CALGARY, Alberta, June 22, 2018 (GLOBE NEWSWIRE) — TransGlobe Energy Corporation (TSX:TGL) (NASDAQ:TGA) (“TransGlobe” or the “Company”) announces a mid-second quarter 2018 update. All dollar values are expressed in US dollars unless otherwise stated.
- Published AIM listing documents June 1st, 2018; application has been made for admission to trading in London on June 29th
- Drilled three oil wells during the quarter (K45, Arta 54, NWG 38A-Inj)
- Stimulated four oil wells during the quarter (Arta 48 & 54, NWG 1AX & 5X)
- Two cargoes sold during the second quarter (452 Mbbls April 7th and 450 Mbbls June 15th), next cargo scheduled for mid-July
- Mobilized two drilling rigs to the western desert (NW Sitra) for the 2018 exploration drilling program. Expect to commence drilling at NW Sitra 9 and at NW Sitra 12, prior to month end following rig inspections and acceptance testing
- Completed the planned three week turnaround at Harmattan during May and back on production May 26th
- Acquired 100% working interest in 16 sections (10,240 acres) of Cardium rights at Crown land sales year to date on a Cardium prospect south/south west of Harmattan pool
Corporate production averaged ~14.3 MBoepd during April, ~12.4 MBoepd during May and has averaged ~14.8 MBoepd to date in June. May production was impacted by a planned shut in of Canadian production associated with a turnaround at a third party operated gas plant in the Harmattan area.
|(MBoepd)||April||May||June (to date)|
Note: In addition to the planned May turnaround at Harmattan, the Company shut in an additional 80 Boepd of natural gas production on May 11th due to low gas prices.
In Egypt, the Company completed two crude oil cargo sales during the quarter. The first cargo was lifted in April (452,000 barrels) for proceeds of ~$26.5 million and the second cargo was lifted in June (~450,000 barrels) with proceeds due in mid-July.
In addition, the Company sold an additional ~82,000 barrels of entitlement oil directly to EGPC during April for proceeds of $4.6 million to offset local expenses.
The Company is scheduled to lift a third cargo in mid-July, and expects to finalize the timing of the fourth cargo with EGPC in Q3/Q4.
ARAB REPUBLIC OF EGYPT
The Company drilled three oil wells during the second quarter at K-45, Arta 54 and NWG 38A-Inj.
In West Bakr the K-45 well was the second South K-field well this year, targeting the main Asl A sand in a crestal position in South K-field. The well was drilled to a total depth of 5,831 feet and encountered the main Asl A sand approximately 66 feet structurally higher than the K-46 well and is structurally the highest well in South K-field Asl A & B pools. The K-45 well encountered an internally estimated 195 feet of net oil pay comprising 120 feet of net oil pay in the Asl A pool (A1, A2 and A3) and 75 feet of net oil pay in the Asl B pool. The K-45 well was completed during May in the Asl B formation and is currently producing at a rate of 380 Bopd.
In West Gharib the Arta 54 well was the second well drilled this year in the boundary area between the Arta pool and the offsetting NWG development lease #3. Arta 54 was drilled to a total depth of 3,711 feet and encountered approximately 128 feet of Nukhul/Red Bed formation with an internally estimated 24.5 feet of net oil pay. The well was completed and placed on production at a pre-frac rate of 60+ Bopd. Arta 54 was facture stimulated and will be placed back on production this week.
In NorthWest Gharib (“NWG”) the NWG 38A-Inj well was planned as a water injector to provide reservoir pressure support to enhance recovery for the pool. The well was drilled to a total depth of 5,552 feet and encountered 92 feet of Red Bed with an internally estimated net oil pay of approximately 34 feet (scheduled for completion as an oil well prior to the end of June). This well has extended the NWG 38 pool red bed zone to the South by 0.4 kilometers and is approximately 83 feet structurally lower than the NWG 38A-2 well which was the previous lowest known oil in the pool. With the NWG 38A-Inj well results, the current known oil column in the NWG 38A pool is approximately 575 feet. The Company will now drill NWG 38A-7, located approximately 0.4 kilometers southeast of NWG 38A-Inj, targeting the same red bed pool in a structurally lower position. Should the NWG 38A-7 well also encounter additional oil column, the Company has planned an additional well further south at NWG 38A-8 as a contingency for reservoir pressure support.
The drilling rig has been temporarily stacked at NWG 38A-Inj pending military approvals of the NWG 38A-7 well and two wells in M field at West Bakr which are expected by end of June. It is expected that the three well drilling program will be completed in early Q3.
The Company also completed a four well (Arta 48, Arta 54, NWG 1AX, NWG 5X) stimulation program during May/June targeting Nukhul and tight Red Bed conglomerate wells. The wells have all been fraced and are being placed on production for post frac clean up. It is expected that each of the wells will produce at an initial 30 day average rate of 120 to 150 Bopd after recovering frac fluid based on offsetting producers.
In North West Sitra (“NWS”) the Company began mobilizing two drilling rigs to location the second week of June. The smaller 1,000 HP drilling rig is rigging up at NWS 9 and the larger 2,000 HP drilling rig is moving to NWS 12. It is expected that drilling will commence prior to month end following the respective inspection/acceptance processes.
NWS 9 is targeting a stacked Cretaceous prospect with a planned drilling time of approximately 30 days. NWS 12 is targeting a deeper stacked Cretaceous/Jurassic prospect with a planned drilling time of approximately 60 days.
In addition, well site preparation is underway on South Ghazalat (“SG”) for the planned SG 1 and SG 2 exploration wells. SG 1 and SG 2 are targeting multi-stacked Cretaceous prospects.
The 1,000 HP drilling rig (currently on NWS 9) will be used to drill SG 1 and 2, following drilling/testing of
In South Alamein, the Company has received a seven month extension to the PSC to allow further time for military approvals of drilling locations.
During the scheduled May shut down period, the Company completed inspection/maintenance work on the main oil processing battery and the main natural gas compressor for the Harmattan area.
Concurrently the Company is finalizing the 2018 Cardium drilling program, which is scheduled to commence in August. The 2018 Cardium development program of up to six horizontal wells is planned to be drilled from a common pad to improve efficiencies and reduce costs. The Company is planning to drill one two-mile extended reach horizontal (“ERH”) well to evaluate the performance of ERH wells in the Harmattan area. The remainder of the 2018 program will be one-mile horizontal wells.
Also, during 2018 the Company has acquired 100% working interest in 16 sections (10,240 acres) of Cardium rights at Crown land sales (March and May) on a Cardium prospect south/south west of the Harmattan pool. Based on historical well logs and core data on the lands and offsetting lands, the Company believes that a significant portion of the acreage is prospective for Cardium oil development utilizing the horizontal well multi-stage frac technology employed in the adjacent Harmattan pool. The Harmattan pool has been developed by drilling four wells per section. The Company is evaluating the merits of drilling an exploratory horizontal well on the new lands as part of the 2018 development drilling program or the 2019 program.
TransGlobe Energy Corporation is a Calgary-based, growth-oriented oil and gas exploration and development company whose current activities are concentrated in the Arab Republic of Egypt and Canada. TransGlobe’s common shares trade on the Toronto Stock Exchange under the symbol TGL and on the NASDAQ Exchange under the symbol TGA.