Deventci-R1, A-Lovech block, North-West Bulgaria

The second half of 2009 saw Liberty Energy enter into a Purchase and Sales agreement to acquire rights to a rich natural gas property situated in NorthWest Bulgaria, 130km from the capital city Sofia. Based within the A-Lovech exploration block which covers 1,830 square miles (or 1,171,200 acres) of the East European country, the property contains the deepest well drilled in Bulgaria for the past 30 years. Known as Deventci-R1, this primary well sits on a 15-20 sq km geological feature known as the West Koynare structure, reaching a total depth of 5,888 meters (19,313 ft.) into the Lower Triassic Alexandrovo formation. With bottom-hole pressure of around 11,500psi, this is the highest pressured gas reservoir to be identified in Bulgaria. The well encountered gas saturated reservoirs in the Dolni Dabnik member of the Middle Triassic Doirentsi formation, with further potential reservoirs in the Upper Triassic Rusinovdel and the Lower Jurassic Ozirovo formations. In total, this gas deposit has a capacity of around six billion cubic meters. Initial results indicate that the gas and natural gas condensate found at the site to be of exceptionally high quality with low sulphur content. Looking to the future, Liberty Energys agreement entitles the company to royalty interests on all future revenues and reserves located on the block, at no further cost to us. It is anticipated that the development will be tied in with the nearby Aglen field and first sales are expected in 2011, on completion of the pipeline. Following this transaction, Liberty Energy plans to continue searching assets in Bulgaria and surrounding European regions with a view to engaging in similar low risk opportunities.

Liberty Energy Corp. (OTCBB:LBYE.OB) In 2010 the Company announced it had concluded the assignment of overriding royalty rights (ORRI) to a proven multi billion cubic feet of natural gas property in North-West Bulgaria. The Company confirmed in 2011 that the New York Stock Exchange listed TransAtlantic Petroleum, with a market capitalization of circa $1billion, closed an agreement to buy Direct Petroleum Bulgaria EEOD (the current operators). TransAtlantic Worldwide Ltd., a subsidiary of TransAtlantic Petroleum, has now entered into a joint venture agreement with LNG Energy to begin exploratory drilling in Bulgaria's unconventional Etropole formation. The agreement, subject to certain conditions, including the issuance of the Etropole Concession by the Bulgarian government, calls for LNG to invest US$7.5 million to start drilling an exploratory well on the A-Lovech license in Bulgaria. Additionally, LNG has agreed to fund up to an additional US$12.5 million, of which US$7.5 million is to drill a second exploratory well, the Peshtene R-11.1 In return, LNG would acquire a 50% working interest in the Etropole Concession. If the concession is not granted, LNG would have no further obligations under the agreement.2 The Peshtene R-11 well has been expected to be drilled to 10,500 feet, to core and test the unconventional Etropole formation. The A-Lovech exploration license is 100% owned and operated by Direct Bulgaria, and covers approximately 565k acres in northwest Bulgaria, all of which is prospective for the Etropole formation1. The agreement with LNG covers the southern 405,000 acres of the license. Direct Bulgaria plans to file for a production concession over this southern portion, supported by the results of the Peshtene R-11 well. In the northern portion of the A-Lovech license, called the Koynare Area, Direct Bulgaria has applied for a production license following their evaluation of the Deventci-R1 discovery well. These concessions cover 160,000 acres (648 sq kms), which contain a conventional gas discovery in the Jurassic-aged Orzirovo formation which is also prospective for the Etropole. The discovery well, the Deventci-R1, is currently producing approx. 250 thousand cubic feet per day on a limited test basis, which is processed in a compressed natural gas facility adjacent to the well. The A-Lovech license is also estimated to contain over 300,000 acres prospective for Etropole shale (at a depth of approximately 3,800 meters), which was recently certified as a geologic discovery by the Bulgarian government. It is anticipated that coring the Etropole interval in the Deventici R-2 well will greatly enhance the technical understanding of the potential of this shale play. The third established prospective area is a deep gas field on the Aglen block license that produced approximately 9 Bcf before being abandoned in the late 1990s.2 "Having an ORRI entitles us to royalty interest on all future revenues and reserves located on the block. LNG will bring hands-on experience to the exploration of the Etropole formation for natural gas. The drilling of an Etropole test well will also increase the operators technical understanding of the play, and is the first step in efforts to unlock the long-term potential in the Etropole. Should the Etropole prove productive, this location lies less than 10 km from existing pipeline infrastructure, and production will benefit from regional natural gas prices that are currently around $10/Mcf. We excited by the news of a new partner in this proven multi billion cubic feet asset," commented Ian Spowart, CEO of Liberty Energy Corp.

