TIDMTGL
RNS Number : 7275V
TransGlobe Energy Corporation
11 August 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 SECOND QUARTER 2020
FINANCIAL AND OPERATING RESULTS FOR THE THREE AND SIX MONTHSED JUNE
30, 2020
AIM & TSX: "TGL" & NASDAQ: "TGA"
Calgary, Alberta, August 11, 2020 - TransGlobe Energy
Corporation ("TransGlobe" or the "Company") is pleased to announce
its financial and operating results for the three and six months
ended June 30, 2020. All dollar values are expressed in United
States dollars unless otherwise stated. TransGlobe's Condensed
Consolidated Interim Financial Statements together with the notes
related thereto, as well as TransGlobe's Management's Discussion
and Analysis for the three and six months ended June 30, 2020 and
2019, are available on TransGlobe's website at www.trans-globe.com
.
HIGHLIGHTS:
-- TransGlobe is focused on conserving cash to proactively
manage its balance sheet in the current low commodity price
environment. The Company ended the second quarter with positive
working capital of $35.1 million, including cash and cash
equivalents of $34.8 million;
-- Second quarter production averaged 14,300 boe/d (Egypt 11,990
bbls/d, Canada 2,310 boe/d), a decrease of 697 boe/d (5%) from the
previous quarter;
-- Production in July averaged 12,439 boe/d (Egypt 10,145
bbls/d, Canada 2,294 boe/d), a decrease of 13% from Q2-2020, in
line with revised budget expectations due to natural declines;
-- Sales averaged 12,470 boe/d including 312.6 mbbls sold to
EGPC for net proceeds of $7.2 million in Q2-2020. Average realized
price for Q2-20 sales of $21.63/boe; Q2-2020 average realized price
on Egyptian sales of $23.96/bbl and Canadian sales of
$11.01/boe;
-- Full year 2020 production guidance range narrowed to 13,300
to 13,800 boe/d to reflect deferred well interventions in Egypt
(previously 13,300 to 14,300 boe/d);
-- Negative funds flow from operations of $2.8 million ($0.03
per share) in the quarter;
-- Second quarter net loss of $13.4 million ($0.19 per share),
inclusive of a $3.3 million unrealized loss on derivative commodity
contracts;
-- Consistent with the revised 2020 budget previously disclosed,
there has been no drilling activity in Egypt or Canada during
Q2-2020;
-- Business continuity plans remain effective across our
locations in response to COVID-19 with no health and safety impacts
or disruption to production;
-- Hedged TransGlobe's remaining unhedged forecasted 2020 Egypt
entitlement oil production with dated Brent collars (costless),
protecting a floor price of $30.00 purchased puts against $40.70
sold calls ;
-- Despite restrictions on travel, constructive negotiations
with EGPC to amend, extend and consolidate the Company's Eastern
Desert concession agreements continued throughout the quarter;
and
-- TransGlobe continues to actively evaluate M&A
opportunities, with a view to not only better position the Company
to weather the current downturn but also rebound strongly once
commodity prices begin to strengthen.
