This Announcement contains inside information as defined in Article 7 of the Market Abuse Regulation No. 596/2014 (“MAR”). Upon the publication of this Announcement, this inside information is now considered to be in the public domain.
CALGARY, Alberta, Sept. 25, 2018 (GLOBE NEWSWIRE) — TransGlobe Energy Corporation (“TransGlobe” or the “Company”) (AIM & TSX: “TGL” & NASDAQ: “TGA”) announces an operations update. All dollar values are expressed in US dollars unless otherwise stated.
- Corporate production during the quarter averaged 14.8 MBoepd in July, 13.5 MBoepd in August and 14.4 MBoepd to date in September.
- Received proceeds of $59 million during the third quarter for cargos lifted in June and July.
- Drilled and preparing to abandon NW Sitra 12 exploration well (Jurassic target).
- Drilled two successful oil wells in M Pool in the West Bakr.
Corporate production averaged ~14.8 MBoepd during July, ~13.5 MBoepd during August and has averaged ~14.4 MBoepd to date in September. August production was lower due to routine well servicing in Egypt. In Canada, the Company shut in 80 Boepd of natural gas production on May 11th due to low gas prices.
|(MBoepd)||July||August||Sept (to date)|
The Company completed its third lifting of 2018 of approximately 501,000 barrels of entitlement crude oil on July 19th for proceeds of approximately $32 million, received in August. The Company expects the final lifting of the year to occur in Q4 2018.
ARAB REPUBLIC OF EGYPT
In North West Sitra (“NWS”) the Company drilled the NWS 12X exploration well to a total depth of 13,300 feet targeting a stacked Cretaceous/Jurassic prospect. The well did not encounter hydrocarbons in the targeted zones and will be abandoned. With the drilling of NWS 12X, the first phase work commitments have been met. Prior to January 7, 2019, the Company can elect to enter the second and final exploration phase (3.0 years after the extension of phase one). The second exploration phase has a two well ($6.0 million) work commitment and a mandatory relinquishment of 30% of the original concession area not held by development leases. A final decision on whether the Company will elect to relinquish the concession or enter the second exploration phase of the concession will be made following a full evaluation of the data obtained from the wells.
In South Ghazalat (“SGZ”) the Company is preparing the location for SGZ 6X, the second exploration well in the concession. SGZ 6X is located on the eastern portion of the concession offsetting the Raml oil field in the Abu Gharadig basin. The SGZ 6X prospect is targeting stacked Cretaceous targets similar to the Raml and SW Raml fields. Site construction is underway and it is expected that SGZ 6X will be drilled in October/November.
In West Bakr, the Company drilled a two well infill program in the M field resulting in two oil wells during August/September. M-North was drilled to a total depth of 5,113 feet and cased as an oil well. M-North encountered an internally estimated 132 feet of net oil pay. The M-North well is currently producing ~750 Bopd. M-South was drilled to a total depth of 5,077 feet and cased as an oil well. M-South encountered an internally estimated 142 feet of net oil pay. The M-South well was placed on production at an initial rate of ~500 Bopd in September. Both of these wells have exceeded internal pre-drill estimates of initial production rates.
Following M-South, the rig was moved to NW Gharib 38A-7 to drill a potential water injector in the NWG 38A pool. The NWG 38A-7 well is currently drilling as a potential water injector targeting the 38A Red Bed pool in a structurally lower position 0.4 kilometers south of the NWG 38A Injector well (NWG 38A-I, drilled Q2). The NWG 38A-I well encountered oil with an internally estimated 34 feet of net Red Bed oil pay and was placed on production in September at an initial rate of ~110 Bopd (following a fracture stimulation). 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.
In Canada, the Company commenced drilling the 2018 Cardium development program, which includes six gross (five net) horizontal Cardium development wells to be drilled from a common pad to improve efficiencies and reduce costs. The Company has drilled and cased two one-mile horizontal wells and is currently drilling the third horizontal well of the six well program. The program includes a two-mile extended reach horizontal (“ERH”) well to evaluate the performance of ERH wells in the Harmattan area. The remainder of the 2018 drilling program will consist of one-mile horizontal wells.
Following the six well development drilling program, the Company will drill a one-mile horizontal well to evaluate a portion of the newly acquired lands (16 net sections (10,240 acres) of Cardium prospective acreage) located south/south west of the Harmattan pool. If successful, the new lands could provide a significant development opportunity which is proximal to the Company’s Harmattan production and facilities. The Harmattan Cardium pool has typically been developed by drilling four one mile horizontal wells per section.
The Company reinstated a variable semiannual dividend in August and paid a $0.035 per share dividend to shareholders on September 14th.
TransGlobe Energy Corporation is a Calgary-based, cash flow focused 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 and the AIM market of the London Stock Exchange under the symbol TGL and on the NASDAQ Exchange under the symbol TGA.