TransGlobe’s production in October showed significant progress with approximately 12,162 barrels per day (bbl/d), a 1% increase from Q3 2020 and below the revised budget expectations, with Egypt producing 10,303 bbl/d.
Production in Q3 2020 averaged averaged 12,044 boe/d (Egypt 9,812 bbls/d, Canada 2,232 boe/d), a decrease of 2,256 boe/d (16%) from the previous quarter primarily due to deferred well interventions in Egypt during low oil prices and natural declines.
The company sold 259,200 barrels of crude (bbl) to the Egyptian General Petroleum Corporation (EGPC) for net proceeds of $10.2 million in Q3 2020 with an average realized price of $37.15/bbl.
Production from the Eastern Desert amounted to 9,635 bbl/d in Q3 2020, denoting an 18% decrease from Q2 2020, while it averaged around 10,161 bbl/d in October. The company has also deployed a workover rig to perform well interventions at West Bakr in the Eastern Desert in September and will continue to work during Q4 2020. Per the statement, the company expects that production will align with 2020 guidance. As for the Western Desert, production reached 177 bbl/d during Q3 2020, decreasing by 24% from Q2 2020 and 142 bbl/d in October.
TransGlobe has also concluded its almost-year long negotiations with EGPC to amend, extend, and consolidate the company’s Eastern Desert concession agreements. The company expects to gain EGPC’s approval in the near term, following that, the merged concession will require parliamentary ratification.