TIDMTGL
RNS Number : 6383I
TransGlobe Energy Corporation
12 August 2019
This Announcement contains inside information as defined in
Article 7 of the Market Abuse Regulation No. 596/2014 ("MAR"). Upon
the publication of this Announcement, this inside information is
now considered to be in the public domain.
TRANSGLOBE ENERGY CORPORATION ANNOUNCES
SECOND QUARTER 2019 FINANCIAL AND OPERATING RESULTS
For the three and six months ended June 30, 2019
AIM & TSX: "TGL" & NASDAQ: "TGA"
Calgary, Alberta, August 12, 2019 - TransGlobe Energy
Corporation ("TransGlobe" or the "Company") is pleased to announce
its financial and operating results for the three and six months
ended June 30, 2019. All dollar values are expressed in United
States dollars unless otherwise stated. TransGlobe's Condensed
Consolidated Interim Financial Statements together with the notes
related thereto, as well as TransGlobe's Management's Discussion
and Analysis for the three and six month periods ended June 30,
2019 and 2018, are available on TransGlobe's website at
www.trans-globe.com.
Highlights:
u Second quarter production averaged 16,940 boe/d (Egypt 14,663
bbls/d, Canada 2,277 boe/d), an increase of 1,016 boe/d (6%) over
the previous quarter, and sales averaged 15,973 boe/d. Production
in July averaged 16,788 boe/d (Egypt 14,613 bbls/d, Canada 2,175
boe/d);
u Production for the six months ended June 30, 2019 averaged
16,436 boe/d (Egypt 14,143 bbls/d, Canada 2,293 boe/d), which was
above guidance and 17% higher than the same period in 2018;
u Guidance for 2019 production was increased by 1,000 boe/d
(7%), and is now expected to range between 15,000 and 16,000 boe/d
for full-year 2019 (mid-point of 15,500 boe/d);
u Positive second quarter funds flow of $19.1 million ($0.26 per
share). Second quarter net earnings of $10.0 million ($0.14 per
share);
u Ended the second quarter with positive working capital of
$54.1 million, including cash and cash equivalents of $34.1
million;
u Drilled two development oil wells in Egypt (H-30 and
K-63);
u Drilled two exploration wells in Egypt, resulting in one oil
discovery (HW-2X) and one cased potential oil well (NWG 38
D-1);
u Relinquished the South Alamein concession which had been fully
impaired in Q1-2019;
u Received approval for the South Ghazalat development lease
from EGPC and the Ministry of Petroleum, targeting first oil of
approximately 1,000 bbls/day prior to year end 2019;
u Paid a dividend of $0.035 per share on April 18, 2019 to
shareholders of record on March 29, 2019;
u Subsequent to the quarter, the Company declared a dividend of
$0.035 per share, payable September 13, 2019 to shareholders of
record on August 30, 2019.
FINANCIAL AND OPERATING RESULTS
(US$000s, except per share, price, volume amounts and %
change)
Three Months Ended June Six Months Ended June
30 30
Financial 2019 2018 % change 2019 2018 % change
-------------------------------- ---------- --------- -------- -------- --------- ----------
Petroleum and natural gas
sales 81,123 99,220 (18) 150,340 152,171 (1)
Petroleum and natural gas
sales, net of royalties 43,071 68,454 (37) 80,423 93,169 (14)
Realized derivative loss
on commodity contracts (707) (5,781) 88 (929) (5,899) 84
Unrealized derivative gain
(loss) on commodity contracts 1,773 (10,816) 116 (3,001) (16,862) 82
Production and operating
expense 12,410 17,299 (28) 23,943 27,940 (14)
Selling costs 98 1,080 (91) 573 1,126 (49)
General and administrative
expense 3,774 7,583 (50) 8,641 11,579 (25)
Depletion, depreciation
and amortization expense 9,245 10,478 (12) 18,011 17,326 4
Income tax expense 7,476 6,785 10 13,679 12,804 7
Cash flow generated by
operating
activities 22,125 18,886 17 9,054 11,731 (23)
Funds flow from operations(1) 19,116 33,499 (43) 34,271 37,422 (8)
Basic per share 0.26 0.46 0.47 0.52
Diluted per share 0.26 0.46 0.47 0.52
Net earnings (loss) 10,046 7,361 36 1,240 (2,759) 145
Basic per share 0.14 0.10 0.02 (0.04)
Diluted per share 0.14 0.10 0.02 (0.04)
