TAP is listed on NYSE-MKT (US) and TSX (Canada) with a market cap of about US$304 million and 48% free float as of Feb 27, 2014. TAP’s key shareholder and sponsor is Malone Mitchell 3rd, who owns about 40% of the company. TAP has a diverse shareholder base with many institutional and retail investors owning smaller stakes.

The total project cost is estimated at about $125 to $150 million, which includes TAP’s $75 to $100 million exploration and development program scheduled for 2014 in Turkey, as well as the refinancing of an existing senior loan which is scheduled to mature in 2016. The proposed IFC investment is a five year A-loan of up to $50 million for IFC’s own account, as part of a senior secured reserve based loan (RBL) facility that is currently being arranged by another commercial bank and IFC.

60.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management	10.0
Guarantee
Loan	50.0
Equity

* These investment figures are indicative

TAP holds interests in 24 onshore exploration licenses (some partially extending offshore) and 12 onshore production leases in Turkey and one production concession in Bulgaria. TAP’s assets in Turkey are located in the southeast (mainly in the Batman and Diyarbakir provinces) and in Thrace to the northwest of the country.

- Development of the hydrocarbon sector in Turkey: The Thrace Basin in Turkey is the country''s largest gas producing province and gas produced in the region is consumed domestically. Being one of the main private E&P companies in Turkey, TAP will help develop indigenous hydrocarbon resources and thus contribute to the country''s goals of reducing energy dependency, and help displace other fuels with natural gas.

- Technology and know-how transfer: TAP is pioneering North American technology including hydraulic fracturing and horizontal drilling in Turkey and through the use of advanced development and production technology, is playing an instrumental role in the transfer of technology. TAP''s activities enhance recoveries from and extends the lives of its fields in Turkey, leading to additional revenues to the government in the form of taxes and royalties. TAP is also sharing knowhow with TPAO, the national oil company in Turkey, with whom TAP partners with in certain gas fields located in Thrace. This transfer of know how is highly likely to enhance recovery from other existing fields operated by TPAO and indirectly generate additional revenues to the government and help improve the energy balance of Turkey.

- Helping develop the nascent services sector in the region: TAP has significant drilling, 3D seismic and other development and exploration activities which are currently acquired from Viking Services (an IFC client), an oil field services company operating in the region. TAP is Viking''s key client and will continue playing an instrumental role in the development of the services sector in the country. The availability of North American technology in the region is enhancing recoveries in other existing fields operated by other clients as well. TAP''s expansion in Turkey will create and preserve local services jobs and provide training for local staff. TAP employs local technical staff to monitor and supervise activities such as horizontal drilling in Turkey. Local technical staff, which includes female drilling engineers, in many cases receive training in the United States.

IFC has reviewed the benefits of the project and the associated governance risks and believes that the project should be supported. The magnitude of fiscal benefits, governance metrics and the World Bank’s engagement to support good governance has been taken into consideration. The oil and gas sector in Turkey has been developing, and the issuing of licenses and the sharing mechanisms for revenue, taxation and royalty between private companies and the public sector can be considered transparent. As per IFC requirements, TAP will publicly disclose all material payments made to the government of Turkey. The concession agreements with the government of Turkey are publicly disclosed on the official gazette in Turkey and TAP will provide links on its website.

- IFC''s presence will help to secure long-term debt in the RBL/oil & gas market, a sector with which Turkish banks do not have significant experience.

- TAP is willing to improve its E&S performance. The IFC team will work closely with TAP during the monitoring stage to help guide the company to achieve best practices in terms of E&S performance.

- IFC''s investment in the Turkish oil & gas exploration and production sector is expected to draw the attention of other potential investors to look at basins in Turkey that are currently under-explored and underdeveloped.

Please refer to the ESRS.

Please refer to the related Environmental and Social Review Summary (ESRS) document for this project.

Please refer to the Environmental and Social Action Plan (ESAP) tab in the related Environmental and Social Review Summary (ESRS) document for this project.