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fka - TGA has merged with and trading under Vaalco EGY
spec
Welcome to the winner’s circle
See y’all on EGY
Or is there a plan for ongoing brainstorming here?
spec
Neely does not have the votes , delaying the vote
TransGlobe Energy Announces Postponement of the Special Meeting to October 7, 2022
T.TGL, EGY | 5 hours ago
The TransGlobe Board believes it is in the best interests of the Company to postpone the Special Meeting to allow shareholders more time to evaluate the Transaction and cast their votes
A material number of votes on the Arrangement Resolution have been received after the proxy voting deadline
Current voting results show only approximately 50% of the issued and outstanding TransGlobe Shares had been voted as of the proxy voting deadline
Several large shareholders who were previously opposed or undecided have very recently changed their views and are now supportive of the Transaction
The new deadline to vote by proxy is 9:00 a.m. MT on October 5, 2022.
The TransGlobe Board continues to unanimously recommend that shareholders vote FOR the Transaction. This recommendation and the merits of the Transaction have been further validated by VAALCO's recent operational updates on September 26, 2022 and September 27, 2022, highlighting the strong momentum in VAALCO's business.
ISS has reiterated its support for the Transaction and Glass Lewis has recommended that shareholders vote FOR the Transaction. With both of these recommendations being issued close to the previously scheduled Special Meeting on September 29, 2022, postponing the Special Meeting will provide shareholders additional time to consider the independent recommendations of ISS and Glass Lewis.
TransGlobe Shareholders who have questions about the Arrangement or need assistance with voting their TransGlobe Shares should contact TransGlobe's proxy solicitation agent, D.F. King & Co., Inc., by phone toll-free at (888) 540-8736 (banks and brokers only at +1 (212) 269-5550) or by email at tga@dfking.com.
vote no and HELL NO
jmho
Today is last day to vote unless at the meeting
VOTE NO
Hey today is a good day to buy TGA
jmho
Another bull shit PR by liar Neely
ISS Concludes that TransGlobe Shareholders Vote FOR the Proposed Business Combination with VAALCO Energy, Inc.
T.TGL, EGY | 1 hour ago
Calgary, Alberta--(Newsfile Corp. - September 21, 2022) - TransGlobe Energy Corporation (AIM: TGL) (TSX: TGL) (NASDAQ: TGA) ("TransGlobe" or the "Company") is pleased to note the updated report issued by a leading proxy advisor, Institutional Shareholder Services ("ISS"), recommends its institutional clients vote FOR the proposed business combination ("Proposed Transaction") of TransGlobe and VAALCO Energy, Inc. (NYSE: EGY) (LSE: EGY) ("VAALCO") to create a world-class African-focused E&P company supporting sustainable shareholder returns and growth.
Following a re-evaluation due to concerns recently raised by a shareholder of TransGlobe, ISS has again concluded that the proposed transaction is of "sound strategic rationale". In a further statement, ISS highlighted that the merger will provide current shareholders of both organisations the opportunity to participate in the "potential upside represented by a combined company through a more diverse set of operating assets and attractive opportunities for capital allocation". These highlights, along with ISS's recommendations, are in line with the TransGlobe Board of Directors' unanimous approval of the proposed business combination.
Randy Neely, President & CEO of TransGlobe commented:
"We are very pleased that ISS continues to support the transaction and recommends all TransGlobe shareholders vote FOR the combination of TransGlobe and VAALCO. The Board and management of the Company continue to unanimously support the merger which offers shareholders a compelling opportunity and will deliver material benefits for TransGlobe shareholders."
JMHO
can you call this the pocket ?
Stock options O/S at 6/30: 1.267 Million shares avg exercise price of $2.10
Mgmt exercised in 1st half of 2022 1.816 Million shares at avg price $2.25
Restricted Stock issued with $0.0 exercise price of 3.518 Million shares
If you assume a $3.15/share price at time of merger, it works out to benefit Mgmt by ~$14,165,000. If you exclude the shares already exercised, it is $12,349,000.
All this assumes that the normal deferrals of stock maturities are waived at the time of the merger and shares values in U$D.
jmho
Is Horizon short EGY/TGA?
They couldn't have timed that first release better
20% support in a straw poll is underwhelming, they must have had a typo
flip a coin,
heads - I win
tails - you lose
spec
Bet old CEO Neely does not like this !
