The agreement, subject to regulatory approvals, approval of DPE’s shareholders and other customary closing conditions, is likely to be closed on 15 February 2011.
TransAtlantic Worldwide will pay DPE $2m in cash and the company will issue to DPE 8,924,478 shares of the company’s common stock in a private placement.
Along with this, based on the achievement of three distinct defined milestones, DPE could receive additional shares worth $26m of the company’s common stock.
Upon the closing of the transaction, TransAtlantic will be the parent company of Direct Bulgaria, and on purchasing the Direct Morocco subsidiaries, the company will own the complete working interests in all of its licensed interests in Morocco.
TransAtlantic Petroleum chairman Malone Mitchell said the acquisition of Direct Bulgaria will add significant opportunities for the company, and geographically bridges the company’s operations in Turkey and Romania.
"The addition of the interests in Morocco allows TransAtlantic to consolidate our ability to develop the prospects there," said Malone Mitchell.