LNG Energy reports Bulgarian well reaches TD with gas shows

Published Jan 10, 2012

LNG Energy Ltd. report that the Peshtene R-11 well in Bulgaria has been successfully drilled to its total depth of 3,190 meters under the farm-in agreement with TransAtlantic Worldwide Ltd., a wholly owned subsidiary of TransAtlantic Petroleum Ltd. The Peshtene R-11 well (Peshten), located on the A-Lovech exploration license, targeted the Middle Jurassic age Etropole formation. Peshtene was successfully drilled in a total of 56 days to a depth of 3190 meters, including 354 meters of Etropole argillite. Numerous gas shows were recorded in the argillite, consisting of methane, ethane and propane (C1, C2, and C3). Over 289 metres of the Jurassic age Etropole and Ozirovo whole core has been taken from the well. The Ozirovo formation produces nearby in the Chiren Gas Field and in TransAtlantic's Deventci R1 discovery well 36 kilometers to the east.. Petrophysical analysis of the Etropole formation indicates net pay of 114 meters, with an average porosity of 6% and water saturation of 48%. Comprehensive core analysis by Core Laboratories is expected to be completed in the first quarter of 2012. The core data from the Etropole argillite and Ozirovo carbonate will be evaluated for reservoir rock properties, geochemical analysis, and rock mechanics. The results of the core and well log analysis will help to design and plan the future completion procedure for the well. Peshtene is scheduled to be completed and tested in Q2, 2012. Based on the data recovered to date, TransAtlantic's subsidiary, Direct Petroleum Bulgaria EOOD ("Direct Bulgaria"), has applied to the government of Bulgaria for a Production Concession (the "Stefanetz Concession"). The Stefanetz Concession is expected to cover an area up to 1,600 square kilometers (395,000 acres) for a term of up to 35 years. "We are excited with the very positive gas shows and data obtained in the Peshtene." commented Dave Afseth, President and CEO of LNG. "We look forward to reviewing the results of the core analyses that will enable us to design and implement an appropriate stimulation to flow test both the Peshtene and Starogard wells."

TransAtlantic Petroleum Ltd Announces Definitive Agreement to Sell Vikin

Friday, 16 Mar 2012

TransAtlantic Petroleum Ltd announced that on March 15, 2012, TransAtlantic signed a stock purchase agreement to sell its oilfield services business, which is substantially comprised of its wholly owned subsidiaries Viking International Limited (Viking International) and Viking Geophysical Services, Ltd. (Viking Geophysical and, together with Viking International, Viking), to Dalea Partners, LP (Dalea, an affiliate of N. Malone Mitchell, 3rd, the Company's Chairman and Chief Executive Officer) for an aggregate purchase price of $164.0 million, consisting of $152.5 million in cash, subject to a net working capital adjustment, and a $11.5 million promissory note from Dalea. The promissory note will be payable five years from the date of issuance or earlier upon the occurrence of certain specified events. Prior to closing, Dalea expects to assign the stock purchase agreement to a joint venture owned by Dalea and funds advised by Abraaj Investment Management Limited. Contractually, the effective date of the sale of Viking will be April 1, 2012, regardless of when the actual closing occurs. The closing is anticipated to occur during the second quarter of 2012. The purchase price for Viking will be increased by the amount (if any) that the net working capital of Viking is greater than zero and will be decreased by the amount (if any) that the net working capital of Viking is less than zero.

UPDATE 1-Abraaj to buy TransAtlantic's oilfield services ops Tue Feb 28, 2012 TransAtlantic says deal valued at $164 mln
* Abraaj teams up with CEO, shareholder Malone Mitchell * TransAtlantic to use proceeds to pay down debt DUBAI, Feb 28 (Reuters) - Abraaj Capital, the Dubai-based private equity firm, has teamed with the top shareholder of TransAtlantic Petroleum Ltd to buy the Canadian energy company's oilfield services business in a deal valued at around $164 million. Abraaj, which recently bought private equity firm Aureos, joined with TransAtlantic's top shareholder and Chief Executive Malone Mitchell for the deal, it said in a statement on Tuesday. The private equity firm said it signed a non-binding letter of intent alongwith Dalea Partners -- an affiliate of Mitchell -- to acquire the business. TransAtlantic, which holds interests in oil and gas properties in Turkey, Bulgaria and Romania, has been exploring strategic alternatives for its oilfield services business since last year.

In a separate bourse statement, TransAtlantic said it intends to use net proceeds from the sale to pay down outstanding debt, adding it was engaged in an exclusivity period with the prospective buyers to negotiate definitive agreements. TransAtlantic's oilfield services business is mainly comprised of wholly-owned subsidiaries Viking International Limited and Viking Geophysical Services Ltd. In May 2011, TransAtlantic named Mitchell as its chief executive and set plans in motion to explore strategic alternatives for its oilfield services business. Abraaj, founded in 2002 by Group Chief Executive Arif Naqvi, has raised $7 billion since its inception. It owns stakes in Orascom Construction, budget carrier Air Arabia , supermarket chain Spinneys and education group GEMS. Funds managed by the group have stakes in 35 companies across the Middle East region. Last week, the PE firm agreed to buy UK-based specialist fund manager Aureos Capital, creating an entity with $7.5 billion in assets and a wider focus on emerging markets.

Networking Reasearch

BanFracNow Research