Horizon Partners
Wed, September 14, 2022 at 5:00 PM
In this article:
TGA
+0.32%
So far, Horizon has received support from owners of approximately 20% of the issued and outstanding shares of TransGlobe
Horizon thanks shareholders for overwhelming support received to-date and urges more TransGlobe shareholders to take immediate action to VOTE AGAINST the Proposed Transaction AS SOON AS POSSIBLE
Even if you have voted in favour of the Proposed Transaction it is not too late to change your vote
PANAMA CITY, Panama, Sept. 14, 2022 (GLOBE NEWSWIRE) -- Horizon Partners ("Horizon"), a privately-owned firm that manages the Horizon Absolute Return Fund Limited (“HARF”), which is a shareholder of TransGlobe Energy Corporation ("TransGlobe" or the "Company") (TSX: TGL), is thanking shareholders of TransGlobe for the overwhelming support received so far in its efforts to VOTE AGAINST the proposed plan of arrangement pursuant to which Vaalco Energy, Inc. ("Vaalco") would acquire all of the issued and outstanding common shares of TransGlobe in a stock-for-stock business combination transaction (the "Proposed Transaction"). The Proposed Transaction will be considered at a special meeting of the Company currently scheduled to take place on September 29, 2022 (the "Meeting").
Juan Argento, Managing Partner of Horizon, said, "Horizon’s belief that the Proposed Transaction severely undervalues the Company, and is not fair to or in the best interests of the Company or its shareholders is widely shared among its fellow TransGlobe shareholders. In the short period since we expressed our concerns with the Proposed Transaction we have received support from approximately 20% of the shares of TransGlobe who have or intend to VOTE AGAINST the Proposed Transaction. However, in order to ensure that this value destroying transaction does not proceed we urge more shareholders to VOTE AGAINST the Proposed Transaction AS SOON AS POSSIBLE. We appreciate the momentum so far but we need more of you to take immediate action. Even if you have voted in favour of the Proposed Transaction it is not too late to change your vote."
As stated previously, Horizon believes that TransGlobe shareholders should VOTE AGAINST the Proposed Transaction so that the Company can instead pursue certain alternatives that we currently anticipate would result in greater long-term value to all shareholders of CAD 9.11 to CAD 9.73 per share as compared with the CAD 4.10 per share shareholders will be forced to accept if the Proposed Transaction is approved at the Meeting. These alternatives include (i) securing the effective date adjustment payment from the Egyptian government, valued in the Company’s balance sheet at USD 67.5 million, (ii) pursuing a sale of the Company’s Canadian business, which Horizon estimates has a value of USD 85 million to USD 120 million and rationalizing Canadian CAPEX to maximize free cash flow; (iii) payment of a distribution to shareholders in an amount equal to at least 75% of the sum of (a) the net proceeds from the above alternatives (i) and (ii), and (b) the Company’s 2022 free cash flow which the Company estimates at USD 70 million, (iv) continuing to operate and grow the Company’s Egyptian business, which is expected to generate USD 64.4 million of free cash flow in calendar year 2023, as per Capital IQ, and (v) considering other potential transactions identified in the future.
Consistent with such course of action, Horizon currently estimates that the Company is in a position to generate approximately CAD 5.09 to CAD 5.71 per share in cash within the next 12 months, while maintaining its full stake in its core Egypt assets, which Horizon estimates are worth at least 1.0x its 12/31/2021 reported after-tax NPV10 of P1 reserves of USD 226.9 million or an additional CAD 4.02 per share.
We believe that if shareholders of TransGlobe VOTE AGAINST the Proposed Transaction, the Company will be in a position to pursue this action plan which could result in the monetization of value for shareholders of CAD 9.11 to CAD 9.73 per share as compared to CAD 4.10 per share they will be forced to accept if the Proposed Transaction is approved at the Meeting.
We thank shareholders for the support we have received to date, and we urge all TransGlobe shareholders who have not done so already to VOTE AGAINST the Proposed Transaction AS SOON AS POSSIBLE.
Information in Support of Public Broadcast Solicitation:
The following information is provided in accordance with Canadian corporate and securities laws applicable to public broadcast solicitations. Horizon is relying on the exemption under section 9.2(4) of National Instrument 51-102 – Continuous Disclosure Obligations ("NI 51-102") to make this public broadcast solicitation. This solicitation is being made by Horizon and not by or on behalf of the management of TransGlobe. The registered office address of TransGlobe is 900, 444 - 5th Street SW., Calgary, Alberta T2P 2T8.