FINANCIAL AND OPERATING RESULTS
(US$000s, except per share, price, volume amounts and %
change)
Three Months Ended June 30 Six Months Ended June 30
Financial 2020 2019 % Change 2020 2019 % Change
------------------------- ---------- --------- -------- -------- ------- --------
Petroleum and natural
gas sales 24,549 81,123 (70) 104,736 150,340 (30)
Petroleum and natural
gas sales, net of
royalties 11,392 43,071 (74) 64,626 80,423 (20)
Realized derivative
gain (loss) on
commodity contracts 1,977 (707) 380 6,145 (929) 761
Unrealized derivative
(loss) gain on
commodity contracts (3,348) 1,773 (289) 1,028 (3,001) 134
Production and
operating expense 10,406 12,410 (16) 33,663 23,943 41
Selling costs 423 98 332 1,049 573 83
General and
administrative
expense 3,951 3,774 5 5,855 8,641 (32)
Depletion,
depreciation and
amortization expense 5,657 9,245 (39) 17,909 18,011 (1)
Income tax expense 2,445 7,476 (67) 7,030 13,679 (49)
Cash flow generated by
operating activities 24,551 22,125 11 20,878 9,054 131
Funds flow from
operations(1) (2,764) 19,116 (114) 22,918 34,271 (33)
Basic per share (0.03) 0.26 0.32 0.47
Diluted per share (0.03) 0.26 0.32 0.47
Net (loss) earnings (13,367) 10,046 (233) (68,585) 1,240 (5,631)
Basic per share (0.19) 0.14 (0.95) 0.02
Diluted per share (0.19) 0.14 (0.95) 0.02
Capital expenditures 1,229 8,097 (85) 6,806 16,644 (59)
Dividends declared - - - - 2,539 (100)
Dividends declared per
share - - - 0.035
Working capital 35,112 54,078 (35) 35,112 54,078 (35)
Long-term debt,
including current
portion 27,071 48,109 (44) 27,071 48,109 (44)
Common shares
outstanding
Basic (weighted
average) 72,542 72,542 - 72,542 72,485 -
Diluted (weighted
average) 72,542 72,548 - 72,542 72,629 -
Total assets 221,347 315,999 (30) 221,347 315,999 (30)
-------------------------- --------- --------- -------- -------- ------- --------
Operating
------------------------- --------- --------- -------- -------- ------- --------
Average production
volumes (boe/d) 14,300 16,940 (16) 14,648 16,436 (11)
Average sales volumes
(boe/d) 12,470 15,973 (22) 17,702 15,513 14
Inventory (mbbls) 408.7 735.0 (44) 408.7 735.0 (44)
Average realized sales
price ($/boe) 21.63 55.81 (61) 32.51 53.54 (39)
Production and
operating expenses
($/boe) 9.17 8.54 7 10.45 8.53 23
-------------------------- --------- --------- -------- -------- ------- --------
(1) Funds flow from operations (before finance costs) is a
measure that represents cash generated from operating activities
before changes in non-cash working capital and may not be
comparable to measures used by other companies. See "Non-GAAP
Financial Measures"
2020 2019
---------------------------------------------- ------------- -------------------
Average reference prices and exchange rates Q-2 Q-1 Q-4 Q-3 Q-2
---------------------------------------------- ------ ----- ----- ----- -----
Crude oil
Dated Brent average oil price ($/bbl) 29.34 50.44 63.41 61.93 68.92
Edmonton Sweet index ($/bbl) 21.71 38.59 51.56 51.76 55.17
Natural gas
AECO ($/mmbtu) 1.41 1.43 1.88 1.04 0.89
US/Canadian Dollar average exchange rate 1.39 1.35 1.32 1.32 1.34
------------------------------------------------ ----- ----- ----- ----- -----
CORPORATE SUMMARY
TransGlobe Energy Corporation ("TransGlobe" or the "Company")
produced an average of 14,300 barrels of oil equivalent per day
("boe/d") during the second quarter of 2020. Egypt production was
11,990 barrels of oil per day ("bbls/d") and Canada production was
2,310 boe/d. While production for the quarter was at the upper end
of full year 2020 guidance of between 13,300 to 14,300 boe/d and 5%
lower than the previous quarter, primarily due to natural declines,
the Company has narrowed its full year 2020 guidance to 13,300 to
13,800 boe/d to reflect deferred well interventions in Egypt during
low oil prices.
TransGlobe's Egyptian crude oil is sold at a quality discount to
Dated Brent. The Company received an average price of $23.96 per
barrel in Egypt during the quarter. In Canada, the Company received
an average of $14.32 per barrel of oil, $11.43 per barrel of NGL
and $1.31 per thousand cubic feet ("mcf") of natural gas during the
quarter.
During Q2-2020, the Company had negative funds flow from
operations of $2.8 million and ended the quarter with positive
working capital of $35.1 million, including cash and cash
equivalents of $34.8 million. The Company had a net loss in the
quarter of $13.4 million, inclusive of a $3.3 million unrealized
derivative loss on commodity contracts which represents a fair
value adjustment on the Company's hedging contracts as at June 30,
2020.
