TransGlobe sold all of its crude oil production in the second quarter to EGPC

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TransGlobe Energy Corporation Announced Second Quarter 2020 Financial and Operating Results for the Three and Six Months Ended June 30, 2020

EASTERN DESERT

West Gharib, West Bakr, and North West Gharib (100% working interest, operated)

Operations and Exploration

Consistent with the Company’s revised 2020 budget, there has been no drilling activity in the Eastern Desert during Q2 2020.

Production

Production averaged 11,757 bbls/d during the quarter, a decrease of 5% (586 bbls/d) from the previous quarter. This marginal decrease was primarily due to natural declines, with June production positively impacted by successful well maintenance in May and the timing of production recognition.

To reflect well intervention deferrals since May, production guidance, including South Ghazalat, has been narrowed for full-year 2020 and is now 11,200 to 11,600 bbls/d.

Production in July 2020 averaged ~9,956 bbls/d.

Sales

The Company sold 304.6 mbbls of inventoried entitlement crude oil to EGPC during the quarter.

Quarterly Eastern Desert Production (bbls/d) 2020   2019
Q-2   Q-1 Q-4 Q-3
Gross production rate1   11,757   12,343 12,831 13,750
TransGlobe production (inventoried) sold   (1,761 )   7,937   (674 ) (1,821 )
Total sales   9,996     20,280   12,157 11,929
     
Government share (royalties and tax)   6,648   6,977 7,250 7,795
TransGlobe sales (after royalties and tax)2   3,348     13,303   4,907 4,134
Total sales   9,996     20,280   12,157 11,929

1   Quarterly production by concession (bbls/d):
West Gharib – 3,453 (Q2-2020), 3,664 (Q1-2020), 3,857 (Q4-2019), and 4,003 (Q3-2019)
West Bakr – 7,935 (Q2-2020), 8,277 (Q1-2020), 8,489 (Q4-2019), and 8,978 (Q3-2019)
North West Gharib – 369 (Q2-2020), 402 (Q1-2020), 485 (Q4-2019), and 769 (Q3-2019)
2   Under the terms of the Production Sharing Concession Agreements, royalties and taxes are paid out of the government’s share of production sharing oil.

WESTERN DESERT

South Ghazalat (100% working interest, operated)

Operations and Exploration

The SGZ-6x well continues to produce from the Upper Bahariya reservoir at a rate restricted to a field estimated 150-200 bbls/d light and medium crude to evaluate the well, manage the reservoir and optimize the separation of oil, gas, and water.

Production

Production averaged 233 bbls/d during the quarter, an increase of 15% (31 bbls/d) from the previous quarter.

Production in July 2020 averaged ~189 bbls/d.

Sales

The Company sold all of its entitlement crude oil production of 8.0 bbls in the quarter to EGPC.