TransGlobe Energy Corporation ("TransGlobe" or the "Company") announces the closing of the Share Purchase Agreement (SPA) to acquire the shares of Cepsa Egypt SA B.V. ("Cepsa Egypt"), which occurred on July 26, 2012.
SOUTH ALAMEIN (100% working interest, operated)
Through two wholly owned subsidiary companies, TransGlobe now holds a 100% working interest in the South Alamein Concession Agreement.
On July 26, TransGlobe closed the Share Purchase Agreement ("SPA") and acquired the shares of Cepsa Egypt SA B.V. ("Cepsa Egypt"), a wholly owned subsidiary of COMPANIA ESPANOLA DE PETROLEOS, S.A.U. (a company registered in Spain) ("Cepsa") which holds a 50% working interest in the South Alamein Concession.
The remaining 50% working interest was acquired on June 7, 2012 from EP Energy LLC. The South Alamein Concession is located onshore in the Western Desert of Egypt and includes portions of the prolific Alamein and Tiba basins. The current gross size of this exploration concession is 1,423 square kilometers (355,832 acres) following a 25% relinquishment of non-prospective acreage on April 4, 2012. The concession is in the final 2-year exploration phase. The concession includes an oil discovery well, Boraq-2X. The primary Cretaceous zone tested at a rate of 800 to 1,323 Bopd of 34 API oil with no water and a 13% pressure drawdown. Test rates are not necessarily indicative of long-term performance but it is anticipated that when combined with secondary tested zones within the Cretaceous, the well should be capable of initial production of approximately 1,700 Bopd.
The Company has scheduled a drilling rig (currently drilling at West Bakr) to commence an initial five well drilling program starting in mid to late Q4 of 2012. The program will include two appraisal wells in the Boraq area followed by three exploration wells. The timing to drill development and exploration wells at South Alamein will be dependent upon receiving the required well permitting approvals.