In Egypt, the Company sold 312.6 mbbls to EGPC during the
quarter, and had 402.4 mbbls of entitlement crude oil inventory at
June 30, 2020. In Canada, the Company put spare oil storage
capacity into service of 12,000 bbls at its Canadian producing
locations during the quarter to take advantage of strength in the
forward pricing curve and has retained optionality to bring on
flush production in a higher commodity price environment with the
deferral of completion operations on the South Harmattan well
drilled in the first quarter of 2020. The Company ended the quarter
with 6.3 mbbls of Canadian light crude oil inventory.
Consistent with the Company's revised 2020 budget, there has
been no drilling activity in Egypt or Canada during the second
quarter.
Despite restrictions on travel, constructive negotiations with
EGPC to amend, extend and consolidate the Company's Eastern Desert
concession agreements continued through the quarter. With both
parties recognizing the attractiveness of a revised agreement to
stabilize and ultimately improve investment in production,
following a return to a more sustainable commodity price
environment, the Company is increasingly confident that a
successful conclusion will be reached in the near-term.
The Company remains forward looking and prepared to use its
operational control to take advantage of any sustained upward
movement in oil price. TransGlobe continues to be vigilant in its
search for attractive M&A opportunities while steadfastly
retaining its focus on shareholder value creation.
Crisis Mitigation Measures
TransGlobe is focused on conserving cash to proactively manage
its balance sheet in the current low commodity price environment.
The Company has successfully implemented the previously announced
80% reduction in the 2020 capital program and continues to monitor
general and administrative ("G&A") cost reductions. The Company
estimates that G&A reductions will reduce go-forward monthly
G&A by approximately 35%, however, the Company incurred
non-recurring restructuring charges that impacted Q2-2020
results.
Material operating cost reductions in Egypt require the
assistance of the Company's Egyptian joint venture partner, the
Egyptian General Petroleum Corporation ("EGPC"). Discussions
continue to further reduce operating expenditures.
The Company remains in constant communication with its lenders
(Mercuria Energy Trading SA and ATB Financial) and does not
anticipate deviating from its pre-crisis planned debt reduction
schedule. The Company repaid $10.0 million on the $75.0 million
prepayment facility agreement with Mercuria in April 2020, leaving
$20.0 million drawn and outstanding of a revolving balance of up to
$75.0 million.
Business continuity plans have been implemented in all our
locations and operations continue as normal. The Company has had
three reported cases of COVID-19 in its joint venture in Egypt,
which were managed according to established Company, local and
national quarantine guidelines. All three have recovered and
returned to work with no onward infection spread reported.
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 that maintain and
increase production and reserves, to acquire strategic oil and gas
assets and to repay current liabilities and debt and ultimately to
provide a return to shareholders . TransGlobe's capital programs
are funded by its existing working capital and cash provided from
operating activities. The Company's cash flow from operations
varies significantly from quarter to quarter depending on the
timing of oil sales from cargoes lifted in Egypt , and these
fluctuations in cash flow impact the Company's liquidity.
TransGlobe's management will continue to steward capital and focus
on cost reductions in order to maintain balance sheet strength
through the current volatile oil price environment.
Funding for the Company's capital expenditures is provided by
cash flow from operations and cash on hand. The Company expects to
fund its revised 2020 exploration and development program through
the use of working capital and cash flow from operations. The
Company also expects to pay down debt and explore business
development opportunities with its working capital. Fluctuations in
commodity prices, product demand, foreign exchange rates, interest
rates and various other risks may impact capital resources and
capital expenditures.
Working capital is the amount by which current assets exceed
current liabilities. As at June 30, 2020, the Company had a working
capital surplus of $35.1 million (December 31, 2019 - $32.2
million). The increase in working capital is primarily due to an
increase in cash resulting from cash collections on accounts
receivable in the period and an increase in accounts receivable due
to increased sales to EGPC in 2020, partially offset by a
corresponding decrease in crude oil inventory.
As at June 30, 2020, the Company's cash equivalents balance
consisted of short-term deposits with an original term to maturity
at purchase of one month or less. All of the Company's cash and
cash equivalents are on deposit with high credit-quality financial
institutions.
Over the past 10 years, the Company has experienced delays in
the collection of accounts receivable from EGPC. The length of
delay peaked in 2013, returned to historical delays of up to six
months in 2017, and has since fluctuated within an acceptable range
. As at June 30, 2020, amounts owing from EGPC were $14.7 million.
