TransAtlantic Petroleum Corp. Announces Letter of Intent to Sell Bayou Couba Assets and ANEC Debentures
Calgary, Alberta (March 10, 2006) - TransAtlantic Petroleum Corp. (TSX:TNP.U) announces that it has signed a letter of intent with American Natural Energy Corporation (“ANEC”) (TSX Venture: ANR.U) to sell TransAtlantic’s interests in the Bayou Couba project, St. Charles Parish, Louisiana (“Bayou Couba”) held by its subsidiary, TransAtlantic Petroleum (USA) Corp., and the ANEC 8% Convertible Secured Debentures in the principal amount of $3.0 million (the “Debentures”) held by TransAtlantic.
ANEC will pay TransAtlantic a total of $3.8 million for TransAtlantic’s Bayou Couba assets and the Debentures. Closing is anticipated to occur within 90 days with an effective date as of the first day of the month in which the transaction closes. The transaction is subject to ANEC securing financing to effect the transaction, the negotiation, preparation and execution of a mutually acceptable definitive agreement and the approval of the respective Boards of both companies.
In addition to the Debentures, TransAtlantic currently owns 2,237,136 common shares of ANEC, which represents approximately 4.4% of the issued and outstanding common shares of ANEC. TransAtlantic acquired and holds the Debentures and such common shares for investment purposes and except with respect to the foregoing sale of the Debentures has no current plans to acquire additional securities, or control over additional securities, of ANEC, although TransAtlantic may acquire or dispose of securities of ANEC from time to time in the future.
TransAtlantic is engaged in the exploration, development and production of crude oil and natural gas in the USA and has interests in Morocco, Turkey, Romania and the North Sea. More information about TransAtlantic can be found at its website: www.tapcor.com.
(NO STOCK EXCHANGE, SECURITIES COMMISSION OR OTHER REGULATORY AUTHORITY HAS APPROVED OR DISAPPROVED THE INFORMATION CONTAINED HEREIN.)
This news release contains statements regarding expectations, plans, goals, objectives, assumptions or information about future events, conditions, results of operations or performance that may constitute forward-looking statements or information under applicable securities legislation. Such forward-looking statements or information are based on a number of assumptions which may prove to be incorrect. In addition to other assumptions identified in this news release, assumptions have been made regarding, among other things, the ability of ANEC to obtain financing for the proposed transaction, both companies reaching agreement on a definitive agreement, the approval of the board of directors of both companies and any necessary third party or regulatory approvals being obtained, the estimated timelines being met and no intervening events disrupting the proposed transaction.
Although the Company believes that the expectations reflected in such forward-looking statements or information are reasonable, undue reliance should not be placed on forward-looking statements because the Company can give no assurance that such expectations will prove to be correct. Forward-looking statements or information are based on current expectations, estimates and projections that involve a number of risks and uncertainties which could cause actual results to differ materially from those anticipated by the Company and described in the forward-looking statements or information These risks and uncertainties include but are not limited to the continuing ability of ANEC to operate as a going concern, reliance on current oil and gas laws, rules and regulations, volatility of oil and gas prices, fluctuations in currency and interest rates, imprecision of resource estimates, ANEC’s ability to access external sources of debt and equity capital, imprecision in estimating the timing, costs and levels of production and drilling, the results of exploration, development and drilling, imprecision in estimates of future production capacity, changes in environmental and other regulations or the interpretation of such regulations, the ability to obtain necessary regulatory approvals, weather and general economic and business conditions.
The forward-looking statements or information contained in this news release are made as of the date hereof and the Company undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
- Contact Information
- Scott C. Larsen
- TransAtlantic Petroleum Corp.
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