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Not sure about that, but 5 is coming
wake me when SP is $10.00 USA ..
Waiting on the 75 % free cash flow money , could be about 70 cents per share
jmho
TGA is on the move .
question is how high will it go !
My guess we get news on the dividend in next report , should get at least 10 cents jmho and hope for more
Deal signed in Egypt , NOW watch this stock people
PRODUCTION SHARING CONTRACT FINALIZATION
TransGlobe has signed the Agreement which was ratified into law in December 2021 by the Egyptian parliament, at an official signing ceremony with the Ministry of Petroleum held on January 19, 2022. The Agreement brings together the three producing concessions which in December 2021 had average production of 9,394 Bopd (8,590 Bopd Heavy Crude; 803 Bopd Light and Medium Crude).
The Company has paid the initial modernization payment of $15 million and signature bonus of $1 million as a precondition to the official signing. The Company will be required to pay an additional $10 million on February 1st for each of the next five years beginning on February 1, 2022. In addition, the Company has committed to spending a minimum of $50 million over each five-year period for the 15 years of the primary term (total $150 million). Amounts spent beginning on the Agreement effective date of February 1, 2020 will be included against the capital commitment.
RANDY NEELY, PRESIDENT AND CEO'S STATEMENT
jmho
waiting on the Energy ministure to sign the final ratification paper , Egypt president signed last week
JMHO
Deal not signed yet but you can bet will be very soon , the president is happy
jmho
YEP
when the ratification is completed people could get a big supprise
jmho
Wonder if TGA is included
Egypt signs 99 petroleum agreements with investments of $17B within 7 years
BY
Egypt Today staff
Tue, 16 Nov 2021 - 03:51 GMT
A worker rides a bicycle at the Bharat Petroleum Corporation Ltd. refinery in Mumbai, India April 24, 2008. REUTERS/Punit Paranjpe/File Photo
A worker rides a bicycle at the Bharat Petroleum Corporation Ltd. refinery in Mumbai, India April 24, 2008. REUTERS/Punit Paranjpe/File Photo
CAIRO – 16 November 2021: The Information and Decision Support Center (IDSC) of the Egyptian Cabinet showed the development in the petroleum sector during the past seven years, as it witnessed the signing of 99 petroleum agreements with investments amounting to $17 billion, in addition to the implementation of 45 projects to develop oil fields with investments of LE 565 billion.
This came in a videograph published by the Information Center, which reviews the size of the petroleum sector's achievement during the last seven years.
The videograph pointed out that investments in two new projects in the petrochemical sector in Damietta and Alexandria amounted to LE 72 billion, in addition to implementing 7 projects to develop refineries with investments of LE 86 billion.
It indicated that the volume of domestic consumption of natural gas reached 47 million tons, with an increase of 35 percent compared to 2014/2015, and the number of housing units to which natural gas was delivered during the last seven years rose by 50 percent to 12.3 million units
ratification terms when completed , do your own math
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
AGREEMENT
TO MERGE, EXTEND AND MODERNIZE ITS EASTERN DESERT CONCESSIONS
AIM & TSX: “TGL” & NASDAQ: “TGA”
Calgary, Alberta, December 03, 2020 – TransGlobe Energy Corporation (“TransGlobe” or the “Company”)
announces it has reached an agreement with the Egyptian General Petroleum Corporation (“EGPC”) to
merge the Company’s three existing Eastern Desert concessions (the West Gharib, West Bakr and North
West Gharib concessions) into a new modernized concession agreement (the “Merged Concession” or
“Agreement”). The Agreement is subject to the usual Egyptian Parliamentary ratification and the
satisfaction of other closing conditions. All dollar values are expressed in US dollars unless otherwise stated.
KEY ELEMENTS OF THE MERGED CONCESSION
The West Gharib, West Bakr, and North West Gharib concessions, including all existing development
leases within these concessions, will be merged into the Merged Concession with a new 15-year
development term and a 5-year extension option.
Modernized financial concession terms promote increased investment and implementation of new
technology in the mature fields through:
o Improved cost recovery terms to support continued investment in higher-cost mature fields.
o Production sharing terms scaled to oil prices to support TransGlobe’s returns during lower oil prices
and government returns during higher oil prices.
o Improved netbacks and increased cash flows are expected to fund new investments in incremental
recovery projects.
Near-term operational netbacks (revenue less royalties, taxes and operating expenses) are
estimated to improve by the following ranges relative to Brent pricing assuming current
production levels, operating costs and historical differentials to Brent:
Brent Oil Price ($/bbl) Netback Increase ($/bbl)
$40 ~$5 to $7
$50 ~$7 to $9
$60 ~$9 to $11
Modernized terms are to be applied from the February 2020 effective date of the Merged
Concession
Incremental, internally estimated, Company Gross risked best estimate Economic Contingent Resource
volume of 59.1 million barrels oil (Company Contingent Resources are separate from Company
reserves; please see Advisory Regarding Oil and Gas Information later in this release).
Subject to final ratification, the Company will pay EGPC a signature bonus and an equalization (or
modernization) payment in installments. The Company anticipates that the equalization payment and
signature bonus will be funded from existing resources and expected improved cash flows.
o The equalization payment compensates EGPC for the improved fiscal terms on the underlying base
forecasted production.
o An initial equalization payment of $15 million and signature bonus of $1 million are due on
ratification, with five further annual equalization payments of $10 million each being made over
five years (beginning February 1, 2022 until February 1, 2026).
Minimum financial work commitments of $50 million per each five-year period of the primary
development term, commencing on the February 1, 2020 effective date. All investments which exceed
the five-year minimum $50 million threshold will carry forward to offset against subsequent five-year
commitments.
o For context, the Company’s average annual capital expenditures in Egypt over the last five full
calendar years has been greater than $30 million per year, and the Company expects to fund these
future investments from existing resources and future cash flows.
Merge the existing Joint Venture Operating Companies’ (Dara Petroleum Company, West Bakr
Petroleum Company and North West Gharib Petroleum Company) assets, facilities, and infrastructure
into a new Joint Venture Operating Company in order to substantially increase operational efficiencies.
we must have been i about the saem time I sold in the late 80 If I remmeber it was about $9
been in TGA from 30 cents days over 20 years ago
i stuck my toe in so I'll remeber this one when my hughe end of year rent comes in.
Oil is going higher and this one has possitive earnings. I was in it many years ago
TGA had another great day
Look like just about everyone thinks the ratification is due to be done any day !
I bought two times again today and i already have way to many shares
News out
TransGlobe Energy Corporation Operations Update
September 29 2021 - 02:00AM
GlobeNewswire Inc.
