TransGlobe Energy Corporation Announces an Operations Update

CALGARY, Alberta, Oct. 24, 2018 (GLOBE NEWSWIRE) — TransGlobe Energy Corporation (“TransGlobe” or the “Company”) announces an operations update. All dollar values are expressed in US dollars unless otherwise stated.

Updates

• Corporate production during the third quarter averaged ~ 14.3 MBoepd and is averaging ~ 14.7 MBoepd to date in October
• Drilled two successful oil wells in M Pool in West Bakr, currently producing ~800 Bopd per well.
• Cased NWG 38A7 as a potential injector/oil well October 22^nd.
• Commenced drilling SGZ – 6X exploration well October 23^rd targeting a multi-stacked Cretaceous prospect in South Ghazalat.
• Received access approval at South Alamein, waiting on final documentation.
• Drilled and cased four Hz Cardium development wells (three 1 mile Hz and one 2 mile Hz) to date.
• Currently drilling the fifth Hz Cardium development of six planned Hz wells from a single pad.

PRODUCTION

Corporate production averaged ~14.3 MBoepd during the third quarter and has averaged ~14.7 MBoepd to date in October.

Production Summary:

OPERATIONS UPDATE

ARAB REPUBLIC OF EGYPT

Western Desert

In South Ghazalat (“SGZ”) the Company commenced drilling SGZ 6X, the second exploration well in the concession on October 23^rd.  SGZ 6X is located on the eastern portion of the concession offsetting the Raml oil field in the Abu Gharadig basin. The SGZ 6X prospect is targeting stacked Cretaceous oil targets similar to the producing Raml and SW Raml fields.

In South Alamein the Company has received notification from the military that access will be granted to drill the South Alamein 24X Jurassic exploration prospect.  The Company has submitted the required documentation and is awaiting final written approval which is expected prior to year-end.  Concurrently, the Company initiated preparations to drill SA 24X as part of the 2019 exploration program.

Eastern Desert

In West Bakr, the Company drilled a two well infill program in the M field resulting in two oil wells during August/September. The M-North and M-South wells were initially placed on production in September at rates of ~500 Bopd per well. Both of these wells continue to exceed internal pre-drill estimates and are currently producing ~800 Bopd per well following pump optimization work during October.

Following M-South, the rig was moved to NW Gharib 38A-7 to drill a potential water injector in the NWG 38A pool. The NWG 38A-7 well was drilled as a potential water injector targeting the 38A Red Bed pool in a structurally lower position 0.4 kilometers south of the NWG 38A Injector well (NWG 38A-I, drilled Q2). The NWG 38A-I well encountered oil in the targeted Red Bed formation and was placed on production in September at an initial rate of ~110 Bopd (following a fracture stimulation) and is currently producing ~80 Bopd.

The NWG 38A-7 well encountered the Red Bed formation, which appears to contain both oil and water, however the well was cased, due to deteriorating wellbore conditions prior to acquiring definitive fluid samples. The NWG 38A-7 well will be completed during November and depending on the production results will be another oil producer or converted to water injection well to support the NWG 38A oil pool.  In the event NWG 38A-7 is an oil producer, the Company has planned an additional well (NWG 38A-8) further south as a contingency for reservoir pressure support.

CANADA

In Canada, the Company commenced drilling the 2018 Cardium development program, which includes six gross (five net) horizontal Cardium development wells to be drilled from a common pad to improve efficiencies and reduce costs. The Company has drilled and cased three one-mile horizontal wells and the Company’s first two-mile horizontal well.  The Company is currently drilling the fifth horizontal well of the six well program. Upon completion of the six well development drilling program, the Company is targeting to complete the wells during the fourth quarter, with first production from the multi-well pad by year-end/early January.

In addition, the Company will drill a one-mile horizontal well during the fourth quarter to evaluate a portion of the newly acquired lands (16 net sections (10,240 acres) of Cardium prospective acreage) located south/south west of the Harmattan pool. If successful, the new lands could provide a significant development opportunity which is proximal to the Company’s Harmattan production and facilities. The Harmattan Cardium pool has typically been developed by drilling four one mile horizontal wells per section.

About TransGlobe

TransGlobe Energy Corporation is a Calgary-based, cash flow focused oil and gas exploration and development company whose current activities are concentrated in the Arab Republic of Egypt and Canada. TransGlobe’s common shares trade on the Toronto Stock Exchange and the AIM market of the London Stock Exchange under the symbol TGL and on the NASDAQ Exchange under the symbol TGA.