TransGlobe Energy Corporation announced production increases in Egypt in West Gharib concession (100% working interest, TransGlobe operated).
Operations
During the first quarter, six oil wells were drilled; two Upper Nukhul wells and four dual Nukhul (Upper and Lower) wells. In addition, two drilling rigs are currently drilling at West Gharib, primarily focused on the Nukhul formation. It is expected that up to 44 wells could be drilled in West Gharib during 2011, primarily focused on the Nukhul formation.
Production
During March, the Company has completed three Lower Nukhul and two Upper Nukhul oil wells. March production to-date has averaged approximately 9,100 barrels of oil per day (“Bopd”) representing a 12% increase from February production of 8,133 Bopd. Daily production has increased to approximately 11,500 Bopd with the addition of the third Lower Nukhul producer which represents a 3,367 Bopd increase or a 41% increase over February production.
The Arta / East Arta Lower Nukhul pool has expanded significantly since year-end 2010. The Company has now drilled six Lower Nukhul wells which have encountered a sandstone/conglomerate reservoir up to 130 feet thick. Five wells have been placed on production with initial production rates of over 1,000 Bopd per well without the requirement for fracture stimulation. These results are better than the modeled average of 500 Bopd for a Lower Nukhul producer. One additional well reached total depth on March 20 and is being cased as a dual Nukhul (Upper and Lower) oil well. This latest well has extended the reservoir an additional 90 feet down dip and did not encounter the oil / water contact.
Additionally, two Upper Nukhul oil wells in the north portion of the East Arta pool were frac’d this past week and are currently being equipped for production.