TransGlobe Energy Corporation Announces Boraq 5 Test Results
November 03 2017 - 02:00AM
TransGlobe Energy Corporation (“TransGlobe”) (TSX:TGL) (NASDAQ:TGA)
announces an update on the Boraq 5 test results.
All
dollar values are expressed in US dollars unless otherwise
stated.
ARAB REPUBLIC OF EGYPT
South Alamein Concession (100% working interest,
operated)
In the Western Desert, the Company has completed
testing two zones in the Boraq 5 appraisal well. The Boraq 5
well failed to produce any hydrocarbons from the two zones.
The lower AR G zone, although very similar on open hole logs and
drill cutting samples to the original Boraq 2 discovery well,
tested tight with virtually no inflow of fluids from a 20 foot
perforated interval in the AR G carbonate zone. The AR E zone
was also perforated and tested wet from the thin E channel
sand. The Boraq 5 well is being plugged and abandoned.
“We are very disappointed in the Boraq 5
appraisal well test results. At this point, the Boraq 2 discovery
does not have sufficient scale to proceed with development without
additional exploration success on the South Alamein
Concession. We have identified a number of exploration
prospects that, if successful, could provide the additional
reserves and productivity to bring forward a South Alamein
development. We are reviewing these targets to determine if
they should be added into our 2018 exploration program. The 2018
Western Desert exploration program currently has two wells on the
South Ghazalat concession and two wells on the NW Sitra concession.
We also have an ongoing development program planned for our Eastern
Desert concessions,” said Mr. Ross Clarkson, President and CEO of
TransGlobe Energy.
To date the Company has invested approximately
$10.3 million in exploration expenditures on or associated with the
Boraq play concept in the South Alamein concession. Due to
the results of Boraq 5 well and the uncertainty of an economic
development of Boraq in the future, we will be taking an impairment
charge for these accumulated costs in our Q3 results.
TransGlobe Energy Corporation is a
Calgary-based, growth-oriented 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 under the symbol TGL and on the
NASDAQ Exchange under the symbol TGA.
Advisory on Forward-Looking Information
and Statements
Certain statements included in this news release
constitute forward-looking statements or forward-looking
information under applicable securities legislation. Such
forward-looking statements or information are provided for the
purpose of providing information about management's current
expectations and plans relating to the future. Readers are
cautioned that reliance on such information may not be appropriate
for other purposes. Forward-looking statements or information
typically contain statements with words such as "anticipate",
"believe", "expect", "plan", "intend", "estimate", "may", "will",
"would" or similar words suggesting future outcomes or statements
regarding an outlook. In particular, forward-looking information
and statements contained in this document include, but are not
limited to, 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; anticipated production and ultimate recoveries
from wells; TransGlobe's plans to continue exploration,
development and completion programs in respect of various
discoveries; future requirements necessary to determine well
performance and estimated recoveries; and other matters.
Forward-looking statements or information are
based on a number of factors and assumptions which have been used
to develop such statements and information but which may prove to
be incorrect. Although the Company believes that the expectations
reflected in such forward-looking statements or information are
reasonable, undue reliance should not be placed on forward-looking
statements because the Company can give no assurance that such
expectations will prove to be correct. Many factors could cause
TransGlobe's actual results to differ materially from those
expressed or implied in any forward-looking statements made by, or
on behalf of, TransGlobe.
In addition to other factors and assumptions
which may be identified in this news release, assumptions have been
made regarding, among other things, anticipated production volumes;
the timing of drilling wells and mobilizing drilling rigs; the
number of wells to be drilled; the Company's ability to obtain
qualified staff and equipment in a timely and cost-efficient
manner; the regulatory framework governing royalties, taxes and
environmental matters in the jurisdictions in which the Company
conducts and will conduct its business; future capital expenditures
to be made by the Company; future sources of funding for the
Company's capital programs; geological and engineering estimates in
respect of the Company's reserves and resources; the geography of
the areas in which the Company is conducting exploration and
development activities; current commodity prices and royalty
regimes; availability of skilled labour; future exchange rates; the
price of oil; the impact of increasing competition; conditions in
general economic and financial markets; availability of drilling
and related equipment; effects of regulation by governmental
agencies; future operating costs; uninterrupted access to areas of
TransGlobe's operations and infrastructure; recoverability of
reserves and future production rates; that TransGlobe will have
sufficient cash flow, debt or equity sources or other financial
resources required to fund its capital and operating expenditures
and requirements as needed; that TransGlobe's conduct and results
of operations will be consistent with its expectations; that
TransGlobe will have the ability to develop its properties in the
manner currently contemplated; current or, where applicable,
proposed industry conditions, laws and regulations will continue in
effect or as anticipated as described herein; that the estimates of
TransGlobe's reserves and resource volumes and the assumptions
related thereto (including commodity prices and development costs)
are accurate in all material respects; and other matters.
Forward-looking statements or information are
based on current expectations, estimates and projections that
involve a number of risks and uncertainties which could cause
actual results to differ materially from those anticipated by the
Company and described in the forward-looking statements or
information. These risks and uncertainties which may cause actual
results to differ materially from the forward-looking statements or
information include, among other things, operating and/or drilling
costs are higher than anticipated; unforeseen changes in the rate
of production from TransGlobe's oil and gas properties; changes in
price of crude oil and natural gas; adverse technical factors
associated with exploration, development, production or
transportation of TransGlobe's crude oil reserves; changes or
disruptions in the political or fiscal regimes in TransGlobe's
areas of activity; changes in tax, energy or other laws or
regulations; changes in significant capital expenditures; delays or
disruptions in production due to shortages of skilled manpower
equipment or materials; economic fluctuations; competition; lack of
availability of qualified personnel; the results of exploration and
development drilling and related activities; obtaining required
approvals of regulatory authorities; volatility in market prices
for oil; fluctuations in foreign exchange or interest rates;
environmental risks; ability to access sufficient capital from
internal and external sources; failure to negotiate the terms of
contracts with counterparties; failure of counterparties to perform
under the terms of their contracts; and other factors beyond the
Company's control. Readers are cautioned that the foregoing list of
factors is not exhaustive. Please consult TransGlobe’s public
filings at www.sedar.com and www.sec.gov/edgar.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.
For further information, please contact:
Investor RelationsTelephone: (403)
264-9888Email: investor.relations@trans-globe.comWeb site:
www.trans-globe.com
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