Capital expenditures 8,097 5,855 38 16,644 10,490 59
Dividends paid 2,539 - - 2,539 - -
Dividends paid per share 0.035 - - 0.035 - -
Working capital 54,078 60,464 (11) 54,078 60,464 (11)
Long-term debt, including
current portion 48,109 62,173 (23) 48,109 62,173 (23)
Common shares outstanding
Basic (weighted average) 72,542 72,206 - 72,485 72,206 -
Diluted (weighted average) 72,548 72,851 - 72,629 72,206 1
Total assets 315,999 329,542 (4) 315,999 329,542 (4)
-------------------------------- ---------- --------- -------- -------- --------- --------
Operating
-------------------------------- ---------- --------- -------- -------- --------- ----------
Average production volumes
(boe/d) 16,940 13,779 23 16,436 14,076 17
Average sales volumes (boe/d) 15,973 19,301 (17) 15,513 15,548 -
Inventory (mbbls) 735.0 510.2 44 735.0 510.2 44
Average price ($ per boe) 55.81 56.49 (1) 53.54 54.07 (1)
Operating expense ($ per
boe) 8.54 9.85 (13) 8.53 9.93 (14)
-------------------------------- ---------- --------- -------- -------- --------- --------
(1) Funds flow from operations (before finance costs) is a measure
that represents cash generated from operating activities before changes
in non-cash working capital and may not be
comparable to measures used by other companies.
Average Reference Prices and Exchange 2019 2018
Rates
Q-2 Q-1 Q-4 Q-3 Q-2
------------------------------------------- ----- ----- ----- ----- -----
Crude oil
Dated Brent average oil price (US$/bbl) 68.92 63.17 67.71 75.22 74.50
Edmonton Sweet index (US$/bbl) 55.17 49.96 32.51 62.68 62.43
Natural gas
AECO (C$/mmbtu) 1.11 2.62 1.56 1.18 1.18
US/Canadian Dollar average exchange
rate 1.34 1.33 1.32 1.30 1.29
-------------------------------------------- ----- ----- ----- ----- -----
CORPORATE SUMMARY
TransGlobe Energy Corporation ("TransGlobe" or the "Company")
produced an average of 16,940 barrels of oil equivalent per day
("boe/d") during the second quarter of 2019. Egypt production was
14,663 barrels of oil per day ("bbls/d") and Canada production was
2,277 boe/d. Production for the quarter was 6% higher than the
previous quarter.
TransGlobe's Egyptian crude oil is sold at a quality discount to
Dated Brent. The Company received an average price of $60.58 per
barrel in Egypt during the quarter. In Canada, the Company received
an average of $55.35 per barrel of oil and $0.89 per thousand cubic
feet ("mcf") of natural gas during the quarter.
During the quarter, the Company had funds flow from operations
of $19.1 million and ended the quarter with positive working
capital of $54.1 million, including cash and cash equivalents of
$34.1 million. The Company had net earnings in the quarter of $10.0
million, including a $1.8 million unrealized derivative gain on
commodity contracts which represents a fair value adjustment on the
Company's hedging contracts as at June 30, 2019.
In Egypt, the Company sold 489.1 thousand barrels ("mbbls") of
entitlement crude oil during the quarter and had 735.0 mbbls of
entitlement crude oil inventory at June 30, 2019. The increase in
inventoried crude oil is attributed to higher oil production than
forecasted in the first half of 2019 due to successful drilling and
well workover results. All Canadian production was sold during the
quarter.
The Company continued its negotiations in Egypt with the
government to amend, extend and consolidate its Eastern Desert
operations.
In the Eastern Desert, the Company drilled two development wells
during the quarter at West Bakr. The H-30 development well was
drilled to a total depth of 1,655 meters (5,454 feet) and completed
as a Yusr oil well. The well was placed on production at an initial
field estimated rate of 70 bbls/d and is currently being optimized.
The K-63 development well was drilled to a total depth of 1,445
meters (4,741 feet) and completed as an Asl oil well. The K-63 well
was placed on production at an initial field estimated rate of 475
bbls/d.
