TransGlobe Energy Corporation Completes Acquisition of GHP Exploration for Cash; Adds 900+ Barrels of Oil to Daily Production
05 Febbraio 2008 - 9:47PM
Marketwired
CALGARY, ALBERTA (NASDAQ: TGA) announced today the closing of
the acquisition of privately-held GHP Exploration (West Gharib)
Ltd. ("GHP") which holds a 30% interest in the West Gharib
Concession area in the Arab Republic of Egypt. The West Gharib
Concession consists of eight development leases and associated
infrastructure located onshore Gulf of Suez.
Transaction highlights include:
- TransGlobe Petroleum International Inc., a wholly owned
subsidiary of TransGlobe Energy Corporation, acquired all the
shares of GHP for US$40.2 million, plus working capital
adjustments, effective September 30, 2007.
- GHP holds a 30% working interest in eight development leases
and one pending development lease comprising the West Gharib
Production Sharing Concession ("PSC").
- After closing the acquisition TransGlobe will hold a 100%
interest in the Hana Development Lease and a 75% interest in the
remaining seven development leases.
- Immediately accretive to cash flow from operations and net
income.
- Acquired working interest production and reserves:
-- 900+ Bopd; 1.7 million barrels ("MMBbls") proved reserves;
3.0 MMBbls proved plus probable reserves.
- TransGlobe paid approximately US$44,670 per producing barrel
of oil for the assets, or $13.40 per proved plus probable barrel of
oil.
- Dublin International Petroleum (Egypt) Limited, a wholly owned
subsidiary of TransGlobe, operates the West Gharib Concession
Agreement.
Financial Terms
TransGlobe funded the acquisition with an expanded credit
facility and working capital. Interest charges and a working
capital adjustment of approximately US$6.2 million will bring the
total cost of the acquisition to US$46.4 million. The acquisition
increased total debt to US$98 million. The proceeds from the sale
of TransGlobe's Canadian assets, expected to close in the second
quarter of 2008, will be applied to the total debt and working
capital.
The eight West Gharib development leases encompass 178 square
kilometers (approximately 44,015 acres) and are valid for 20 years.
Modern 3-D seismic covers the majority of the development leases.
One additional development lease is currently awaiting final
approval signature by the Egyptian Petroleum Minister.
Independent reserve auditors have assessed GHP's working
interest share of the eight leases to contain 1.7 MMBbls proved
reserves and 3.0 MMBbls of proved plus probable reserves.
About TransGlobe Energy
TransGlobe Energy is a growth-oriented international energy
company engaged in the exploration, development and production of
crude oil and natural gas in the Republic of Yemen, the Arab
Republic of Egypt and Alberta, Canada. TransGlobe holds interests
in over 1.34 million gross acres in Yemen (368,000 net acres) and
5.5 million acres in Egypt (2.7 million net acres). Financially
strong, TransGlobe has reported seven consecutive years of net
income.
Cautionary Statement to Shareholders
This release includes certain statements that may be deemed to
be "forward-looking statements" within the meaning of the US
Private Securities Litigation Reform Act of 1995. All statements in
this release, other than statements of historical facts that
address future production, reserve potential, exploration drilling,
exploitation activities and events or developments that the Company
expects, are forward-looking statements. Although TransGlobe
believes the expectations expressed in such forward-looking
statements are based on reasonable assumptions, such statements are
not guarantees of future performance and actual results or
developments may differ materially from those in the
forward-looking statements. Factors that could cause actual results
to differ materially from those in forward-looking statements
include oil and gas prices, well production performance,
exploitation and exploration successes, continued availability of
capital and financing, and general economic, market or business
conditions.
The calculations of barrels of oil equivalent ("Boe") are based
on a conversion rate of six thousand cubic feet of natural gas to
one barrel of crude oil. Boe may be misleading, particularly if
used in isolation. A Boe conversion ratio of 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.
TRANSGLOBE ENERGY CORPORATION
David C. Ferguson, Vice President & C.F.O.
The Toronto Stock Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this press
release.
Contacts: TransGlobe Energy Corporation Ross G. Clarkson
President & C.E.O. (403) 264-9888 (403) 264-9898 (FAX)
TransGlobe Energy Corporation Lloyd W. Herrick Vice President &
C.O.O. (403) 264-9888 (403) 264-9898 (FAX) Executive Offices #2500,
605 - 5th Avenue, S.W., Calgary, AB T2P 3H5 Email:
trglobe@trans-globe.com Website: www.trans-globe.com
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