TNP's All-in-One Production Model

NEAL DINGMANN, SunTrust Robinson Humphrey The Energy Report Interview with Neal Dingmann (03/29/2011)
"We do have one [international company] that I think is very exceptional—TransAtlantic Petroleum, which has more than 1 million acres in Turkey. The commodity prices are very positive in that region. . .What's interesting is that TransAtlantic owns all of its services—not just rigs but frack trucks, completion trucks and seismic equipment. With that, the company's costs will stay well under what they would be if relying on foreign companies to provide those services. But clearly, it takes this company longer to set up operations because it still needs to bring in many services from the U.S.

TransAtlantic recently closed on a couple of large acquisitions. The company has two primary areas. One is Thrace Basin, northwest of Istanbul, which is predominantly natural gas. A number of wells are starting to be drilled and fracked there and it is taking off exponentially. Another area is southeast Turkey, almost on the Iraqi-Syrian border, where a fair amount of oil drilling is expected. Between the combination of Thrace and southeast Turkey, we believe production is somewhere around 5,000 bpd. We believe production could reach 10,000 bpd this year and 20,000 bpd next year. Compared to domestic companies, its production model could be one of the leaders." View Entire Article: Neal Dingmann: Genuine Growth Still Lives in E&Ps

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