In the Eastern Desert, the Company also drilled two exploration
wells during the quarter. At West Bakr, the HW-2X exploration well
was drilled to a total depth of 1,654 meters (5,425 feet) and was
cased as a Yusr oil discovery. The well was completed and placed on
production at a field estimated rate of 715 bbls/d. At North West
Gharib, The NWG 38 D-1 exploration well was drilled to a total
depth of 1,697 meters (5,570 feet) and cased as a potential Red Bed
oil well. The well is scheduled for completion subsequent to the
quarter.
In the Western Desert, the development lease and plan for the
South Ghazalat SGZ 6X oil discovery were approved by EGPC and the
Ministry of Petroleum. The Company is targeting first production
from this concession prior to year end. In addition, the Company
relinquished the South Alamein exploration concession during the
quarter. The carrying value of the South Alamein intangible asset
was fully impaired in Q1-2019.
In Canada, the Company finalized the 2019 drilling plan to
commence Q3-2019. The drilling plan consists of three development
wells drilled from existing pads, and one exploratory outpost well
to appraise the land acquired south of Harmattan in 2018.
The Company paid a dividend of $0.035 per share on April 18,
2019 to shareholders of record on March 29, 2019.
OPERATIONS UPDATE
ARAB REPUBLIC OF EGYPT
EASTERN DESERT
West Gharib, West Bakr, and North West Gharib (100% working
interest, operated)
Operations and Exploration
During the second quarter of 2019, the Company drilled two
development oil wells in the Eastern Desert at West Bakr. The H-30
development well was drilled to a total depth of 1,655 meters
(5,454 feet) and completed as a Yusr oil well. The well was placed
on production at a field estimated rate of 70 bbls/d and is
currently being optimized. The K-63 development well was drilled to
a total depth of 1,445 meters (4,741 feet). The well was completed
in the main Asl A formation and placed on production at a field
estimated rate of 475 bbls/d.
During the second quarter of 2019, the Company drilled two
exploration wells in the Eastern Desert. At West Bakr, the HW-2X
exploration well was drilled to a total depth of 1,654 meters
(5,425 feet). The well was an oil discovery that was completed and
placed on production at a field estimated rate of 715 bbls/d. At
North West Gharib, The NWG 38 D-1 exploration well was drilled to a
total depth of 1,697 meters (5,570 feet) and cased as a potential
Red Bed oil well. The well is scheduled for completion subsequent
to the quarter.
The K Station Phase 3 project to increase gross fluid handling
capacity from 30,000 barrels per day to 45,000 barrels per day is
in progress with completion expected during the second half of
2019.
Production
Production averaged 14,663 bbls/d during the quarter, an
increase of 8% (1,047 bbls/d) from the previous quarter, primarily
due to the three new wells drilled and placed on production in West
Bakr, in addition to successful well optimization projects in West
Bakr.
Production in July averaged 14,613 bbls/d.
Sales
The Company sold 489.1 mbbls of inventoried entitlement crude
oil to EGPC for $29.1 million during the quarter.
Quarterly Eastern Desert Production
(bbls/d) 2019 2018
Q-2 Q-1 Q-4 Q-3
------------------------------------------------ -------- ------- ------- -------
Gross production rate(1) 14,663 13,616 12,970 11,939
TransGlobe production (inventoried)
sold (967) (877) (787) 159
-------
Total sales 13,696 12,739 12,183 12,098
------------------------------------------------- -------- ------- ------- -------
Government share (royalties
and tax) 8,320 7,711 7,292 6,645
TransGlobe sales (after royalties
and tax)(2) 5,376 5,028 4,891 5,453
------------------------------------------------- -------- ------- ------- -------
Total sales 13,696 12,739 12,183 12,098
------------------------------------------------- -------- ------- ------- -------
(1) Quarterly production by concession (bbls/d):
West Gharib - 4,256 (Q2-2019), 4,238 (Q1-2019), 4,512 (Q4-2018),
and 4,793 (Q3-2018)
West Bakr - 9,389 (Q2-2019), 8,132 (Q1-2019), 7,323 (Q4-2018), and
6,126 (Q3-2018)
North West Gharib - 1,018 (Q2-2019), 1,246 (Q1-2019), 1,135 (Q4-2018),
and 1,020 (Q3-2018)
(2) Under the terms of the Production Sharing Concession Agreements,
royalties and taxes are paid out of the Government's share of production
sharing oil.
