TransGlobe Energy Corporation Provides Capital Program and Targets for 2010 and Notice of Participation at Global Energy Confere
November 25 2009 - 6:00AM
Marketwired
TransGlobe Energy Corporation ("TransGlobe" or the "Company") (TSX:
TGL) (NASDAQ: TGA) is planning a 30% increased capital budget for
2010 and increased production and funds flow for 2010. All dollar
values are expressed in United States dollars unless otherwise
stated.
2010 Capital Budget
TransGlobe has projected its 2010 capital budget at $46.1
million (firm plus contingent) representing a 30% increase over
2009. The 2010 capital program is split 80:20 between development
and exploration opportunities. The Company plans to participate in
20 firm wells and 8 contingent wells in Egypt and Yemen. The
development budget of $37.3 million is targeting 3,000 barrels of
oil per day ("Bopd") of new production and 8.7 million barrels of
Proved plus Probable reserve additions during 2010. The exploration
budget of $8.8 million will test prospects with a total recoverable
oil potential of 54 million barrels gross or 21 million barrels to
TransGlobe's working interest (unrisked, mean case, internal
estimate). It is anticipated the Company will fund its entire 2010
capital budget from funds flow and working capital.
2010 Guidance
TransGlobe has projected funds flow from operations for 2010 of
$55 million based on an average dated Brent oil price of $65.00/Bbl
and mid-point of production guidance. The 2010 funds flow
sensitivity to a change in oil price is approximately $1.0 million
per dollar change in dated Brent (i.e. $65 million for $75.00/Bbl
dated Brent). The 2010 funds flow forecast is based on an estimated
production target of 9,300 to 9,700 Bopd (firm plus contingent
budget), with a targeted exit rate over 10,000 Bopd.
OPERATIONS UPDATE (Q3 to date)
Egypt - West Gharib (100% working interest)
- Completed the drilling of the Company's first horizontal well
in Egypt at Arta #12. The Arta #12 well reached a total depth of
5,217 feet with a 1,519 foot horizontal section in the Nukhul
reservoir. The well is expected to be placed on production during
the first week of December.
- The drilling rig is currently moving to a
development/appraisal location at Hana West #8.
Yemen - Block 32 (13.81% working interest)
- The development well at Tasour #26 was completed and placed on
production at an initial rate of approximately 1,000 Bopd.
INVESTOR PRESENTATIONS - FIRSTENERGY CAPITAL CORP. AND CANACCORD
ADAMS
TransGlobe also announces that Mr. Ross G. Clarkson, President
and Chief Executive Officer, will make a presentation on the
Company at the FirstEnergy Capital Corp. Global Energy Conference
in London, England on November 30, 2009 at 4:20 AM Mountain Time
(6:20 AM Eastern Time). Investors may register directly for the
live webcast at:
http://remotecontrol.jetstreammedia.com/16571.
Mr. Clarkson will also make a presentation on the Company at the
Canaccord Adams Global Energy Conference in Miami, Florida on
December 2, 2009 at 10:45 AM Mountain Time (12:45 PM Eastern Time).
Investors may register directly for the live webcast at:
http://www.newswire.ca/en/webcast/viewEvent.cgi?eventID=2802140.
Links to both webcasts of Mr. Clarkson's presentations will also
be provided on the home page of TransGlobe's Web site at
www.trans-globe.com.
TransGlobe Energy Corporation is a Calgary-based,
growth-oriented oil and gas exploration and development company
focused on the Middle East/North Africa region with production
operations in the Arab Republic of Egypt and the Republic of Yemen.
TransGlobe's common shares trade on the Toronto Stock Exchange
under the symbol TGL and on the NASDAQ Exchange under the symbol
TGA.
Cautionary Statement to Investors:
This news release may include certain statements that may be
deemed to be "forward-looking statements" within the meaning of the
U.S. Private Securities Litigation Reform Act of 1995. Such
statements relate to possible future events. All statements other
than statements of historical fact may be forward-looking
statements. Forward-looking statements are often, but not always,
identified by the use of words such as "seek", "anticipate",
"plan", "continue", "estimate", "expect", "may", "will", "project",
"predict", "potential", "targeting", "intend", "could", "might",
"should", "believe" and similar expressions. These statements
involve known and unknown risks, uncertainties and other factors
that may cause actual results or events to differ materially from
those anticipated in such forward-looking statements. Although
TransGlobe's forward-looking statements are based on the beliefs,
expectations, opinions and assumptions of the Company's management
on the date the statements are made, such statements are inherently
uncertain and provide no guarantee of future performance. Actual
results may differ materially from TransGlobe's expectations as
reflected in such forward-looking statements as a result of various
factors, many of which are beyond the control of the Company. These
factors include, but are not limited to, unforeseen changes in the
rate of production from TransGlobe's oil and gas properties,
changes in price of crude oil and natural gas, adverse technical
factors associated with exploration, development, production or
transportation of TransGlobe's crude oil and natural gas reserves,
changes or disruptions in the political or fiscal regimes in
TransGlobe's areas of activity, changes in tax, energy or other
laws or regulations, changes in significant capital expenditures,
delays or disruptions in production due to shortages of skilled
manpower, equipment or materials, economic fluctuations, and other
factors beyond the Company's control. TransGlobe does not assume
any obligation to update forward-looking statements if
circumstances or management's beliefs, expectations or opinions
should change, other than as required by law, and investors should
not attribute undue certainty to, or place undue reliance on, any
forward-looking statements. Please consult TransGlobe's public
filings at www.sedar.com and www.sec.gov/edgar.shtml for further,
more detailed information concerning these matters.
Contacts: TransGlobe Energy Corporation Scott Koyich Investor
Relations (403) 262-9888 investor.relations@trans-globe.com
www.trans-globe.com
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