Transglobe Energy Corporation Announces Successful Appraisal Well And Production Increases In Yemen

Source: www.gulfoilandgas.com 4/28/2004, Location: Middle East

Calgary, Alberta, Wednesday, April 28, 2004 - TransGlobe Energy Corporation ("TransGlobe" or the "Company") is pleased to announce a successful appraisal well at An Nagyah #6 and the increase in oil production on Block S-1 in the Republic of Yemen.

BLOCK S-1, REPUBLIC OF YEMEN (25% working interest)

Successful appraisal well at An Nagyah #6:
The An Nagyah #6 well was drilled to a total depth of 1,207 meters and completed as an Upper Lam oil well, flowing at a stabilized rate of 1,140 barrels of light (42 degree API) oil per day on a 24 hour test.

The An Nagyah #6 well encountered the Upper Lam sandstones with a 29 meter oil bearing interval. A 13.0 meter reservoir interval in the oil bearing section was perforated between 1,040 and 1,053 meters. The perforated interval flowed at 1,140 barrels per day of light oil and 480 thousandcubic feet of natural gas per day on a 30/64 inch choke at 455 psi flowing pressure. No water was produced during the test period.

An Nagyah #6 is located 1.2 kilometers east of the An Nagyah #4well which tested light sweet oil at 1,378 Bopd from a 30 meter perforated interval (May 14, 2003 announcement). The An Nagyah #6 well willbe equipped for early production via trucking after the drilling rig is moved to An Nagyah #7 later this week. The An Nagyah #7 well is located southwest of the An Nagyah #5 well(March 31, 2004 announcement) and is expected to commence drilling in 7-10 days. Following An Nagyah #7, it is expected the drilling rig will be moved to Harmel #2 to appraise the shallow depth, medium gravity oil discovered in Harmel #1. Additional development wells in the An Nagyah pool are expected to be drilled in the third and fourth quarters of 2004 and into 2005.

Block S-1 An Nagyah Production Increases:

The early production (trucking) facilities at the An Nagyah field were installed during the first quarter 2004and field production operations commenced on An Nagyah #4 on March 28, 2004. With the addition of An Nagyah #5 in April, production has increased to approximately 2,000 Bopd. It is anticipated that production will increase to approximately 2,500 Bopd (approximately 625 Bopd to TransGlobe) with the addition of An Nagyah #6 in May and with the expansion of the trucking operations.The oil production is currently being trucked 18 miles to the Jannah Hunt facility where it is blended with the Marib light crude and transported by pipeline to the Ras Isa loading terminal on the Red Sea.

Trucking operations will be phased out following the construction of a central production facility ("CPF") at An Nagyah and a 28 kilometer (18 mile) pipeline to the Jannah Hunt export pipeline. The pipeline and facilities are expected to be operational by early 2005. The 10 inch pipeline is designed to allow an ultimate capacity of 80,000 Bopd so that future discoveries can be placed on stream quickly. The CPF is designed for an initial capacity of 10,000 Bopd (2,500 Bopd to TransGlobe), with expansion capabilities. The detailed engineering bids were received and the contract is expected to be awarded by late April/early May. Bid requests for long lead time major equipment have been issued and are expected to be awarded during the 2nd quarter of 2004.



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Related Articles: Artificial Lift  Cementing, Stimulation  Directional Drilling  Drilling  Drilling Engineering & Equipment Systems  Enhanced Oil Recovery  General  Logging, Perforating, Testing  Offshore Drilling  Reservoir/Completion Consultants  Workover & Well Services  Workover Rigs/Services 


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