TransAtlantic Finds Partner for Turkish Block
TransAtlantic has farmed out Block 4175, one of its exploration licenses in southeastern Turkey, in which the farmee will fund the next portion of the Company's work program. This work entails reprocessing of 2D seismic in the vicinity of the license and conducting geochemical studies. Upon completion of this phase of the work program, the farmee has the option to acquire 75% interest in the license by drilling an exploration well to evaluate an untested prospective Palaeozoic formation.
The Company will continue as operator of Block 4175 until exercise of the drilling option by farmee. Transfer of the interest in the license would be subject to regulatory approval. If the exploration well leads to a commercial discovery, the license would be converted to a 20-year production lease (extendable for a further 20 years in two 10-year increments) which would bear a 12.5% royalty. Currently, the tax rate in Turkey on net corporate income is 20% (subject to a further 15% withholding tax on profits transferred out of Turkey).
TransAtlantic is engaged in the exploration, development and production of crude oil and natural gas in the U.S., Morocco, Turkey, Romania and the U.K. North Sea. Common shares of TransAtlantic are listed on the Toronto Stock Exchange under the symbol TNP.U.
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