TransAtlantic Closes Thrace Basin Acquisition

TransAtlantic Petroleum Ltd. has closed its acquisition of Thrace Basin Natural Gas Corp.

Under the deal, TransAtlantic Petroleum subsidiary TransAtlantic Worldwide Ltd. acquired 100% of the shares of Thrace Basin Natural Gas (TBGN) from Mustafa Mehmet Corp.(MMC)  in exchange for 18,500,000 of the company's common shares, the transfer of certain overriding royalty interests to an affiliate of Mustafa Mehmet and $10.0 million in cash, which was paid in November 2010 as an option fee and applied to the purchase price at closing.

TBNG and its sister company, Pinnacle Turkey, Inc. ("PTI"), currently produce an aggregate of approximately 25.0 million cubic feet of natural gas per day in the Thrace Basin region of northwestern Turkey and hold interests in approximately 600,000 net onshore acres and 360,000 net offshore acres in the Thrace Basin and approximately 305,000 net onshore acres in the Gaziantep region of southeastern Turkey.

Following the acquisition, TransAtlantic Petroleum has effectively acquired 41.5% of the total production and acreage of Thrace Basin Natural Gas and Pinnacle Turkey Inc., as well as all of the oilfield service assets of Thrace Basin Natural Gas.

The acquisition closed contemporaneously with the closing of the purchase of PTI by Pinnacle Turkey Holding Company, LLC and the purchase of another affiliate of MMC by Valeura Energy, Inc.

Valeura and Pinnacle have effectively acquired 40.0% and 18.5%, respectively, of the production, acreage, and other assets held by TBNG and PTI.

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