TransAtlantic Petroleum Ltd. (TSX: TNP) (NYSE: TAT) has reported that it plans to devote the majority of its 2011 capex to its unconventional prospects in Turkey, particularly the Thrace Basin.

"We expect to achieve a production rate from our properties in Turkey of at least 10,000 barrels of oil per day (BO/d) by the end of 2011," said Malone Mitchell, the TransAtlantic's chairman. "All of our actions are directed toward this near-term goal, at which point we will largely be able to fund our capital expenditure program out of cash flow."

For 2011, the company anticipates non-acquisition capital expenditures of between $125 million and $150 million, with the overwhelming majority directed towards Turkey.

Thrace Basin

More than half of the TransAtlantic's capital expenditures in 2011 are planned for properties in the Thrace Basin. The capital will be expended in the expectation of considerably growing gas production from the current base of approximately 10.0 million net cubic feet per day (Mmcf/d). The program for 2011 will focus on developing shallow gas prospects and reserves and fracture stimulating the deeper pay. The company expects net gas production at year end of approximately 35 to 40 Mmcf/d.

On the company's northern licenses (3839 and 4037) production growth is expected from receipt of a wholesale gas license, which will permit sales from wells that are currently shut-in, and the drilling of 15 to 20 wells on structures identified on recently processed 3D seismic data.

On the company's central licenses, considerable production growth is expected from the Alpullu gas field and the adjoining exploration license, where the company plans to drill between five and eight wells to further develop the Alpullu field and test structures on the exploration license. The Alpullu field is currently producing at a constrained rate through a small pipeline to the north. The company is currently constructing a pipeline to the south, which would connect the field to the gas distribution system operated by Thrace Basin Natural Gas. TransAtlantic plans to build gathering lines to connect the structures to the east and west of the new pipeline.

The company plans to be quite active on the southern licenses that it expects to acquire upon the acquisition of Thrace Basin Natural Gas, currently expected to close in the second quarter of 2011. The company expects to drill approximately 20 wells on these licenses in 2011, targeting shallow conventional targets, and re-enter and fracture stimulate approximately eight wells in the Mezardere formation, which is behind pipe.

Selmo Oil Field

In January 2011, the company began conducting a series of small fracture stimulations and gelled acid jobs on wells in the Selmo oil field. As a result of those operations, daily average production increased from approximately 2,400 BO/d at year end 2010 to an average of 2,766 BO/d for the month of February 2011, reaching a peak production of over 3,000 BO/d. Current production from the field is approximately 3,000 BO/d. The company plans to drill and complete at least 24 wells in the field during 2011. As a result of the planned drilling activity, the company expects production to grow to approximately 4,000 BO/d.

"In addition to the active drilling program, we are also reviewing all current and lower rate wells as candidates for fracture stimulated or gelled acid stimulation, as our results to date have been very good," said Gary Mize, the TransAtlantic's president.