TAT's Long-Term Potential

JAMIE SOMERVILLE, TD Newcrest (08/11/2010)
"Based on an unchanged target price and a 32% return to target, we maintain our BUY rating. We are not overly concerned that Q210 results came in below our expectations, due to indications that operational performance is likely to improve going forward. Guidance on potential for a recent discovery at Bakuk in particular has led us to increase our 2011 production estimates.

We continue to suspect that our resource assumptions for TransAtlantic Petroleum likely understate the long-term potential of its licenses by a significant proportion, largely because we have limited information on many of the company's blocks. We expect an active drilling program is likely to provide material discoveries over the next 12 months. The most material near-term potential catalyst is related to ongoing drilling on License 4175, from which results are expected in September."

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