Horizon has filed this press release containing the information required by section 9.2(4)(c) of NI 51-102 on TransGlobe's company profile on SEDAR at www.sedar.com.
Horizon may solicit proxies in reliance upon the public broadcast exemption to the solicitation requirements under applicable Canadian corporate and securities laws, conveyed by way of public broadcast, including through press releases, speeches or publications, and by any other manner permitted under applicable Canadian laws. All costs incurred for the solicitation will be borne by Horizon.
A TransGlobe shareholder who has given a proxy has the power to revoke it. If a TransGlobe shareholder who has given a proxy attends the Meeting at which the proxy is to be voted, such TransGlobe shareholder, may revoke the proxy and vote at the Meeting. In addition to revocation in any other manner permitted by law, a proxy may be revoked by an instrument in writing signed by the TransGlobe shareholder or his or her attorney authorized in writing, or, if the TransGlobe shareholder is a corporation, under its corporate seal and signed by a duly authorized officer or attorney for the corporation, and deposited at the registered office of TransGlobe at any time up to and including the last day (other than Saturdays, Sundays and statutory holidays in the Province of Alberta) preceding the day of the Meeting at which the proxy is to be used, or any adjournments or postponements thereof. If a TransGlobe shareholder uses a 12-digit control number to login to the Meeting online and accepts the terms and conditions, by doing so such TransGlobe shareholder will be revoking any and all previously submitted proxies; however, in such a case, the TransGlobe shareholder will be provided the opportunity to vote by ballot on the matters put forth at the Meeting. If a TransGlobe shareholder DOES NOT wish to revoke all previously submitted proxies, the TransGlobe shareholder should not accept the terms and conditions, in which case the TransGlobe shareholder can only attend the Meeting as a guest.
Horizon Absolute Return Fund Limited, an affiliate of Horizon, is a shareholder of TransGlobe. With the exception of the foregoing, to the knowledge of Horizon, neither Horizon nor any associates or affiliates of Horizon, has any material interest, direct or indirect, by way of beneficial ownership of securities or otherwise, in the Proposed Transaction or any other matter to be acted upon at the Meeting.
FOR FURTHER INFORMATION PLEASE CONTACT:
Juan Argento
Horizon Partners
Calle 53E, Urbanización Marbella, MMG Tower, Piso 16, Panamá, República de Panamá
Tel: +1 347 759 6074
E-mail: jpa@horizon-partners.com
Juan Pablo Schulman
Horizon Partners
Calle 53E, Urbanización Marbella, MMG Tower, Piso 16, Panamá, República de Panamá
Tel: +54 911 6252 4736
E-mail: jps@horizon-partners.com
Advisors
jmho
I have to wonder if Ross supported this scam ? JMHO
old saying where their smoke their fire
jmho
TGA is not the problem TGA has growing production !
EGY has dropping production .
My guess we have a skunk in the wood pile !
jmho
What has TGA done now to cause
EGY to drop so much?...
so we watch...LJ
$3.53, looks like an Egyptian Princess kept
buying in after hours...
Whoa, was only kidding folks...
Will be plenty of this ole heavy
crude seller left on Friday...
so we watch...LJ
Hopefully, an Egyptian Princess won't swoop
in with a bigger offer real late
and pluck the cash flow away
from EGY for future...
So we watch...LJ
TGA price still lagging EGY offer of
.67 per share of EGY...
Does EGY get to raise that percentage
to adjust for lower TGA price if it
stays below offer till closing day?...
So we watch...LJ
Did you find that (imaginary) "big debt" number in the EGY earnings filing, the presentation slides, or the EGY conference call?
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=169636115
TGA, congrats on good quarter building cash
to over $61 million...
so we watch...LJ
The presentation is nothing but bull shit
Talking about the big dividend , it was all bull shit talking
jmho
Transglobe email not working !
Don't believe me try it yourself !!!
Not just for me either
jmho
Well, you accused TGA management of fraud in your previous post so it’s clear that you’re upset with them
Have you considered emailing TGA IR, to see if they will help explain the difference between production and revenue?