Alert
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TransGlobe Energy Corporation (“TransGlobe” or the “Company”) provides the following operations update. All dollar values are expressed in US dollars unless otherwise stated.
COMPANY PRODUCTION
Production Summary (WI before royalties and taxes):
(Boepd) Q2 2021 Jul 2021 Aug 2021
Sep 2021
(to Sep 18th) YTD Average
Egypt 10,727 11,311 11,541 11,214 10,758
Canada 2,350 2,230 2,010 1,986 2,144
Total 13,077 13,541 13,551 13,200 12,902
Compared to Q2, 2021, during the current quarter to date, natural production declines in Egypt were more than offset by well optimization activities and new drilling. Production in Canada declined naturally while awaiting the production start from recent new drilling, which is anticipated in early Q4-2021.
Please see the table entitled “Production Disclosure” at the end of this news release for the detailed constituent product types and their respective quantities measured at the first point of sale for all production amounts disclosed in this news release on a Bopd and Boepd basis.
Arab Republic of Egypt
Eastern Desert (100% WI)
The Company continues to utilize the EDC-64 rig drilling development oil wells.
In West Bakr, during the quarter, the Company successfully drilled two development oil wells and is moving on to a third well, K-66, at quarter end.
The K-62 development well was drilled to a total depth of 1,473 meters, and encountered oil-bearing sands in the Asl-A formation. The reservoir section has been fully logged and evaluated, with an internally estimated 24.2 meters of net oil pay in the Asl-A reservoirs. The Asl-A2 was completed for oil production.
The second well in West Bakr, K-65, was drilled to a total depth of 1,730 meters, and encountered oil-bearing sands in the Asl-A, Asl-B, Asl-C, Asl-D and Asl-E formations. The reservoir section has been fully logged and evaluated, with an internally estimated 10.6 meters of net oil pay in the Asl-A sand, 12.5 meters of net oil pay across the Asl-B sand, 6.1 meters of net oil pay across the Asl-C sand, 5.5 meters of net oil pay across the Asl-D sand and 11.4 meters of net oil pay in the Asl-E sand (total net oil pay 46.1 meters). The Asl-E is expected to be completed for production in this well. The Asl-A, Asl-B, Asl-C, and Asl-D are expected to be recovered through future recompletions of this well.
The Company drilled one well in North West Gharib, NWG-3B-2, to a total depth of 1,627 meters to assess Red Bed potential in the northern area of our development leases. The well encountered Red Bed sands which were wet. The results are under evaluation to identify any up-dip sidetrack potential.
Western Desert (100% WI)
The lower Bahariya reservoir at SGZ-6X continues to produce on Gas Oil Ratio (“GOR”) control at a field estimated 680 Bopd of light oil with a 46% watercut.
With improved oil prices and spare capacity available in the South Ghazalat early production facility, the Company has accelerated drilling of an oil exploration well on the SGZ-7B prospect to the east of SGZ-6X. The well will target light oil in the Bahariya reservoir and fulfills our commitments to EGPC as part of the grant to the Company of a 10-block development lease in 2019. The Company anticipates spudding this well in early Q4, 2021.
Canada
The Company successfully drilled, completed, and equipped one 2-mile and two 1-mile horizontal wells in the northern area of our exciting Cardium reservoir extension at South Harmattan, first identified by the 2-20 well in 2019.
A 6 km gas line to connect to Company infrastructure is nearing completion, along with the final surface tie-ins. The Company expects the wells to be brought into production sequentially during October 2021. Additional information on individual well performance will be provided when sufficient stabilized production history has been obtained late 2021 / early 2022.
Corporate
The Mercuria Prepayment Agreement was fully repaid during the quarter with the final $10 million being paid in August 2021. The Agreement has been amended to $10 million (undrawn) and extended to December 31, 2021 to coincide with the expiry of our remaining Brent crude oil hedges of 150,000 bbls.
The Company expects the ratification of the consolidated and amended Eastern Desert Production Sharing Contracts to occur in the next quarter.
CEO’s Statement
“We are pleased with the progress of the Egypt drilling program, reversing 2020 declines and now increasing production. The Company eagerly awaits the results from the new South Harmattan wells in Canada, and is also excited by the prospect that with the Egyptian parliament beginning its fall session in early October, ratification of our transformational PSC consolidation will occur shortly.”
About TransGlobe
TransGlobe Energy Corporation is a cashflow 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.
For further information, please contact:
TransGlobe Energy Corporation
Randy Neely, President and CEO
Eddie Ok, CFO +1 403 264 9888
investor.relations@trans-globe.com
http://www.trans-globe.com
or via Tailwind Associates
Tailwind Associates (Investor Relations)
Darren Engels +1 403 618 8035
darren@tailwindassociates.ca
http://www.tailwindassociates.ca
Canaccord Genuity (Nomad & Joint-Broker)
Henry Fitzgerald-O’Connor
James Asensio
+44(0) 20 7523 8000
Shore Capital (Joint Broker)
Jerry Keen
Toby Gibbs +44(0) 20 7408 4090
Adviso
NG is getting expensive world wide
TGA/TGL has NG production in Canada
TGA is having a good day in a big down market !
Maybe someone knows something about the ratification of the lease in Egypt
News out
TransGlobe Energy Corporation Announces Second Quarter 2021 Financial and Operating Results for the Three and Six Months Ended June 30, 2021
T.TGL | 4 hours ago
AIM & TSX: “TGL” & NASDAQ: “TGA”
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.
CALGARY, Alberta, Aug. 06, 2021 (GLOBE NEWSWIRE) -- 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, 2021. 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 months ended June 30, 2021 and 2020, are available on TransGlobe's website at www.trans-globe.com.
