TransGlobe Energy Corporation today announces the closing of the West Bakr acquisition in Egypt from The Egyptian Petroleum Development Co. Ltd. (of Japan) that was completed on December 29, 2011.
West Bakr, Egypt (100% operated working interest)
TransGlobe West Bakr Inc. (“TGWB”), a wholly owned subsidiary of TransGlobe Energy Corporation, has acquired all the Egyptian assets of The Egyptian Petroleum Development Co. Ltd. (of Japan) (“EPEDECO”) for $60 million plus or minus adjustments, effective July 1, 2010. TransGlobe funded the acquisition with working capital.
TGWB holds a 100% working interest in the West Bakr Production Sharing Concession (“PSC”). TGWB is the operator of the West Bakr Concession through its joint venture operating company (West Bakr Petroleum Company).
The West Bakr PSC is located onshore in the western Gulf of Suez rift basin of Egypt adjacent to TransGlobe’s West Gharib Concession. The two West Bakr development leases encompass 45.2 square kilometres (approximately 11,600 acres) and are valid until 2020 with an optional five-year extension to 2025. Modern 3-D seismic covers the development leases. Current gross oil production from the three producing fields is approximately 4,350 Bopd (approximately 1,240 net Bopd after the production sharing split with the Government of Egypt). There are three oil fields on the lands with cumulative production of approximately 50 million barrels of oil. The Company has identified a number of optimization/development projects and drilling opportunities that could increase production and recoverable reserves.
TransGlobe’s total production including the West Bakr acquisition is approximately 16,250 Bopd (West Bakr 4,350 Bopd, West Gharib 11,500 Bopd and Block 32 Yemen 400 Bopd). Approximately 700 Bopd is curtailed at West Gharib and 2,250 Bopd of production from Block S-1 Yemen is shut-in due to damage to the export pipeline (announced October 8, 2011).
TransGlobe Energy Corporation is a Calgary-based, growth-oriented oil and gas exploration and development company focused on the Middle East/North Africa region with production operations in the Arab Republic of Egypt and the Republic of Yemen. TransGlobe’s common shares trade on the Toronto Stock Exchange under the symbol TGL and on the NASDAQ Exchange under the symbol TGA.