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TransGlobe Energy Corporation (TGA)

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Last Post: 2/1/2016 11:14:03 AM - Followers: 23 - Board type: Free - Posts Today: 0


TransGlobe Energy Corporation 2015 Guidance and Corporate Update

CALGARY, ALBERTA--(Marketwired - Jan. 9, 2015) - TransGlobe Energy Corporation ("TransGlobe" or the "Company") (TSX:TGL) (NASDAQ:TGA) is pleased to provide 2015 capital guidance, Q1-2015 production and funds flow guidance and Q4-2014 operational and financial highlights. All dollar values are expressed in United States dollars unless otherwise stated.

2015 CAPITAL GUIDANCE (Exploration and Development)

TransGlobe's 2015 capital program is significantly lower than the previous year, reflecting the dramatic drop in oil prices over the past six months. The Company expects to spend $37.5 million on exploration and development projects in 2015. The Company will fund these expenditures through cash generated from operating activities and working capital. TransGlobe is well positioned to weather the storm in the oil markets with significant cash on hand (~$140 million) and no short term debt. The capital budget can be adjusted should oil prices improve during 2015. The focus for 2015 will be on building the exploration prospect inventory from the recently acquired seismic in the Eastern Desert region of Egypt, completing the planned 400 km2 3-D seismic program on the South Ghazalat concession in the Western Desert and preparing the three new North West Gharib oil discoveries for production. The initial drilling campaign on the North West Gharib block will be completed in February. The Company will release the drilling rigs operating in the Eastern Desert during Q1-2015 and re-tender to obtain better drilling contract terms. The break in drilling operations will allow the Company to complete interpretation of the 1,000 km2 of 3-D seismic and build a ranked prospect inventory for the Eastern Desert lands. Drilling could recommence in Q4-2015.

2015 Plan:

Reduce the 2015 capital program in response to dramatically lower oil prices.
Focus on production/operating expense optimization.
Complete the large 2014/2015 3-D seismic acquisition program, seismic processing, mapping and prospect maturation on the four exploration concessions (North West Gharib, South West Gharib, South East Gharib and South Ghazalat).
Maintain flexibility to re-instate an aggressive drilling/development project quickly if oil pricing improves in late 2015/2016 by:

Maintain a strong balance sheet to be opportunistic for potential acquisition/merger opportunities.
  • High grading exploration/development drilling prospects/projects.
    Progressing development approvals for the North West Gharib discoveries.
    Submitting new wells/projects for environment, military and government approvals.
    Re-tendering drilling services to reduce costs.

2015 Capital Budget

2015 Capital Exploration and Development Guidance of $37.5 million
  • Exploration $19 million (51%) and Development $18 million (49%)
    $7 million drilling (5 wells)
    $11 million development projects/facilities/equipment
    $17 million seismic acquisition, processing (includes $6 million prepaid in 2014)
    $2 million for signature bonus on ratification of North West Sitra exploration concession (100%) - ratified January 8, 2015.


Production for Q1-2015 is estimated to average 14,000 barrels of oil per day ("Bopd").

Egypt production of 13,800 Bopd (includes West Gharib, West Bakr and East Ghazalat)
Yemen production of 200 Bopd (includes Block 32 only)

Funds flow from operations ("funds flow") for Q1-2015 is forecast to be $1.0 million (~$0.01 per share) based on an average Brent oil price of $50/Bbl using production guidance of 14,000 Bopd.

An increase or decrease of $10/Bbl in the price of Brent would cause a corresponding increase or decrease in funds flow of $4.7 million (~$0.06 per share) for the quarter. At $60/Bbl Brent, Q1-2015 funds flow would be approximately $5.7 million (~$0.07 per share) assuming 14,000 Bopd production guidance.

Funds flow from operations 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.


The Company drilled 17 wells during the quarter resulting in 8 oils wells and 9 dry holes. The majority of the drilling (11 wells) took place at North West Gharib resulting in 3 oils well (one discovery at NWG 5 and two appraisal oil wells NWG 16 and NWG 5b).

Production averaged 15,183 Bopd during the quarter (West Gharib 8,434 Bopd, West Bakr 5,965 Bopd, East Ghazalat 574 Bopd and B32 Yemen 210 Bopd). The average production sales for 2014 was approximately 16,100 Bopd.

West Gharib production continued to be impacted by PCP pump problems during the quarter. However, the Company received a large order of replacement PCP pumps from a new supplier in late December. The new pumps will be installed and optimized during 2015.

The Company completed a large seismic acquisition program (1,000 km2 of 3-D and 325 km of 2-D) in the Eastern Desert (North West Gharib, South West Gharib and South East Gharib) on time and under budget in early December. The seismic data is currently being processed and mapping/prospect maturation is forecast to commence in Q2-2015. The Western Desert, South Ghazalat seismic acquisition program is expected to be completed by May 2015.


The Company collected $233.5 million from EGPC in 2014, which includes collections of $140.1 million during the fourth quarter. Collections in the fourth quarter included one and a half cargo liftings, a lump-sum cash payment of $50 million on December 31, along with other regular cash receipts and offsets. TransGlobe's receivable from EGPC has declined to approximately $120 million, representing approximately 6 months of outstanding invoices.

TransGlobe entered into a new joint marketing agreement with EGPC in December. The new agreement will allow TransGlobe to directly contract oil shipments with international buyers. The first oil shipments under this agreement are scheduled for late January and in April 2015. TransGlobe anticipates that this new marketing process will reduce or eliminate any future issues regarding receivables for oil sales.

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. TransGlobe's Convertible Debentures trade on the Toronto Stock Exchange under the symbol TGL.DB.