The Company considers there to be minimal credit risk associated
with amounts receivable from EGPC.
In Egypt, the Company sold 312.6 mbbls of crude oil to EGPC in
Q2-2020 for net proceeds of $7.2 million. During the second quarter
of 2020, the Company collected $21.7 million of accounts receivable
from EGPC, an additional $2.0 million has been collected subsequent
to the quarter. The Company incurs a 30-day collection cycle on
sales to third-party international buyers. Depending on the
Company's assessment of the credit of crude oil purchasers, they
may be required to post irrevocable letters of credit to support
the sales prior to the cargo lifting. As at June 30, 2020, crude
oil held as inventory was 408.7 mbbls.
As at June 30, 2020, the Company had $86.0 million of revolving
credit facilities with $27.4 million drawn and $58.6 million
available. The Company has a prepayment agreement with Mercuria
that allows for a revolving balance of up to $75.0 million, of
which $20.0 million was drawn and outstanding as at June 30, 2020.
During the six months ended June 30, 2020, the Company repaid $10.0
million on this prepayment facility. The Company also has a
revolving Canadian reserves-based lending facility with ATB that
was renewed and reduced as at June 30, 2020 from C$25.0 million
($18.4 million) to C$15.0 million ($11.0 million), of which C$10.0
million ($7.4 million) was drawn and outstanding. The reduction in
the ATB facility is a result of lower forecasted commodity prices
and the associated impact on asset value. During the six months
ended June 30, 2020, the Company had drawings of C$0.2 million
($0.2 million) on this facility.
OPERATIONS UPDATE
ARAB REPUBLIC OF EGYPT
EASTERN DESERT
West Gharib, West Bakr, and North West Gharib (100% working
interest, operated)
Operations and Exploration
Consistent with the Company's revised 2020 budget, there has
been no drilling activity in the Eastern Desert during Q2 2020.
Production
Production averaged 11,757 bbls/d during the quarter, a decrease
of 5% (586 bbls/d) from the previous quarter. This marginal
decrease was primarily due to natural declines, with June
production positively impacted by successful well maintenance in
May and timing of production recognition. To reflect well
intervention deferrals since May, production guidance, including
South Ghazalat, has been narrowed for full year 2020 and is now
11,200 to 11,600 bbls/d.
Production in July 2020 averaged 9,956 bbls/d.
Sales
The Company sold 304.6 mbbls of inventoried entitlement crude
oil to EGPC during the quarter.
Quarterly Eastern Desert Production (bbls/d) 2020 2019
-------------------------------------------------- ----------------
Q-2 Q-1 Q-4 Q-3
-------------------------------------------------- ------- ------ ------ ------
Gross production rate(1) 11,757 12,343 12,831 13,750
TransGlobe production (inventoried) sold (1,761) 7,937 (674) (1,821)
--------------------------------------------------- ------ ------ ------ ------
Total sales 9,996 20,280 12,157 11,929
--------------------------------------------------- ------ ------ ------ ------
Government share (royalties and tax) 6,648 6,977 7,250 7,795
TransGlobe sales (after royalties and tax)(2) 3,348 13,303 4,907 4,134
--------------------------------------------------- ------ ------ ------ ------
Total sales 9,996 20,280 12,157 11,929
--------------------------------------------------- ------ ------ ------ ------
(1) Quarterly production by concession (bbls/d):
West Gharib - 3,453 (Q2-2020), 3,664 (Q1-2020), 3,857 (Q4-2019),
and 4,003 (Q3-2019)
West Bakr - 7,935 (Q2-2020), 8,277 (Q1-2020), 8,489 (Q4-2019),
and 8,978 (Q3-2019)
North West Gharib - 369 (Q2-2020), 402 (Q1-2020), 485 (Q4-2019),
and 769 (Q3-2019)
(2) Under the terms of the Production Sharing Concession
Agreements, royalties and taxes are paid out of the government's
share of production sharing oil.