FINANCIAL HIGHLIGHTS:
Second quarter sales averaged 16,542 boe/d including 366.3 Mbbls sold to EGPC for net proceeds of $22.2 million and one cargo lifting of 498.6 Mbbls of entitlement crude oil for net proceeds of $29.1 million (collected in May 2021). The overlift portion of the cargo (~129.5 Mbbls) was settled against outstanding receivables from EGPC during the quarter;
Average realized price for Q2-2021 sales of $56.48/boe; Q2-2021 average realized price on Egyptian sales of $60.27/bbl and Canadian sales of $33.61/boe;
Funds flow from operations of $17.1 million ($0.24 per share) in the quarter;
Second quarter net earnings of $7.7 million ($0.11 per share), inclusive of a $1.2 million unrealized loss on derivative commodity contracts;
Ended the second quarter with positive working capital of $17.1 million, including cash of $43.6 million;
Subsequent to the quarter, the Company sold a ~500 Mbbl cargo of Egypt entitlement crude oil with proceeds expected in August 2021;
OPERATIONAL HIGHLIGHTS:
Second quarter production averaged 13,077 boe/d (Egypt 10,727 bbls/d, Canada 2,350 boe/d), an increase of 856 boe/d (7%) from the previous quarter. Increase primarily due to improved well optimization activities in Egypt, the full oil production impact of the SGZ-6X lower Bahariya recompletion, and return to production in Canada of the 2-20 well following the 13-16 completion and stimulation plus the latter’s production contribution;
Production in July averaged ~13,414 boe/d (Egypt ~11,308 bbls/d, Canada ~2,106 boe/d), an increase of 3% from Q2-2021;
Ended the quarter with 140.3 Mbbls of entitlement crude oil inventory, a decrease of 315.4 Mbbls from Q1-2021. This decrease is due to an increase in sales volumes as a result of the Q2 cargo lifting, partially offset by an increase in production;
Drilled two development oil wells at West Bakr in the Eastern Desert, Egypt, both successfully encountering oil-bearing sands and placed on production;
On June 30, 2021 the Company spud the first of three 100% working interest horizontal oil development wells (one 2-mile, two 1-mile) located approximately four miles to the northwest of the 2-20 location in TransGlobe’s Cardium extension into the South Harmattan area in Canada, with drilling and casing completed in July; and
CORPORATE HIGHLIGHTS:
The Company announced a merged concession agreement with a 15-year primary term and improved Company economics on December 3, 2020. The agreement is currently awaiting ratification by the Egyptian Parliament but will have a February 2020 effective date upon ratification. As such, the results achieved in Q2-2021 and year to-date are exclusive of any effective date adjustments that will be made upon ratification.
FINANCIAL AND OPERATING RESULTS
(US$000s, except per share, price, volume amounts and % change)
Three Months Ended June 30 Six Months Ended June 30
Financial 2021 2020 % Change 2021 2020 % Change
Petroleum and natural gas sales 85,018 24,549 246 127,295 104,736 22
Petroleum and natural gas sales, net of royalties 50,595 11,392 344 68,647 64,626 6
Realized derivative (loss) gain on commodity contracts (3,646 ) 1,977 (284 ) (5,191 ) 6,145 (184 )
Unrealized derivative (loss) gain on commodity contracts (1,248 ) (3,348 ) (63 ) (4,218 ) 1,028 (510 )
Production and operating expense 19,722 10,406 90 29,171 33,663 (13 )
Selling costs 1,671 423 295 1,705 1,049 63
General and administrative expense 3,670 3,951 (7 ) 8,707 5,855 49
Depletion, depreciation and amortization expense 6,959 5,657 23 11,774 17,909 (34 )
Income tax expense 5,605 2,445 129 10,265 7,030 46
Cash flow generated by operating activities 23,832 24,551 (3 ) 19,892 20,878 (5 )
Funds flow from operations1 17,100 (2,764 ) (719 ) 17,181 22,918 (25 )
Basic per share 0.24 (0.03 ) 0.24 0.32
Diluted per share 0.24 (0.03 ) 0.24 0.32
Net earnings (loss) 7,722 (13,367 ) (158 ) (3,302 ) (68,585 ) (95 )
Basic per share 0.11 (0.19 ) (0.05 ) (0.95 )
Diluted per share 0.11 (0.19 ) (0.05 ) (0.95 )
Capital expenditures 3,597 1,229 193 6,504 6,806 (4 )
Working capital 17,136 35,112 (51 ) 17,136 35,112 (51 )
Long-term debt, including current portion 16,951 27,071 (37 ) 16,951 27,071 (37 )
Common shares outstanding
Basic (weighted average) 72,542 72,542 - 72,542 72,542 -
Diluted (weighted average) 72,922 72,542 1 72,954 72,542 1
Total assets 208,479 221,347 (6 ) 208,479 221,347 (6 )
Operating
Average production volumes (boe/d) 13,077 14,300 (9 ) 12,652 14,648 (14 )
Average sales volumes (boe/d) 16,542 12,470 33 13,135 17,702 (26 )
Inventory (Mbbls) 140.3 408.7 (66 ) 140.3 408.7 (66 )
Average realized sales price ($/boe) 56.48 21.63 161 53.54 32.51 65
Production and operating expenses ($/boe) 13.10 9.17 43 12.27 10.45 17
1 Funds flow from operations (before finance costs) is a measure that represents cash generated from operating activities before changes in non-cash working capital and may not be comparable to measures used by other companies. See "Non-GAAP Financial Measures".
2021 2020
Average reference prices and exchange rates Q-2 Q-1 Q-4 Q-3 Q-2
Crude oil
Dated Brent average oil price ($/bbl) 68.83 60.82 44.29 42.96 29.34
Edmonton Sweet index ($/bbl) 63.07 52.54 38.50 37.35 21.71
Natural gas
AECO ($/MMBtu) 2.48 2.30 2.18 1.69 1.41
US/Canadian Dollar average exchange rate 1.23 1.27 1.30 1.33 1.39
CORPORATE SUMMARY
TransGlobe Energy Corporation ("TransGlobe" or the "Company") produced an average of 13,077 barrels of oil equivalent per day ("boe/d") during the second quarter of 2021. Egypt production was 10,727 barrels of oil per day ("bbls/d") and Canada production was 2,350 boe/d. Production for the quarter was slightly above full year 2021 guidance of 12,000 to 13,000 boe/d and 7% higher than the previous quarter. The increase is primarily due to improved well optimization activities in Egypt, the impact of the SGZ-6X lower Bahariya recompletion, and a return to production in Canada of the 2-20 well, taken offline to allow for the 13-16 completion plus the latter’s production contribution.
TransGlobe's Egyptian crude oil is sold at a quality discount to Dated Brent. The Company received an average price of $60.27 per barrel in Egypt during the quarter. In Canada, the Company received an average of $63.05 per barrel of oil, $27.03 per barrel of NGLs and $2.58 per thousand cubic feet ("Mcf") of natural gas during the quarter.
During Q2-2021, the Company had funds flow from operations of $17.1 million and ended the quarter with positive working capital of $17.1 million, including cash of $43.6 million. The Company had net earnings in the quarter of $7.7 million, inclusive of a $1.2 million unrealized derivative loss on commodity contracts which represents a fair value adjustment on the Company's hedging contracts at June 30, 2021.
