2009-08-19-2007-10-01-2007-11-01

Transaction Type
Sellers
Buyers
Announce Date
Post Date
Close Date
Estimated Price
59MM
Description

Bought companies, gaining interests in 8 development leases and infrastructure in West Gharib concession area onshore W Gulf of Suez, including 70% WI in one, 45% in remaining with 24 producing wells in 7 fields on 44,059 acres. Production 3,000 BOE/d (1,500 net), net proved 3.24 MMBOE, net 2P 6.3.

TransGlobe Energy Corp., Calgary, (Toronto: TGL; Amex: TGA) has acquired privately held Dublin International Petroleum (Egypt) Ltd. and Drucker Petroleum Inc. from Tanganyika Oil (Bermuda) I Ltd., Vancouver, (OMX: TYKS) for US$59 million in cash. The deal values production as US$39,333 per flowing barrel of oil, proved reserves at US$18.21 per barrel and proved and probable reserves at US$9.37 per barrel, according to TransGlobe. The companies hold interests in eight development leases and associated infrastructure in the West Gharib concession area onshore the western Gulf of Suez in Egypt. The holdings consist of 70% working interest in one lease and 45% working interest in the remaining seven and feature 24 producing wells in seven fields. The leases consist of 178 square kilometers (approximately 44,059 acres). Production is 3,000 barrels of oil per day (1,500 net barrels). Net proved reserves are 3.24 million barrels and net proved and probable reserves are 6.3 million barrels. The assets increases TransGlobe's daily production 27%, proved reserves 35% and proved and probable reserves 54%. Fourth quarter production will now exceed 7,000 barrels of oil equivalent per day. TransGlobe funded the deal with an expanded credit facility. A working capital adjustment comprised of cash, inventory and receivables (less payables) of approximately US$11 million will bring the total cost of the acquisition to US$70 million. TransGlobe president and chief executive Ross Clarkson says, "The acquisition of the West Gharib producing properties fits with the company's strategy of expanding its interests in the Middle East as operator...In addition, the West Gharib development leases include over 30 identified development drilling locations as well as additional exploitation and exploration potential. TransGlobe intends to proceed aggressively with developing the full potential of the discovered fields."