WESTERN DESERT
South Ghazalat (100% working interest, operated)
Operations and Exploration
The SGZ-6x well continues to produce from the Upper Bahariya
reservoir at a rate restricted to a field estimated 150- 200 bbls/d
light and medium crude to evaluate the well, manage the reservoir
and optimize the separation of oil, gas and water.
Production
Production averaged 233 bbls/d during the quarter, an increase
of 15% (31 bbls/d) from the previous quarter.
Production in July 2020 averaged 189 bbls/d.
Sales
The Company sold all of its entitlement crude oil production of
8.0 mbbls in the quarter to EGPC.
CANADA
Operations and Exploration
Consistent with the Company's revised 2020 budget, there has
been no drilling or completion activity during Q2 2020.
The 2-mile horizontal 2-20 well, completed in Q4-2019 and
de-risking the South Harmattan fairway, produced at field estimated
rates of 140 boe/d (95 bbls/d light oil, 171 mcf/d gas, 17 bbls/d
NGL) in July. The Company remains encouraged as the well continues
to produce above expectations for this significant new resource
play. The 2-20 well has de-risked 18.5 sections of land in the
fairway representing 72 1-mile equivalent locations.
TransGlobe's light oil production continued to be produced at a
positive field netback, despite lower crude oil prices in Western
Canada early in the quarter, further supported by continued
relatively strong natural gas prices. The Company put spare oil
storage capacity into service of 12,000 bbls at our Canadian
producing locations during the quarter to take advantage of
strength in the forward pricing curve and has retained optionality
to bring on flush production in a higher commodity price
environment with the deferral of completion operations on the South
Harmattan well drilled in the first quarter of 2020.
Production
In Canada, production averaged 2,310 boe/d during the quarter, a
decrease of 143 boe/d (6%) from the previous quarter. This marginal
decrease was primarily due to natural declines. Production guidance
has been narrowed for full year 2020 and is now 2,100 to 2,200
boe/d.
Ending light crude oil inventory in Canada was 6.3 mbbls at June
30, 2020.
Production in July 2020 averaged 2,294 boe/d with 667 bbls/d of
oil.
Quarterly Canada Production 2020 2019
------------------------------- -------------
Q-2 Q-1 Q-4 Q-3
------------------------------- ------ ----- ----- -----
Canada crude oil (bbls/d) 706 860 908 666
Canada NGLs (bbls/d) 826 761 735 585
Canada natural gas (mcf/d) 4,665 4,996 5,331 5,652
-------------------------------- ----- ----- ----- -----
Total production (boe/d) 2,310 2,453 2,531 2,193
-------------------------------- ----- ----- ----- -----
Condensed Consolidated Interim Statements of (Loss) Income and
Comprehensive (Loss) Income
(Unaudited - Expressed in thousands of U.S. Dollars, except per
share amounts)
Three Months Ended June 30 Six Months Ended June 30
2020 2019 2020 2019
----------------------- --------------- ----------- ------------- ----------
REVENUE
Petroleum and natural gas
sales, net of royalties 11,392 43,071 64,626 80,423
Finance revenue 34 133 92 316
Other revenue 222 - 222 -
-------------------------- -------------- ----------- ------------- ----------
11,648 43,204 64,940 80,739
----------------------- -------------- ----------- ------------- ----------
EXPENSES
Production and operating 10,406 12,410 33,663 23,943
Selling costs 423 98 1,049 573
General and administrative 3,951 3,774 5,855 8,641
Foreign exchange loss 113 32 165 (55)
Finance costs 589 1,140 1,404 2,281
Depletion, depreciation
and amortization 5,657 9,245 17,909 18,011
Asset retirement
obligation accretion 60 49 128 105
Loss (gain) on financial
instruments 1,371 (1,066) (7,173) 3,930
Impairment loss - - 73,495 8,391
-------------------------- -------------- ----------- ------------- ----------
22,570 25,682 126,495 65,820
----------------------- -------------- ----------- ------------- ----------
(Loss) Earnings before
income taxes (10,922) 17,522 (61,555) 14,919
Income tax expense -
current 2,445 7,476 7,030 13,679
------------------------ -------------- ----------- ------------- ----------
NET (LOSS) EARNINGS (13,367) 10,046 (68,585) 1,240
------------------------ -------------- ----------- ------------- ----------
OTHER COMPREHENSIVE
INCOME (LOSS)
Currency translation
adjustments 2,247 1,119 (2,559) 1,660
-------------------------- -------------- ----------- ------------- ----------
COMPREHENSIVE (LOSS)
