TransGlobe to Drill 12 Wells in Egypt During 2021
TransGlobe Energy Corp. has announced that its 2021 drilling program includes 12 wells in Egypt. The news comes as the company released its 2021 capital budget and production guidance which comes in at $27.2 million (before capitalized G&A) which is broken down between its operations in Egypt and Canada. Egypt will see $16.6 million and Canada $10.6 million.
As announced in early December 2020, the Company reached an agreement with the Egyptian General Petroleum Company (EGPC) to merge its three existing Eastern Desert concessions with a 15-year primary term and improved Company economics. Ratification of the concession is anticipated in Q2, 2021, and the February 1, 2020 effective date for the improved concession terms supports increased investment in parallel with ratification.
The $16.6 million program in Egypt is entirely allocated to development. The primary focus of the 2021 Egypt plan is to accelerate the exploitation of the Company’s Eastern Desert acreage with the aim of increasing oil production, while evaluating and increasing production from the more prospective lower Bahariya reservoir on the South Ghazalat development lease in the Western Desert
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