TransGlobe Energy Corporation's Board of Directors has approved the Company's $45 million (US) capital spending plans for 2006, an increase of 30% over this year's capital spending.
Of the $45 million total, $21 million is dedicated to new exploration projects and $24 million is directed to development work on currently producing properties.
"We are preparing for exploration drilling on all four of our international project areas, making 2006 our biggest exploration year ever. The increased focus on exploration projects in our 2006 capital budget highlights the abundance of drilling opportunities we have developed," said Ross Clarkson, President and Chief Executive Officer.
Geographically, $25 million is allocated to international projects in Yemen and Egypt, of which $17 million is earmarked for exploration work. The total international plan includes 12 high impact exploration wells, 6 development/appraisal wells, facilities and seismic.
Canadian plans call for $20 million to be spent in 2006, primarily aimed toward conventional oil and gas development drilling. A program of 30 to 35 wells is planned, of which 12 to 16 are shallow coal bed methane wells.
The Company expects to fund the 2006 exploration and development program from working capital and cash flow.
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