INCOME (11,120) 11,165 (71,144) 2,900
------------------------ -------------- ----------- ------------- ----------
Net (loss) earnings per
share
Basic (0.19) 0.14 (0.95) 0.02
Diluted (0.19) 0.14 (0.95) 0.02
-------------------------- -------------- ----------- ------------- ----------
Condensed Consolidated Interim Balance Sheets
(Unaudited - Expressed in thousands of U.S. Dollars)
As at As at
June 30, 2020 December 31, 2019
---------------------------------------------- -------------- -----------------
ASSETS
Current
Cash and cash equivalents 34,837 33,251
Accounts receivable 19,189 10,681
Derivative commodity contracts 810 -
Prepaids and other 4,313 4,338
Product inventory 9,518 17,516
------------------------------------------------- ------------- -----------------
68,667 65,786
Non-Current
Intangible exploration and evaluation assets 584 33,706
Property and equipment
Petroleum and natural gas assets 144,520 196,150
Other 3,554 4,296
Deferred taxes 4,022 8,387
------------------------------------------------- ------------- -----------------
221,347 308,325
----------------------------------------------- ------------- -----------------
LIABILITIES
Current
Accounts payable and accrued liabilities 32,630 32,156
Derivative commodity contracts - 217
Current portion of lease obligations 925 1,219
------------------------------------------------- ------------- -----------------
33,555 33,592
Non-Current
Long-term debt 27,071 37,041
Asset retirement obligations 12,555 13,612
Other long-term liabilities 146 614
Lease obligations 407 589
Deferred taxes 4,022 8,387
------------------------------------------------- ------------- -----------------
77,756 93,835
----------------------------------------------- ------------- -----------------
SHAREHOLDERS' EQUITY
Share capital 152,805 152,805
Accumulated other comprehensive (loss) income (1,425) 1,134
Contributed surplus 24,918 24,673
(Deficit) Retained earnings (32,707) 35,878
------------------------------------------------- ------------- -----------------
143,591 214,490
----------------------------------------------- ------------- -----------------
221,347 308,325
----------------------------------------------- ------------- -----------------
Condensed Consolidated Interim Statements of Changes in
Shareholders' Equity
(Unaudited - Expressed in thousands of U.S. Dollars)
Six Months Ended June 30
2020 2019
--------------------------------------------------------- ------------- -----------
Share Capital
Balance, beginning of period 152,805 152,084
Stock options exercised - 547
Transfer from contributed surplus on exercise of options - 174
------------------------------------------------------------ ------------ -----------
Balance, end of period 152,805 152,805
------------------------------------------------------------ ------------ -----------
Accumulated Other Comprehensive (Loss) Income
Balance, beginning of period 1,134 (939)
Currency translation adjustment (2,559) 1,660
------------------------------------------------------------ ------------ -----------
Balance, end of period (1,425) 721
------------------------------------------------------------ ------------ -----------
Contributed Surplus
Balance, beginning of period 24,673 24,195
Share-based compensation expense 245 337
Transfer to share capital on exercise of options - (174)
------------------------------------------------------------ ------------ -----------
Balance, end of period 24,918 24,358
------------------------------------------------------------ ------------ -----------
(Deficit) Retained Earnings
Balance, beginning of period 35,878 44,951
Net (loss) earnings (68,585) 1,240
Dividends - (2,539)
------------------------------------------------------------ ------------ -----------
Balance, end of period (32,707) 43,652
------------------------------------------------------------ ------------ -----------
Condensed Consolidated Interim Statements of Cash Flows
(Unaudited - Expressed in thousands of US Dollars)
Three Months Ended June 30 Six Months Ended June 30
2020 2019 2020 2019
-------------------- --------------- ----------- ------------ -----------
OPERATING
Net (loss) earnings (13,367) 10,046 (68,585) 1,240
Adjustments for:
Depletion, depreciation
and amortization 5,657 9,245 17,909 18,011
Asset retirement
obligation accretion 60 49 128 105
Impairment loss - - 73,495 8,391
Share-based
compensation 884 428 (417) 1,343
Finance costs 589 1,140 1,404 2,281
Unrealized loss (gain)
on financial
