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What: Shares of oil and gas explorer TransAtlantic Petroleum
So what: The stock has now risen about 14% since announcing the purchase of Thrace Basin Natural Gas Turkiye Corp. and Pinnacle Turkey Inc. for $154.4 million late on Thursday. At the time of publication, 1.36 million of TransAtlantic shares have already changed hands, versus its average volume of about 279,000 shares, so the deal seems to have drawn a lot of positive attention from investors.
Now what: It's easy to understand Wall Street's initial reaction to the deal. The two newly acquired Turkish bets produce about 25 million cubic feet of natural gas per day and hold interests in an additional 4.5 million acres of oil assets in the country. And with third-party investors expected to provide between $90 million to $100 million of the cash required, receiving between 59.5% and 65% of the acreage and production in exchange, TransAtlantic won't need to stress its balance sheet any further to get the deal done.
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