Continental Focus, International Reach

TransGlobe’s Egyptian Capex

Thursday, January 11, 2018

 TransGlobe Energy Corp. issued its capital expenditure program for 2018. The company has slotted $41.3 million for the program with over half of that, $29.1 million, going to its Egyptian assets. Of the $29.1 million for Egypt, $11.8 million is allocated to exploration and $17.3 million to development.

The $11.8 million 2018 exploration program is focused entirely on the Western Desert with five exploration wells planned (two wells in South Ghazalat, two wells in NW Sitra and one well in South Alamein). The $17.4 million 2018 development program is focused entirely on the Eastern Desert which includes eight development wells (five in West Bakr, two in NW Gharib and one in West Gharib) and development/maintenance projects in West Bakr, NW Gharib and West Gharib.

The primary focus of the 2018 Egypt plan is to sustain/grow Eastern Desert production and to evaluate the company’s over one million acres of exploration lands. The exploration program is designed to test an independent structure at South Alamein to prove up additional oil reserves on the concession and to test four independent structures on South Ghazalat and N.W. Sitra. The South Ghazalat and N.W. Sitra exploration wells are basin opening wells which could also de-risk 13 of the 21 additional prospects mapped on 3D seismic.

No production is budgeted from the Western Desert exploration assets in 2018.