UPDATE 1-TransAtlantic Petroleum to raise C$150 mln

* Says issuing 91 mln shares at C$1.65/share

* Proceeds to be used for FY09 Capex, repay debt

June 4 (Reuters) - Canada's TransAtlantic Petroleum Corp (TNP.TO: Quote, Profile, Research) said it will raise C$150 million ($136 million) through an equity offering and will use the proceeds for its 2009 capital expenditure program and to repay debt.

The oil and gas company said it will issue 91 million common shares at a price of C$1.65 a share.

The offering of 49.2 million common shares will be conducted through a syndicate of underwriters led by Canaccord Capital Corp and including Genuity Capital Markets, the company said.

41.8 million common shares will be issued to Dalea Partners LP, an entity controlled by the chairman of TransAtlantic's board, Malone Mitchell, the company added.

TransAtlantic said it agreed to grant the underwriters an over-allotment option to purchase up to an additional 7.4 million shares, which if exercised, would result in total gross proceeds of about C$162.3 million from the offering.

TransAtlantic shares were trading down 10 percent at C$1.80 Thursday noon on the Toronto Stock Exchange. ($1=1.103 Canadian Dollar) (Reporting by Krishna Chaithanya in Bangalore; Editing by Aradhana Aravindan)