NEWS RELEASE TRANSMITTED BY Marketwire
FOR: TRANSGLOBE ENERGY CORPORATION
TransGlobe Energy Corporation Announces Update on Republic of Yemen and Canadian Operations
Sep 23, 2002 - 03 22 ET
CALGARY, ALBERTA--TransGlobe Energy Corporation ("TransGlobe" or
the "Company") (TSX symbol "TGL"; OTC-BB symbol "TGLEF") is
pleased to announce a successful stepout/discovery well at Tasour
#7 on Block 32 and commencement of drilling on Block S-1, in the
Republic of Yemen.
Block 32, Yemen (13.81% working interest)
The Tasour #7 stepout well, which commenced drilling September 4,
2002, has been drilled to total depth and will be cased as a
potential dual zone oil well. The Tasour #7 well encountered the
main Qishn S1A producing zone in a structurally higher position
than the existing producers, thereby extending the field to the
south, in an area that was previously assumed to be below the oil
water contact. In addition to the full oil column in the main
producing zone, the well also discovered a new pool in the sand
below the main zone. This new zone also has an indicated full oil
column. It is expected that the well will be completed and placed
on production during the next two weeks. The main zone in Tasour
#7 is expected to be similar to the adjacent Tasour #6 well which
commenced production at 7,200 Bpd of clean oil. Production from
the new zone would be incremental. Additional appraisal drilling
of 2-3 more wells will be contingent on the production performance
of Tasour #7 and re-mapping the main field extension and new pool
discovery. The results from Tasour # 7 are expected to increase
the recoverable oil reserves for the Tasour Field.
Following the completion of Tasour #7 the drilling rig will be
moved to a non-owned adjacent block for two development wells, as
part of a multi-well rig sharing contract to reduce costs. It is
expected that the drilling rig will be available to the Block 32
Joint Venture group in late December 2002, to drill an exploratory
prospect at Al Ghoraf #1 on the western portion of the Block.
Following Al Ghoraf #1, additional appraisal well(s) may be
drilled at Tasour to evaluate the main pool extension and new pool
discovery at Tasour #7.
Block S-1, Yemen (25.0% working interest)
The exploration well, Osaylan #1, commenced drilling on September
15, 2002 targeting the Alif/Lam prospect and is expected to reach
total depth in mid October. Following the drilling and
completion/testing of Osaylan #1, the rig is scheduled to move to
An Nagyah #2 to evaluate the An Nagyah structure previously
drilled by Shell. An Nagyah #1 had an indicated 57 meters (187
feet) of gas over 8.5 meters (28 feet) of oil in the Lam
formation. The third exploration well will either appraise Osaylan
#1, An Nagyah #2 or test one of several other exploration
prospects identified on the Company's 3-D seismic data base.
At Nevis the Company drilled a 52% working interest well to
evaluate a Leduc reef structure identified on 3-D seismic.
Although the well did not encounter the anticipated full reef
build up, the Leduc will be completed and tested to evaluate the
potential for an additional well test of the structure. Following
the testing of the Leduc, the well will be completed as a gas well
in a shallower horizon.
At Morningside, the Company has drilled and cased an exploratory
shallow gas test (58% working interest) at 6-30. The 6-30 well
will be completed and tested during the next few weeks. The
pipeline tie-in of the 3-28 gas well (100% working interest) was
deferred pending the results of 6-30. The 3-28 well is expected to
contribute an additional 100 Boepd of new production after the
pipeline tie-in is completed, prior to the winter heating season.
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.
TRANSGLOBE ENERGY CORPORATION
David C. Ferguson, Vice President, Finance & C.F.O.
FOR FURTHER INFORMATION PLEASE CONTACT:
TransGlobe Energy Corporation
David C. Ferguson
Vice President & C.F.O.
(403) 264-9898 (FAX)
TransGlobe Energy Corporation
Lloyd W. Herrick
Vice President & C.O.O.
(403) 264-9898 (FAX)