TransGlobe Energy Corporation (“TransGlobe” or the “Company”)
announces an operations update.
All dollar values are
expressed in US dollars unless otherwise stated.
OPERATIONS UPDATE
Arab Republic of Egypt
Western Desert – South Ghazalat (100% WI)
The recompletion of SGZ-6X well to the deeper,
more prospective lower Bahariya reservoir has been concluded. The
well commenced production on March 21, 2021 at a field-estimated
production rate of ~3,600 Bopd of light oil on a 32/64-inch choke
with 0% watercut.
As planned, on March 22, 2021 the well was
restricted to a field-estimated ~1,000 Bopd of light-oil on a
reduced choke to facilitate reservoir data gathering and the
preparation of an effective reservoir management plan for the lower
Bahariya at this location. The Company will provide a further
update on South Ghazalat once this plan has been developed.
Work to expand the early production facility at
South Ghazalat has been completed.
Eastern Desert (100% WI)
The EDC-64 rig has now rigged down at SGZ-6X and
is mobilizing to the Company’s Eastern Desert concessions where
operations on the budgeted twelve well 2021 drilling program are
expected to commence in April 2021.
CEO’s Statement
“We are excited to announce the successful
recompletion of SGZ-6X into the lower Bahariya reservoir at our
South Ghazalat concession. Prudent reservoir management in the
short-term will ensure optimal resource development and maximize
future value for shareholders. This approach will allow us to
maximize future economic off-take from SGZ-6X, firm up the
appraisal of this pool with SGZ-6A and optimize our exploration
plans on the SGZ-7B prospect. At this time these operations are
still planned for 2022, but may be revisited mid-year, depending on
oil prices and other corporate priorities including direct
shareholder returns.
With the rig now moving to the Eastern Desert
drilling program, we are on target to grow production in Egypt in
line with our previous guidance.”
About TransGlobe
TransGlobe Energy Corporation is a 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.
For further information, please contact:
TransGlobe Energy CorporationRandy Neely,
President and CEOEddie Ok, CFO |
+1 403 264
9888investor.relations@trans-globe.comhttp://www.trans-globe.comor
via Tailwind Associates or FTI Consulting |
Tailwind Associates (Investor Relations)Darren
Engels |
+1 403 618
8035darren@tailwindassociates.cahttp://www.tailwindassociates.ca |
FTI Consulting (Financial PR)Ben
BrewertonGenevieve Ryan |
+44(0) 20 3727 1000transglobeenergy@fticonsulting.com |
Canaccord Genuity (Nomad & Joint-Broker)Henry
Fitzgerald-O’ConnorJames Asensio |
+44(0) 20 7523 8000 |
Shore Capital (Joint Broker)Jerry KeenToby
Gibbs |
+44(0) 20 7408 4090 |
Advisory on Forward-Looking Information
and Statements
Certain statements included in this news release
constitute forward-looking statements or forward-looking
information under applicable securities legislation. Such
forward-looking statements or information are provided for the
purpose of providing information about management's current
expectations and plans relating to the future. Readers are
cautioned that reliance on such information may not be appropriate
for other purposes. Forward-looking statements or information
typically contain statements with words such as "anticipate",
“strengthened”, “confidence”, "believe", "expect", "plan",
"intend", "estimate", "may", "will", "would" or similar words
suggesting future outcomes or statements regarding an outlook. In
particular, forward-looking information and statements contained in
this document include, but are not limited to, the Company's
strategy to grow its annual cash flow; anticipated drilling,
completion and testing plans, including, the anticipated timing
thereof, prospects being targeted by the Company, and rig
mobilization plans; expected future production from certain of the
Company's drilling locations; TransGlobe's plans to drill
additional wells, including the types of wells, anticipated number
of locations and the timing of drilling thereof; the timing of rig
movement and mobilization and drilling activity; the Company's
plans to file development lease applications for certain of its
discoveries, including the expected timing of filing of such
applications and the expected timing of receipt of regulatory
approvals; anticipated production and ultimate recoveries from
wells; to negotiate future military access (including the expected
timing thereof), including the anticipated timing of wells on
production; TransGlobe's plans to continue exploration, development
and completion programs in respect of various discoveries; future
requirements necessary to determine well performance and estimated
recoveries; the ratification of the amendment, extension, and
consolidation of the Company’s Eastern Desert Concessions; and
other matters.
Forward-looking statements or information are
based on a number of factors and assumptions which have been used
to develop such statements and information but which may prove to
be incorrect. Although the Company believes that the expectations
reflected in such forward-looking statements or information are
reasonable, undue reliance should not be placed on forward-looking
statements because the Company can give no assurance that such
expectations will prove to be correct. Many factors could cause
TransGlobe's actual results to differ materially from those
expressed or implied in any forward-looking statements made by, or
on behalf of, TransGlobe.
