Readers are cautioned that the foregoing list is not exhaustive of all factors and assumptions which have been used. As a consequence, actual results may differ materially from those anticipated in the forward-looking statements. Additional information on these and other factors that could affect the Company's operations and financial results are included in reports on file with Canadian securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com), EDGAR website (www.sec.gov) and at the Company's website (www.trans-globe.com). Furthermore, the forward-looking statements or information contained herein are made as at the date hereof and the Company does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.
The reader is further cautioned that the preparation of financial statements in accordance with IFRS requires management to make certain judgments and estimates that affect the reported amounts of assets, liabilities, revenues and expenses. Estimating reserves is also critical to several accounting estimates and requires judgments and decisions based upon available geological, geophysical, engineering and economic data. These estimates may change, having either a negative or positive effect on net earnings as further information becomes available, and as the economic environment changes.
MANAGEMENT STRATEGY AND OUTLOOK
The 2013 outlook provides information as to management's expectation for results of operations for 2013. Readers are cautioned that the 2013 outlook may not be appropriate for other purposes. The Company's expected results are sensitive to fluctuations in the business environment and may vary accordingly. This outlook contains forward-looking statements that should be read in conjunction with the Company's disclosure under "Forward-Looking Statements", outlined on the first page of this MD&A.
2013 Production Outlook
Production for 2013 is expected to average between 21,000 and 24,000 Bopd. The range is due to a number of variables outside of the Company's control such as government approvals relating to the start of South Alamein production, development drilling results in Egypt and the return to operations of Block S-1 in Yemen.
Production Forecast 2013 Guidance 2012 Actual % Change----------------------------------------------------------------------------Barrels of oil per day 21,000 - 24,000 17,496 20 - 37--------------------------------------------------------------------------------------------------------------------------------------------------------
2013 Funds Flow From Operations Outlook
Funds flow from operations guidance of $161.0 million ($2.13/share), which is based on an annual average Dated Brent oil price of $100/Bbl and using the mid-point of the production guidance.
Funds Flow Forecast($ millions) 2013 Guidance 2012 Actual % Change--------------------------------------------------------------------------------------------------------------------------------------------------------Funds flow from operations 161.0 153.5 5Brent oil price ($ per bbl) 100.00 111.56 (10)--------------------------------------------------------------------------------------------------------------------------------------------------------2013 Capital Budget($ millions) 2013--------------------------------------------------------------------------------------------------------------------------------------------------------Egypt 124.0Yemen 5.0----------------------------------------------------------------------------Total 129.0--------------------------------------------------------------------------------------------------------------------------------------------------------
