TransAtlantic Petroleum Ltd. has entered into a farmout agreement with Koynare Development Ltd. (KDL), a private oil and gas investment company. The agreement, between KDL and TransAtlantic's wholly owned subsidiary, TransAtlantic Worldwide, Ltd. ("Worldwide"), provides that KDL will fund 75% of TransAtlantic's initial $40 million work program in Bulgaria. The funds will be used by Worldwide's subsidiary and operator, Direct Petroleum Bulgaria EOOD ("Direct Bulgaria"). Under the agreement, Direct Bulgaria will assign KDL a 50% interest in the Koynare Concession Area. Direct Bulgaria will also assign a 50% interest in its ownership of the Stefanetz Concession Area in the event that the pending concession application is approved by the Bulgarian government.

"We are very pleased to have reached an agreement to invest in our natural gas development in Bulgaria. KDL agrees with our assessment of the potential in the country, and we will proceed as planned to recommence drilling the Deventci-R2 well in the next 60-90 days," commented Mr. Malone Mitchell 3rd, Chairman and Chief Executive Officer of TransAtlantic.

Tags: TransAtlantic Petroleum Corp.