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TransGlobe Successful Bidder on 4 Concessions in Egypt

Source: www.gulfoilandgas.com 11/6/2012, Location: Africa

TransGlobe Energy Corporation is pleased to provide an update on the Egypt bid round results. All dollar values are expressed in United States dollars unless otherwise stated.

EGPC announced that TransGlobe was the successful bidder on four concessions (100% working interest) in the 2011 EGPC bid round which closed on March 29, 2012. It is expected that the new concessions will be awarded in late 2013 following the ratification process which culminates when each concession is passed into law by the People's Assembly (Parliament).

The new concessions will increase the Company's Egyptian exploration land holdings by approximately 3,241 square kilometers (~ 800,000 acres). Three concessions (NW Gharib, SW Gharib and SE Gharib) are proximal to the Company's core producing area at West Gharib/West Bakr onshore Gulf of Suez in the Eastern Desert. The S Ghazalat concession is located in the Western Desert west of the Company's East Ghazalat concession. All four concessions have a 7 year exploration term which will commence when the respective concessions are passed into law. The seven year term is comprised of three phases starting with an initial three year exploration period and two additional two year extension periods. The new concessions provide for the approval of 20 year development leases on commercial discoveries.

The Company committed to spending $101 million in the first exploration period (3 years) including; signature bonuses, the acquisition of new 2D and 3D seismic, and an extensive drilling program approaching 40 wells.

NW Gharib (100% WI)
The Company's primary objective was obtaining the 655 square kilometer (162,000 acre) NW Gharib concession which surrounds and immediately offsets the Company's core West Gharib/West Bakr producing concessions (~45,000 acres). At NW Gharib the Company expects to commence drilling shortly after ratification and final approval of the concession into law. The Company has identified more than 45 drilling locations based on existing well and seismic data for the area. Concurrently the Company would acquire additional 3D seismic data on the concession to develop additional exploration targets.

SW Gharib (100% WI)
The 195 square kilometer (48,000 acre) SW Gharib concession is located immediately south of the NW Gharib concession. The Company will acquire 3D seismic over the entire concession prior to drilling exploration wells in the first exploration phase.

SE Gharib (100%WI)
The 508 square kilometer (125,000 acre) SE Gharib concession is located immediately south of the SW Gharib concession. The Company will acquire extensive 2D and 3D seismic over this area prior to drilling exploration wells in the first exploration phase.

S Ghazalat (100%WI)
The 1,883 square kilometer (465,000 acre) S Ghazalat concession is located in the Western Desert to the west of the company's East Ghazalat concession in the prolific Abu Gharadig basin. The Company will acquire extensive 3D seismic over this area prior to drilling exploration wells in the first exploration phase.

Management Comments
Mr. Ross Clarkson, President & CEO said "We are extremely pleased with the results of the bid round and eagerly look forward to the exploration and development of these very prospective new concessions. The award of these new concessions demonstrates TransGlobe's continued commitment to Egypt and will significantly expand our portfolio of opportunities".

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Related Categories: Accounting, Statistics  Acquisitions and Divestitures  Asset Portfolio Management  Economics/Financial Analysis  General  Industrial Development  Insurance  Investment  Mergers and Acquisitions  Risk Management 

Related Articles: Accounting, Statistics  Acquisitions and Divestitures  Asset Portfolio Management  Economics/Financial Analysis  General  Insurance  Investment  Mergers and Acquisitions  Risk Management 


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