In M field a successful appraisal/exploration well was drilled which encountered the main Asl A zone and three additional Asl oil zones (new pools) below the main zone. In total, the well encountered approximately 233 feet of net oil pay over the four zones. The well is currently completed in the Asl D (the lower most zone) and was placed on production this week at an initial pumping rate of approximately 700 Bopd.
It is expected that the drilling rig will continue working in West Bakr throughout 2013.
Production averaged approximately 4,692 Bopd in April, 4,817 Bopd in May and 4,820 Bopd to date in June.
East Ghazalat Block, Arab Republic of Egypt (50% working interest)
Operations and Exploration
To date, the Company has participated in two Safwa development wells and one exploration well (South Safwa 1X) this quarter resulting in two oil wells and one dry hole respectively. A second exploration well is currently drilling at North Dabaa 1X.
The two development wells (Safwa 3 and Sabbar 2) were drilled and completed as pumping Upper Bahariya oil wells. Safwa 3 was poorly developed and initially produced approximately 25 to 30 Bopd. The Sabbar 2 well was placed on pump this week with an initial pumping rate of approximately 350 Bopd.
The Safwa South-1X exploration well targeting stacked zones in the Cretaceous and Jurassic was drilled to a total depth of 11,150 feet. The well was abandoned as the target formations were not hydrocarbon bearing.
The second exploration well (North Dabaa 1X) is currently drilling with a planned total depth of approximately 13,500 feet. As disclosed in the January 11, 2013 press release, the North Dabaa 1X prospect was independently evaluated as of December 31, 2012 by DeGolyer and MacNaughton Canada Limited "DMCL". The North Dabaa -1X well is targeting an un-risked Mean Gross Prospective Resource volume of 3.0 million barrels.
Production from East Ghazalat averaged 423 Bopd to TransGlobe in April, 390 Bopd in May and approximately 380 Bopd to date in June. With the addition of Sabbar 2, current production is in the 900 Bopd range (450 Bopd to TransGlobe).
South Alamein, Arab Republic of Egypt (100% working interest, operated)
Operations and Exploration
The Company approved a budget for 2013 which included an initial eight-well drilling program and the development of the Boraq 2 oil discovery. The 2013 drilling program includes two Boraq appraisal wells with the balance of the program focused on exploration prospects in South Alamein.
The Company has been working closely with EGPC and the Ministry of Oil since early 2012, to obtain military surface access approvals in the South Alamein concession. In early June, the Company received military approval for two exploration wells. The Company is cautiously optimistic that additional approvals will be forthcoming which will allow the start of an exploration drilling and development program in South Alamein.
To date, the Company has received military approvals for the West Manar and Taef exploration prospects which are targeting an estimated 11 million barrels and 25 million barrels of P mean Un-risked prospective resources respectively. The estimated prospective resources were independently evaluated as of December 31, 2012 by DMCL disclosed in the January 11, 2013 press release.
Concurrently the Company is discussing a potential Development lease with EGPC for the Boraq discovery which would facilitate early production from Boraq when military access approval is received. Originally the Company had budgeted for a Q4-2013 startup of production from Boraq (approximately 1,800 Bopd) with an average production rate of 460 Bopd for 2013. First oil from Boraq has been deferred to 2014 primarily due to delayed military approvals.
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