Continental Focus, International Reach

TransGlobe Spuds on South Ghazalat

Thursday, October 25, 2018

TransGlobe Energy spud its SGZ 6X well on the South Ghazalat concession in Egypt’s Western Desert. The well, the second exploration well in the concession, was spud on October 23.

The SGZ 6X is located on the eastern portion of the concession offsetting the Raml oil field in the Abu Gharadig basin. The SGZ 6X prospect is targeting stacked Cretaceous oil targets similar to the producing Raml and SW Raml fields.

On TransGlobe’s South Alamein concession, also in the Western Desert, the company received notification from the military that access will be granted to drill the South Alamein 24X (SA 24X) Jurassic exploration prospect.  It has submitted the required documentation and is awaiting final written approval which is expected prior to year-end.  Concurrently, the company initiated preparations to drill SA 24X as part of the 2019 exploration program.

Over in Egypt’s Eastern Desert, TransGlobe drilled a two-well infill program on the West Bakr’s M-field resulting in two oil wells. The M-North and M-South wells were initially placed on production in September at rates of about 500 bpd per well. Both of these wells continue to exceed internal pre-drill estimates and are currently producing at around 800 bpd per well following pump optimization work during October.

Following M-South, the rig was moved to the NW Gharib 38A-7 to drill a potential water injector in the NWG 38A pool. The NWG 38A-7 well was drilled as a potential water injector targeting the 38A Red Bed pool in a structurally lower position 0.4 kilometers south of the NWG 38A Injector well (NWG 38A-I, drilled Q2). The NWG 38A-I well encountered oil in the targeted Red Bed formation and was placed on production in September at an initial rate of around 110 bpd (following a fracture stimulation) and is currently producing about 80 bpd.

The NWG 38A-7

well encountered the Red Bed formation, which appears to contain both oil and water, however the well was cased, due to deteriorating wellbore conditions prior to acquiring definitive fluid samples. The NWG 38A-7 well will be completed during November and depending on the production results will be another oil producer or converted to water injection well to support the NWG 38A oil pool.  In the event NWG 38A-7 is an oil producer, the Company has planned an additional well (NWG 38A-8) further south as a contingency for reservoir pressure support