TransGlobe Energy Corporation announces access to South Alamein and proposed amendments to Convertible Debentures
TransGlobe Energy Corporation is pleased to announce an operational update on the South Alamein concession and calling of a meeting of the holders of its 6.0% convertible debentures.
South Alamein, Arab Republic of Egypt (100% working interest, operated)
The Company is very pleased to announce that it has received military access approvals to commence work on the South Alamein Concession. The approvals are the result of significant efforts on the part of the Minister of Petroleum, EGPC and TransGlobe personnel. The Concession, acquired in July 2012, contains the Boraq 2X discovery and several additional exploration targets. The Concession had been placed in suspense due to military access restrictions and has approximately 20 months remaining on the final exploration phase. The Company will begin making preparations to appraise and develop the Boraq 2x discovery and expects that initial drilling on the Concession may be possible by year-end. The Boraq 2X discovery tested approximately 1,700 Bopd from two zones. The primary Cretaceous zone tested at a rate of 800 to 1,323 Bopd of 34 API oil with no water and a 13% pressure drawdown during a 28 hour drill stem test (DST). A secondary Cretaceous zone tested at a rate of 274 Bopd of 32-35 API oil and 4% water during a 23 hour DST. Test rates are not necessarily indicative of long-term performance but it is anticipated that the well should be capable of producing approximately 1,700 Bopd.
TransGlobe also announces that it plans to hold a meeting of its Debentureholders to approve certain amendments to its outstanding debentures. At the meeting, Debentureholders will be asked to approve an extraordinary resolution authorizing TransGlobe and the trustee of the debentures to amend the terms of the outstanding debentures to give TransGlobe the right, exercisable in the sole discretion of TransGlobe at any time, to redeem all but not less than all of the then outstanding debentures at a price equal to the principal amount outstanding, plus accrued and unpaid interest up to (but excluding) the redemption date, plus an interest penalty equal to interest otherwise due up to but excluding the maturity date. Holders of not less than 25% of the principal amount of the debentures outstanding must be represented in person or by proxy at the meeting, and the extraordinary resolution must be passed by Debentureholders’ votes representing not less than 66 2/3% of the principal amount of the debentures represented at the meeting. A proxy form and management information circular will be mailed to Debentureholders in connection with the meeting.
The TransGlobe board of directors has unanimously concluded that the proposed amendments are in the best interests of the Company and recommends that Debentureholders vote FOR the proposed amendments.
The meeting will be held at 300, 250-5th Street SW, Calgary Alberta on October 17, 2016, at 3:00 p.m. (Calgary time). The record date for determining the Debentureholders entitled to receive notice of and vote at the meeting will be September 16, 2016.
TransGlobe is a Calgary-based, growth-oriented oil and gas exploration and development company whose activities are concentrated in the Arab Republic of Egypt. TransGlobe’s common shares trade on the Toronto Stock Exchange under the symbol TGL and on the NASDAQ Exchange under the symbol TGA. TransGlobe’s convertible debentures trade on the Toronto Stock Exchange under the symbol TGL.DB.
(TransGlobe Energy Corporation Press Release)