Total consideration for the acquisition will be $100m in cash and the issuance of 18.5 million shares of TransAtlantic Petroleum Ltd common stock.
TBNG and PTI currently produce an aggregate of approximately 25.0 million cubic feet of natural gas per day in the Thrace Basin region of northwestern Turkey.
The company expects that third party investors will provide between $90m and $100m cash in funding toward the purchase price.
Those investors will acquire approximately between 59.5% and 65% of TBNG and PTI’s current production and acreage.
Included in the third party investor group is Valeura Energy, with which the company and TransAtlantic Worldwide have entered into an agreement whereby Valeura will acquire approximately 40% of TBNG and PTI’s current production in consideration for approximately $61.5m in cash.
The company will issue 18.5 million of its common shares in consideration for approximately 35% of TBNG and PTI’s current production and acreage and 100% of TBNG’s oil field service equipment and related assets, which includes five drilling rigs.
The closing of the TBNG and PTI acquisition is expected to occur in the second quarter of 2011.
