TransGlobe Energy Corporation - President and CEO, Randy Neely
President and CEO, Randy Neely
Source: TransGlobe Energy Corporation
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  • TransGlobe Energy Corporation (TGL) has announced a capital budget of US$57.7 million for the 2022 fiscal year
  • The 2022 drilling program includes 17 Egypt and 7 Canadian wells
  • Egypt production is expected to average between 10.0 and 10.8 MBopd for the year
  • Canada production is expected to average between 2.4 and 2.6 MBoepd for the year
  • TransGlobe Energy Corporation is a cash flow focused oil and gas exploration and development company
  • Shares in TransGlobe Energy Corporation (TGL) are currently down 3.88 per cent, trading at $3.72 per share

TransGlobe Energy Corporation (TGL) has announced a capital budget of US$57.7 million for the 2022 fiscal year.

The 2022 drilling program includes 17 Egypt and 7 Canadian wells, and the budget will be divided between the two programs with a $33.1 million budget for Egypt and $24.6 million for Canada.

TransGlobe recently signed an agreement with the Egyptian General Petroleum Corporation (EGPC) to merge its three existing Eastern Desert concessions. As of December 2021, the three concessions had a combined average production of 9,394 Bopd.

The 2022 $33.1 million Egypt capital program will be mainly focused on 13 development wells in the Eastern Desert, which is already underway.

Egypt production is expected to average between 10.0 and 10.8 MBopd for the year.

In Canada, the $24.6 million program consists of drilling seven horizontal wells all targeting the Cardium light oil resource at South Harmattan. Two of these wells are expected to be drilled in Q1 2022.

The remaining five wells are expected to be drilled in late June through August, and all wells are expected to be completed and brought onstream in late summer to early fall 2022.

Canada production is expected to average between 2.4 and 2.6 MBoepd for the year.

“Our 2022 budget underlines the confidence we have in the potential of the TransGlobe portfolio,” said TransGlobe’s president and CEO Randy Neely.

“With the much improved terms in the Eastern Desert, expectation of continued strong oil prices, and the realization of the amounts owing from the effective date adjustment on the consolidation of the Eastern Desert concessions,” he added, “the company expects to revisit its dividend policy in the near term.”

TransGlobe Energy Corporation is a cash flow-focused oil and gas exploration and development company whose current activities are concentrated in Egypt and Canada.

Shares in TransGlobe Energy Corporation (TGL) are currently down 3.88 per cent, trading at $3.72 per share as of 10:36 am EST.

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