YEMEN WEST- Marib Basin
Block S-1, Republic of Yemen (25% working interest)
Operations and Exploration
No wells were drilled during the fourth quarter.
Production
Production sales from Block S-1 averaged 7,748 Bopd (1,937 Bopd to TransGlobe) during the quarter. The reported gross sales production rate represents the amount of oil that was lifted and sold during the quarter. It is expected that sales production rates and the field production rates will vary quarter to quarter depending on the timing of tanker liftings during the respective quarter.
Field production averaged 3,112 Bopd during the quarter (778 Bopd to TransGlobe). Production was shut-in following the shutdown of the Marib export pipeline which was damaged by local tribes on November 11, 2012 and remained shut-in for the balance of the quarter. Prior to the November 11 shut-in, the An Nagyah field produced an average of 6,852 Bopd (1,713 Bopd to TransGlobe) during the month of October.
Production has remained shut-in during January, February and March.
Quarterly Block S-1 Production and Sales (Bopd) 2012---------------------------------------------------------------------------- Q-4 Q-3 Q-2 Q-1----------------------------------------------------------------------------Gross field production rate 3,112 3,860 - -Gross sales production rate 7,748 252 - -TransGlobe working interest 1,937 63 - -TransGlobe net (after royalties) 1,273 41 - -TransGlobe net (after royalties and tax) (i) 1,105 36 - -----------------------------------------------------------------------------(i) Under the terms of the Block S-1 Production Sharing Agreement, royalties and taxes are paid out of the Government's share of production sharing oil.
Block 75, Republic of Yemen (25% working interest)
Operations and Exploration
No wells were drilled during the quarter.
Future drilling has been suspended pending resolution of logistics and security concerns.
READER ADVISORIES
Forward-Looking Statements
Certain statements or information contained herein may constitute forward-looking statements or information under applicable securities laws, including, but not limited to, management's assessment of future plans and operations, anticipated increases to the Company's reserves and production, the possible sale of the Company's assets in Yemen, collection of accounts receivable from the Egyptian Government, drilling plans and the timing thereof, commodity price risk management strategies, adapting to the current political situations in Egypt and Yemen, reserve estimates, management's expectation for results of operations for 2013, including expected 2013 average production, funds flow from operations, the 2013 capital program for exploration and development, the timing and method of financing thereof, method of funding drilling commitments, and commodity prices and expected volatility thereof. Statements relating to "reserves" are deemed to be forward-looking statements, as they involve the implied assessment, based on certain estimates and assumptions, that the reserves described can be profitably produced in the future.
Forward-looking statements or information relate to the Company's future events or performance. All statements other than statements of historical fact may be forward-looking statements or information. Such statements or information are often but not always identified by the use of words such as "seek", "anticipate", "plan", "continue", "estimate", "expect", "may", "will", "project", "predict", "potential", "targeting", "intend", "could", "might", "should", "believe", and similar expressions.
