(Alliance News) - TransGlobe Energy Corp on Thursday said it is "pleased" with the performance of a new well in South Harmattan in Alberta, Canada.
The final well of a drilling programme has now been on production for 60 days since being drilled, TransGlobe said, with initial rates "very encouraging". It has now been added to the company's list of producing wells.
Initial production has been 415 barrels of oil equivalent per day, including 379 barrels of light oil.
TransGlobe said the production history of the area is relatively short and not indicative of long-term performance, but it is nevertheless "very encouraged" by the resource potential of the lands it holds at South Harmattan.
The assets are located on the Cardium formation, which runs along the eastern slopes of the Rocky Mountains. Some 10,000 wells have been drilling into the formation since the 1940s.
Following the successful well result, TransGlobe has now updated its 2020 drilling programme which will look to develop and mature the company's Cardium resource.
"TransGlobe has developed a strong asset portfolio, including resource plays in Canada, mature producing fields in Egypt's Eastern Desert, and exploration opportunities in Egypt's Western Desert. This range of opportunities allows us to optimally manage the risk-reward profile of our exploration and development spending, and allocate capital to the projects that will have the most significant impact on shareholder value," said Chief Executive Randy Neely.
"In Canada, we have made a potentially significant discovery of resources in a new, effectively undrilled area, where we already have a significant footprint. These projects will continue to deliver on our strategic focus of building a profitable, growth-oriented international portfolio which can provide increasing and real returns to shareholders."
"In Egypt, we have been making steady progress on the consolidation, amendment and extension of our Eastern Desert production sharing contracts, which, when completed, will provide the foundation for the company to grow production and reserves for years to come," Neely continued.
Shares were untraded in London on Friday, last quoted at 100 pence each.
By George Collard; georgecollard@alliancenews.com
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