TransGlobe Sees Production Boost in 2011
TransGlobe announced curtailed production in the Republic of Yemen and revised production Guidance for 2011.
PRODUCTION UPDATE: REPUBLIC OF YEMEN
Block S-1 (25% working interest)
The oil export pipeline from Marib to the Ras Eisa port on the Red Sea is currently shut down. Production from TransGlobe's An Nagyah field on Block S-1 is shut-in until repairs to the export pipeline can be completed. The pipeline has been the target of a number of attacks since production resumed in mid-July (ending a 4 month shut-in period) and was typically repaired within 24 to 48 hours, which did not impact production. The most recent attack on the pipeline has not been repaired due to local tribal groups preventing access to the pipeline. It is difficult to predict when production will resume. TransGlobe's working interest share of production was approximately 2,250 Bopd prior to being shut-in on October 8th.
Corporate production today is approximately 11,250 Bopd, not including approximately 2,250 Bopd of shut-in production on Block S-1. Production from Block 32 in East Yemen of approximately 400 Bopd to TransGlobe has not been affected. Block 32 production is exported through the Nexen operated pipeline to the Indian Ocean.
REVISED 2011 PRODUCTION GUIDANCE
Estimated 2011 average Corporate production is reduced by approximately 1,000 Bopd to the 12,000 to 12,300 Bopd range, which represents a year on year growth rate of 22% from 2010. The 8% reduction in guidance for 2011 is based on the following assumptions:
- Block S-1 remains shut in for the balance of 2011.
- East Ghazalat first production moved to 2012.
There are a number of potential positive catalysts listed below that could impact guidance for the remainder of 2011.
- Resumption of production from Block S-1 (~ 2,250 Bopd).
- Approval of the West Bakr acquisition (~4,000 Bopd).
- Removal of export constraints and drilling results from West Gharib (~1,000 Bopd).
The Company will provide an updated guidance for 2011 funds flow in the third quarter results which are scheduled to be press released November 9, 2011.
- Independent Resources, Nostra Terra to Acquire Producing Egyptian Asset (Oct 06)
- TransGlobe Sees Production Boost in 2011 (Oct 14)
- TransGlobe Drills Ahead in Egypt (Jun 29)