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TransAtlantic Petroleum Ltd (2)
Symbol TNP
Shares Issued 55,044,534
Close 2019-11-12 C$ 0.55
Recent Sedar Documents

TransAtlantic Petroleum earns $1.07M (U.S.) in Q3

2019-11-12 17:38 ET - News Release

Ms. Tabitha Bailey reports

TRANSATLANTIC PETROLEUM ANNOUNCES THIRD QUARTER 2019 FINANCIAL RESULTS AND PROVIDES AN OPERATIONS UPDATE

TransAtlantic Petroleum Ltd. has released its financial results for the quarter ended Sept. 30, 2019, and has provided an operations update. Additional information can be found on the company's website.

Summary:

  • Net income was $1.1-million for the third quarter of 2019, as compared with a net loss of $10,000 for the second quarter of 2019 and a net loss of $1.7-million for the third quarter of 2018.
  • Average daily net sales volumes were 2,662 barrels of oil equivalent per day in the third quarter of 2019, as compared with 2,873 boe per day in the second quarter of 2019 and 2,917 boe per day in the third quarter of 2018. Average daily net sales volumes for the trailing-seven-day period were 2,745 boe per day.
  • Revenues were $14.7-million for the third quarter of 2019, as compared with $17.2-million for the second quarter of 2019 and $20.1-million for the third quarter of 2018.
  • Operating income was $4.1-million for the third quarter of 2019, as compared with $6.3-million for the second quarter of 2019 and $11.0-million for the third quarter of 2018.
  • Adjusted EBITDAX (net income (loss) plus interest and other income, net, income tax expense, exploration, abandonment, impairment, seismic and other exploration expense, foreign exchange loss, share-based compensation expense, (gain) loss on commodity derivative contracts, cash settlements on commodity derivative contracts, accretion of asset retirement obligation, and depreciation, depletion and amortization) was $7.8-million for the third quarter of 2019, as compared with $10.7-million for the second quarter of 2019 and $13.9-million for the third quarter of 2018 (1).
  • Net debt was $11.6-million as of Sept. 30, 2019, as compared with $17.5-million as of June 30, 2019 (2). Bank debt was reduced by $5.8-million in the third quarter of 2019, and capital expenditures were $10.2-million for the third quarter of 2019.

(1) Adjusted EBITDAX is a non-generally accepted accounting principle financial measure.

(2) Net debt is a non-GAAP financial measure consisting of total debt as reflected on the company's balance sheet minus cash and cash equivalents as reflected on the company's balance sheet. For Sept. 30, 2019, total debt was $26.1-million, and cash and cash equivalents were $14.5-million. For June 30, 2019, total debt was $31.2-million, and cash and cash equivalents were $13.7-million.

                                 RESULTS OF OPERATIONS
 
                                               For the three months ended               
                                Sept. 30, 2019       June 30, 2019      Sept. 30, 2018
Net sales
Oil (Mbbl)                                 237                 253                 261
Natural gas (MMcf)                          47                  48                  45
Total net sales (Mboe)                     245                 261                 268
Average net sales (boepd)                2,662               2,873               2,917
Realized commodity prices
Oil ($/bbl unhedged)                    $60.12              $66.57              $76.32
Oil ($/bbl hedged)                       60.12               66.57               74.36
Natural gas ($/Mcf)                       6.18                5.41                4.23

The company had net income of $1.1-million, or two cents per share (basic and diluted), for the three months ended Sept. 30, 2019, as compared with a net loss of $10,000, or nil per share (basic and diluted), for the three months ended June 30, 2019, and a net loss of $1.7-million, or three cents per share (basic and diluted), for the three months ended Sept. 30, 2018. Total revenues were $14.7-million for the three months ended Sept. 30, 2019, as compared with $17.2-million for the three months ended June 30, 2019, and $20.1-million for the three months ended Sept. 30, 2018. Capital expenditures and seismic and corporate expenditures totalled $10.2-million for the three months ended Sept. 30, 2019, as compared with $6.2-million for the three months ended June 30, 2019, and $6.1-million for the three months ended Sept. 30, 2018.

Adjusted EBITDAX was $7.8-million for the three months ended Sept. 30, 2019, as compared with $10.7-million for the three months ended June 30, 2019, and $13.9-million for the three months ended Sept. 30, 2018.

Operational update

Southeastern Turkey

Molla

Yeniev field

In the third quarter of 2019, completion operations continued on the Yeniev-4 well, which had been drilled to a total measured depth of 9,520 feet, targeting the Bedinan, Hazro and Mardin formations. The company recovered 84 feet of core from the Bedinan sandstone, which is currently undergoing analysis to assist in infill development planning and secondary recovery evaluation. The well was completed naturally in the lower Bedinan sandstone with an unstimulated initial production rate of 167 barrels of oil per day. In the third quarter of 2019, the company drilled the Yeniev-5 well to a total measured depth of 7,060 feet, targeting the Mardin formation. The company recovered 159 feet of core from two intervals within the Mardin, both of which showed live streaming oil on the cores. Completion operations are continuing.

In October, 2019, the company drilled the Yeniev-6 well to a total measured depth of 9,650 feet, targeting the Mardin and Bedinan formations. Completion operations are continuing.

