Canadian Manufacturing

TransGlobe makes $60-million Egypt acquisition

TransGlobe Energy Corp. has closed a US$60-million acquisition of the West Bakr oil play in Egypt, a property producing more than 4,000 barrels of oil per day.



CALGARY—TransGlobe Energy Corp. has closed a US$60-million acquisition of the West Bakr oil play in Egypt, a property that includes 28 wells with gross production of more than 4,000 barrels of oil per day.

Calgary-based TransGlobe said the purchase, from the Egyptian Petroleum Development Co. Ltd. of Japan and completed Dec. 29, will be immediately accretive to earnings.

In addition to 4,3350 bopd of gross production before share splitting with the Egyptian government, the property includes 45.2 square kilometres in two development leases.

It is also immediately adjacent to TransGlobe’s existing West Gharib development leases, providing integration opportunities between the two, TransGlobe said.

TransGlobe’s total production, including the West Bakr acquisition, is about 16,250 barrels per day, including West Gharib (11,500 barrels) and Block 32 Yemen (400 barrels).

An additional 700 barrels have been curtailed at West Gharib and 2,250 barrels from Block S-1 Yemen is shut-in due to damage to the export pipeline there.

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