TIDMTGL
RNS Number : 4441P
TransGlobe Energy Corporation
10 October 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
AN OPERATIONS UPDATE
AIM & TSX: "TGL" & NASDAQ: "TGA"
Calgary, Alberta, October 10, 2019 - TransGlobe Energy
Corporation ("TransGlobe" or the "Company") announces an operations
update. All dollar values are expressed in US dollars unless
otherwise stated.
UPDATES
-- Production averaged 15.9 MBoepd in Q3 2019 (Egypt 13.7 MBopd,
Canada 2.1 MBoepd) versus 16.9 MBoepd in Q2 2019;
-- NWG 38D-1 (drilled in Q2) confirmed as an oil discovery
following completion and perforation, and will be put on production
in Q4 following stimulation;
-- Completed SGZ-6X as an Upper Bahariya oil producer in Western
Desert, with construction of an early production facility on
schedule for Q4 2019 first oil targeting an initial production rate
of 1,000 Bopd;
-- Drilled four (100% working interest) horizontal Cardium oil
wells in the Harmattan area of Canada during the quarter, including
three development wells and one outpost (appraisal) well;
-- Ongoing negotiations with Egyptian government to amend,
extend and consolidate Eastern Desert concession agreements;
-- Continue to review opportunities for inorganic growth in line with our M&A strategy;
-- Sold 380 MBbls of entitlement oil to EGPC in the quarter;
-- Next Egypt cargo lifting scheduled for the end of October, 2019; and
-- Semi-annual dividend of $2.5 million ($0.035/share) paid September 13, 2019;
PRODUCTION
Company production decreased slightly during the quarter
primarily due to natural declines, completion of the 2019 Eastern
Desert drilling program in Q2, and pressure management of the
shared M-Pool, consistent with our previously advised increased
production guidance for 2019 of 15 -16 MBoepd.
Production Summary:
(MBoepd) July 2019 August 2019 September Average
2019
Egypt 14.6 13.7 12.9 13.7
---------- ------------ ---------- --------
Canada 2.3 2.2 2.0 2.1
---------- ------------ ---------- --------
Total 16.9 15.9 14.9 15.9
---------- ------------ ---------- --------
MARKETING
In Egypt, the Company sold 380 MBbl of entitlement oil to EGPC
during Q3. In addition, the Company has confirmed its next cargo
lifting of entitlement oil is scheduled for the end of October,
2019.
OPERATIONS UPDATE
ARAB REPUBLIC OF EGYPT
Eastern Desert
The NWG 38D-1 exploration well (drilled in Q2) was completed,
perforated, and is currently producing oil to surface at a low
rate, confirming the well as an oil discovery in the Red Bed
formation. NWG 38D-1 will require stimulation (similar to NWG
38A-1) in Q4 prior to putting into full production. Data recovered
and analysed from the well shows it to be in pressure communication
with the adjacent NWG 38A pool. While encouraging, any potential
for additional drilling and reserves additions will be assessed
following stimulation and production of the well.
Western Desert
Following the grant in June, 2019 of a 20 year development lease
at South Ghazalat, the SGZ-6X discovery well (3,840 Bopd* of light
oil) was completed during Q3 as an oil producer in the upper
Bahariya formation. Construction of an early production facility
("EPF") in South Ghazalat is on schedule, from which oil will be
transported to the nearby South Dabaa receiving facility and
onwards via existing pipeline infrastructure to market. First oil
is expected late in Q4, 2019.
Concurrently, the Company has submitted permits and is sourcing
a drilling rig to drill an appraisal well in the SGZ-6X pool during
Q4, 2019 which, if successful, will be completed and connected to
the new South Ghazalat EPF. In addition, a project to merge and
reprocess two existing 3D seismic surveys over the development
lease area will also be completed in Q4 2019.
* SGZ-6X tested a combined 3,840 barrels per day of light oil
from the upper and lower Bahariya. The lower Bahariya formation
flowed naturally at an average rate of 2,437 barrels per day of
light (38 API) oil, 21 barrels per day of water and 1.4 million
cubic feet of natural gas per day on a 40/64 inch choke from a 42
foot perforated interval. A total of 918 barrels of oil and 7
barrels of water were produced during the 10 hour test. The upper
Bahariya formation flowed at an average rate of 1,403 barrels per
day of light (35 API) oil, 210 barrels per day of water and 1.0
million cubic feet of natural gas per day on a 64/64 inch choke
from a 23 foot perforated interval. A total of 456 barrels of oil
and 65 barrels of water were produced during the 8 hour test.
Although encouraging, test rates are not necessarily indicative of
long-term performance or ultimate recovery.
CANADA
During the quarter, the Company drilled and cased three Cardium
development oil wells (one mile horizontal wells) in the Harmattan
area and one Cardium outpost (appraisal) well (two mile horizontal
well) in the South Harmattan area which completed the 2019 drilling
program. The four horizontal wells are in the process of being
completed and stimulated (40 stages per mile) and will be placed on
production in Q4 2019.
STRATEGY UPDATE
The Company's management and board held its annual strategy
session in early October, and reconfirmed its commitment to growth
through material cash generative mergers and acquisitions to build
significantly greater scale, profitability, and long-term
sustainability within the next three to five years. To achieve
these growth ambitions, the Company intends to leverage its
operating and financial capabilities as well as its unique position
as a recognized partner of choice in the region, and is actively
assessing several opportunities.
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.
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", "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; expectations
regarding its M&A efforts; 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; 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. 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. 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 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, 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
UPDEBLBFKBFEFBL
(END) Dow Jones Newswires
October 10, 2019 02:02 ET (06:02 GMT)
Grafico Azioni Transglobe Energy (LSE:TGL)
Storico
Da Mar 2024 a Apr 2024
Grafico Azioni Transglobe Energy (LSE:TGL)
Storico
Da Apr 2023 a Apr 2024