In Egypt, the Company sold 366.3 thousand barrels (“Mbbls”) of entitlement crude oil to the Egyptian General Petroleum Company (“EGPC”) and sold one cargo lifting of 498.6 Mbbls of entitlement crude oil. The overlift portion of the cargo (~129.5 Mbbls) was settled against outstanding receivables from EGPC during the quarter. At June 30, 2021 entitlement crude oil inventory was 140.3 Mbbls. The decrease in inventoried crude oil is attributed to a significant increase in sales volumes as a result of the Q2-2021 cargo lifting, partially offset by an increase in production. Subsequent to the quarter, TransGlobe sold a ~500 Mbbl cargo of Egypt entitlement crude oil. The cargo volumes were in excess of crude oil inventories at the time of lifting. The Company expects to reach a settlement on the overlift in Q3-2021. All Canadian production was sold during the quarter.
As announced on December 3, 2020, the Company has reached an agreement with EGPC to merge its three existing Eastern Desert concessions with a 15-year primary term and improved Company economics. As previously announced, the Company held discussions with the Ministry of Petroleum during Q2-2021, and was informed that due to the recent Egyptian election combined with internal process changes for ratification, the Ministry is now expecting ratification to occur in the second half of 2021. The February 1, 2020 effective date for the improved concession terms and assurances from the Ministry is supportive of increased investment in advance of ratification.
In Egypt, following the mobilization of the rig from the Western Desert, the Company drilled two development oil wells in the Eastern Desert at West Bakr. The HW-8 development oil well was drilled to a total depth of 1,640.5 meters, successfully encountering oil-bearing sands in the Yusr-C and Bakr formations, and was brought into production at a field estimated 622 bbls/d late in the quarter. The K-64 development oil well was drilled to a total depth of 1,538.0 meters, successfully encountering oil-bearing sands in the Asl-A, Asl-B and Asl-D formations, and was brought into production at a field estimated 609 bbls/d subsequent to the quarter.
In anticipation of increased gross fluid offtake to be generated by new projects in the new merged concession area, the Company has accelerated plans to upgrade its water management systems in H2-2021. The Company remains forward looking and prepared to use its operational control to take advantage of any sustained upward movement in oil price.
In Canada, the previously drilled and equipped 2-mile horizontal well at South Harmattan has achieved a calculated IP30 estimate of 286 boe/d (247 bbls/d light oil, 131 Mcf/d gas, 17 bbls/d NGL) and a calculated IP60 estimated at 242 boe/d (199 bbls/d light oil, 144 Mcf/d gas, 19 bbls/d NGL), both on a productive day basis. Lease construction was completed in support of the drilling of three 100% working interest horizontal oil development wells (one 2-mile and two 1-mile) located approximately four miles to the northwest of the 2-20 location in TransGlobe’s Cardium extension into the South Harmattan area. The first well of this back-to-back drilling program spud on June 30, 2021 and was drilled and cased in July. Subsequent to the quarter, the second and third wells in the Canadian drilling program were drilled and cased. All three wells were drilled on time and on budget.
Dependent upon anticipated rig efficiencies, the Company expects to drill two additional wells (an exploration well, SGZ-7B, and a well in K-field) as a part of the 2021 drilling program. These new drills, combined with accelerated spend on its water management systems, noted above, and cost increases incurred in the Canadian drilling and development program, are expected to result in an approximate $5.8 million increase to the previously announced capital budget of $27.2 million (before capitalized G&A) in 2021. Due to timing of the drilling of the K-field well and the SGZ-7B well, the Company is not adjusting its expected production guidance for 2021 of 12.0 to 13.0 Mboe/d with a midpoint of 12.5 Mboe/d.
LIQUIDITY AND CAPITAL RESOURCES
Liquidity describes a company’s ability to access cash. Companies operating in the upstream oil and gas industry require sufficient cash in order to fund capital programs that maintain and increase production and reserves, to acquire strategic oil and gas assets, to repay current liabilities and debt and ultimately to provide a return to shareholders. TransGlobe’s capital programs are funded by existing working capital and cash provided from operating activities. The Company's cash flow from operations varies significantly from quarter to quarter, depending on the timing of oil sales from cargoes lifted in Egypt, and these fluctuations in cash flow impact the Company's liquidity. TransGlobe's management will continue to steward capital and focus on cost reductions in order to maintain balance sheet strength.
Funding for the Company’s capital expenditures is provided by cash flows from operations and cash on hand. The Company expects to fund its 2021 exploration and development program through the use of working capital and cash flow from operations. Fluctuations in commodity prices, product demand, foreign exchange rates, interest rates and various other risks may impact capital resources and capital expenditures.
Working capital is the amount by which current assets exceed current liabilities. As at June 30, 2021, the Company had a working capital surplus of $17.1 million (December 31, 2020 - $15.3 million). The increase in working capital is primarily due to an increase in cash resulting from collections on accounts receivable in the period and an increase in accounts receivable due to increased sales in Q2-2021, partially offset by a corresponding decrease in crude oil inventory, an increase in accounts payable and an increase in the derivative commodity contracts liability from increased commodity pricing.
All of the Company's cash and cash equivalents are on deposit with high credit-quality financial institutions.
Over the past 10 years, the Company has experienced delays in the collection of accounts receivable from EGPC. The length of delay peaked in 2013, returned to historical delays of up to nine months in 2017, and has since fluctuated within an acceptable range. As at June 30, 2021, amounts owing from EGPC were $9.3 million. The Company considers there to be minimal credit risk associated with amounts receivable from EGPC.
In Egypt, the Company sold 366.3 Mbbls of entitlement crude oil to EGPC in Q2-2021 for net proceeds of $22.2 million and sold one cargo lifting of 498.6 Mbbls of entitlement crude oil for net proceeds of $29.1 million. The overlift portion of the cargo (~129.5 Mbbls) was settled against outstanding receivables from EGPC during the quarter. During the second quarter of 2021, the Company collected a total of $17.7 million of accounts receivable from EGPC, an additional $2.4 million has been collected subsequent to the quarter. The Company incurs a 30-day collection cycle on sales to third-party international buyers. Depending on the Company's assessment of the credit of crude oil purchasers, they may be required to post irrevocable letters of credit to support the sales prior to the cargo lifting. As at June 30, 2021, crude oil held as inventory was 140.3 Mbbls.
As at June 30, 2021, the Company had $93.2 million of revolving credit facilities with $17.0 million drawn and $76.2 million available. The Company has a prepayment agreement with Mercuria that allows for a revolving balance of up to $75.0 million, of which $10.0 million was drawn and outstanding as at June 30, 2021. During the six months ended June 30, 2021, the Company repaid $5.0 million on this prepayment facility. The Company also has a revolving Canadian reserves-based lending facility with ATB that was renewed and increased as at June 30, 2021 from C$15.0 million ($11.0 million) to C$22.5 million ($18.2 million), of which C$8.6 million ($7.0 million) was drawn and outstanding. During the six months ended June 30, 2021, the Company had drawings of C$0.3 million ($0.2 million) on this facility.
