TransAtlantic makes Stream buy

Shake on it: TransAtlantic to acquire Stream Oil & Gas

US player TransAtlantic Petroleum is getting its hands on acreage in Albania through the acquisition of Canadian junior Stream Oil & Gas.

The Dallas-headquartered explorer is paying $41.2 million for Calgary-based Stream in an all-shares deal.

The acquisition will give TransAtlantic a 100% interest in a trio of oilfields, one gas field and an exploration licence in Albania.

The oilfields are Cakran-Mollaj, Gorisht-Kocul and Ballsh-Hehal, while the gas field is Delvina.

The three oilfields are grouped together in the centre of the country, while Delvina is further south towards the Greek border.

Stream’s current net production is around 973 barrels of oil per day. In November last year it reported net proved reserves of 20.9 million barrels of oil equivalent.

TransAtlantic chief executive N Malone Mitchell said: "We are adding a third source of production and cash flow growth to our company.

"This acquisition will provide us with geologic and geographic diversification. The properties contain three fractured carbonate reservoirs with exploitation potential similar to our Selmo field in Turkey, with a large volume of known oil in place.

“We plan to analyse and streamline the oilfield operations before implementing a growth plan with which we expect to predictably increase production."

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