TransGlobe’s production in Egypt averaged around 12,544 barrels per day (bbl/d) in Q1 2020, while recording approximately 12,111 bbl/d in April , according to a statement.
The company’s total production in Q1 2020 recorded an average of 14,997 barrels of oil equivalent per day (boe/d), a 2% decrease from Q4 2019. It is, however, 9% higher than the full year 2020 guidance of between 13,300 to 14,300 boe/d.
Per the statement, TransGlobe has sold about 765.4 million barrels (mmbbl) to the Egyptian General Petroleum Corporation (EGPC) for $37 million, with an average price of $40.46/bbl during Q1 2020. In the Eastern Desert, TransGlobe has drilled Yusr development well (HW-2A) at West Bakr. The well was drilled to a total depth of 1,639 meters and completed in April 2020. Meanwhile, in the Western Desert, SGZ-6X well located in South Ghazalat is currently producing at a rate of 250 – 300 bbl/d of light and medium crude.
Additionally, the company remains in talks with EGPC to amend, extend and consolidate the Eastern Desert’s concession agreements. On the other hand, due to the low oil prices, production from SGZ-6X is deemed insufficient to cover its operating costs. This has led TransGlobe to begin discussions with EGPC to further cut the Western Desert operating costs to generate positive cash flow. If cost-cutting was not approved, the company may temporarily suspend South Ghazalat operations.