TIDMTGL
RNS Number : 3853W
TransGlobe Energy Corporation
21 December 2021
This Announcement contains inside information as defined in
Article 7 of the Market Abuse Regulation No. 596/2014 ("MAR"). Upon
the publication of this Announcement, this inside information is
now considered to be in the public domain.
TRANSGLOBE ENERGY CORPORATION ANNOUNCES RATIFICATION OF THE
CONSOLIDATED AND AMED EASTERN DESERT PRODUCTION SHARING
CONTRACTS
AIM & TSX: "TGL" & NASDAQ: "TGA"
Calgary, Alberta, December 21, 2021 - TransGlobe Energy
Corporation ("TransGlobe" or the "Company") is pleased to announce
the ratification of the consolidated and amended Eastern Desert
Production Sharing Contracts . All dollar values are expressed in
US dollars unless otherwise stated.
PRODUCTION SHARING CONTRACT RATIFICATION
TransGlobe has received notification that its agreement with the
Egyptian General Petroleum Corporation ("EGPC") to merge, amend and
extend its three existing Eastern Desert concessions (West Gharib,
West Bakr and North West Gharib) (the "Merged Concession" or the
"Agreement") has been ratified into Egyptian Law.
The newly ratified Agreement extends the concession life with a
15-year development term and a 5-year extension term, modernizes
the fiscal terms to promote investment across a broad range of
commodity prices, and merges the existing concessions to
substantially increase operational and financial efficiencies. See
our news release dated December 3, 2020 for details related to the
Merged Concession.
The Company will now be required to deposit the first
modernization payment ($15 million) and signature bonus ($1
million) as a condition precedent for the Minister of Petroleum and
Mineral Resources to sign the amended concession Agreement. This is
expected to occur in the coming weeks, at which point the Agreement
becomes effective from February 1, 2020.
RANDY NEELY, PRESIDENT AND CEO'S STATEMENT
"We are thrilled to announce the formal ratification of the
Agreement with EGPC. This event marks the culmination of years of
collaboration between TransGlobe and EGPC and is a testament to the
hard work of all those involved in the process.
With ratification behind us, TransGlobe intends to continue to
increase investment and production from our Eastern Desert acreage.
We look forward to continuing our partnership with EGPC as we work
to unlock the full potential of the Eastern Desert concessions
through the application of both conventional and novel
technologies. We also believe that with this transformative change
accomplished, TransGlobe is well positioned to seek out
opportunities to expand our international portfolio, with a primary
focus in Egypt.
To reassure our shareholders, TransGlobe intends to maintain its
fiscal prudence. We expect to fund the incremental development and
modernization payments through cash flow from operations. The
improved fiscal terms better position the company to generate
increased free cash flow for the benefit of our shareholders, and,
with commodity prices cooperating, we expect to revisit our
dividend policy in 2022."
About TransGlobe
TransGlobe Energy Corporation is a cash flow focused oil and gas
exploration and development company whose current activities are
concentrated in the Arab Republic of Egypt and Canada. TransGlobe's
common shares trade on the Toronto Stock Exchange and the AIM
market of the London Stock Exchange under the symbol TGL and on the
NASDAQ Exchange under the symbol TGA.
For further information, please contact:
TransGlobe Energy Corporation +1 403 264 9888
Randy Neely, President and CEO investor.relations@trans-globe.com
Eddie Ok, CFO http://www.trans-globe.com
or via Tailwind Associates
Tailwind Associates (Investor Relations) +1 403 618 8035
Darren Engels darren@tailwindassociates.ca
http://www.tailwindassociates.ca
Canaccord Genuity (Nomad & Joint-Broker)
Henry Fitzgerald-O'Connor
James Asensio +44(0) 20 7523 8000
Shore Capital (Joint Broker)
Toby Gibbs +44(0) 20 7408 4090
Advisory on Forward-Looking Information and Statements
Certain statements included in this news release constitute
forward-looking statements or forward-looking information under
applicable securities legislation. Such forward-looking statements
or information are provided for the purpose of providing
information about management's current expectations and plans
relating to the future. Readers are cautioned that reliance on such
information may not be appropriate for other purposes.
Forward-looking statements or information typically contain
statements with words such as "anticipate", "strengthened",
"confidence", "believe", "expect", "plan", "intend", "estimate",
"may", "will", "would" or similar words suggesting future outcomes
or statements regarding an outlook. In particular, forward-looking
information and statements contained in this document include, but
are not limited to: the anticipated benefits resulting from the
ratified Agreement, including its ability to better generate free
cash flows; that the amended concession will be signed into law and
the anticipated timing thereof; that TransGlobe will increase
investment and production from its Eastern Desert acreage; that
TransGlobe will maintain its fiscal prudence; that TransGlobe's
incremental development will be funded through cash flow from
operations; TransGlobe's expectations that it will revisit its
dividend policy in 2022; and other matters.