The Company actively monitors its liquidity to ensure that cash flows, credit facilities and working capital are adequate to support these financial liabilities, as well as the Company’s capital programs.
OPERATIONS UPDATE
ARAB REPUBLIC OF EGYPT
EASTERN DESERT
West Gharib, West Bakr, and North West Gharib (100% working interest, operated)
Operations and Exploration
Following mobilization of the rig from the Western Desert, the Company drilled a development oil well in the Eastern Desert at West Bakr. The HW-8 development well was drilled to a total depth of 1,640.5 meters, successfully encountering oil-bearing sands in the Yusr-C and Bakr formations.
The reservoir section was fully logged and evaluated, with an internally estimated 5.9 meters of net oil pay in the Yusr-C sand and 28.1 meters of net oil pay across four sands in the Bakr reservoir. The Bakr reservoir was brought into production late in the quarter at a field estimated 622 bbls/d.
HW-8 was the first well in TransGlobe’s 12 well development program in 2021 designed to grow oil production and increase reserves in the Eastern Desert.
The second well in this program, K-64, a development well in the Eastern Desert at West Bakr, was drilled to a total depth of 1,538 meters, successfully encountering oil-bearing sands in the Asl-A, Asl-B and Asl-D formations.
The reservoir section was fully logged and evaluated, with an internally estimated 20.9 meters of net oil pay in the Asl-A sand, 17.8 meters of net oil pay across the Asl-B sand and 9.7 meters of net oil pay in the Asl-D sand. Subsequent to the quarter, the Asl-B was brought into production at a field estimated 609 bbls/d in mid-July. The Asl-A is expected to be recovered through a future recompletion of this well and the Asl-D through other well drainage points.
In anticipation of increased gross fluid offtake to be generated by new projects in the new merged concession area, the Company has accelerated plans to upgrade its water management systems in H2-2021. Dependent upon anticipated rig efficiencies, the Company also expects to drill an additional well in K-field as a part of the 2021 drilling program.
The substantial capital investment in 2021 is supported by the Company’s previously disclosed merger of its three Eastern Desert concessions into a single agreement, currently awaiting ratification.
Production
Production averaged 9,917 bbls/d during the quarter, a decrease of 1% (133 bbls/d) from the previous quarter. The decrease was primarily due to natural declines prior to the bringing into production of the first 2021 Eastern Desert drill wells.
Production in July 2021 averaged ~10,611 bbls/d.
Sales
The Company sold 338.5 Mbbls of entitlement crude oil to EGPC and sold one cargo lifting of 498.6 Mbbls of entitlement crude oil to third-party buyers during the quarter. The overlift portion of the cargo (~129.5 Mbbls) was settled against outstanding receivables from EGPC during the quarter.
Quarterly Eastern Desert Production (bbls/d) 2021 2020
Q-2 Q-1 Q-4 Q-3
Gross production rate1 9,917 10,050 10,129 9,635
TransGlobe production sold (inventoried) 3,465 (2,531 ) 3,328 (1,432 )
Total sales 13,382 7,519 13,457 8,203
Government share (royalties and tax) 5,229 5,680 5,715 5,452
TransGlobe sales (after royalties and tax)2 8,153 1,839 7,742 2,751
Total sales 13,382 7,519 13,457 8,203
1 Quarterly production by concession (bbls/d):
West Gharib – 3,024 (Q2-2021), 3,076 (Q1-2021), 3,113 (Q4-2020), and 2,808 (Q3-2020)
West Bakr – 6,327 (Q2-2021), 6,415 (Q1-2021), 6,656 (Q4-2020), and 6,498 (Q3-2020)
North West Gharib – 566 (Q2-2021), 559 (Q1-2021), 360 (Q4-2020), and 329 (Q3-2020)
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 (100% working interest, operated)
Operations and Exploration
Following evaluation of the reservoir pressure and Gas Oil Ratio (“GOR”) data from the initial production phase of the lower Bahariya reservoir at SGZ-6X in the South Ghazalat field, the well has been put on GOR control management to preserve reservoir pressure and maximize recovery. The well is currently producing at a field estimated 680 - 730 bbls/d of light oil with a ~24% watercut. Further reservoir pressure data is being collected to evaluate the impact of aquifer pressure support to the reservoir as that is activated.
With stronger oil prices and spare capacity available in the South Ghazalat production facility and dependent upon anticipated rig efficiencies, the Company expects to accelerate the drilling of an exploration well on the SGZ-7B prospect to the east of SGZ-6X. The earliest SGZ-7B could be drilled is Q4-2021.
Production
Production averaged 810 bbls/d during the quarter, an increase of 331% (622 bbls/d) from the previous quarter. The increase was due to the oil production impact of the SGZ-6X lower Bahariya recompletion over a whole quarter.
Production in July 2021 averaged ~697 bbls/d.
Sales
The Company sold 27.8 Mbbls of inventoried entitlement crude oil to EGPC during the quarter.
Quarterly Western Desert Production (bbls/d) 2021 2020
Q-2 Q-1 Q-4 Q-3
Gross production rate 810 188 139 177
Total sales 810 188 139 177
Government share (royalties and tax) 504 117 86 110
TransGlobe sales (after royalties and tax)1 306 71 53 67
Total sales 810 188 139 177
1 Under the terms of the Production Sharing Concession Agreements, royalties and taxes are paid out of the government's share of production sharing oil.
CANADA
Operations and Exploration
The 2-mile horizontal South Harmattan 13-16 oil well, stimulated and equipped in Q1-2021, has achieved a calculated IP30 estimated at 286 boe/d (247 bbls/d light oil, 131 Mcf/d gas 17 bbls/d NGL) and a calculated IP60 estimated at 242 boe/d (199 bbls/d light oil, 144 Mcf/d gas 19 bbls/d NGL), both on a productive day basis.
Lease construction was completed in support of the drilling of three 100% horizontal oil development wells (one 2-mile, two 1-mile) in the north of TransGlobe’s Cardium extension into the South Harmattan area. The first well of this back-to-back drilling program spud on June 30, 2021 and was drilled and cased in July. Subsequent to the quarter, the second and third wells in the Canadian drilling program were drilled and cased. All three wells were drilled on time and on budget. The Company expects all three wells to be completed, stimulated and brought into production by early Q4-2021.
Production
In Canada, production averaged 2,350 boe/d during the quarter, an increase of 367 boe/d (19%) from the previous quarter and within full year 2021 guidance of 2,300 to 2,500 boe/d. The increase in production from the previous quarter is primarily due to the return to production of the 2-20 well following the 13-16 completion and stimulation, plus the latter’s production contribution.
