TransAtlantic Petroleum has entered into a Memorandum of Understanding (MOU) with Zorlu Enerji Elektrik Uretim regarding the acquisition of Zorlu's oil and natural gas exploration and production operations in Turkey for a purchase price of $100m.
As per the terms of the MOU, TransAtlantic Worldwide, a wholly-owned subsidiary of the company, would acquire 100% of the voting securities of Amity Oil International and Zorlu Petrogas Petrol Gaz ve Petrokimya Urunleri Insaat Sanayi ve Ticaret (Petrogas), each a wholly-owned subsidiary of Zorlu.
Through the acquisition of Amity and Petrogas, TransAtlantic Worldwide would acquire interests ranging from 50% to 100% of 18 exploration licenses and one production lease, consisting of approximately 1.3 million gross acres (1 million net acres) in the Thrace Basin and approximately 730,000 gross and net acres in central Turkey.
TransAtlantic Worldwide would also acquire other assets in the transaction, including inventory and a drilling rig. Under the terms of the MOU, Zorlu would use $20m of the purchase price for the construction of pipelines to connect the Amity and Petrogas licenses to local and national natural gas distribution points.
The company plans to mobilize fracture stimulation equipment into the Thrace Basin this summer.
Under the terms of the MOU, Zorlu will have the right to purchase 100% of the natural gas that TransAtlantic Worldwide develops on the acquired licenses and will have the option to either receive a 5% net profits interest in new wells drilled on the licenses or a 25% participatory working interest, on a well-by-well basis.