Out of curiosity, what number are you assigning to EGY’s current debt?
spec
BTW - the ‘70 Duster 340 was a badass ride, I like it when you say “DUSTER!!”
You are WRONG
This is a merger from hell , EGY has big problems big debt and falling production , just drilled a BIG duster and another DUSTER and BK around the bend
EGY not releasing earnings untill after market close says it all BIG TROUBLE
JMHO
skunk in the wood pile what happened to all that production
From 1st qt report
Re::The Company has a cargo of Gharib blend crude scheduled to ship at the end of April through early May, with proceeds expected in June, 2022.
Now this is 2nd Qt report [ this was lifting that was reported as scheduled ]
Re:Second quarter sales averaged 12,609 boe/d including 104.0 Mbbls sold to EGPC for proceeds of $11.8 million and one cargo lifting of 451.0 Mbbls of entitlement crude oil sold for proceeds of $46.3 million;
Now the company expects us to believe our share of Egypt production for two months ]May and June period ] was only 104,000 barrel of crude
Now something stinks in Mr CEO Neely land , our share of this 104,000 would average about 1,733 barrel of production per day !
Now do the math people 1,733 X 365 days = 632,666 for a full year and we sell about 4 cargos a year
Now people my guess we just found out why we changed auditors again . JMHO
Mr Neely my guess you could have some explaning to do
Question is is my math correct ?
Note from the 1st qt report [ The Company has a cargo of Gharib blend crude scheduled !Has means the production is on inventory !!! Correct
JMHO
Hey CEO Neely
you are beyond worthless , how much is EGY going to pay you to get this worthless deal done . Just wait till the class action lawyers get done with you , maybe you will be singing a different toon before the judge
JMHO
I think you've been led astray by reading things on other boards that are either wrong or you are misinterpreting
When you post things like "TGA has all (or most of) the cash" and "EGY has huge debt", you aren't doing yourself any favors
But keep it up
If TGA shareholders vote down the merger, I'll be happy with the EGY pure-play
There's a little DD for you
Try it, read slowly ....
....think ...
... think some more ...
... then try to post something truthful
spec
Well, if EGY can minimize those payouts
to TGA folks it will help...
And do it cashless if possible...
Give them shares for parting gifts
and then the share buybacks offset
those then...
Will be nice to have EGY dividend
doubled in next payment if they can
get merger closed quick enough...
And the TGA folks can then share
in the bigger dividend...
It is looking sweet...
So we watch...LJ
wow what happened to that big EGY production ?
TGA production about 13,000 boe/d
Now EGY says it 2022 production about 5400 boe/d by my math ! JMHO
“There is significant inherent value within the Combined Company’s portfolio, with a large reserve base, substantial upside potential across the enlarged resource base, and strong production, with mid-point guidance of 18.4 thousand barrels of oil equivalent per day (“mboe/d”) for 2022 and preliminary outlook of 19.5 mboe/d in 2023.
People it look to me like EGY is in deep shit . JMHO
In my opinion this is set up to fail as a company
jmho
EGPC is buying up cheap TGA shares so
they can get their front symbol
merged with EGY...
Will give EGY control over the
cash flow to put it to work properly...
Gotta be patient...
So we watch...LJ
Re:::Good prospects aren’t heavy sour crude in an unstable country that takes a majority of the production
what a bull shit statement !!
Egypt pays all the income taxes out of their share of crude production
PS better you do some DD on TGA and Egypt
jmho
spec, my estimates on 2nd quarter aren't
coming near your EPS estimate...
although they should be very good...
wag only, estimate of revenue in the
$90 to $95 million range...
1st quarter net profit was about 18%
of total revenue...
20% return on 2nd quarter would be
an estimate of about .30 per share,
more or less...
the 579,000 barrels of oil hedged at
a rough average of about $78/bbl.
are considered in the estimate,
along with a Brent rough price
average of $105/bbl. proceeds...
all estimates and only that...
Any insight on how you came up
with such a high number?...
Operating wise, not counting one
time changes for TGA, their results
were more like about .20/share EPS
in 1st quarter, 2022...
EGY had about .20 EPS in 1st quarter,
2022 as well...
TGA showed much higher EPS because
of one time changes Only...
I still like both companies after looking
more at TGA...
But if TGA votes against the deal,
then I would wish then Well...
