In Egypt, total capital expenditures in 2013 were $17.7 million (2012 - $4.4 million). During Q1-2013, the Company drilled five wells in West Gharib (four oil wells at Arta and one dry hole at East Arta). The Company also drilled four oil wells at West Bakr and two dry holes at South Mariut. Capital expenditures in Q1-2013 are behind plan primarily due to delays in the South Alamein drilling program.
OUTSTANDING SHARE DATA
As at March 31, 2013, the Company had 73,872,738 common shares issued and outstanding and 7,068,901 stock options issued and outstanding, which are exercisable in accordance with their terms into a maximum of 7,068,901 common shares of the Company.
LIQUIDITY AND CAPITAL RESOURCES
Liquidity describes a company's ability to access cash. Companies operating in the upstream oil and gas industry require sufficient cash in order to fund capital programs necessary to maintain and increase production and reserves, to acquire strategic oil and gas assets and to repay debt. TransGlobe's capital programs are funded principally by cash provided from operating activities. A key measure that TransGlobe uses to evaluate the Company's overall financial strength is debt-to-funds flow from operations (calculated on a 12-month trailing basis). TransGlobe's debt-to-funds flow from operations ratio, a key short-term leverage measure, remained strong at 0.7 times at March 31, 2013 (December 31, 2012 - 0.8). This was within the Company's target range of no more than 2.0 times.
The following table illustrates TransGlobe's sources and uses of cash during the periods ended March 31, 2013 and 2012:
Sources and Uses of Cash Three months ended March 31----------------------------------------------------------------------------($000s) 2013 2012--------------------------------------------------------------------------------------------------------------------------------------------------------Cash sourced Funds flow from operations(i) 36,005 36,088 Issue of convertible debentures - 97,851 Exercise of options 396 268 Other - 507---------------------------------------------------------------------------- 36,401 134,714Cash used Capital expenditures 18,193 4,472 Deferred financing costs 50 - Transfer to restricted cash 1 1 Finance costs 3,373 5,196 Other 580 164---------------------------------------------------------------------------- 22,197 9,833---------------------------------------------------------------------------- 14,204 124,881Changes in non-cash working capital 15,002 (41,452)----------------------------------------------------------------------------Increase (decrease) in cash and cash equivalents 29,206 83,429Cash and cash equivalents - beginning of period 82,974 43,884----------------------------------------------------------------------------Cash and cash equivalents - end of period 112,180 127,313--------------------------------------------------------------------------------------------------------------------------------------------------------(i) Funds flow from operations is a measure that represents cash generated from operating activities before changes in non-cash working capital, and may not be comparable to measures used by other companies.
