TransAtlantic Petroleum Ltd. has signed a farmout agreement that will enable it to resume drilling the Deventci-R2 exploratory well in Bulgaria within 60-90 days.
Koynare Development Ltd., a private oil and gas investment company, will fund 75% of TransAtlantic’s initial $40 million work program in Bulgaria. The funds will be used by Transatlantic Worldwide’s subsidiary and operator, Direct Petroleum Bulgaria EOOD.
Direct Bulgaria will assign KDL a 50% interest in the Koynare concession area. Direct Bulgaria will also assign a 50% interest in its ownership of the Stefanetz concession area in the event that the pending concession application is approved by the Bulgarian government.
Assignment of the 50% interest in the Koynare concession area is subject to Bulgarian government approval. Direct Bulgaria currently holds a 100% interest in the concession.