TransGlobe Energy Corporation (Calgary, Alberta) announced an operational update. Below the Egypt related section. For the complete press release click the link below.
Total Company production averaged 16,841 Boepd in March, comprised of 14,152 Bopd in Egypt and 2,689 Boepd in Canada (57% light oil and liquids). Total Company production averaged approximately 16,672 Boepd in the first quarter, comprised of 13,941 Bopd in Egypt and 2,731 Boepd in Canada (57% light oil and liquids). This is an increase over the first quarter 2016 of approximately 38% including the Canadian acquisition or a 17% increase in Egyptian production.
EASTERN DESERT
Subsequent to the Company's March 7, 2017 press release, the Company has drilled and abandoned two exploration wells (NWG 39 & NWG 42).
NWG 39 was drilled to a total depth of 5,650 feet targeting a Red Bed prospect immediately north of the NWG Development lease #1. The well encountered thick Red Bed reservoir, which was wet and subsequently abandoned. The drilling rig has commenced drilling on NWG 40, which is the final exploration commitment well in the first exploration phase of the NWG concession. NWG 40 is targeting a Red Bed prospect immediately west of NWG 39. Following NWG 40 the rig is scheduled to move to the Western Desert to drill an appraisal well at South Alamein.
NWG 42 was drilled to a total depth of 6,400 feet targeting a separate Red Bed prospect north of the NWG Development lease #1. The well encountered thick Red Bed reservoir, which was wet and subsequently abandoned. The drilling rig is scheduled to move to the West Bakr concession to drill a development well (K-47) in the K-South field. Following K-47 the rig will return to NWG to drill appraisal wells in the NWG #1 development lease. The appraisal wells will offset the NWG 3 and NWG 38 Red Bed oil producers. NWG 3 was flowing naturally up the casing at a rate of 600-1,000 Bopd since late December 2016. At the end of March, the NWG 3 well was equipped with tubing and a down-hole pump. NWG 3 was put back on production in early April at an initial pumping rate of ~1,500 Bopd. NWG 38 was completed and placed on production at an initial pumping rate of ~750 Bopd in January and is currently producing at a rate of ~700 Bopd.
Concurrently, the Company completed and stimulated one well on each of the NWG 1 and NWG 5 discoveries (discovered in 2014). Both wells were put on short term pump production tests to recover the stimulation fluid and establish new oil production from the discoveries. The wells produced ~150 to 180 Bopd. Following the short production tests the wells were shut in pending approval of the respective Development leases. The Company will file development lease applications for the NWG 1 and NWG 5 discoveries prior to May 6th which is the expiry date of the first exploration phase on NWG. It is expected that new development leases could receive approval in 1 to 3 months from the application date.
The NWG 5 discovery is an upper Nukhul discovery similar to and located immediately south of Arta Upper Nukhul pool in the West Gharib concession. The NWG 5 discovery wells (discovery well and one appraisal well) are expected to produce at similar rates to the TransGlobe's Arta Nukhul wells which typically have an initial 30 day production rate (IP 30) of 150-180 Bopd with ultimate recoveries of 120-150 MBbls per well on primary production
The NWG 1 discovery is located immediately north of the Arta Red Bed (Lower Nukhul) pool in the West Gharib Concession. The NWG 1 wells (discovery well and one appraisal well) encountered a tight Red Bed conglomerate sequence which requires stimulation to produce. Longer-term production from the NWG 1 wells will be required to establish expected per well recoveries and the associated reserve assignments.
In addition, the Company is preparing programs to complete and test the NWG 26 and 27 Red Bed discoveries during April, prior to filing a development lease application for the area immediately north of the NWG development lease #1. Depending on the results of the NWG 40 exploration well, it could be completed, and tested as part of the development lease application for the area.
The Company believes that by the end of the first exploration phase in NWG (May 6, 2017), the NWG exploration lands will be fully evaluated and the respective development lease applications are expected to be filed.
WESTERN DESERT
At South Alamein, the Company is currently constructing well sites for drilling in Boraq area of the concession. The initial drilling campaign will consist of a minimum of one well (Boraq 5) on the Boraq structural complex plus re-entering the Boraq 2 discovery well for additional testing. A drilling rig is scheduled to move from the Eastern Desert in the latter half of April with drilling expected to commence in early May at Boraq 5. Successful appraisal wells could lead to filing a Boraq development plan as early as Q2/Q3-2017 with first production targeted for year-end 2017/early 2018. In parallel, the Company will evaluate the remaining exploration prospects on the concession, targeting an exploration drilling program commencing in late 2017 and extending into 2018. The South Alamein concession was acquired in July 2012 and contains the Boraq 2X discovery (see May 1, 2012 press release for more details) and several additional exploration targets. The Boraq 2X discovery tested approximately 1,600 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 or ultimate recovery but it is anticipated that the well should be capable of producing approximately 1,600 Bopd.
At NW Sitra, the Company completed the 600 km2 3-D seismic acquisition program at the end of March. The new data will be sent for processing with prospect mapping planned for the second half of 2017.
