2009-08-13-2008-12-01-2009-04-01

Transaction Type
Sellers
Buyers
Announce Date
Post Date
Close Date
Estimated Price
57MM
Description

Bought company, gaining 13 Bcfg 3P in Thrace Basin in Turkey, 12 MMcfg/d.

TransAtlantic Australia Pty. Ltd., a subsidiary of TransAtlantic Petroleum Corp., Calgary, (Toronto: TNP) has acquired Incremental Petroleum Ltd. (Australia: IPM) in a deal valued at approximately US$56.6 million. TransAtlantic paid A$1.085 (US$0.71) per Incremental share. The initial offer was for A$1.05 (US$0.62) per share in a transaction valued at US$49.4 million. Incremental has oil and gas operations in Turkey and some additional properties in California. Possible reserves in the Thrace Basin in Turkey are up to 13 billion cubic feet of gas and production is 12 million cubic feet of gas per day, according to Cottesloe, Australia-based Strachan Corporate. Incremental rejected an unsolicited offer made by Cooper Energy Ltd. to acquire the company for A$0.93 per share. TransAtlantic and Incremental are partners in a deal in which TransAtlantic will fund drilling a well on the Atesler property in southeastern Turkey to earn a 75% working interest in four additional Turkish licenses held by Incremental. It funded the acquisition from a binding commitment from Dalea Partners LP, an entity controlled by TransAtlantic chairman N. Malone Mitchell. TransAtlantic chief executive Matthew McCann says, "This acquisition represents an important milestone for TransAtlantic. It is a major step in our pursuit to build a premier producing oil and gas company." The assets include a 100% interest in Selmo oil field, which produced more than 493,000 barrels of oil in 2008 and is the second largest oil field in Turkey in terms of cumulative production; a 55% interest in the Edirne gas project in the Thrace Basin of northwestern Turkey; and a 50% interest in the McFlurrey gas project in the San Joaquin Basin in central California and will earn a 50% interest (37.5% revenue interest) by drilling two wells. Further, TransAtlantic acquired an additional 40% interest to 100% in License 4262 in Turkey, in which it was already paying 100% of costs. Incremental's remaining portfolio consists of several large exploration targets near Ankara, Turkey, and two prospects in California. The acquisition expands the company's rig fleet from four to seven rigs.