TransAtlantic Petroleum has entered into a farm-out agreement with Onshore Petroleum Company, a private oil and gas company based in Oslo, Norway.
The agreement between Onshore and TransAtlantic's wholly owned subsidiary, TransAtlantic Turkey, provides that Onshore will fund 100% of TransAtlantic Turkey's initial exploration well, up to USD 3.5M, on its Idil License in south-eastern Turkey. Expenses over USD 3.5M will be split equally between Onshore and TransAtlantic Turkey. Under the agreement, TransAtlantic Turkey and Selsinsan Petrol Maden Organizasyon will assign Onshore a 50% interest in the Idil License, which covers approximately 123,000 acres. TransAtlantic Turkey and Selsinsan Petrol Maden Organizasyon currently hold a 100% interest in the license.
"We are very pleased to have a partnership with Onshore Petroleum on the Idil license. They bring valuable experience from Northern Iraq and Turkey to the project. We expect to spud our first exploration well to test the Mardin formation in the Cretaceous interval in the second quarter of 2014”, commented Ian Delahunty, president of TransAtlantic.