TransGlobe to spend $37.1 million on 2020 drilling program

TransGlobe Energy Corp., Calgary, expects to spend $37.1 million for a 2020 drilling program that includes 16 wells in Egypt and four wells in Canada.

Average production in 2020 is expected to be 14,500-15,500 boe/d with a midpoint of 15,000 boe/d, with Egypt expected to produce 11,900-12,700 boe/d and Canada expected to produce 2,600–2,800 boe/d. Production in 2019 averaged 16,000 boe/d.

In Egypt, the company expects to spend $23.7 million this year on 12 development wells and four exploration wells, principally focused on the Eastern Desert. The program has $5.4 million (23%) allocated to exploration and $18.3 million (77%) to development.

Development wells include four wells in West Bakr and one Red Bed appraisal well in the NW Gharib 3X pool, six wells targeting the Arta Nukul reservoir in West Gharib and NW Gharib, and a single well in the SGZ-6X pool, targeting the lower Bahariya reservoir in the Western Desert.

Exploration wells include one well in West Bakr, two wells in NW Gharib in the East Desert, and one well in South Ghazalat in the Western Desert.

Additional activity for 2020 involves ten recompletions in West Bakr, four recompletions in West Gharib, water handling expansion at West Bakr, and development/ maintenance projects in the Eastern Desert (West Bakr, NW Gharib, and West Gharib). Negotiations continue with the Egyptian government to amend, extend, and consolidate the company’s Eastern Desert concession agreements.

In Canada, $13.4 million is earmarked for a 2020 drilling program of four horizontal, multi-stage stimulated wells targeting the Cardium light oil resource at Harmattan with additional maintenance/development capital.