(Alliance News) - TransGlobe Energy Corp on Wednesday said it achieved production in 2019 at the higher end of its expectations, and has set its guidance, estimates and budget for its total output in 2020.
For December, total output averaged 15,300 barrels of oil equivalent per day, and for the year total production averaged 16,000 barrels per day, reaching the top of its output guidance range set between 15,500 to 16,000 barrels.
TransGlobe ended the year with total gross proved reserves of 25.4 million barrels of oil equivalent, down 1.3% from the end of 2018, however, proved & probable reserves rose by 3% to 45.3 million barrels, and proved, probable and possible reserves increased by 2% to 63.3 million barrels.
The posttax net present value of future net revenue was USD288 million, 11% lower year-on-year due to reduced gas locations and commodity pricing in Canada, and higher royalties in West Bakr, Egypt.
Looking ahead, TransGlobe set its capital budget for 2020 at USD37.1 million, with Egypt's portion coming to USD23.7 million, and Canada's USD13.4 million.
The Egypt programme for 2020 has the primary focus of sustaining production in the Eastern desert - which contains one well in West Bakr and two wells in north west Gharib - as well as evaluating the South Ghazalat development lease in the Western Desert.
Canada's work programme for 2020 consists of four horizontal wells targeting the Cardium light oil resource at Harmattan, as well as providing additional maintenance and development capital.
Looking ahead, TransGlobe's production outlook is expected to range between 14,500 and 15,500 barrels per day, with a 93% weighting to oil and liquids.
"We are pleased with the results of the 2019 drilling program and we aim to build upon this success in 2020. The 2020 plan is focused on the most value accretive projects within the portfolio to maximize free cash flow to fund future value growth opportunities and bolster the current production base," said Chief Executive Officer Randy Neely.
"In Egypt, the focus is on growing production in the Eastern Desert while we continue to evaluate the potential of the South Ghazalat acreage. In Canada, the focus is on developing South Harmattan where we have made a potentially significant discovery of resources in a new, effectively undrilled area, where we already have a significant footprint," Neely added.
Shares in TransGlobe Energy - which is based in Calgary, Canada - were untraded on Wednesday, last quoted at 97.5 pence in London.
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