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TransGlobe Energy Corporation Operations Update
September 29 2021 - 02:00AM
GlobeNewswire Inc.
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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 [phone]
[e-mail]
http://www.trans-globe.com
or via Tailwind Associates

Tailwind Associates (Investor Relations)
Darren Engels [phone]
[e-mail]
http://www.tailwindassociates.ca

Canaccord Genuity (Nomad & Joint-Broker)
Henry Fitzgerald-O’Connor
James Asensio

[phone]
Shore Capital (Joint Broker)
Jerry Keen
Toby Gibbs [phone]

Adviso