Production in July 2021 averaged ~2,106 boe/d with ~605 bbls/d of oil. The decrease from Q2-2021 is due to natural declines and the initial high decline rate on the recently completed 13-16 South Harmattan Cardium Horizontal well.
Quarterly Canada Production 2021 2020
Q-2 Q-1 Q-4 Q-3
Canada crude oil (bbls/d) 687 564 618 661
Canada NGLs (bbls/d) 857 710 755 798
Canada natural gas (Mcf/d) 4,834 4,259 4,454 4,633
Total production (boe/d) 2,350 1,983 2,116 2,232
Condensed Consolidated Interim Statements of Earnings (Loss) and Comprehensive Income (Loss)
(Unaudited - Expressed in thousands of U.S. Dollars, except per share amounts)
Three Months Ended June 30 Six Months Ended June 30
2021 2020 2021 2020
REVENUE
Petroleum and natural gas sales, net of royalties 50,595 11,392 68,647 64,626
Finance revenue 3 34 6 92
Other revenue 33 222 33 222
50,631 11,648 68,686 64,940
EXPENSES
Production and operating 19,722 10,406 29,171 33,663
Selling costs 1,671 423 1,705 1,049
General and administrative 3,670 3,951 8,707 5,855
Foreign exchange loss 10 113 43 165
Finance costs 333 589 803 1,404
Depletion, depreciation and amortization 6,959 5,657 11,774 17,909
Asset retirement obligation accretion 45 60 111 128
Loss (gain) on financial instruments 4,894 1,371 9,409 (7,173 )
Impairment loss - - - 73,495
37,304 22,570 61,723 126,495
Earnings (loss) before income taxes 13,327 (10,922 ) 6,963 (61,555 )
Income tax expense - current 5,605 2,445 10,265 7,030
NET EARNINGS (LOSS) 7,722 (13,367 ) (3,302 ) (68,585 )
OTHER COMPREHENSIVE INCOME (LOSS)
Currency translation adjustments 772 2,247 1,166 (2,559 )
COMPREHENSIVE INCOME (LOSS) 8,494 (11,120 ) (2,136 ) (71,144 )
Net earnings (loss) per share
Basic 0.11 (0.19 ) (0.05 ) (0.95 )
Diluted 0.11 (0.19 ) (0.05 ) (0.95 )
Condensed Consolidated Interim Balance Sheets
(Unaudited - Expressed in thousands of U.S. Dollars)
As at As at
June 30, 2021 December 31, 2020
ASSETS
Current
Cash and cash equivalents 43,639 34,510
Accounts receivable 13,641 9,996
Prepaids and other 2,864 3,530
Product inventory 3,703 5,828
63,847 53,864
Non-Current
Intangible exploration and evaluation assets 1,162 584
Property and equipment
Petroleum and natural gas assets 137,202 140,059
Other 2,559 2,917
Deferred taxes 3,709 3,723
208,479 201,147
LIABILITIES
Current
Accounts payable and accrued liabilities 30,758 21,667
Derivative commodity contracts 4,605 398
Current portion of lease obligations 1,348 1,553
Current portion of long-term debt 10,000 14,897
46,711 38,515
Non-Current
Long-term debt 6,951 6,567
Asset retirement obligations 13,863 13,042
Other long-term liabilities 859 544
Lease obligations 33 461
Deferred taxes 3,709 3,723
72,126 62,852
SHAREHOLDERS’ EQUITY
Share capital 152,805 152,805
Accumulated other comprehensive income 3,066 1,900
Contributed surplus 25,303 25,109
Deficit (44,821 ) (41,519 )
136,353 138,295
208,479 201,147
Condensed Consolidated Interim Statements of Changes in Shareholders’ Equity
(Unaudited - Expressed in thousands of U.S. Dollars)
Six Months Ended June 30
2021 2020
Share Capital
Balance, beginning and end of period 152,805 152,805
Accumulated Other Comprehensive Income (Loss)
Balance, beginning of period 1,900 1,134
Currency translation adjustment 1,166 (2,559 )
Balance, end of period 3,066 (1,425 )
Contributed Surplus
Balance, beginning of period 25,109 24,673
Share-based compensation expense 194 245
Balance, end of period 25,303 24,918
(Deficit) Retained Earnings
Balance, beginning of period (41,519 ) 35,878
Net loss (3,302 ) (68,585 )
Balance, end of period (44,821 ) (32,707 )
Condensed Consolidated Interim Statements of Cash Flows
(Unaudited - Expressed in thousands of US Dollars)
Three Months Ended June 30 Six Months Ended June 30
2021 2020 2021 2020
OPERATING
Net earnings (loss) 7,722 (13,367 ) (3,302 ) (68,585 )
Adjustments for:
Depletion, depreciation and amortization 6,959 5,657 11,774 17,909
Asset retirement obligation accretion 45 60 111 128
Impairment loss - - - 73,495
Share-based compensation 816 884 3,587 (417 )
Finance costs 333 589 803 1,404
Unrealized loss (gain) on financial instruments 1,248 3,348 4,218 (1,028 )
Unrealized loss on foreign currency translation 8 65 12 32
Asset retirement obligations settled (31 ) - (22 ) (20 )
Changes in non-cash working capital 6,732 27,315 2,711 (2,040 )
Net cash generated by operating activities 23,832 24,551 19,892 20,878
INVESTING
Additions to intangible exploration and evaluation assets (15 ) (7 ) (578 ) (337 )
Additions to petroleum and natural gas assets (3,557 ) (1,161 ) (5,887 ) (6,322 )
Additions to other assets (25 ) (61 ) (39 ) (147 )
Changes in non-cash working capital 522 (1,594 ) 2,347 (662 )
Net cash used in investing activities (3,075 ) (2,823 ) (4,157 ) (7,468 )
FINANCING
Interest paid (291 ) (512 ) (584 ) (1,130 )
Increase in long-term debt 146 72 225 168
Payments on lease obligations (479 ) (381 ) (1,071 ) (775 )
Repayments of long-term debt (5,000 ) (10,000 ) (5,000 ) (10,000 )
Changes in non-cash working capital (8 ) - (9 ) -
Net cash used in financing activities (5,632 ) (10,821 ) (6,439 ) (11,737 )
Currency translation differences relating to cash and cash equivalents (155 ) 100 (167 ) (87 )
NET INCREASE IN CASH AND CASH EQUIVALENTS 14,970 11,007 9,129 1,586
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 28,669 23,830 34,510 33,251
CASH AND CASH EQUIVALENTS, END OF PERIOD 43,639 34,837 43,639 34,837
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", “strengthened”, “confidence”, "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; 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; the ratification of the amendment, extension, and consolidation of the Company’s Eastern Desert Concessions; 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. Ron Hornseth, B.Sc., General Manager – Canada 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 the technical information contained in this report. Mr. Hornseth is a professional engineer who obtained a Bachelor of Science in Mechanical Engineering from the University of Alberta. He is a member of the Association of Professional Engineers and Geoscientists of Alberta (“APEGA”) and the Society of Petroleum Engineers (“SPE”) and has over 20 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:
bbl barrels
bbls/d barrels per day
Mbbls thousand barrels
boe barrel of oil equivalent
boe/d barrels of oil equivalent per day
MMBtu One million British thermal units
Mcf thousand cubic feet
Mcf/d thousand cubic feet per day
NGL Natural Gas Liquids
Production Disclosure
Production Summary (WI before royalties and taxes):
Jul - 21 Q2 - 21 Q1 - 21 Q4 - 20 Q3 - 20 Q2 - 20
Egypt (bbls/d) 11,308 10,727 10,238 10,268 9,812 11,990
Eastern Desert of Egypt (bbls/d) 10,611 9,917 10,052 10,132 9,635 11,757
Heavy Crude (bbls/d) 10,399 9,736 9,419 9,490 9,066 11,001
Light and Medium Crude (bbls/d) 212 181 633 642 569 756
Western Desert of Egypt (bbls/d) 697 810 186 136 177 233
Light and Medium Crude (bbls/d) 697 810 186 136 177 233
Canada (boe/d) 2,106 2,350 1,983 2,116 2,232 2,310
Light and Medium Crude (bbls/d) 605 687 564 618 661 706
Natural Gas (Mcf/d) 4,456 4,834 4,259 4,454 4,633 4,665
Associated Natural Gas Liquids (bbls/d) 758 857 710 755 798 826
Total (boe/d) 13,414 13,077 12,221 12,384 12,044 14,300
Production Guidance
Low High Mid-Point
Egypt (bbls/d) 9,700 10,500 10,100
Heavy Crude (bbls/d) 8,940 9,678 9,309
Light and Medium Crude (bbls/d) 760 822 791
Canada (boe/d) 2,300 2,500 2,400
Light and Medium Crude (bbls/d) 767 833 800
Natural Gas (Mcf/d) 4,600 5,000 4,800
Associated Natural Gas Liquids (bbls/d) 767 833 800
Total (boe/d) 12,000 13,000 12,500
About TransGlobe
TransGlobe Energy Corporation is a cashflow 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.
For further information, please contact:
TransGlobe Energy Corporation
Randy Neely, President and CEO
Eddie Ok, CFO +1 403 264 9888
investor.relations@trans-globe.com
http://www.trans-globe.com
or via Tailwind Associates or
FTI Consulting
Tailwind Associates (Investor Relations)
Darren Engels +1 403 618 8035
darren@tailwindassociates.ca
http://www.tailwindassociates.ca
Canaccord Genuity (Nomad & Joint-Broker)
Henry Fitzgerald-O’Connor
James Asensio
+44(0) 20 7523 8000
Shore Capital (Joint Broker)
Jerry Keen
Toby Gibbs +44(0) 20 7408 4090
Primary Logo
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WOW talk about a company saver
TransGlobe Energy Corporation Announces an Operations Update
March 24 2021 - 02:00AM
GlobeNewswire Inc.
TransGlobe Energy Corporation (“TransGlobe” or the “Company”) announces an operations update. All dollar values are expressed in US dollars unless otherwise stated.
OPERATIONS UPDATE
Arab Republic of Egypt
Western Desert – South Ghazalat (100% WI)
The recompletion of SGZ-6X well to the deeper, more prospective lower Bahariya reservoir has been concluded. The well commenced production on March 21, 2021 at a field-estimated production rate of ~3,600 Bopd of light oil on a 32/64-inch choke with 0% watercut.
As planned, on March 22, 2021 the well was restricted to a field-estimated ~1,000 Bopd of light-oil on a reduced choke to facilitate reservoir data gathering and the preparation of an effective reservoir management plan for the lower Bahariya at this location. The Company will provide a further update on South Ghazalat once this plan has been developed.
Work to expand the early production facility at South Ghazalat has been completed.
Eastern Desert (100% WI)
The EDC-64 rig has now rigged down at SGZ-6X and is mobilizing to the Company’s Eastern Desert concessions where operations on the budgeted twelve well 2021 drilling program are expected to commence in April 2021.
CEO’s Statement
“We are excited to announce the successful recompletion of SGZ-6X into the lower Bahariya reservoir at our South Ghazalat concession. Prudent reservoir management in the short-term will ensure optimal resource development and maximize future value for shareholders. This approach will allow us to maximize future economic off-take from SGZ-6X, firm up the appraisal of this pool with SGZ-6A and optimize our exploration plans on the SGZ-7B prospect. At this time these operations are still planned for 2022, but may be revisited mid-year, depending on oil prices and other corporate priorities including direct shareholder returns.
With the rig now moving to the Eastern Desert drilling program, we are on target to grow production in Egypt in line with our previous guidance.”
About TransGlobe
Watch this stock go up people
Remember the Egypt deal was reworked and we got a big profit increase per barrel
The CC was great
TGA / TGL will now be making $$$$ , should be paying dividend by 2022 and maybe even end of 2021
replay should be out tomorrow
* * $TGA Video Chart 12-03-2020 * *
Link to Video - click here to watch the technical chart video
Just In: $TGA TransGlobe Energy Corporation Announces a Corporate Update
AIM & TSX: “TGL” & NASDAQ : “TGA” CALGARY, Alberta, Nov. 18, 2020 (GLOBE NEWSWIRE) -- TransGlobe Energy Corporation (“TransGlobe” or the “Company”) announces that Shore Capital Stockbrokers Lim...
Find out more TGA - TransGlobe Energy Corporation Announces a Corporate Update
This is the great part of the news , when this is approved TGA can get to work with the big horizional wells and we all know about production from horizional wells
Despite restrictions on travel, management concluded its negotiations with EGPC to amend, extend and consolidate the Company’s Eastern Desert concession agreements during the quarter. At this time, it is the Company’s belief that EGPC approval will occur in the near term; and
$TGA | #TransglobeEnergy Breakout Targets
TransGlobe Energy Corp . engages in exploration, development, production, and acquisition of properties. Its activities include the operation of Harmattan; West Gharib, West Bakr, and North West Gharib in Egypt-Eastern Desert; and South Alamein, South Ghazalat, and North West Sitra in Egypt-Western Desert; and oil marketing. The company was founded on August 6, 1968 and is headquartered in Calgary, Canada.