So we watch...LJ
Seems to be some panic setting in for TGA
Understandable
Egypt is playing the global market cartel by illegally transshipping Russian crude
That’ll come back and bite their back side
Crude markets have been weaponized and some folks don’t even see what side they’re on
The camel doo hasn’t even hit the fan …. Yet
Brandon is best when he’s napping and most of the world is hoping Putin is headed for the long nap soon
If they aren’t napping evil things continue to escalate
Going to get hotter in the weeks ahead
China will chill and just buy the Russian oil at a discount and Brandon will be obedient, he has no choice in the matter
Good prospects aren’t heavy sour crude in an unstable country that takes a majority of the production
Both boards know TGA is in a tight spot
Some of the TGA shareholders see it too
spec
EGY cash cow milk flow will become
clearer next week...
And EGY can help former TGA
cash flow be spent conservatively...
You can be part of a winning team...
So we watch...LJ
I voting NO and HELL no TGA has the cash and EGY has pie in the sky with big duster
jmho
TGA entry jinxed all my oil company holdings...
Oil price plunging with bumper
to bumper traffic on highways...
The sooner TGA backs out of deal,
the better for my port holdings...
Wish we never heard of this company...
So we watch...LJ
EGY and TGA are tied togeather untill this bad deal is voted down
jmho
Why did TGA price plunge?...
Was the cash in an insured
account or not?...
So we watch...LJ
TGA should keep their roughly 50% Egyptian costs
of royalties and taxes on production
for themselves...
https://www.otcmarkets.com/filing/html?id=15806620&guid=R1k-kFSOaLJmB3h
Have upped EGY ownership position
by 4 fold since deal announcement...
And will vote NO to the proposed
deal as it is strucutured...
EGY offer is too high for my tastes...
So we watch...LJ
I'm glad you have some boys that agree with you
You must be a EGY holder all this bull shit about the EGY holders getting the shaft is bull shit ! JMHO
\
TGA should have at least $100,000,000.00 in the bank by closing time !
That is 100 million dollars , the boys over on IV finely woke up and agree with me
And that does not include any Canada income
jmho
If you were the one who was afraid and selling at $3.30
You'll feel silly at >$5 (equivalent) after this merger closes
But thank you
spec
I think it is most likely that the best informed people to evaluate the entire set of skills and assets, as well as the valuations proposed ...
... probably know a lot more about the benefits vs cost of this merger than any poster on ihub
I wonder why there is an agreement with intent to close this deal
hmmmmm...
maybe because it's a win-win when you look at all the correct data and expert, informed people (who, as a whole, represent all sides)
instead of imaginary numbers pulled from a hat of "whatever I think it's worth"
spec
What they are not telling everyone
Re::The other important asset comparison is the cash. That seems easier to deduce since TGA has $35 million
now add the 46 million from the last lifting
Now they should have already had another lifting and just guessing another 46 million Dollars
Now add the 8 million dollars per quarter that Egypt owe us , 7 quarters left = 56 more dollars .
This total is about $183 million dollars
Now add the big money maker Canada where they say the money is ?????? will let you decide the profit
So we are selling the company for about $307 million dollars and the buyer gets about $183 million dollars cash that TGA has in the bank
Note i post no income from Canada witch makes more $$$$ per boe produced
jmh
Could there be several class action suits ?? JMHO
TRANSGLOBE ENERGY CORPORATION ALERT: Bragar Eagel & Squire, P.C. Investigates Merger of TGA and Encourages Investors to Contact the Firm
July 18, 2022 20:12 ET | Source: Bragar Eagel & Squire
...
NEW YORK, July 18, 2022 (GLOBE NEWSWIRE) -- Bragar Eagel & Squire, P.C., a nationally recognized stockholder rights law firm, has launched an investigation into whether the officers or directors of TransGlobe Energy Corporation (NASDAQ: TGA) (“TransGlobe”) breached their fiduciary duties or violated the federal securities laws in connection with the company’s acquisition by VAALCO Energy, Inc. (NYSE: EGY) (“VAALCO”).
Click here to learn more and participate in the action.
On July 14, 2022, TransGlobe announced that it had entered into an agreement to be acquired by VAALCO in an all-stock deal valued at $307 million. Pursuant to the merger agreement, VAALCO will acquire each TransGlobe share for 0.6727 of a VAALCO share of common stock. The deal is scheduled to close in the second half of 2022.
