TransAtlantic Petroleum Provides Operational Update
TransAtlantic Petroleum Corp. has completed the sale of its two wholly-owned Egyptian subsidiaries to a subsidiary of Centurion Energy International Inc. The dispositions include the Company's 30% interest in the West Gharib Concession near the Gulf of Suez and 25% interest in the Central Sinai Concession in the Sinai Desert. After adjustments, the Company received slightly less than US $2.1 million of which US $2 million was paid to the Company's senior lender, reducing the amount outstanding on the senior credit facility to under US $200,000.
The Company also stated that the Ejulebe no. 6 exploitation well on the OML 109 offshore Nigeria, West Africa, has been successfully completed by the Company's service contractor at no cost to the Company. The Ejulebe no. 6 well commenced production about the first of August and is now producing approximately 4,400 barrels per day, increasing the Ejulebe field output to over 8,000 barrels per day. The service contractor must recover the costs of the well out of production before the Company starts to share in revenues from the production increase. So long as oil prices remain in their current range and the Ejulebe no. 6 well follows its anticipated performance, the Company will begin to realize net cash flow from the Ejulebe field in the first quarter of 2002.