TransGlobe announce update on Boraq-5, disappointed with test results

boraq

TransGlobe Energy Corporation announces an update on the Boraq 5 test results.

Arab Republic of Egypt
South Alamein Concession (100% working interest, operated)

In the Western Desert, the Company has completed testing two zones in the Boraq 5 appraisal well. The Boraq 5 well failed to produce any hydrocarbons from the two zones. The lower AR G zone, although very similar on open hole logs and drill cutting samples to the original Boraq 2 discovery well, tested tight with virtually no inflow of fluids from a 20 foot perforated interval in the AR G carbonate zone. The AR E zone was also perforated and tested wet from the thin E channel sand. The Boraq 5 well is being plugged and abandoned.

“We are very disappointed in the Boraq 5 appraisal well test results. At this point, the Boraq 2 discovery does not have sufficient scale to proceed with development without additional exploration success on the South Alamein Concession. We have identified a number of exploration prospects that, if successful, could provide the additional reserves and productivity to bring forward a South Alamein development. We are reviewing these targets to determine if they should be added into our 2018 exploration program. The 2018 Western Desert exploration program currently has two wells on the South Ghazalat concession and two wells on the NW Sitra concession. We also have an ongoing development program planned for our Eastern Desert concessions,” said Mr. Ross Clarkson, President and CEO of TransGlobe Energy.

To date the Company has invested approximately $10.3 million in exploration expenditures on or associated with the Boraq play concept in the South Alamein concession. Due to the results of Boraq 5 well and the uncertainty of an economic development of Boraq in the future, we will be taking an impairment charge for these accumulated costs in our Q3 results.

(TransGlobe Energy Corporation Press Release)

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s