Bragar Eagel & Squire is concerned that TransGlobe’s board of directors oversaw an unfair process and ultimately agreed to an inadequate merger agreement. Accordingly, the firm is investigating all relevant aspects of the deal and is committed to securing the best result possible for TransGlobe’s stockholders.
If you own shares of TransGlobe and are concerned about the proposed merger, or you are interested in learning more about the investigation or your legal rights and remedies, please contact Melissa Fortunato by email at mergers@bespc.com or telephone at (646) 860-9157, or by filling out this contact form. There is no cost or obligation to you.
About Bragar Eagel & Squire, P.C.:
Bragar Eagel & Squire, P.C. is a nationally recognized law firm with offices in New York, California, and South Carolina. The firm represents individual and institutional investors in commercial, securities, derivative, and other complex litigation in state and federal courts across the country. For more information about the firm, please visit www.bespc.com. Attorney advertising. Prior results do not guarantee similar outcomes.
Contact Information:
Bragar Eagel & Squire, P.C.
Melissa Fortunato, Esq.
mergers@bespc.com
www.bespc.com
Looks like you won't need a reason
Maybe this deal is dead real quick jmho
News Press Releases
TRANSGLOBE ENERGY INVESTOR ALERT by the Former Attorney General of Louisiana: Kahn Swick & Foti, LLC Investigates Adequacy of Price and Process in Proposed Sale of TransGlobe Energy Corporation - TGA
T.TGL | 9 hours ago
Former Attorney General of Louisiana Charles C. Foti, Jr., Esq. and the law firm of Kahn Swick & Foti, LLC (“KSF”) are investigating the proposed sale of TransGlobe Energy Corporation (NasdaqCM: TGA) to VAALCO Energy, Inc. (NYSE: EGY). Under the terms of the proposed transaction, shareholders of TransGlobe will receive 0.6727 of a VAALCO share for each share of TransGlobe that they own. KSF is seeking to determine whether this consideration and the process that led to it are adequate, or whether the consideration undervalues the Company.
If you believe that this transaction undervalues the Company and/or if you would like to discuss your legal rights regarding the proposed sale, you may, without obligation or cost to you, e-mail or call KSF Managing Partner Lewis S. Kahn (lewis.kahn@ksfcounsel.com) toll free at any time at 855-768-1857, or visit https://www.ksfcounsel.com/cases/nyse-tga/ to learn more.
That no good lying SOB just gave TGA away , dirty SOB
Where is our big dividends you son of a bitch
jmho
WOW i found on another board
another reason to FIRE CEO Neely
why wasn't this contained in the press release?
I finally found what ******* was talking about. I just read the press release. I should have read the actual report which says:
Upon execution of the Merged Concession, there was an effective date adjustment owed to the Company for the difference between historic and Merged Concession agreement commercial terms applied against Eastern Desert production from the effective date of February 1, 2020. The quantum of the effective date adjustment is currently being finalized with EGPC and could result in a range of outcomes based on the final price per barrel negotiated. TransGlobe has recognized a receivable of $67.5 million at March 31, 2022, which represents the amount expected to be received from EGPC based on historical realized prices. The effective date adjustment was recognized against the Eastern Desert PNG assets noted above, with the incremental value in excess of PNG additions ($8.0 million) being recognized as a gain on concession merger in the Statement of Earnings (Loss).
Why in the hell did they not put that in the press release?! If the effective date adjustment is worth almost a dollar a share, ($67.5 million) why not crow about that to the roof tops? That will allow spending $32 million a year in improving production, buying production, merging or any other think to improve and increase our output without having to touch the 75% of cash flow going back to the shareholders. Or it could pay off two 47c special dividends over the next two years on top of the 97c worth of regular dividends if Brent stays over $100. That is huge and yet gets left out of the press release. Who reads the actual report when the press release puts in such detail.
Good find
So presumably $8 million will be added to the earnings every quarter for the next two years.
I found on another board
jmho
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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:
2015 Capital Budget
Q1-2015 ESTIMATED PRODUCTION AND FUNDS FLOW FROM OPERATIONS
Production for Q1-2015 is estimated to average 14,000 barrels of oil per day ("Bopd").
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.
OPERATIONS UPDATE (Q4-2014)
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.
COLLECTIONS AND CRUDE MARKETING
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.
http://www.trans-globe.com/news/release?id=1910338
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