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TransGlobe Energy targets 10,000 barrels of oil per day exit rate for 2010

Last updated: 16:55 05 Jan 2010 GMT, First published: 17:55 05 Jan 2010 GMT

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TransGlobe Energy Corporation (TSX: TGL, NASDAQ: TGA) ("TransGlobe") updated investors on operations at its West Gharib Project in Egypt and provided oil and gas production and earnings guidance for 2010.


At West Gharib, where TransGlobe retains a 100% working interest in the project, the company confirmed that it had completed two oil wells since its last update to the market on 25 November, 2009.  The first well, Arta 12, was drilled to a depth of 5,217 feet with a 1,519 foot horizontal section which entered the Nukhul reservoir.

Since being placed on production in early December, the well has produced 19 degrees API oil at a rate of 30 barrels of oil per day (“bopd”) with zero water cut.   TransGlobe is now preparing to undertake a multi-staged fracture stimulation program to “improve access to the reservoir and potentially increase production rates”.  The fracture programme is expected to be completed in the next two months.


Meanwhile, the second well, Hana West 8 has been drilled to a total depth of 6,971 feet. The well encountered multiple oil zones, and was completed in the lower Rudeis formation, and is currently producing at a rate of 730 bopd.  TransGlobe further reported that the well encountered an extension of the Hana Pool and a new oil pool in the Shagar formation. 


The rig has now moved on to drill the Hana 20 well, which reached a total depth of 5,505 feet in just 8 days.  Open hole well logs have indicated that the well has encountered 32 feet of net oil pay in the Kareem/Markha sands.
Following Hana 20, the rig is scheduled to move to North Hoshia #2 to drill a step out appraisal well targeting the Nukhul and Thebes formations in the North Hoshia pool.


Looking ahead to 2010, TransGlobe set it yearend exit rate target at “over 10,000 bopd” and is forecasting cash flow from operations to be US$55 million under the assumption of an average brent crude price of $65/barrel.

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