NEWS RELEASE TRANSMITTED BY Marketwire
FOR: TRANSGLOBE ENERGY CORPORATION
TransGlobe Energy Corporation Announces Results of its An Naeem # 2 Exploration Well in the Republic of Yemen
Nov 08, 2000 - 02 05 ET
CALGARY, ALBERTA--TransGlobe Energy Corporation (TSE symbol "TGL";
OTC-BB symbol "TGLEF") announces the results of its An Naeem #2
exploration well on Block S-1, Republic of Yemen.
Block S-1, Republic of Yemen, 25% working interest
Vintage Petroleum Yemen Inc., a 100% subsidiary of Vintage
Petroleum Inc., ("VPI" NYSE) has completed testing An Naeem #2,
the fourth exploration well on Block S-1 in the Republic of Yemen.
The An Naeem #2 was drilled and tested through the targeted Alif
zone to a total depth of 1,424 meters (4,670 feet) to evaluate the
possible existence of an oil rim approximately 50 meters (165
feet) downdip of the An Naeem #1 well drilled earlier this year.
The An Naeem #2 well encountered approximately 36 meters (120
feet) of net pay in the Alif formation. The Alif zone tested at a
combined daily flow rates of 27.7 million cubic feet (Mmcf) of gas
and 880 barrels of condensate.
Although the flow rates associated with the test results are
evidence of the excellent reservoir properties that characterize
the Alif sands, there is currently no commercial market for
natural gas in the Republic of Yemen. The characteristics of the
gas and condensate tested are similar to that in the gas cap at
the Halewah field and those encountered in the An Naeem #1 well.
The nearby Halewah field, which produces from the Alif formation
on the adjacent concession, currently produces 15,000 barrels of
oil per day from an oil rim under a gas cap.
The An Naeem #1 well was drilled earlier this year to evaluate a
possible extension of the Halewah field identified on 3-D seismic
acquired in 1999. The An Naeem #1 well encountered approximately
30.5 meters (100 feet) of net pay in the Alif zone and
approximately 12.2 meters (40 feet) of potential pay in an upper
dolomite section. Testing of the Alif zones revealed combined
daily flow rates of 40 million cubic feet (Mmcf) of gas and 1,020
barrels of condensate. Similarly, the upper dolomite interval
tested daily rates of 7.7 Mmcf of gas and 245 barrels of
The two wells confirm the existence of a significant interval of
hydrocarbon bearing pay in the Alif formation on the An Naeem
structure. A compositional analysis of the hydrocarbons obtained
from the An Naeem #2 well will be integrated into the continuing
technical evaluation of the An Naeem structure to determine the
potential for the existence of an oil rim still further downdip.
A third well in the An Naeem structure may be proposed to target
the potential oil rim. The thicker Alif interval containing more
net pay with no indication of a water contact encountered in An
Naeem #2 provides additional support for drilling a third well.
Currently, the operator plans to test the previously drilled
Fordus well followed by a longer-term production test of the
Harmel #1 well. As previously announced, the Harmel #1 initially
swab tested at a combined rate of 500 barrels of oil per day
(Bopd) of 20 degrees API gravity oil from three shallow zones.
Efforts are underway to move the completion rig used on the An
Naeem #2 well to the Fordus well. Vintage is operator of the
project and has a 75 percent interest in the S-1 Damis Block.
This release includes certain statements that may be deemed to be
"forward-looking statements" within the meaning of the US Private
Securities Litigation Reform Act of 1995. All statements in this
release, other than statements of historical facts, that address
future production, reserve potential, exploration drilling,
exploitation activities and events or developments that the
Company expects are forward-looking statements. Although
TransGlobe believes the expectations expressed in such
forward-looking statements are based on reasonable assumptions,
such statements are not guarantees of future performance and
actual results or developments may differ materially from those in
the forward-looking statements. Factors that could cause actual
results to differ materially from those in forward-looking
statements include oil and gas prices, exploitation and
exploration successes, continued availability of capital and
financing, and general economic, market or business conditions.
On behalf of the Board of Directors of
TRANSGLOBE ENERGY CORPORATION
Ross G. Clarkson,
President & CEO
FOR FURTHER INFORMATION PLEASE CONTACT:
TransGlobe Energy Corporation
Ross G. Clarkson, President & CEO
(403) 264-9898 (FAX)
TransGlobe Energy Corporation
Lloyd Herrick, Vice President & COO