths: 1,300
–
4,100 feet (400
–
1,250 meters)
Cakran
Field (~625 BOPD gross, ~500 BOPD net)
•
Discovered 1977, 6,000 BOPD at peak
(25
o
API)
•
30 producing wells
1
; 6,000 net acres
•
Well depths: 8,600
–
12,200 feet (2,650
–
3,700 meters)
Ballsh
Field (~100 BOPD gross, ~75 BOPD net)
•
Discovered 1966, 7,500 BOPD at peak
(11
o
API)
•
15 producing wells
1
; 6,000 net acres; expect to take over
another 60+ wells in 2014 (~175 BOPD
gross)
•
Well depths: 1650
–
4,600 feet (500 –1400 meters) |
 2014
Average Gross Production of Stream’s Three Oil Fields in Albania OIL FIELDS IN
ALBANIA ARE ON FLAT DECLINE Source: Stream Oil & Gas Ltd.
6
0
500
1,000
1,500
2,000
1/1/2014
2/1/2014
3/1/2014
4/1/2014
5/1/2014
6/1/2014
7/1/2014
Daily Oil Production |
 7
ONE GAS FIELD IN ALBANIA
Photo:
Drilling
a
well
in
the
Delvina
field
in
southern
Albania,
2014.
Structural Trap of Fractured Carbonates
Cretaceous-Paleocene Age
Delvina
Field
•
•
Two existing vertical wells, third well spudded
March
2014;
well
depth:
9,200
–
11,500 feet
(2,800 –
3,500 meters)
•
Wells currently non-producing
Adjacent Exploration License
•
Holds the rights to 60,000 net acres adjacent to
Delvina
field
•
Three adjacent undrilled structures
Discovered
1987,
gas
condensate
(63
o
API) |
 8
DEVELOPMENT OPPORTUNITIES
Plan for Growth
•
Upgrade oilfield technology to optimize field recovery
and increase production levels
•
Drill infill and horizontal oil wells; reactivate wells;
expand waterflood infrastructure in the Gorisht field
•
Optimize wells with recompletions and workover
activity: upgrade pumps on existing wells, introduce
artificial lift systems, re-enter and clean out legacy
wells, introduce modern stimulation technology, utilize
casinghead gas for onsite power generation
•
Drill natural gas development wells in the Delvina field
and expand the monetization of condensates
•
Modify infrastructure and increase port storage
facilities to decrease transport costs, debottleneck
surface production facilities
Photo: Gorisht field in Albania, primary development area.
|
 PRECEDENT:
BANKERS PETROLEUM Average Historical Production in Patos-Marinza Field
Albpetrol
Bankers
AAP
20,000
16,000
12,000
8,000
4,000
9
Source: Bankers Petroleum, August 2014 corporate presentation.
1939 1944
1949 1954 1959 1964 1969
1974 1979
1984 1989 1994 1999 2004
2009 2014
Bankers Petroleum –
Albanian Oil Assets
•
in 2004 and developed it from 400 BOD to more than
20,000 BOD over a ten year period
•
Field development included reactivations, optimizations,
horizontal drilling, secondary recovery, modernization of
surface facilities, field electrification, expansion of export
capabilities, preparing to initiate tertiary recovery (steam)
•
Same oil source, carbonate reservoir breached into
shallower sandstones
Bankers
signed
a
concession
for
the
Patos-Marinza
oil
field |
 10
Taylor C. Beach
Director of Investor Relations
(214) 265-4746
Taylor.Beach@tapcor.com
Matthew W. McCann
General Counsel & Corporate Secretary
(214) 220-4323
www.TransAtlanticPetroleum.com
CONTACTS |