Continental Focus, International Reach

TransGlobe Sees Q4 Increases

Tuesday, December 18, 2018

TransGlobe Energy is seeing its Q4 production increase steadily, month-on-month. In October the company saw flows of around 14,600 boepd, November went up by about 200 boepd, and December jumped to around 16,300 boepd. The company attributes the Q4 increase to drilling and well optimization results in Egypt. In Egypt’s Western Desert, based on previously announced well test results from SGZ-6X, it has filed a declaration with EGPC of a Commercial Discovery to initiate early development discussions which could result in initial production by mid-2019. In South Alamein, TransGlobe resubmitted a request for military access to drill the SA 24X Jurassic exploration prospect and entered into extension discussions with EGPC. Over in the Eastern Desert on the West Bakr, the two M field infill wells (M-North and M-South) continue to exceed internal predrill estimates producing at rates of about 800 bpd per well. During November early approval to drill a replacement well for the M-10 well which was originally drilled in 2000 was received. The M-10 well was abandoned due to well bore mechanical issues encountered during a water shut off remedial program in September 2018. The replacement well (M-10 twin) is targeting the main M pool Asl A sand and was originally planned for 2019. It has subsequently advanced into the current drilling schedule and commenced drilling in early December. The M-10 twin is anticipated to produce oil although it is structurally lower in the pool. If the well encounters water, TransGlobe says it will convert it into a water injection well to provide pressure support for the M pool. In North West Gharib (NWG), the NWG 38A-7 was completed (unstimulated) in the main Red Bed formation and confirmed the presence of oil. NWG 38A-7 was placed on production in late November and is currently producing 360 bpd. The NWG 38A-7 well has extended the known oil column height structurally down an additional 101 ft to a total of 445 ft for the NWG 38 pool, which should increase the reserves assigned to the NWG 38 pool in 2018. Based on the results of NWG 38A-7, the company has commenced wellsite construction at NWG 38A-8, located approximately 0.4 km south of NWG 38A-7 which is targeting the Red Bed pool to potentially provide water injection/reservoir pressure support for the 38A pool. NWG 38A-8 is scheduled for drilling following the M-10 twin well.