TransGlobe announces 2017 Capital Budget and Production Outlook
• 2017 capital budget of $56.4 million ($35.2 million firm and $21.2 contingent).
• Egypt $25.8 million firm and $14.4 million contingent.
• 2017 production of 15.5 to 18.5 MBoepd representing an increase of 30% to 55% over 2016.
• Egypt 13.0 to 15.5 MBopd in 2017.
• Canada 2.5 to 3.0 MBoepd in 2017.
• January 2017 production ~16.8 MBoepd.
2017 CAPITAL GUIDANCE
The Company’s 2017 capital program of $56.4 million (before capitalized G&A) includes $40.2 million for Egypt and $16.8 million (C$22.4 million) for Canada.
The approved $25.8 million Egypt firm program has $14.4 million (56%) allocated to exploration and $11.4 million (44%) to development. The $14.4 million exploration program includes drilling up to 6 wells in the Eastern Desert, 2 Boraq wells (1 new drill and 1 re-entry) at South Alamein and a large (600 km²) 3-D seismic acquisition program at NW Sitra in the Western Desert. The $11.4 million 2017 development program includes: one development well in West Bakr K-South field, development/maintenance projects at West Gharib, West Bakr and NW Gharib.
The approved $14.4 million Egypt contingent program has $2.0 million (14%) allocated to exploration and $12.2 million (86%) allocated to development. The program includes 9 additional wells (2 exploration and 7 development) focused primarily in NW Gharib to appraise/develop the NW Gharib discoveries and to increase West Bakr production. The $14.4 million budget is contingent upon timing of cargo/inventory sales, oil prices and Q1 drilling results.
The approved 2017 capital program is summarized in the following table:
2017 PRODUCTION OUTLOOK
The 2017 production outlook for the Company is provided as a range to reflect the firm and contingent budget which has been approved. The bottom end of the range is more reflective of the firm budget and the upper end of the range is reflective of the contingent budget. By its nature, the contingent budget is less certain and generally would be deployed later in 2017 when contingencies have been met. The full production growth impact of the contingent budget would not be realized until 2018.
Corporate production is expected to range between 15.5 MBoepd and 18.5 MBoepd for 2017 representing a 30% to 55% increase over 2016 production of approximately 12.0 MBopd. Egypt production is expected to range between 13.0 and 15.5 MBopd in 2017 representing an increase of 8 to 29% over 2016 production. Canadian production is expected to range between 2.5 and 3.0 MBoepd (~60% oil and liquids) in 2017.
Total Company production averaged 16.8 MBoepd in January, comprised of 14.0 MBopd in Egypt and 2.8 MBoepd (60% oil and liquids) in Canada.
(TransGlobe Energy Corporation Press Release)