TransAtlantic Worldwide Ltd., a wholly owned subsidiary of TransAtlantic Petroleum Ltd., has signed a nonbinding term sheet with San Leon Energy PLC of Dublin and Hutton Energy PLC of London in which TransAtlantic Worldwide would receive 50% interest in nine Polish concessions encompassing 1.9 million gross acres.
The term sheet specifies that TransAtlantic Worldwide would fund $5 million of past expenses in the concession blocks. The payment would be repaid to TransAtlantic Worldwide by San Leon and Hutton from 50% of their initial production of their net interests.
TransAtlantic Worldwide would operate the nine concessions, associated corporate entities, and banking facilities, and would fund 100% of the cost to drill and complete two wells and reenter and stimulate four wells.
Upon realizing accumulated sales of 150,000 boe, net to its 50% interest, TransAtlantic Worldwide would pay its partners a $5 million success fee.
“We see an exciting opportunity to target conventional oil and gas in the southern Permian basin of Poland, which is a prolific producing basin throughout much of northern Europe,” said Malone Mitchell, TransAtlantic chairman and chief executive officer.