TGA news out
$TGA News Article - TransGlobe Energy Corporation Announces Its Participation in the Virtual Summer Summit https://marketwirenews.com/news-releases/tran...38954.html
Textbook Cup and Handle Chart Formation. I am accumulating and expect next move over $1.00. Oil back over $40.
Interesting comment re TGA in evaluating another stock by a guy with over 15,000 followers.
"On the off chance that you are still inspired by the oil fare and generation area, you may rather consider a superior positioned stock – TransGlobe Energy Corporation (TGA), which now holds analysts Strong Buy and might be better choice as of now."
Stonegate Capital Partners Updates Coverage on Transglobe Energy Corp. (Nasdaq:TGA)
ACCESSWIREApril 23, 2020, 6:00 AM CDT
DALLAS, TX / ACCESSWIRE / April 23, 2020 / Transglobe Energy Corp. (TGA)
The full report can be accessed by clicking on the following link: http://www.stonegateinc.com/reports/TGA%20Q4FY19.pdf
Hot News
Per CNBC Russia and Saudis to cut 10 to 15 million Bl of crude production , Will be interesting to see what the state of Texas does , my guess 1 to 2 million bl cut and NG production production cut will be big also
jmho
This could support crude
could also shut down several million bo/pd in the USA buy banning flaring of NG
UPDATED 5 MINUTES AGO Exclusive: Russia calls for new enlarged OPEC deal to tackle oil demand collapse Maria Tsvetkova, Gleb Stolyarov, Katya Golubkova 3 MIN READ
https://www.reuters.com/article/us-oil-opec-russia-rdif-exclusive/exclusive-russia-calls-for-new-enlarged-opec-deal-to-tackle-oil-demand-collapse-idUSKBN21E13T?il=0
MOSCOW (Reuters) - A new OPEC+ deal to balance oil markets might be possible if other countries join in, Kirill Dmitriev, head of Russia’s sovereign wealth fund said, adding that countries should also cooperate to cushion the economic fallout from coronavirus.
FILE PHOTO: The logo of the Organisation of the Petroleum Exporting Countries (OPEC). Vienna, Austria December 6, 2019. REUTERS/Leonhard Foeger
A pact between the Organization of the Petroleum Exporting Countries and other producers, including Russia (known as OPEC+), to curb oil production to support prices fell apart earlier this month, sending global oil prices into a tailspin.
“Joint actions by countries are needed to restore the(global) economy... They (joint actions) are also possible in OPEC+ deal’s framework,” Dmitriev, head of the Russian Direct Investment Fund (RDIF), told Reuters in a phone interview.
Dmitriev and the Energy Minister Alexander Novak were Russia’s top negotiators in the production cut deal with OPEC. The existing deal expires on March 31.
“We are in contact with Saudi Arabia and a number of other countries. Based on these contacts we see that if the number of OPEC+ members will increase and other countries will join there is a possibility of a joint agreement to balance oil markets.”
Dmitriev declined to say who the new deal’s members should or could be. U.S. President Donald Trump said last week he would get involved in the oil price war between Saudi Arabia and Russia at the appropriate time.
Dmitriev also said that a global economic crisis was inevitable as global debt to the world’s gross domestic product had risen to 323% as of now from 230% at a time of the previous economic crisis of 2008. The virus just triggered it, he said.
“Efforts to restore relations between Russia and the United States are now as important as ever, we will take all the efforts our side and hope the United States will also understand that this is necessary,” he said.
The fund - the Russian Direct Investment Fund - and its partners have produced 500,000 coronavirus test kits so far, but are planning to increase production to 2.5 million kits a week.
President Vladimir Putin said on Thursday he hoped Russia would defeat coronavirus in 2-3 months, as the total number of infected Russians, including some close to the country’s elite, topped 1,000, with four virus-related deaths.
Dmitriev said he believed that Russia should follow examples of South Korea and Hong Kong - which have shown how testing can limit the coronavirus spread.
For now, the fund and its partners are focusing on producing tests for companies which need them to test workers at towns where their big plants are located, so-called single-industry or “monotowns.”
Dmitriev said that within a month, test kits for fast and mass public use would be ready, so people could order them at home via taxi and delivery service apps at tech companies Yandex (YNDX.O) and Mail.Ru (MAILRq.L). Only a third of all tests will be exported.
Reporting by Maria Tsvetkova, Gleb Stolyarov and Katya Golubkova; Editing by Andrew Osborn and Jane Merriman
really TGA is not doing as bad SP wise as the other energy companies , i wonder if we are buying something in Egypt because no word on dividend and that news should have been released a few weeks ago
seems to me this presentation has got people in Europe interest , someone is buying and not just a few shares either
Wonder if TGA/TGL could be bidding on the mature fields
I would be willing to forget the dividend if we got some of this stuff . Shell's Egypt onshore assets Action in the neighborhood... Royal Dutch Shell's (RDS.A -0.3%) onshore Egyptian oil and gas assets have attracted interest from Apache (APA -4.2%), as well as bidders from Egypt, Asia and the Middle East, Reuters reports. It could take time for the deal to consummate amid weak gas prices and a lengthy process in Egypt since such assets require government approvals, according to the report. Shell started a process late in November to sell its onshore upstream assets in the Western Desert to focus on expanding its Egyptian offshore gas exploration. The Shell portfolio includes stakes in 19 oil and gas leases, of which Shell's working interest included production of ~100K boe/day last year
TGA presentation ,, interesting
TransGlobe (Canada + Egypt)
At 4 minutes in the CEO challenges us to find a more undervalued company. Anyone?
https://www.proactiveinvestors.co.uk/companies/news/913058/transglobe-energy-proactive-s-oil-capital-conference---february-2020-913058.html
Big TGA/TGL holders
Henderson Group now owns 8,582,123 shares
Invesco now owns 6,354,783 Shares
Radoff Bradley now owns 3,656,160 Shares
That is a vote of confidence I would say. The institutions leaving are more of a change in philosophical strategy, in my opinion, and nothing to do with a lack of confidence in management.
Sitting on a 5% divi with upside potential in the share price, is a winning formula...JMO
Canaccord Genuity rates TGA a Buy today.
https://www.smarteranalyst.com/new-blurbs/transglobe-energy-tga-receives-a-buy-from-canaccord-genuity/
I can see management is still doing a great job ..
My guess a monkey could do a better job
man TGA took a shit at end of day
someone dumped several 100 Ks
did anyone notice this !!
Re:::Corporate
The Company has ended its joint broker relationship with GMP FirstEnergy post acquisition by Stifel Nicolaus. Canaccord Genuity continues as the Company’s NOMAD and Broker.
if this was the outfit that was running our company over in England my guess we kicked them out
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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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