Forward-looking statements or information are based on a number
of factors and assumptions which have been used to develop such
statements and information but which may prove to be incorrect.
Although the Company believes that the expectations reflected in
such forward-looking statements or information are reasonable,
undue reliance should not be placed on forward-looking statements
because the Company can give no assurance that such expectations
will prove to be correct. Many factors could cause TransGlobe's
actual results to differ materially from those expressed or implied
in any forward-looking statements made by, or on behalf of,
TransGlobe.
In addition to other factors and assumptions which may be
identified in this news release, assumptions have been made
regarding, among other things: that the amended concession will be
signed into law on the terms agreed with the Company; that
TransGlobe will be able to fund its incremental development through
cash flows from operations; that TransGlobe will revisit its
dividend policy; anticipated production volumes; the timing of
drilling wells and mobilizing drilling rigs; the number of wells to
be drilled; the Company's ability to obtain qualified staff and
equipment in a timely and cost-efficient manner; the regulatory
framework governing royalties, taxes and environmental matters in
the jurisdictions in which the Company conducts and will conduct
its business; future capital expenditures to be made by the
Company; future sources of funding for the Company's capital
programs; geological and engineering estimates in respect of the
Company's reserves and resources; the geography of the areas in
which the Company is conducting exploration and development
activities; current commodity prices and royalty regimes;
availability of skilled labour; future exchange rates; the price of
oil; the impact of increasing competition; conditions in general
economic and financial markets; availability of drilling and
related equipment; effects of regulation by governmental agencies;
future operating costs; uninterrupted access to areas of
TransGlobe's operations and infrastructure; recoverability of
reserves and future production rates; that TransGlobe will have
sufficient cash flow, debt or equity sources or other financial
resources required to fund its capital and operating expenditures
and requirements as needed; that TransGlobe's conduct and results
of operations will be consistent with its expectations; that
TransGlobe will have the ability to develop its properties in the
manner currently contemplated; current or, where applicable,
proposed industry conditions, laws and regulations will continue in
effect or as anticipated; that the estimates of TransGlobe's
reserves and resource volumes and the assumptions related thereto
(including commodity prices and development costs) are accurate in
all material respects; and other matters.
Forward-looking statements or information are based on current
expectations, estimates and projections that involve a number of
risks and uncertainties which could cause actual results to differ
materially from those anticipated by the Company and described in
the forward-looking statements or information. These risks and
uncertainties which may cause actual results to differ materially
from the forward-looking statements or information include, among
other things: that the amended concession will not be signed into
law on the terms agreed with the Company; that TransGlobe will not
be able to fund its incremental development through cash flows from
operations; that TransGlobe will not revisit its dividend policy;
operating and/or drilling costs are higher than anticipated;
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 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;
competition; lack of availability of qualified
personnel; the results of exploration and development drilling
and related activities; obtaining required approvals of regulatory
authorities; volatility in market prices for oil; fluctuations in
foreign exchange or interest rates; environmental risks; ability to
access sufficient capital from internal and external sources;
failure to negotiate the terms of contracts with counterparties;
failure of counterparties to perform under the terms of their
contracts; and other factors beyond the Company's control. Readers
are cautioned that the foregoing list of factors is not exhaustive.
Please consult TransGlobe's public filings at www.sedar.com and
www.sec.goedgar.shtml for further, more detailed information
concerning these matters, including additional risks related to
TransGlobe's business.
The forward-looking statements or information contained in this
news release are made as of the date hereof and the Company
undertakes no obligation to update publicly or revise any
forward-looking statements or information, whether as a result of
new information, future events or otherwise unless required by
applicable securities laws. The forward-looking statements or
information contained in this news release are expressly qualified
by this cautionary statement.
The Company's future dividend payments, if any, and the level
thereof is uncertain. Any decision to implement a divided policy or
pay dividends will be subject to the discretion of the board of
directors of the Company and may depend on a variety of factors,
including, without limitation the Company's business performance,
financial condition, financial requirements, growth plans, expected
capital requirements and other conditions existing at such future
time including, without limitation, contractual restrictions and
satisfaction of the solvency tests imposed on the Company under
applicable corporate law. There can be no assurance that dividends
will be paid in the future.
Future acquisition opportunities, if any, and the materiality
and timing thereof is uncertain. Any decision to expand through an
acquisition, merger, farm-in, or participation in bid-rounds will
be subject to the discretion of the board of directors of the
Company and may depend on a variety of factors, including, without
limitation the Company's business performance, financial condition,
financial requirements, expected incremental capital requirements
and other conditions existing at such future time. There can be no
assurance that acquisitions will be completed in the future.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
MSCPPGPUPUPGGCG
(END) Dow Jones Newswires
December 21, 2021 09:03 ET (14:03 GMT)
Transglobe Energy (LSE:TGL)
Historical Stock Chart
From Jan 2025 to Feb 2025
Transglobe Energy (LSE:TGL)
Historical Stock Chart
From Feb 2024 to Feb 2025
