TGL news:
TRANSGLOBE ENERGY CORPORATION
TSX SYMBOL: TGL
AMEX SYMBOL: TGA
APRIL 21, 2005 - 17:01 ET
TransGlobe Energy Corporation Announces Horizontal
Well Results in Republic of Yemen
CALGARY, ALBERTA--(CCNMatthews - April 21, 2005) - TransGlobe Energy
Corporation (TSX:TGL) (AMEX:TGA) ("TransGlobe" or the "Company") is
pleased to announce another successful development well on Block S-1 in
the Republic of Yemen.
BLOCK S-1, REPUBLIC OF YEMEN (25% working interest)
Successful horizontal appraisal well at An Nagyah #15:
The An Nagyah #15 well was drilled to a total depth of 1,979 meters and
completed as an Upper Lam oil well. The An Nagyah #15 well was tested
from a 747 meter horizontal Upper Lam sandstone section at a rate of
2,625 barrels of light (43 degree API) oil per day, 84 barrels per day
of water and 2.3 million cubic feet of natural gas per day on a 48/64
inch choke at 575 psi flowing pressure. This is the third horizontal
well drilled in the An Nagyah field.
The An Nagyah #15 well is being equipped for early production via
trucking. The drilling rig will be moving to an exploration prospect at
Markhah #1 located approximately 50 kilometers east/south-east of the An
Nagyah field. The Markhah #1 exploration well is primarily targeting the
Lam formation in a separate structure at the eastern end of the Block.
An Nagyah production update:
The current trucking capacity is approximately 7,500 Bopd (1,875 Bopd to
TransGlobe). The oil production is being trucked 18 miles to the Jannah
Hunt facility where it enters the Hunt pipeline system to the Red Sea.
Trucking operations will be phased out following the construction of a
28 kilometer (18 mile) pipeline to the Jannah Hunt export pipeline. The
pipeline is expected to be operational in June 2005. The 10 inch
pipeline is designed to allow an ultimate capacity of 80,000 Bopd so
that future discoveries can be placed on stream quickly. The Central
Production Facility ("CPF") is designed for an initial capacity of
10,000 to 12,000 Bopd (2,500 to 3,000 Bopd to TransGlobe) with expansion
capabilities.
Harmel production test update:
Production equipment was installed at Harmel #1 and Harmel #2 in March.
The wells are currently pumping at a slower rate until the wells have
cleaned up and inflow parameters can be determined. Harmel #1 has been
pumping approximately 100 bpd of oil for the past week. Harmel #2 was
recently placed on production and is recovering oil and load fluid
(completion water and spent acid). Production and test data obtained
from the Harmel #1 and #2 wells will help to determine the commerciality
of the medium gravity oil (22 degree API) pool. The Harmel structure
encompasses fifteen square miles as defined by 3-D seismic and could
require 80 to 90 shallow wells (600 to 800 meters in depth) to be fully
developed.
TransGlobe is a growth oriented international exploration and production
company with its corporate office in Calgary, Alberta, Canada.
TransGlobe has achieved a production growth rate of 84% per year over
the past four years. TransGlobe is well positioned for continued growth
with interests in three production sharing agreements in the Republic of
Yemen (two producing, one exploration), one exploration concession in
the Arab Republic of Egypt and producing oil and gas properties in
Alberta, Canada.
This release includes certain statements that may be deemed to be
"forward-looking statements" within the meaning of the US Private
Securities Litigation Reform Act of 1995. All statements in this
release, other than statements of historical facts that address future
production, reserve potential, exploration drilling, exploitation
activities and events or developments that the Company expects, are
forward-looking statements. Although TransGlobe believes the
expectations expressed in such forward-looking statements are based on
reasonable assumptions, such statements are not guarantees of future
performance and actual results or developments may differ materially
from those in the forward-looking statements. Factors that could cause
actual results to differ materially from those in forward-looking
statements include oil and gas prices, exploitation and exploration
successes, continued availability of capital and financing, and general
economic, market or business conditions.
TRANSGLOBE ENERGY CORPORATION
s/s David Ferguson
David C. Ferguson
Vice President, Finance & C.F.O.
-30-
FOR FURTHER INFORMATION PLEASE CONTACT:
TransGlobe Energy Corporation
Ross G. Clarkson
President & C.E.O.
(403) 264-9888
(403) 264-9898 (FAX)
or
TransGlobe Energy Corporation
Lloyd W. Herrick
Vice President & C.O.O.
(403) 264-9888
(403) 264-9898 (FAX)
Email: trglobe@trans-globe.com
Website: www.trans-globe.com
or
Executive Offices
#2500, 605 -5th Avenue, S.W.,
Calgary, AB T2P 3H5
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