TransAtlantic Petroleum sells Albanian assets to GBC Oil Company

By bne IntelliNews March 4, 2016

International oil and gas company TransAtlantic Petroleum has completed the divestiture of its Albanian oil assets after closing a share purchase agreement with GBC Oil Company.

TransAtlantic Petroleum announced on November 16, 2015, the immediate launch of a marketing process for the sale of all its oil and gas assets and operations in Albania. TransAtlantic entered Albania in 2014 by acquiring 100% of Canada-based company Stream Oil & Gas, comprising three oil fields, one gas field and one exploration licence in the Balkan country. The oil industry in Albania is in difficult position as a result of the falling oil prices on the international markets. 

On February 29, TransAtlantic Holdings, a subsidiary of TransAtlantic Petroleum entered into and closed a share purchase agreement with GBC Oil, according to which it sold all of the equity interests in Stream Oil & Gas, a subsidiary of TAT Holdings, TransAtlantic Petroleum said in a statement on March 3.

The sale of assets to GBC Oil will be made in exchange for the future payment of $2.3mn to Raiffeisen to pay down a term loan facility dated as of September 17, 2014 between Stream's subsidiary TransAtlantic Albania and Raiffeisen, and the assumption of $29.2mn of liabilities owed by Stream, consisting of $23.1mn of accounts payable and accrued liabilities and $6.1mn of debt.

In addition, GBC Oil issued a warrant to TAT Holdings, pursuant to which TAT Holdings has the right to acquire up to 25% of the fully diluted equity interests in TransAtlantic Albania for nominal consideration at any time on or before March 1, 2019. 

TransAtlantic Albania executed an assignment and assumption agreement pursuant to which TransAtlantic Albania will assign its Delvina gas assets and approximately $12.9mn of associated liabilities to Delvina Gas Company (DelvinaCo), a newly established, wholly-owned subsidiary of TransAtlantic Petroleum.

The agreement will be effective upon receipt of required contractual and governmental consents and the expiration of required notice periods. 

TAT Holdings and GBC Oil have agreed to make commercially reasonable efforts to obtain the required contractual and governmental consents for the assignment of the Delvina Assets and Liabilities. 

TransAtlantic Petroleum said it is currently negotiating a joint venture with a third party for the purchase of a stake in gas company DelvinaCo.

TransAtlantic Petroleum is engaged in the acquisition, exploration, development and production of oil and natural gas. It also operates in Turkey and Bulgaria.

Related Articles

DUI leader keeps options open as coalition talks begin in Macedonia

The leader of Macedonia’s ethnic Albanian Democratic Union for Integration (DUI), Ali Ahmeti, said on January 11 that his party will negotiate with the conservative VMRO-DPMNE on the formation ... more

Macedonia’s ethnic Albanian parties set conditions for joining new government

Three ethnic Albanian political parties in Macedonia adopted a joint platform on January 7 asking for more rights as a prerequisite for their participation in the new coalition government, one of the ... more

Novomatic completes acquisition of Albanian National Lottery

Europe’s leading gaming technology group Novomatic has completed the final required steps for the successful acquisition of the Albanian national lottery, the group said. The ... more

Register here to continue reading this article and 2 more for free or purchase 12 months full website access including the bne Magazine for just $119/year.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

To continue viewing our content you need to complete the registration process.

Please look for an email that was sent to with the subject line "Confirmation bne IntelliNews access". This email will have instructions on how to complete registration process. Please check in your "Junk" folder in case this communication was misdirected in your email system.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

If you have any questions please contact us at sales@intellinews.com

Subscribe to bne IntelliNews website and magazine

Subscribe to bne IntelliNews website and monthly magazine, the leading source of business, economic and financial news and commentary in emerging markets.

Your subscription includes:
  • Full access to the bne content daily news and features on the website
  • Newsletters direct to your mailbox
  • Print and digital subscription to the monthly bne magazine
  • Digital subscription to the weekly bne newspaper

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

bne IntelliNews
$119 per year

All prices are in US dollars net of applicable taxes.

If you have any questions please contact us at sales@intellinews.com

Register for free to read bne IntelliNews Magazine. You'll receive a free digital subscription.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

IntelliNews Pro offers daily news updates delivered to your inbox and in-depth data reports.
Get the emerging markets newswire that financial professionals trust.

"No day starts for my team without IntelliNews Pro" — UBS

Thank-you for requesting an IntelliNews Pro trial. Our team will be in contact with you shortly.

Dismiss