TransGlobe Energy Corporation Provides Operational Update
January 05 2010 - 6:00AM
Marketwired
TransGlobe Energy Corporation (TSX: TGL)(NASDAQ: TGA) ("TransGlobe"
or the "Company") is pleased to provide an update on its operations
and production. All dollar values are expressed in United States
dollars unless otherwise stated.
OPERATIONS UPDATE
Arab Republic of Egypt ("Egypt"), West Gharib (100% working
interest)
Two oil wells were completed since the last update provided on
November 25, 2009. The Company's first horizontal well in Egypt at
Arta #12 was drilled to a total depth of 5,217 feet with a 1,519
foot horizontal section in the Nukhul reservoir. The well was
placed on production during the first week of December at a rate of
30 barrels of oil per day ("Bopd") of 19 degrees API oil, with no
water cut. A multi-staged fracture stimulation program is being
designed to improve access to the reservoir and potentially
increase production rates. The stimulation program is expected to
be completed in the next sixty (60) days, subject to the
availability of stimulation equipment. If successful, additional
horizontal wells will be drilled in the Arta field.
A development/appraisal well at Hana West #8 was drilled to a
total depth of 6,971 feet and cased as a multi-zone oil well. The
well was completed in the lower Rudeis formation and placed on
production at a rate of 730 Bopd on December 27, 2009. The well
also encountered an extension to the main Hana pool (Kareem/Markha
formation) and a new oil pool in the Shagar formation, which have
not been completed. The rig was then moved to a step-out location
at Hana #20 on the south end of the Hana field. The Hana #20 well
reached a total depth of 5,505 feet in eight (8) days on January 3,
2010, making it the fastest well ever drilled in the Hana field.
The open-hole well logs indicate 32 feet of net oil pay was
encountered in the Kareem/Markha sands. It is anticipated the well
will be placed on production in mid-January.
Following Hana #20, the drilling rig is scheduled to move to
North Hoshia #2, to drill a step out appraisal well targeting the
Nukhul and Thebes formations in the North Hoshia pool.
PRODUCTION SUMMARY
TransGlobe's 2009 average oil production increased 22% over
2008. The Company's 2009 average production was 8,970 Bopd (in-line
with Company guidance) comprised of 5,830 Bopd from West Gharib and
3,140 Bopd from Yemen. The December 31, 2009 exit sales rate was
9,428 Bopd (6,474 Bopd from West Gharib and 2,954 Bopd from Yemen),
primarily due to the addition of new wells at Arta and Hana West in
Egypt.
2010 OUTLOOK
TransGlobe has projected funds flow from operations for 2010 of
$55.0 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. $65.0 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.
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 Email: investor.relations@trans-globe.com
Website: www.trans-globe.com
TransGlobe Energy (TSX:TGL)
Historical Stock Chart
From Jun 2024 to Jul 2024
TransGlobe Energy (TSX:TGL)
Historical Stock Chart
From Jul 2023 to Jul 2024