Canada’s TransGlobe Energy has agreed to buy seven oilfields with 24 producing wells as well as eight development leases in the West Gharib Concession in Egypt for $59 million in cash, it said.
TransGlobe said it would take over operatorship of the seven fields, with production of 1500 barrels of oil per day. The acreage includes proved reserves of 3.24 million barrels and proved plus probable reserves of 6.3 million barrels.
The company said the deal would boost its daily production in the first quarter by 27%.
TransGlobe said the eight developmental leases covered more than 44,000 gross acres and included more than 30 identified drill sites.
The deal boosts TransGlobe stake in the West Gharib Concession to a 70% operated interest from 45% previously.
The assets were previously held by Dublin International Petroleum and Drucker Petroleum, which are assets of Bermuda-registered Tanganyika Oil.
The West Gharib Concession lies in the western Gulf of Suez rift basin in western Egypt.