WESTERN DESERT
South Ghazalat and South Alamein (100% working interest,
operated)
Operations and Exploration
At South Ghazalat, the development lease was approved by EGPC
and the Ministry of Petroleum. The Company is targeting first
production prior to year end. Concurrent with the rental of an
early production facility and equipping SGZ-6X for production, the
Company has submitted permits to drill an appraisal well in the SGZ
6X pool during the second half of 2019 and initiated a seismic
re-processing project to improve imaging over the development lease
area in preparation for future drilling. In addition to the planned
appraisal well, the Company is committed to drill one additional
exploration well.
At South Alamein, the Company relinquished the concession during
the quarter. The carrying value of the intangible asset had been
fully impaired in Q1-2019.
CANADA
Operations and Exploration
During the quarter, the Company finalized the 2019 drilling
plan, consisting of three 100% development wells to be drilled from
existing pads, and one 100% exploration out-post well to appraise
the lands acquired south of Harmattan in 2018.
Production
In Canada, oil production averaged 788 bbls/d during the
quarter, a decrease of 106 bbls/d (12%) from the previous quarter,
primarily due to natural declines. Lower oil production was
partially offset by workovers completed during the quarter, and
total Q2-2019 production was 1% (31 boe/d) lower than the previous
quarter.
Production averaged 2,175 boe/d in July with 725 bbls/d of
oil.
Quarterly Canada Production
(boe/d) 2019 2018
Q-2 Q-1 Q-4 Q-3
------------------------------ ----- ----- ----- -----
Canada crude oil (bbls/d) 788 894 495 567
Canada NGLs (bbls/d) 533 470 829 876
Canada natural gas (mcf/d) 5,733 5,663 5,865 5,695
-----
Total production (boe/d) 2,277 2,308 2,302 2,392
------------------------------- ----- ----- ----- -----
Condensed Consolidated Interim Statements of Earnings (Loss) and
Comprehensive Income (Loss)
(Unaudited - Expressed in thousands of US Dollars, except per
share amounts)
Three Months Ended Six Months Ended
June 30 June 30
2019 2018 2019 2018
------------------------------------------------ --------- --------- -------- --------
REVENUE
Petroleum and natural gas sales,
net of royalties 43,071 68,454 80,423 93,169
Finance revenue 133 126 316 219
43,204 68,580 80,739 93,388
------------------------------------------------ --------- --------- -------- --------
EXPENSES
Production and operating 12,410 17,299 23,943 27,940
Selling costs 98 1,080 573 1,126
General and administrative 3,774 7,583 8,641 11,579
Foreign exchange loss (gain) 32 (18) (55) (21)
Finance costs 1,140 1,353 2,281 2,701
Depletion, depreciation and amortization 9,245 10,478 18,011 17,326
Asset retirement obligation accretion 49 66 105 133
(Gain) loss on financial instruments (1,066) 16,597 3,930 22,761
Impairment loss - - 8,391 -
Gain on disposition of assets - (4) - (202)
25,682 54,434 65,820 83,343
------------------------------------------------ --------- --------- -------- --------
Net earnings before income taxes 17,522 14,146 14,919 10,045
Income tax expense - current 7,476 6,785 13,679 12,804
------------------------------------------------- --------- --------- -------- --------
NET EARNINGS (LOSS) FOR THE PERIOD 10,046 7,361 1,240 (2,759)
------------------------------------------------- --------- --------- -------- --------
OTHER COMPREHENSIVE INCOME (LOSS)
Currency translation adjustments 1,119 (675) 1,660 (1,679)
------------------------------------------------- --------- --------- -------- --------
COMPREHENSIVE INCOME (LOSS) FOR
THE PERIOD 11,165 6,686 2,900 (4,438)
------------------------------------------------- --------- --------- -------- --------
Net earnings (loss) per share
Basic 0.14 0.10 0.02 (0.04)
Diluted 0.14 0.10 0.02 (0.04)
------------------------------------------------- --------- --------- -------- --------
Condensed Consolidated Interim Balance Sheets
(Unaudited - Expressed in thousands of US Dollars)
As at As at
December 31,
June 30, 2019 2018
----------------------------------------------------- ------------- ------------
ASSETS
Current
Cash and cash equivalents 34,125 51,705
Accounts receivable 26,515 12,014
Derivative commodity contracts - 1,198
Prepaids and other 2,848 5,385
Product inventory 13,022 8,692
------------------------------------------------------ ------------- ------------
76,510 78,994
Non-Current
Derivative commodity contracts - 171
Intangible exploration and evaluation assets 28,663 36,266
Property and equipment
