TransGlobe Energy Corporation Announces Operational Update on Successful Egyptian Exploration and Development Programs
March 24 2010 - 11:08AM
Marketwired
TransGlobe Energy Corporation (TSX: TGL)(NASDAQ: TGA) ("TransGlobe"
or the "Company") is pleased to announce an operational update on
successful Egypt exploration and development programs.
OPERATIONS UPDATE
ARAB REPUBLIC OF EGYPT
West Gharib, Arab Republic of Egypt (100% working interest,
TransGlobe operated)
Operations and Exploration
In February 2010, the Company successfully fracture stimulated
the Arta #9 well in the Nukhul formation. The Arta #9 vertical well
is currently producing 210 Bopd and appears to have reached a
stabilized production rate. Arta #9 was previously producing 25
Bopd prior to the stimulation.
Following the success of Arta #9, the Company successfully
fracture stimulated three additional vertical wells (Arta #2, Arta
#4 and Arta #8) in the past week. The wells have been placed on
production and the early production rates indicate they will
stabilize at similar rates to Arta #9 (approximately 200 Bopd per
well).
A multi-staged fracture stimulation program is being designed
for the Arta #12 horizontal well drilled in 2009. The stimulation
program is expected to be completed in late April/early May,
subject to the availability of multi-stage packer equipment.
In addition, the Arta #6 vertical well is planned to be
stimulated following the Arta #12 work.
The Hoshia #8 step-out appraisal well was drilled and cased as a
multi-zone (Rudeis/Nukhul) oil well. Hoshia #8 was initially
completed in the Nukhul formation and is producing 80 Bopd. Hoshia
#8 will be evaluated for a potential fracture stimulation treatment
similar to the Arta field.
The Hana #21 step-out appraisal well located on the northern end
of the Hana field has been cased as a Kareem producer. The drilling
rig will move to the southern end of Hana to drill Hana #22 prior
to moving to the Arta field to drill a step-out appraisal well at
Arta #13.
As previously disclosed, the Company has expanded the 2010
capital program to add a second drilling rig to the West Gharib
project in the second quarter of 2010 to accelerate the Nukhul
program in the Arta, East Arta, North Hoshia and Hoshia areas.
East Ghazalat Block, Arab Republic of Egypt (50% working
interest, subject to Egyptian Government approval)
The second exploration well on the East Ghazalat Block, Safwa
#1, was cased as a potential oil well. An oil-bearing interval in
the Cretaceous section of the Safwa #1 well was logged and oil
samples were recovered during wireline testing. The well was
perforated and tested at a rate of 300 Bopd of 38 degrees API oil
utilizing the drilling rig. The short term test has confirmed the
presence of good reservoir and movable oil. Additional tanks and
pumping equipment are required to carry out more extensive
production testing so the drilling rig is being moved to the next
exploration well.
The third exploration well, Sahab #1, is targeting a
Jurassic/Paleozoic prospect with an internal estimate of petroleum
initially in place ("PIIP") of 64 MMBbl in the P-mean case with an
upside of 140 MMBbl in the P10 case.
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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