TransGlobe Energy released financial and operating results for the three and six months ending June 30, 2021. TransGlobe’s Condensed Consolidated Interim Financial Statements, including notes and Management’s Discussion and Analysis for the three and six months ended June 30, 2021, and 2020 are available on the company’s website at www.trans-globe.com.

The following are the company’s financial, operational, and corporate highlights:

“FINANCIAL HIGHLIGHTS:

  • Second quarter sales averaged 16,542 boe/d including 366.3 Mbbls sold to EGPC for net proceeds of $22.2 million and one cargo lifting of 498.6 Mbbls of entitlement crude oil for net proceeds of $29.1 million (collected in May 2021). The overlift portion of the cargo (~129.5 Mbbls) was settled against outstanding receivables from EGPC during the quarter;
  • Average realized price for Q2-2021 sales of $56.48/boe; Q2-2021 average realized price on Egyptian sales of $60.27/bbl and Canadian sales of $33.61/boe;
  • Funds flow from operations of $17.1 million ($0.24 per share) in the quarter;
  • Second quarter net earnings of $7.7 million ($0.11 per share), inclusive of a $1.2 million unrealized loss on derivative commodity contracts;
  • Ended the second quarter with positive working capital of $17.1 million, including cash of $43.6 million;
  • Subsequent to the quarter, the Company sold a ~500 Mbbl cargo of Egypt entitlement crude oil with proceeds expected in August 2021;

OPERATIONAL HIGHLIGHTS:

  • Second quarter production averaged 13,077 boe/d (Egypt 10,727 bbls/d, Canada 2,350 boe/d), an increase of 856 boe/d (7%) from the previous quarter. Increase primarily due to improved well optimization activities in Egypt, the full oil production impact of the SGZ-6X lower Bahariya recompletion, and return to production in Canada of the 2-20 well following the 13-16 completion and stimulation plus the latter’s production contribution;
  • Production in July averaged ~13,414 boe/d (Egypt ~11,308 bbls/d, Canada ~2,106 boe/d), an increase of 3% from Q2-2021;
  • Ended the quarter with 140.3 Mbbls of entitlement crude oil inventory, a decrease of 315.4 Mbbls from Q1-2021. This decrease is due to an increase in sales volumes as a result of the Q2 cargo lifting, partially offset by an increase in production;
  • Drilled two development oil wells at West Bakr in the Eastern Desert, Egypt, both successfully encountering oil-bearing sands and placed on production;
  • On June 30, 2021 the Company spud the first of three 100% working interest horizontal oil development wells (one 2-mile, two 1-mile) located approximately four miles to the northwest of the 2-20 location in TransGlobe’s Cardium extension into the South Harmattan area in Canada, with drilling and casing completed in July; and

CORPORATE HIGHLIGHTS:

The Company announced a merged concession agreement with a 15-year primary term and improved Company economics on December 3, 2020. The agreement is currently awaiting ratification by the Egyptian Parliament but will have a February 2020 effective date upon ratification. As such, the results achieved in Q2-2021 and year to-date are exclusive of any effective date adjustments that will be made upon ratification.”