Petroleum and natural gas assets 197,463 195,263
Other assets 4,659 3,079
Deferred taxes 8,704 4,523
------------------------------------------------------ ------------- ------------
315,999 318,296
----------------------------------------------------- ------------- ------------
LIABILITIES
Current
Accounts payable and accrued liabilities 19,531 28,007
Derivative commodity contracts 1,321 -
Current portion of lease obligations 1,580 -
22,432 28,007
Non-Current
Derivative commodity contracts 312 -
Long-term debt 48,109 52,355
Asset retirement obligation 13,491 12,113
Other long-term liabilities 364 1,007
Lease obligations 1,051 -
Deferred taxes 8,704 4,523
------------------------------------------------------ ------------- ------------
94,463 98,005
----------------------------------------------------- ------------- ------------
SHAREHOLDERS' EQUITY
Share capital 152,805 152,084
Accumulated other comprehensive income (loss) 721 (939)
Contributed surplus 24,358 24,195
Retained earnings 43,652 44,951
------------------------------------------------------ ------------- ------------
221,536 220,291
----------------------------------------------------- ------------- ------------
315,999 318,296
----------------------------------------------------- ------------- ------------
Condensed Consolidated Interim Statements of Changes in
Shareholders' Equity
(Unaudited - Expressed in thousands of US Dollars)
Three Months
Ended Six Months Ended
June 30 June 30
2019 2018 2019 2018
--------------------------------------------- ------- ------- -------- --------
Share Capital
Balance, beginning of period 152,805 152,084 152,084 152,084
Stock options exercised - - 547 -
Transfer from contributed surplus on
exercise of options - - 174 -
Balance, end of period 152,805 152,084 152,805 152,084
---------------------------------------------- ------- ------- -------- --------
Accumulated Other Comprehensive Income
(Loss)
Balance, beginning of period (398) 1,789 (939) 2,793
Currency translation adjustment 1,119 (675) 1,660 (1,679)
Balance, end of period 721 1,114 721 1,114
---------------------------------------------- ------- ------- -------- --------
Contributed Surplus
Balance, beginning of period 24,167 23,471 24,195 23,329
Share-based compensation expense 191 357 337 499
Transfer to share capital on exercise
of options - - (174) -
Balance, end of period 24,358 23,828 24,358 23,828
---------------------------------------------- ------- ------- -------- --------
Retained Earnings
Balance, beginning of period 33,606 21,681 44,951 31,801
Net earnings (loss) 10,046 7,361 1,240 (2,759)
Dividends - - (2,539) -
Balance, end of period 43,652 29,042 43,652 29,042
---------------------------------------------- ------- ------- -------- --------
Condensed Consolidated Interim Statements of Cash Flows
(Unaudited - Expressed in thousands of US Dollars)
Three Months
Ended Six Months Ended
June June
30 30
2019 2018 2019 2018
------------------------------------------------------ ------- -------- -------- ----------
OPERATING
Net earnings (loss) 10,046 7,361 1,240 (2,759)
Adjustments for:
Depletion, depreciation and amortization 9,245 10,478 18,011 17,326
Asset retirement obligation accretion 49 66 105 133
Deferred lease inducement - (22) - (45)
Impairment loss - - 8,391 -
Share-based compensation 428 3,418 1,343 3,685
Finance costs 1,140 1,353 2,281 2,701
Unrealized loss (gain) on financial
instruments (1,773) 10,816 3,001 16,862
Unrealized loss (gain) on foreign currency
translation (18) (7) (70) (22)
Gain on asset dispositions - (4) - (202)
Asset retirement obligations settled (1) 40 (31) (257)
Changes in non-cash working capital 3,009 (14,613) (25,217) (25,691)
------------------------------------------------------- ------- -------- -------- ----------
Net cash generated by operating activities 22,125 18,886 9,054 11,731
------------------------------------------------------- ------- -------- -------- ----------
INVESTING
Additions to intangible exploration and
evaluation assets (788) (673) (788) (1,581)
Additions to petroleum and natural gas
assets (6,877) (5,084) (15,424) (8,674)
Additions to other assets (432) (98) (432) (235)
Proceeds from asset dispositions - 4 - 202
Changes in non-cash working capital (834) 159 (301) (635)
------------------------------------------------------- ------- -------- ------- -------
Net cash used in investing activities (8,931) (5,692) (16,945) (10,923)
------------------------------------------------------- ------- -------- ------- -------
FINANCING
Issue of common shares for cash - - 547 -
Interest paid (986) (1,233) (1,981) (2,481)
