TransGlobe Energy Corporation TransGlobe Announces Update To 2020 Hedge Program (2826J)
09 Abril 2020 - 3:00AM
UK Regulatory
TIDMTGL
RNS Number : 2826J
TransGlobe Energy Corporation
09 April 2020
This Announcement contains inside information as defined in
Article 7 of the Market Abuse Regulation No. 596/2014 ("MAR"). Upon
the publication of this Announcement, this inside information is
now considered to be in the public domain.
TRANSGLOBE ENERGY CORPORATION ANNOUNCES AN
UPDATE TO ITS 2020 HEDGE PROGRAM
AIM & TSX: "TGL" & NASDAQ: "TGA"
Calgary, Alberta, April 9, 2020 - TransGlobe Energy Corporation
("TransGlobe" or the "Company") announces an update to its oil
hedge position for 2020. All dollar values are expressed in US
dollars unless otherwise stated.
HEDGING UPDATE
TransGlobe continues to review its price exposure in the current
crude oil price environment and has entered into additional 2020
hedges to provide further downside protection against a protracted
near-term, low price environment.
The Company entered into costless Dated Brent collars for its
remaining unhedged forecasted 2020 Egypt entitlement oil
production. An additional 800,000 bbls (100,000 bbls monthly from
May-December) have been price-protected with a purchased put of
$30.00 and a sold call of $40.70.
Open Hedge Positions as of April 8, 2020:
Dated Brent Q2'20 Q3'20 Q4'20
---------------------------- ----------- ----- ------
Three Way Collar (Mbbls) 150 150 150
Sold Call ($/bbl) 70.00 70.00 70.00
Bought Put ($/bbl) 54.00 54.00 54.00
Sold Put ($/bbl) 46.50 45.00 45.00
------------------------------------ ----- ----- -------
Three Way Collar (Mbbls) 75
Sold Call ($/bbl) 72.70
Bought Put ($/bbl) 55.00
Sold Put ($/bbl) 45.00
------------------------------------ ----- ----- -------
Collars (Mbbls) 200 300 300
Sold Call ($/bbl) 40.70 40.70 40.70
Bought Put ($/bbl) 30.00 30.00 30.00
Total Hedged Volume (Mbbls) 425 450 450
------------------------------------ ----- ----- -------
Randy Neely, President and Chief Executive Officer,
commented:
"Our decisive action taken at the outset of the OPEC+ production
agreement dissolution and rapid expansion of the economic impacts
of COVID-19, first to reduce 2020 capital by over 80%, followed
swiftly by a 35% reduction in continuing G&A expenses, will
significantly contribute to the near-term financial health of the
Company. We have now continued with these deliberate actions by
conservatively protecting the bottom-most price bounds of our
remaining unhedged production for 2020. While the Company will
continue to seek further efficiencies, this hedging program,
combined with our earlier actions to preserve cash, now allows us
to begin focusing on the recovery beyond 2020 and opportunities
that may lie ahead."
About TransGlobe
TransGlobe Energy Corporation is a cash flow focused oil and gas
exploration and development company whose current activities are
concentrated in the Arab Republic of Egypt and Canada. TransGlobe's
common shares trade on the Toronto Stock Exchange and the AIM
market of the London Stock Exchange under the symbol TGL and on the
NASDAQ Exchange under the symbol TGA.
Advisory on Forward-Looking Information and Statements
Certain statements included in this news release constitute
forward-looking statements or forward-looking information under
applicable securities legislation. Such forward-looking statements
or information are provided for the purpose of providing
information about management's current expectations and plans
relating to the future. Readers are cautioned that reliance on such
information may not be appropriate for other purposes.
Forward-looking statements or information typically contain
statements with words such as "anticipate", "believe", "expect",
"plan", "intend", "estimate", "may", "will", "would" or similar
words suggesting future outcomes or statements regarding an
outlook. In particular, forward-looking information and statements
contained in this document include, but are not limited to ;
production guidance for 2020, expectations relating to the
liquidity of the Company for the next twelve months; and other
matters.
Forward-looking statements or information are based on a number
of factors and assumptions which have been used to develop such
statements and information but which may prove to be incorrect.
Although the Company believes that the expectations reflected in
such forward-looking statements or information are reasonable,
undue reliance should not be placed on forward-looking statements
because the Company can give no assurance that such expectations
will prove to be correct. Many factors could cause TransGlobe's
actual results to differ materially from those expressed or implied
in any forward-looking statements made by, or on behalf of,
TransGlobe.
For further information, please
contact:
TransGlobe Energy Via FTI Consulting
Randy Neely, President and Chief
Executive Officer
Eddie Ok, Chief Financial Officer
Canaccord Genuity (Nomad & Sole
Broker) +44 (0) 20 7523 8000
Henry Fitzgerald-O'Connor
James Asensio
FTI Consulting (Financial PR) +44 (0) 20 3727 1000
Ben Brewerton transglobeenergy@fticonsulting.com
Genevieve Ryan
Tailwind Associates (Investor Relations)
Darren Engels darren@tailwindassociates.ca
http://www.tailwindassociates.ca
+1 403.618.8035
investor.relations@trans-globe.com
http://www.trans-globe.com
+1 403.264.9888
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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