The West Yeniev-1 well underwent production optimization with the installation of artificial lift in the third quarter of 2019. Production increased to 173 barrels of oil per day from 104 bopd when the well was flowing naturally. Further production optimization is planned in the fourth quarter of 2019 with the goal of further increasing production.

Bahar field

The company drilled the Bahar-12 well in the third quarter of 2019, targeting the Bedinan and Hazro formations. A three-stage Bedinan stimulation was executed. The well had an initial production rate of 382 bopd flowing naturally. The company recovered a total of 274 feet of core from intervals within the Bedinan and Hazro formations. The company intends to analyze the cores to assist in optimizing reservoir development.

Bati-Yasince field

In the third quarter of 2019, the company re-entered the Bati-Yasince-1 well, targeting the Hazro formation. The company drilled the well to a total measured depth of 8,628 feet. Completion operations are continuing.

Arpatepe field

In the third quarter of 2019, the company engaged in technical design and planning of a water flood of the Arpatepe field. Following completion of the design and planning, the company plans to recomplete the Arpatepe-2 well as a water injection well and execute the first phase of the water flood.

Selmo

During the third quarter of 2019, the company continued recompletion, workover and production optimization operations in the Selmo field.

Northwestern Turkey

Thrace basin BCGA

The company continues to evaluate its prospects in the Thrace basin's basin centre gas accumulation (Thrace basin BCGA) in light of the recent exploration activity by Valeura Energy Inc. with its partner Equinor ASA (formerly Statoil ASA) on a licence directly adjacent to the company's 120,000 net acres in the Thrace basin, of which the company believes approximately 50,000 net acres (100-per-cent working interest and 87.5-per-cent net revenue interest) are in the Thrace basin BCGA.

In the second quarter of 2019, the company drilled the Karli-1 well to a total measured depth of 1,289 feet and encountered several shallow gas sand intervals. While the shallow gas horizon proved non-productive, the well is strategically positioned to test the company's Thrace basin BCGA acreage.

Bulgaria

The company is currently evaluating future activity in Bulgaria.

Conference call

The company will host a live webcast and conference call on Nov. 13, 2019, at 7:30 a.m. Central Time (8:30 a.m. Eastern Time) to discuss third quarter 2019 financial results and provide an operations update. Investors who would like to participate in the conference call should call 877-878-2762 or 678-809-1005 approximately 10 minutes prior to the scheduled start time and ask for the TransAtlantic conference call. The conference ID is 1544107.

A live webcast of the conference call and replay will be available through the company's website. To access the webcast and replay, click on investors, select events and presentations, and click on listen to webcast under the event list. The webcast requires iOS, Microsoft Windows media player or RealOne player.

A telephonic replay of the call will be available through Nov. 15, 2019, and may be accessed by dialling 855-859 -2056 or 404-537-3406. The conference ID is 1544107.

                                                           
                             CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) 
                              (U.S. dollars in thousands, except per-share amounts)
                                                                                    
                                                     For the three months ended          For the nine months ended     
                                                  Sept. 30, 2019    Sept. 30, 2018    Sept. 30, 2019    Sept. 30, 2018
Revenues
Total revenues                                           $14,653           $20,140           $50,909           $55,264
Costs and expenses
Production                                                 3,162             2,307             8,376             7,980
Transportation and processing                              1,262             1,054             3,802             3,385
Exploration, abandonment and impairment                      488               162             6,267               393
Seismic and other exploration                                 48               122               233               340
General and administrative                                 2,503             2,539             8,247             9,662
Depreciation, depletion and amortization                   3,021             2,938            10,179            10,673
Accretion of asset retirement obligations                     56                35               157               124
                                                      ----------        ----------        ----------        ----------
Total costs and expenses                                  10,540             9,157            37,261            32,557
                                                      ----------        ----------        ----------        ----------
Operating income                                           4,113            10,983            13,648            22,707
                                                      ----------        ----------        ----------        ----------
Other (expense) income
Interest and other expense                                (2,780)           (2,776)           (7,769)           (7,649)
Interest and other income                                    381               211               534               842
Gain (loss) on commodity derivative contracts                403            (1,290)              (30)           (5,156)
Foreign exchange (loss)                                     (797)           (2,991)           (2,185)           (6,987)
                                                      ----------        ----------        ----------        ----------
Total other expense                                       (2,793)           (6,846)           (9,450)          (18,950)
                                                      ----------        ----------        ----------        ----------
Income before income taxes                                 1,320             4,137             4,198             3,757
Income tax expense                                          (250)           (5,857)           (7,039)           (8,258)
                                                      ----------        ----------        ----------        ----------
Net income (loss)                                          1,070            (1,720)           (2,841)           (4,501)
Other comprehensive (loss)
Foreign currency translation adjustment                      808           (11,765)           (3,834)          (23,217)
                                                      ----------        ----------        ----------        ----------
Comprehensive income (loss)                                1,878           (13,485)           (6,675)          (27,718)
Net income (loss) per common share
Basic net income (loss) per common share                    0.02             (0.03)            (0.05)            (0.09)
Diluted net income (loss) per common share                  0.02             (0.03)            (0.05)            (0.09)

We seek Safe Harbor.

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