instruments 3,348 (1,773) (1,028) 3,001
Unrealized loss (gain)
on foreign currency
translation 65 (18) 32 (70)
Asset retirement
obligations settled - (1) (20) (31)
Changes in non-cash
working capital 27,315 3,009 (2,040) (25,217)
--------------------- -------------- ----------- ------------ -----------
Net cash generated by
operating activities 24,551 22,125 20,878 9,054
---------------------- -------------- ----------- ------------ -----------
INVESTING
Additions to
intangible
exploration and
evaluation assets (7) (788) (337) (788)
Additions to
petroleum and
natural gas assets (1,161) (6,877) (6,322) (15,424)
Additions to other
assets (61) (432) (147) (432)
Changes in non-cash
working capital (1,594) (834) (662) (301)
--------------------- -------------- ----------- ------------ -----------
Net cash used in
investing activities (2,823) (8,931) (7,468) (16,945)
---------------------- -------------- ----------- ------------ -----------
FINANCING
Issue of common
shares for cash - - - 547
Interest paid (512) (986) (1,130) (1,981)
Increase in long-term
debt 72 135 168 256
Payments on lease
obligations (381) (491) (775) (890)
Repayments of
long-term debt (10,000) - (10,000) (5,000)
Dividends paid - (2,539) - (2,539)
Changes in non-cash
working capital - - - (200)
--------------------- -------------- ----------- ------------ -----------
Net cash used in
financing activities (10,821) (3,881) (11,737) (9,807)
---------------------- -------------- ----------- ------------ -----------
Currency translation
differences relating
to cash and cash
equivalents 100 77 (87) 118
---------------------- -------------- ----------- ------------ -----------
NET INCREASE
(DECREASE) IN CASH
AND CASH EQUIVALENTS 11,007 9,390 1,586 (17,580)
CASH AND CASH
EQUIVALENTS,
BEGINNING OF PERIOD 23,830 24,735 33,251 51,705
---------------------- -------------- ----------- ------------ -----------
CASH AND CASH
EQUIVALENTS, OF
PERIOD 34,837 34,125 34,837 34,125
---------------------- -------------- ----------- ------------ -----------
Advisory on Forward-Looking 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, the
plans for the Company's 2020 Canadian drilling program and the
details thereof; the Company's expectation relating to the
performance of the South Harmattan Cardium prospect; and the
expected benefits to the Company of consolidating, amending and
extending the Company's Eastern Desert PSCs 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.
In addition to other factors and assumptions which may be
identified in this news release, assumptions have been made
regarding, among other things, anticipated production volumes; the
timing of drilling wells and mobilizing drilling rigs; the number
of wells to be drilled; the Company's ability to obtain qualified
staff and equipment in a timely and cost-efficient manner; the
regulatory framework governing royalties, taxes and environmental
matters in the jurisdictions in which the Company conducts and will
conduct its business; future capital expenditures to be made by the
Company; future sources of funding for the Company's capital
programs; geological and engineering estimates in respect of the
Company's reserves and resources; the geography of the areas in
which the Company is conducting exploration and development
activities; current commodity prices and royalty regimes;
availability of skilled labour; future exchange rates; the price of
oil; the impact of increasing competition; conditions in general
economic and financial markets; availability of drilling and
related equipment; effects of regulation by governmental agencies;
future operating costs; uninterrupted access to areas of
TransGlobe's operations and infrastructure; recoverability of
reserves and future production rates; that TransGlobe will have
sufficient cash flow, debt or equity sources or other financial
resources required to fund its capital
and operating expenditures and requirements as needed; that
TransGlobe's conduct and results of operations will be consistent
with its expectations; that TransGlobe will have the ability to
develop its properties in the manner currently contemplated;
current or, where applicable, proposed industry conditions, laws
and regulations will continue in effect or as anticipated as
described herein; that the estimates of TransGlobe's reserves and
resource volumes and the assumptions related thereto (including
commodity prices and development costs) are accurate in all
material respects; and other matters.
