TransAtlantic Petroleum has been awarded three production licenses in Romania: Izvoru Field, Vanatori Field and Marsa Field. The three licenses were among twenty-four licenses offered by the Romanian Government in the recently concluded 7th Licensing Round. The three oil and gas fields, each covering about 1,200 acres, were discovered by the then national oil company, Petrom, and are all located within 60 miles of Romania's capital, Bucharest. The licenses were awarded to TransAtlantic based upon its commitment to certain work programs on each of the respective fields over the next 3 years. TransAtlantic will be the operator and 100% working interest owner of the fields. TransAtlantic's decision to bid for these fields was based upon its internal review of the data made available by the Romanian Government as part of the bid process.
The other two fields, Vanatori and Marsa, were both discovered in the 1970's and both produced oil and gas but were not fully developed. Five wells were drilled in the Vanatori Field; two of which produced a total of 1.3 Bcf over 6 years from the Sarmatian formation at depths of around 5,600 feet sub sea. There is also deeper Cretaceous potential in the field. The Vanatori Field was prematurely abandoned due to sand production and water invasion (the wells may be located too close to the gas/water contact). In the Vanatori Field, the Company has committed to shoot a 2-D seismic survey (estimated cost $140,000) in 2006 and provided this confirms a prospect, a new well will be drilled in 2007 (estimated cost $1.5 million).
In the Marsa Field, five wells were drilled of which three were productive. Between 1974 and 1983, these wells produced a cumulative 0.3 Bcf from the Meotian (Tertiary age) reservoir at a depth of around 2,100 feet sub sea. The Company has committed to shoot a 2-D seismic survey over the Marsa Field in 2007 and based on results, plans to drill a well to test the prospect in late 2007 or early 2008 (estimated cost $850,000).
The Company is enthusiastic about these and other opportunities in Romania. Romania has a developed infrastructure for oil and gas and all production is sold at or near world market prices. Romania closely aligns with the Company's strategy to pursue under explored opportunities in countries with attractive fiscal terms.
TransAtlantic is engaged in the exploration, development and production of crude oil and natural gas in the USA and has interests in Morocco, Turkey, the United Kingdom and now Romania.