CALGARY, Alberta – TransGlobe Energy Corporation (“TransGlobe” or the “Company”) announces an operations update. All dollar values are expressed in US dollars unless otherwise stated.
Production Summary (WI before royalties and taxes):
|(Boepd)||Q1 2021||Apr 2021||May 2021||Jun 2021
(to Jun 21st)
Compared to Q1, 2021, during the current quarter to date, production improved due to well optimization activities in Egypt, the full oil production impact of the SGZ-6X lower Bahariya recompletion, and return to production in Canada of 2-20 following the 13-16 completion and stimulation plus the latter’s production contribution.
Please see the table entitled “Production Disclosure” at the end of this news release for the detailed constituent product types and their respective quantities measured at the first point of sale for all production amounts disclosed in this news release on a Bopd and Boepd basis.
Arab Republic of Egypt
Eastern Desert (100% WI)
Following mobilization of the EDC-64 rig from the Western Desert, the Company drilled a development oil well in the Eastern Desert at West Bakr. The HW-8 development well was drilled to a total depth of 1,640.5 meters, successfully encountering oil-bearing sands in the Yusr-C and Bakr formations.
The reservoir section has been fully logged and evaluated, with an internally estimated 5.9 meters of net oil pay in the Yusr-C sand and 28.1 meters of net oil pay across four sands in the Bakr reservoir. The Bakr is expected to be completed for production shortly.
HW-8 was the first well in TransGlobe’s 12 well development program in 2021 designed to grow oil production and increase reserves in the Eastern Desert.
The second well in this program, K-64, a development well in the Eastern Desert at West Bakr, was drilled to a total depth of 1,538 meters, successfully encountering oil-bearing sands in the Asl-A, Asl-B and Asl-D formations.
The reservoir section has been fully logged and evaluated, with an internally estimated 20.9 meters of net oil pay in the Asl-A sand, 17.8 meters of net oil pay across the Asl-B sand and 9.7 meters of net oil pay in the Asl-D sand. The Asl-B is expected to be completed for production in this well. The Asl-A is expected to be recovered through a future recompletion of this well and the Asl-D through other well drainage points.
The substantial capital investment in 2021 is supported by the Company’s previously disclosed merger of its three Eastern Desert concessions into a single agreement, currently awaiting ratification.
Western Desert (100% WI)
Following evaluation of the reservoir pressure and Gas Oil Ratio (“GOR”) data from the initial production phase of the lower Bahariya reservoir at SGZ-6X in the South Ghazalat field, the well has been put on GOR control management to preserve reservoir pressure and maximize recovery. The well is currently producing at a field estimated 700 Bopd of light oil with a 4% watercut. Further reservoir pressure data will be collected to evaluate the impact of aquifer pressure support to the reservoir as that is activated.
With stronger oil prices and spare capacity available in the South Ghazalat production facility, the Company is evaluating accelerated drilling of an exploration well on the SGZ-7B prospect to the east of SGZ-6X. The earliest SGZ-7B could be drilled is Q4, 2021.
The 2-mile horizontal South Harmattan 13-16 oil well, stimulated and equipped in Q1-2021, has achieved a calculated IP30 estimated at 286 Boepd (247 bbl/d light oil, 131 mcf/d gas 17 bbl/d NGL) and a calculated IP60 estimated at 242 Boepd (199 bbl/d light oil, 144 mcf/d gas 19 bbl/d NGL), both on a productive day basis.
Lease construction is progressing in support of the drilling of three 100% horizontal oil development wells (one 2-mile, two 1-mile) in the north of our exciting Cardium extension into the South Harmattan area. The first well of this back-to-back drilling program is expected to spud prior to month end.
“The Company is encouraged by our operating results to date both in Egypt and Canada. Utilization of a top-drive rig in Egypt has improved our overall drilling performance as we build experience towards our horizontal program kicking off early in 2022. The consolidated PSC ratification, expected in the 2H’21, is understood to be progressing through to parliamentary approval. In Canada, the latest 2-mile South Harmattan well, directly adjacent to our original 2-20 well drilled in 2019, has come on within expectations which bodes well for our 3-well program beginning this month, and the estimated 86 one-mile locations in the South Harmattan area. With our planned operations, rising oil prices and expected ratification, we look to be in for an exciting second half of 2021.”