TransGlobe Energy Corporation Tests Oil in Western Desert of Egypt
02 June 2010 - 8:04AM
Marketwired
TransGlobe Energy Corporation ("TransGlobe" or the "Company") (TSX:
TGL) (NASDAQ: TGA) announces a new oil discovery in the Western
Desert of the Arab Republic of Egypt ("Egypt").
EGYPT
East Ghazalat (50% Working Interest)
TransGlobe is pleased to announce that oil was recovered on test
from Safwa NW-1, its latest exploration well in the East Ghazalat
Concession in the Western Desert of Egypt. Wire line logs across
the Lower Bahariya Formation confirmed approximately 30 feet of
net, producible oil-bearing reservoir with an average porosity
exceeding 20%. A 14 foot interval was perforated and tested at a
rate of 250 barrels of light, 34 degrees API oil per day. The well
is currently suspended awaiting a full test.
The Safwa NW-1 well is located 2.5 kilometers to the northwest
of the Safwa #1 discovery well which tested 300 barrels of oil per
day from the same formation. Safwa NW-1 was the fourth well and the
second discovery in the exploration drilling program conducted by
operator Vegas Oil & Gas SA ("Vegas") in partnership with
TransGlobe. A fifth well located approximately 1.7 kilometers
northeast of Safwa NW-1 is expected to spud in June to further
appraise the Safwa structure. Fracture stimulation to increase oil
production rates from the Bahariya Formation is also being
investigated.
Mr. Ross Clarkson, President and CEO, was quoted "TransGlobe's
entry into the prolific Western Desert in the East Ghazalat
Concession is an exciting addition to our 2010 exploration program.
The appraisal drilling at Safwa NW-1 is confirming the structural
closure identified on the 3-D seismic mapping. We are encouraged
that, with additional testing of the reservoir and continued
drilling success, we may move to a commercial development in
2011."
The 858 km2 East Ghazalat Concession is located in the prolific
Abu Gharadiq basin of Egypt's Western Desert, approximately 250
kilometers west of Cairo. East Ghazalat was awarded to Vegas on
June 5, 2007 and is currently in the first, three-year exploration
period which ends in early June 2010. There are two additional
exploration period extensions of two years each. Subject to
approval of the Egyptian Government, 25% of the original concession
will be relinquished prior to entering the respective extension
periods. All work commitments for the first, three-year exploration
period have been met.
TransGlobe Energy Corporation is a Calgary-based,
growth-oriented oil and gas exploration and development company
focused on the Middle East/North Africa region with production
operations in the Arab Republic of Egypt and the Republic of Yemen.
TransGlobe's common shares trade on the Toronto Stock Exchange
under the symbol TGL and on the NASDAQ Exchange under the symbol
TGA.
Cautionary Statement to Investors:
This news release may include certain statements that may be
deemed to be "forward-looking statements" within the meaning of the
U.S. Private Securities Litigation Reform Act of 1995. Such
statements relate to possible future events. All statements other
than statements of historical fact may be forward-looking
statements. Forward-looking statements are often, but not always,
identified by the use of words such as "seek", "anticipate",
"plan", "continue", "estimate", "expect", "may", "will", "project",
"predict", "potential", "targeting", "intend", "could", "might",
"should", "believe" and similar expressions. These statements
involve known and unknown risks, uncertainties and other factors
that may cause actual results or events to differ materially from
those anticipated in such forward-looking statements. Although
TransGlobe's forward-looking statements are based on the beliefs,
expectations, opinions and assumptions of the Company's management
on the date the statements are made, such statements are inherently
uncertain and provide no guarantee of future performance. Actual
results may differ materially from TransGlobe's expectations as
reflected in such forward-looking statements as a result of various
factors, many of which are beyond the control of the Company. These
factors include, but are not limited to, unforeseen changes in the
rate of production from TransGlobe's oil and gas properties,
changes in price of crude oil and natural gas, adverse technical
factors associated with exploration, development, production or
transportation of TransGlobe's crude oil and natural gas reserves,
changes or disruptions in the political or fiscal regimes in
TransGlobe's areas of activity, changes in tax, energy or other
laws or regulations, changes in significant capital expenditures,
delays or disruptions in production due to shortages of skilled
manpower, equipment or materials, economic fluctuations, and other
factors beyond the Company's control. TransGlobe does not assume
any obligation to update forward-looking statements if
circumstances or management's beliefs, expectations or opinions
should change, other than as required by law, and investors should
not attribute undue certainty to, or place undue reliance on, any
forward-looking statements. Please consult TransGlobe's public
filings at www.sedar.com and www.sec.gov/edgar.shtml for further,
more detailed information concerning these matters.
Contacts: TransGlobe Energy Corporation Scott Koyich Investor
Relations 403.262.9888 investor.relations@trans-globe.com
www.trans-globe.com
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