Continental Focus, International Reach

TransGlobe Lays Out 2014 Ops

Thursday, January 30, 2014

TransGlobe Energy saw its West Gharib concession in Egypt produce at about 12,000 bpd over the past four months. The company said that well stimulations and completions have been ongoing while production increases have been offset by natural declines and well servicing. An additional six wells are scheduled for completions and/or stimulations during Q1.

The company drilled on the West Gharib a Lower Nukhul oil well at Arta (waiting completion) and a water injector at Hana to optimize the Hana water flood. The rig is currently drilling a Lower Nukhul development well at Arta and is scheduled to drill up to nine wells in West Gharib during Q1 and Q2 of 2014 prior to moving to the new North West Gharib (NWG) concession for the remainder of 2014.

Its West Bakr production declined from 6,000 bpd in October, to 5,500 bpd in November and 5,200 bpd in December due to a number of pump changes and workovers along with service rig mechanical issues that hampered well servicing efficiency. An additional service rig was contracted on a short-term basis in order to alleviate the servicing back-log in November/December and boost overall production. January production has increased to average 5,900 bpd primarily due to new wells and an active workover program in December.

At West Bakr TransGlobe drilled oil wells in H and K fields. The H field well encountered two oil zones and was completed and is currently producing approximately 300 bpd from the lower-most zone. The K field well encountered oil in three zones (Asl A, B & E) and is scheduled for completion in the Asl E formation. The drilling rig is currently drilling in K field and is scheduled to continue working in West Bakr with 17 wells planned for 2014.

At South Alamein, where TransGlobe holds a 100% working interest, the West Manar exploration well was drilled and abandoned. West Manar was drilled to a total depth of 7,300 ft and cost approximately $1.9 million to drill and abandon, and the rig was subsequently released. This concession remains a high-potential exploration area for the company however future exploration drilling is dependent on receiving the necessary military approvals to access the broader Boraq area of the concession.

At East Ghazalat, where the company holds a 50% non-operated interest, drilling commenced on a shallow exploration well at East Ghazalat #3. The well is targeting a new play, a Cretaceous reef feature. Should this well be successful, it will significantly de-risk this play and which could result in additional drilling. A total of 14 drilling targets have been identified on the existing 3D seismic data. Following East Ghazalat #3, the drilling rig is scheduled to drill two development wells in the Safwa field.

TransGlobe  prepared and submitted an initial 18 wells for the necessary approvals on the NWG block in the Eastern Desert. The company has identified 79 drilling locations based on existing 3D seismic and geological modeling of the area. It is targeting Q2 to commence exploration drilling at NWG. Based on current mapping the company has internally estimated a prospective resource of 71 million barrels on an un-risked deterministic basis for the entire NWG block. The 2014 drilling program will target up to 58 million barrels of the total 71 million barrels of prospective resource identified to date.

Based on surface and remote-sensing mapping, the same structural configuration that created the pools found in the West Gharib concession is likely present in the NWG, SW Gharib (SWG) and SE Gharib (SEG) blocks. The historical field size distribution data indicates that the average field size in the broader onshore Gulf of Suez (Eastern Desert) area is roughly 20 million barrels per field of recoverable resource. The company has identified an additional 15 areas of interest (“leads”) in the NWG block, four leads on the SWG block and two leads on the SEG block that will be followed up and further refined by field mapping and the high-resolution seismic acquisition program.

The South Ghazalat concession will be covered by an 800-sq km seismic acquisition program during the initial evaluation. This large block is situated on the western margin of the prolific Abu Gharadig Basin, immediately west of the non-operated East Ghazalat block, where a Jurassic gas-condensate discovery was made and announced late in 2013.

The total seismic program will consist of approximately 1,800 square kilometers of 3D seismic and 300 kilometers of 2D seismic. Subject to approvals and crew availability, TransGlobe’s target is to commence acquisition in the Eastern Desert during Q2 of 2014. It is expected the full program, providing broad coverage of the new concessions, will be completed in early-2015.


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