TransAtlantic Petroleum Ltd. has entered into a farmout agreement with Onshore Petroleum Company AS ("Onshore"), a private oil and gas company based in Oslo, Norway.
The agreement between Onshore and TransAtlantic's wholly owned subsidiary, TransAtlantic Turkey, Ltd. ("TransAtlantic Turkey"), provides that Onshore will fund 100% of TransAtlantic Turkey's initial exploration well, up to $3.5 million, on its Idil License in southeastern Turkey. Expenses over $3.5 million will be split equally between Onshore and TransAtlantic Turkey. Under the agreement, TransAtlantic Turkey and Selsinsan Petrol Maden T.O. San ve Tic. Ltd. Sti. will assign Onshore a 50% interest in the Idil License, which covers approximately 123,000 acres. TransAtlantic Turkey and Selsinsan Petrol Maden T.O. San ve Tic. Ltd. Sti. currently hold a 100% interest in the license.