Robert Spring, Chief Executive Officer of Anatolia, commented:
"The Transaction provides Anatolia shareholders with the upside of the portfolio of producing and exploration assets that Cub has accumulated in the Ukraine. In addition, the Transaction will provide Anatolia shareholders with a greater and more efficient capital base given Cub's production and cash flow from which to help further develop our Turkish assets."
Benefits of Operating in Turkey
Turkey offers an attractive fiscal and royalty regime with a flat royalty rate of 12.5% and a flat corporate tax rate of 20%. It is a democratic, secular, constitutional republic, a G-20 major economy and a long-standing member of NATO. Turkey offers a transparent regulatory environment and under-explored hydrocarbon basins with conventional and unconventional targets. While Turkey is currently a producer of oil and gas, it is heavily reliant on imported oil and gas, importing nearly 90% of its oil demand for a population of more than 78 million people. As a result, there is domestic demand for oil and gas production at world market prices. Additionally, there is an extensive network of oil and gas transportation infrastructure in place in Turkey, which results in time efficient and cost effective tie-ins to market. Furthermore, seismic, drilling and other oilfield equipment is available at competitive prices.
Acquisition Work Plan
---------------------------------------------------------------------------License Area No. of Licenses Working Interest Resource TypeBismil 2 25% Conventional Up to 50% UnconventionalSinan 1 50% UnconventionalAntep 7 50% ConventionalBesni 1 50% Conventional----------------------------------------------------------------------------- Cub will own an interest in and jointly operate 11 licenses in four primary project areas in Turkey (Bismil, Sinan, Antep and Besni).-- Capital expenditures required for the Turkish work program in 2013 is currently being reviewed by Cub-- The 2013 work program is fully financed
Asset Overview
Bismil
Cub will acquire a 25% W.I. in the Bismil licence that includes two adjacent licenses totalling 245,699 gross acres and the option to increase its unconventional Dadas Shale W.I. to 50% in the licence. The onshore licence is located in the Sirt District of the southeastern Anatolia region of Turkey. The licence contains seven Bedinan oil prospects with estimated gross resources of 2 to 5 MMbbl and Garzan reef with estimated gross resources of 1 to 9 MMbbl prospects.
Sinan
Cub will acquire up to a 50% W.I. in the Sinan licence that includes one license totalling 17,833 gross acres. The onshore licence is located in the Sirt District of the south eastern Anatolia region of Turkey and offers both unconventional Dadas shale potential as well as conventional upside. The licence contains three Bedinan oil prospects with estimated gross resources of 2 to 5 MMbbl prospects and Mardin carbonate fault traps with estimated gross resources of 1 to 4 MMbbl prospects.
Antep
Cub will acquire up to a 50% W.I. in the Antep licence that includes seven adjacent licenses totalling 845,418 gross acres. The onshore licences are located in the Gaziantep District of the south-eastern Anatolia region of Turkey and offers conventional upside in a very large contiguous land base with year round access. There are seven Mardin fault and reef prospects identified with an estimated gross resource base of 1 to 6 MMbbl and several Paleozoic structural leads.
