Canadian Oil Company finding enormous Potential in Turkey

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abarrelfull wrote on 25 Feb 2011 06:58
Tags: canada transatlantic turkey

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Turkey may be one of the few Middle East countries not to be blessed (cursed) with large amounts of hydrocarbons, but that does not stop one Canadian Company from having a great business there. Moreover it is a business that they are expanding.

TransAtlantic Petroleum Ltd. (TSX: TNP)(NYSE-AMEX: TAT) announced today that TransAtlantic Worldwide, Ltd. ("TransAtlantic Worldwide"), a wholly owned subsidiary of TransAtlantic Petroleum Ltd., has exercised the option under the previously announced November 8, 2010 Option Agreement to acquire Thrace Basin Natural Gas Turkiye Corporation ("TBNG") and Pinnacle Turkey, Inc. ("PTI"). Total consideration for the acquisition will be $100.0 million in cash and the issuance of 18.5 million shares of TransAtlantic Petroleum Ltd. common stock.

The reason for this company's interest is simple. This is a market where the current players lack the technology to fully exploit the resources that they have. In a recent interview in The Oil & Gas Journal, Chairman Malone Mitchell gives the details.

Much of our success in this arena stems from Turkey’s limited access to key equipment, rigs and other services. In fact, only two oil service companies in Turkey are able to drill below 8,000 feet. The vast majority of wells have never been exposed to fracture stimulation equipment.

They are even utilising their mastery of technology to breathe life into new wells.

We will re-enter four old TPAO wells, as well as begin drilling four new wells on the two blocks. These wells will target tight sand and shale formations that do not produce under normal conditions.

The results of this approach are startling.

The first acidized well was producing at 30 bo/d before our re-entry. After completing the acid pumping job, the Arpatepe well came online at 500 bo/d. To date, the well is producing about 300 bo/d.

A tenfold increase in production of an existing well!

It just goes to show that there is much more to exploring for oil and gas than just buying the right licences. With the right technology, upstream companies can gain access to valuable resources, that others cannot exploit. Meanwhile, opportunities exist in places that you may never have thought of.