OilVoice - TransGlobe Energy Provides Production and Operations Update

TransGlobe Energy Provides Production and Operations Update

Sunday, September 13, 2009

TransGlobe Energy Corporation provides a mid-quarter production and operations update for the third quarter of 2009

Production
Total sales for August averaged 8,590 Barrels of oil per day ("Bopd"), made up of 5,490 Bopd from the West Gharib fields in the Arab Republic of Egypt and 3,100 Bopd from TransGlobe's interests in the Republic of Yemen. Production in August was approximately 500 Bopd below plan primarily due to equipment upgrades and pump changes at West Gharib.

In September, total sales to date have averaged 9,100 Bopd. TransGlobe remains on track to meet production guidance for the full year of between 8,800 and 9,200 Bopd.

Operations

Egypt, West Gharib (100% working interest)
Hana West #7 was drilled and cased as a potential dual zone oil well in August. The well encountered the Lower Rudeis B formation (which tested 450 Bopd in the Hana West discovery well, Hana 18) and extended the Hana West pool (Asl B formation) to the south. The well is initially being completed as a potential Lower Rudeis B Oil well.

Following Hana West #7, the drilling rig was moved to El Hoda #1 (west of the Hoshia field) to drill a deep exploration target. The El Hoda prospect is targeting several deeper pre-Miocene formations in addition to the Rudeis formation, which produces at the Hoshia field. The well is expected to reach a total depth of 8,500 feet in the latter half of September, with test results expected in October.

In addition, work continues on the fractured Thebes carbonate project at East Hoshia. The East Hoshia #3 well was re-entered and completed as a potential Thebes oil well in July. Test results to date have confirmed that the Thebes formation in East Hoshia #3 is highly fractured with good inflow capacity, resulting in 100% water production with very little pressure draw-down at the formation. The Company is currently evaluating high-volume lift alternatives to draw down the formation sufficiently to produce oil with the water. If sustained oil production can be achieved from the Thebes formation, it is expected that project would be developed utilizing horizontal wells in conjunction with high-volume lift.

The East Hoshia #4 well, which was drilled in June/July 2009, encountered good oil shows in the Thebes formation during drilling and was completed as a potential Thebes oil well in August. In contrast to East Hoshia #3, the East Hoshia #4 has exhibited very little inflow capability, which could be due to formation damage while drilling or insufficient productive fractures in the vertical wellbore. Stimulation options are being evaluated to remove potential formation damage.

Yemen
In West Yemen, a 3-D seismic field acquisition program on Block 75 and on Block S-1 has been completed. The processed data should be available for interpretation by year end. Exploration drilling could occur in 2010.

In East Yemen, the Block 32 partnership approved the Tasour #26 development well. The drilling rig is currently moving to location and is scheduled to commence drilling by mid-September, with results expected in October.