Increase in long-term debt 135 108 256 249
Payments on lease obligations (491) - (890) -
Repayments of long-term debt - (5,000) (5,000) (7,797)
Dividends paid (2,539) - (2,539) -
Changes in non-cash working capital - - (200) -
------- -------
Net cash used in financing activities (3,881) (6,125) (9,807) (10,029)
------------------------------------------------------- ------ ------- ------- -------
Currency translation differences relating
to cash and cash equivalents 77 (65) 118 (140)
------------------------------------------------------- ------ ------- ------- -------
NET INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS 9,390 7,004 (17,580) (9,361)
CASH AND CASH EQUIVALENTS, BEGINNING OF
PERIOD 24,735 31,084 51,705 47,449
CASH AND CASH EQUIVALENTS, OF PERIOD 34,125 38,088 34,125 38,088
------------------------------------------------------- ------ ------- ------- -------
Advisory on Forward-Looking 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", "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,
statements relating to "reserves" which are, by their nature,
forward-looking statements, as they involve the implied assessment,
based on certain estimates and assumptions that the reserves or
resources, as applicable, described exist in the quantities
predicted or estimated and that the reserves can be profitably
produced in the future. The recovery and reserve estimates of
TransGlobe's reserves provided herein are estimates only and there
is no guarantee that the estimated reserves will be recovered.
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.
Forward-looking information and statements contained in this
document include the payment of dividends, including the timing and
amount thereof, and the Company's intention to declare and pay
dividends in the future under its current dividend policy. Without
limitation of the foregoing, future dividend payments, if any, and
the level thereof is uncertain, as the Company's dividend policy
and the funds available for the payment of dividends from time to
time will be dependent upon, among other things, free cash flow,
financial requirements for the Company's operations and the
execution of its strategy, ongoing production maintenance, growth
through acquisitions, fluctuations in working capital and the
timing and amount of capital expenditures and anticipated business
development capital, payment irregularity in Egypt, debt service
requirements and other factors beyond the Company's control.
Further, the ability of the Company to pay dividends will be
subject to applicable laws (including the satisfaction of the
liquidity and solvency tests contained in applicable corporate
legislation) and contractual restrictions contained in the
instruments governing its indebtedness.
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 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.gov/edgar.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. Darrin Drall, P.Eng., - Manager Engineering 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 and approved the technical
information contained in this announcement. Mr. Drall obtained a
Bachelor of Science Degree in Engineering from the University of
Manitoba. He is a Registered Professional Engineer in the province
of Alberta (Association of Professional Engineers and Geoscientists
of Alberta) and in the province of Saskatchewan (Association of
Professional Engineers and Geoscientists of Saskatchewan) and has
over 30 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. Readers are
cautioned not to place undue 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 day
MBopd thousand barrels of oil per day
Boepd barrels of oil equivalent per day
MBoepd thousand barrels of oil equivalent per day
MBbl thousand barrels
For further information, please
contact:
Investor Relations
Telephone: +1.403.264.9888
Email: investor.relations@trans-globe.com
Web site: http://www.trans-globe.com
TransGlobe Energy Via FTI Consulting
Randy Neely, President and Chief
Executive Officer
Eddie Ok, Vice President and Chief
Financial Officer
Canaccord Genuity (Nomad & Joint
Broker) +44 (0) 20 7523 8000
Henry Fitzgerald-O'Connor
James Asensio
GMP First Energy (Joint Broker) +44 (0) 20 7448 0200
Jonathan Wright
FTI Consulting (Financial PR) +44 (0) 20 3727 1000
Ben Brewerton transglobeenergy@fticonsulting.com
Genevieve Ryan
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
IR BCGDIXXBBGCB
(END) Dow Jones Newswires
August 12, 2019 02:00 ET (06:00 GMT)
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