TransAtlantic to Start Production from North-West Bulgaria

TransAtlantic Petroleum plans to extract gas from a field in north-western Bulgaria after securing a 35-year concession.

The Bulgarian government announced the licensing Wednesday. 

Energy Minister Delyan Dobrev said he expected the company to start producing gas in the middle of next year at a rate that will supply about 10% national needs. Bulgaria uses around 3 billion cubic metres (bcm) per year.

The concession covers the approximately 160,000 acre (65,000 hectare) area known as the Koynare Concession Area. Work will be carried out by TransAtlantic's local subsidiary, Direct Petroleum Bulgaria EOOD.

As well as the official confirmation from Sofia, TransAtlantic announced the concession as part of its third-quarter results statement. The company said it expected total revenues for the quarter to be roughly the same as a year ago between $30 million (€23.5m) and $35m , as compared to $32 m in 2011.