TransGlobe Energy Corporation announces operational update on successful Egyptian exploration and development programs
West Gharib, Egypt (100% working interest, TransGlobe operated)
Operations and Exploration
In February 2010, the Company successfully fracture stimulated the Arta #9 well in the Nukhul formation. The Arta #9 vertical well is currently producing 210 Bopd and appears to have reached a stabilized production rate. Arta #9 was previously producing 25 Bopd prior to the stimulation.
Following the success of Arta #9, the Company successfully fracture stimulated three additional vertical wells (Arta #2, Arta #4 and Arta #8) in the past week. The wells have been placed on production and the early production rates indicate they will stabilize at similar rates to Arta #9 (approximately 200 Bopd per well).
A multi-staged fracture stimulation program is being designed for the Arta #12 horizontal well drilled in 2009. The stimulation program is expected to be completed in late April/early May, subject to the availability of multi-stage packer equipment.
In addition, the Arta #6 vertical well is planned to be stimulated following the Arta #12 work.
The Hoshia #8 step-out appraisal well was drilled and cased as a multi-zone (Rudeis/Nukhul) oil well. Hoshia #8 was initially completed in the Nukhul formation and is producing 80 Bopd. Hoshia #8 will be evaluated for a potential fracture stimulation treatment similar to the Arta field.
The Hana #21 step-out appraisal well located on the northern end of the Hana field has been cased as a Kareem producer. The drilling rig will move to the southern end of Hana to drill Hana #22 prior to moving to the Arta field to drill a step-out appraisal well at Arta #13.
As previously disclosed, the Company has expanded the 2010 capital program to add a second drilling rig to the West Gharib project in the second quarter of 2010 to accelerate the Nukhul program in the Arta, East Arta, North Hoshia and Hoshia areas.
East Ghazalat Block, Egypt (50% working interest)
The second exploration well on the East Ghazalat Block, Safwa #1, was cased as a potential oil well. An oil-bearing interval in the Cretaceous section of the Safwa #1 well was logged and oil samples were recovered during wireline testing. The well was perforated and tested at a rate of 300 Bopd of 38o API oil utilizing the drilling rig. The short term test has confirmed the presence of good reservoir and movable oil. Additional tanks and pumping equipment are required to carry out more extensive production testing so the drilling rig is being moved to the next exploration well.
The third exploration well, Sahab #1, is targeting a Jurassic/Paleozoic prospect with an internal estimate of petroleum initially in place (“PIIP”) of 64 MMBbl in the P-mean case with an upside of 140 MMBbl in the P10 case.
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.