In addition to other factors and assumptions
which may be identified in this news release, assumptions have been
made regarding, among other things, anticipated production volumes;
the timing of drilling wells and mobilizing drilling rigs; the
number of wells to be drilled; the Company's ability to obtain
qualified staff and equipment in a timely and cost-efficient
manner; the regulatory framework governing royalties, taxes and
environmental matters in the jurisdictions in which the Company
conducts and will conduct its business; future capital expenditures
to be made by the Company; future sources of funding for the
Company's capital programs; geological and engineering estimates in
respect of the Company's reserves and resources; the geography of
the areas in which the Company is conducting exploration and
development activities; current commodity prices and royalty
regimes; availability of skilled labour; future exchange rates; the
price of oil; the impact of increasing competition; conditions in
general economic and financial markets; availability of drilling
and related equipment; effects of regulation by governmental
agencies; future operating costs; uninterrupted access to areas of
TransGlobe's operations and infrastructure; recoverability of
reserves and future production rates; that TransGlobe will have
sufficient cash flow, debt or equity sources or other financial
resources required to fund its capital and operating expenditures
and requirements as needed; that TransGlobe's conduct and results
of operations will be consistent with its expectations; that
TransGlobe will have the ability to develop its properties in the
manner currently contemplated; current or, where applicable,
proposed industry conditions, laws and regulations will continue in
effect or as anticipated as described herein; that the estimates of
TransGlobe's reserves and resource volumes and the assumptions
related thereto (including commodity prices and development costs)
are accurate in all material respects; and other matters.
Forward-looking statements or information are
based on current expectations, estimates and projections that
involve a number of risks and uncertainties which could cause
actual results to differ materially from those anticipated by the
Company and described in the forward-looking statements or
information. These risks and uncertainties which may cause actual
results to differ materially from the forward-looking statements or
information include, among other things, operating and/or drilling
costs are higher than anticipated; 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 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; competition; lack of
availability of qualified personnel; the results of exploration and
development drilling and related activities; obtaining required
approvals of regulatory authorities; volatility in market prices
for oil; fluctuations in foreign exchange or interest rates;
environmental risks; ability to access sufficient capital from
internal and external sources; failure to negotiate the terms of
contracts with counterparties; failure of counterparties to perform
under the terms of their contracts; and other factors beyond the
Company's control. Readers are cautioned that the foregoing list of
factors is not exhaustive. Please consult TransGlobe’s public
filings at www.sedar.com and www.sec.goedgar.shtml for further,
more detailed information concerning these matters, including
additional risks related to TransGlobe's business.
The forward-looking statements or information
contained in this news release are made as of the date hereof and
the Company undertakes no obligation to update publicly or revise
any forward-looking statements or information, whether as a result
of new information, future events or otherwise unless required by
applicable securities laws. The forward-looking statements or
information contained in this news release are expressly qualified
by this cautionary statement.
Oil and Gas Advisories
Mr. Ron Hornseth, B.Sc., General Manager –
Canada for TransGlobe Energy Corporation, and a qualified person as
defined in the Guidance Note for Mining, Oil and Gas Companies,
June 2009, of the London Stock Exchange, has reviewed the technical
information contained in this report. Mr. Hornseth is a
professional engineer who obtained a Bachelor of Science in
Mechanical Engineering from the University of Alberta. He is a
member of the Association of Professional Engineers and
Geoscientists of Alberta (“APEGA”) and the Society of Petroleum
Engineers (“SPE”) and has over 20 years’ experience in oil and
gas.
BOEs may be misleading, particularly if used in
isolation. A BOE conversion ratio of six thousand cubic feet of
natural gas to one barrel of oil equivalent (6 MCF: 1 Bbl) is based
on an energy equivalency conversion method primarily applicable at
the burner tip and does not represent a value equivalency at the
wellhead. Given that the value ratio based on the current price of
crude oil as compared to natural gas is significantly different
from the energy equivalency of 6:1, utilizing a conversion on a 6:1
basis may be misleading as an indication of value.
References in this press release to production
test rates, are useful in confirming the presence of hydrocarbons,
however such rates are not determinative of the rates at which such
wells will commence production and decline thereafter and are not
indicative of long term performance or of ultimate recovery. While
encouraging, readers are cautioned not to place reliance on such
rates in calculating the aggregate production for TransGlobe. A
pressure transient analysis or well-test interpretation has not
been carried out in respect of all wells. Accordingly, the Company
cautions that the production test results should be considered to
be preliminary.
The following abbreviations used in this press
release have the meanings set forth below: Bopd
barrels of oil per
dayBpd barrels per
day
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