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TGA News: Report of Foreign Issuer (6-k) 04/17/2017 03:27:11 PM
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#157   It does look like it has found a Timothy Smith 02/01/16 11:14:03 AM
#156   Expecting a lot of volatility yet. But THREE-DAY-TRADER 02/01/16 08:11:46 AM
#155   Good read. What are you expecting in 2016. Timothy Smith 02/01/16 04:02:56 AM
#154   Excellent Letter by Montrusco Bolton Investments... Really emphasizes THREE-DAY-TRADER 12/19/15 10:36:57 PM
#153   Maybe time to re-enter this. THREE-DAY-TRADER 12/10/15 08:23:23 AM
#152   As of today, I'm out of TGA since THREE-DAY-TRADER 12/07/15 04:07:46 PM
#151   Sounds good. I think the potential for that Timothy Smith 12/03/15 10:14:30 AM
#150   I still got my position here personally, as THREE-DAY-TRADER 12/01/15 06:05:36 PM
#149   Just remember to always protect yourself with a THREE-DAY-TRADER 11/27/15 11:55:46 AM
#148   End of year selling ahead. May getting worse Timothy Smith 11/27/15 11:53:42 AM
#147   Right back to re-testing recent support lows... hmmmm. THREE-DAY-TRADER 11/27/15 11:49:55 AM
#146   Good strategy so far. Timothy Smith 11/26/15 12:07:48 AM
#145   So far so good on my TGA trade THREE-DAY-TRADER 11/25/15 04:08:55 PM
#144   Arab Nations announced today that they are willing otterman 11/23/15 01:19:52 PM
#143   It's still holding up its support area (since THREE-DAY-TRADER 11/20/15 12:58:42 PM
#142   Transglobe Energy (NASDAQ:TGA) declares $0.025/share quarterly dividend, -50% Timothy Smith 11/19/15 05:32:57 PM
#141   I agree with you if you have a Timothy Smith 11/19/15 05:24:31 PM
#140   $TGA... I started a position here in afternoon. THREE-DAY-TRADER 11/16/15 04:04:02 PM
#139   This one is getting cheap. THREE-DAY-TRADER 11/13/15 04:03:09 PM
#138   News out. Not quite sure how I feel otterman 10/07/15 10:08:26 PM
#137   Transglobe Energy (NASDAQ:TGA): Q2 EPS of -$0.17 misses Timothy Smith 08/13/15 11:13:08 AM
#136   TransGlobe Energy (TGA +13%) enjoys strong gains after Timothy Smith 06/24/15 12:52:14 AM
#135   Transglobe Energy (NASDAQ:TGA): Q1 FFO of -$0.04 vs. Timothy Smith 05/08/15 10:28:45 AM
#134   Its definitely bargain priced. otterman 02/25/15 11:02:30 AM
#133   TGA(2.86) got $10.80 per share cash offer last year ~ Blue ~ 02/25/15 09:25:51 AM
#132   TGA~ 2015 Guidance and Corporate Update ~ Blue ~ 02/25/15 12:22:55 AM
#131   TGA insiders purchased lots of shares during december ~ Blue ~ 02/24/15 10:52:42 PM
#130   TGA one of the best swing trade stocks ~ Blue ~ 02/24/15 10:52:18 PM
#129   TGA has 269 million dollars working capital, just ~ Blue ~ 02/24/15 10:52:00 PM
#128   TGA ~ presentation must read~ ~ Blue ~ 02/24/15 02:42:16 PM
#127   TGA loading under 2.90 profitable, pays dividend, ~ Blue ~ 02/24/15 02:25:27 PM
#126   TGA has 140 million cash and NO DEBT, ~ Blue ~ 01/14/15 04:01:13 PM
#125   TransGlobe Energy Corporation 2015 Guidance and Corporate Update otterman 01/14/15 03:44:48 PM
#124   we will see some bounce.. hard to keep ~ Blue ~ 01/14/15 03:37:16 PM
#123   I am so tempted, but I dont think otterman 01/14/15 03:35:57 PM
#122   TGA bounce time!! ~ Blue ~ 01/14/15 03:34:10 PM
#121   TGA looks great ~ Blue ~ 12/19/14 03:51:00 PM
#120   could be fairly valued here. I hate debt though ATCrunch 11/10/14 11:09:21 PM
#119   TGLEF added to Dundee's list of top picks. dat_51or 05/14/14 11:49:54 AM
#118   TGA and Caracal Energy (CRCL/CCAXF) to Merge. UIC Jeff 03/16/14 01:14:06 PM
#117   Nice buying op today with the drop. Nothing otterman 01/28/14 12:01:25 PM
#116   Hi UIC Jeff otterman 11/19/13 10:04:34 AM
#115   TGA Conference Call UIC Jeff 11/14/13 08:41:37 AM
#114   TGA Q3 Earnings out. $9.00 up .42 so UIC Jeff 11/13/13 01:10:24 PM
#113   TGA 9.07 -.02 DNO tested 5900 bpd well UIC Jeff 10/31/13 07:56:57 PM
#112   TGA September 2013 presentation ~ Blue ~ 10/01/13 10:51:54 AM
#111   TGA oil production 20,000 barrels a day ~ Blue ~ 10/01/13 10:26:08 AM
#110   TGA 73 million o/s ~ Blue ~ 10/01/13 10:25:47 AM
#109   TGA, one of the most profitable oil company ~ Blue ~ 10/01/13 10:25:31 AM
#108   TGA monster news out >>> ~ Blue ~ 10/01/13 10:10:11 AM