Forward-looking statements or information are based on current
expectations, estimates and projections that involve a number of
risks and uncertainties which could cause actual results to differ
materially from those anticipated by the Company and described in
the forward-looking statements or information. These risks and
uncertainties which may cause actual results to differ materially
from the forward-looking statements or information include, among
other things, operating and/or drilling costs are higher than
anticipated; unforeseen changes in the rate of production from
TransGlobe's oil and gas properties; changes in price of crude oil
and natural gas; adverse technical factors associated with
exploration, development, production or transportation of
TransGlobe's crude oil reserves; the potential impacts of COVID-19
to the Company's business, operating results, cash flows and/or
financial condition; changes or disruptions in the political or
fiscal regimes in TransGlobe's areas of activity; changes in tax,
energy or other laws or regulations; changes in significant capital
expenditures; delays or disruptions in production due to shortages
of skilled manpower equipment or materials; economic fluctuations;
competition; lack of availability of qualified personnel; the
results of exploration and development drilling and related
activities; obtaining required approvals of regulatory authorities;
volatility in market prices for oil; fluctuations in foreign
exchange or interest rates; environmental risks; ability to access
sufficient capital from internal and external sources; failure to
negotiate the terms of contracts with counterparties; failure of
counterparties to perform under the terms of their contracts; and
other factors beyond the Company's control. Readers are cautioned
that the foregoing list of factors is not exhaustive. Please
consult TransGlobe's public filings at www.sedar.com and
www.sec.goedgar.shtml for further, more detailed information
concerning these matters, including additional risks related to
TransGlobe's business.
The forward-looking statements or information contained in this
news release are made as of the date hereof and the Company
undertakes no obligation to update publicly or revise any
forward-looking statements or information, whether as a result of
new information, future events or otherwise unless required by
applicable securities laws. The forward-looking statements or
information contained in this news release are expressly qualified
by this cautionary statement.
Oil and Gas Advisories
Mr. Ron Hornseth, B.Sc., General Manager - Canada for TransGlobe
Energy Corporation, and a qualified person as defined in the
Guidance Note for Mining, Oil and Gas Companies, June 2009, of the
London Stock Exchange, has reviewed and approved the technical
information contained in this report. Mr. Hornseth is a
professional engineer who obtained a Bachelor of Science in
Mechanical Engineering from the University of Alberta. He is a
member of the Association of Professional Engineers and
Geoscientists of Alberta ("APEGA") and the Society of Petroleum
Engineers ("SPE") and has over 20 years' experience in oil and
gas.
BOEs may be misleading, particularly if used in isolation. A BOE
conversion ratio of six thousand cubic feet of natural gas to one
barrel of oil equivalent (6 mcf: 1 bbl) is based on an energy
equivalency conversion method primarily applicable at the burner
tip and does not represent a value equivalency at the wellhead.
Given that the value ratio based on the current price of crude oil
as compared to natural gas is significantly different from the
energy equivalency of 6:1, utilizing a conversion on a 6:1 basis
may be misleading as an indication of value.
The following abbreviations used in this press release have the
meanings set forth below:
bbl barrels
bbls/d barrels per day
mbbls thousand barrels
boe barrel of oil equivalent
boe/d barrels of oil equivalent per day
mmbtu One million British thermal units
mcf thousand cubic feet
mcf/d thousand cubic feet per day
NGL Natural Gas Liquids
Production Disclosure
Production Summary (WI before royalties and taxes):
July Q2 - 20 Q1 - Q4 - Q3 -
- 20 20 19 19
------- -------- ------- ------- -------
Egypt (bbls/d) 10,145 11,990 12,544 12,831 13,750
------- -------- ------- ------- -------
Eastern Desert of Egypt (bbls/d) 9,956 11,757 12,343 12,831 13,750
------- -------- ------- ------- -------
Heavy Crude (bbls/d) 9,327 11,001 11,548 11,984 12,909
------- -------- ------- ------- -------
Light and Medium Crude (bbls/d) 629 756 795 847 841
------- -------- ------- ------- -------
Western Desert of Egypt (bbls/d) 189 233 201 - -
------- -------- ------- ------- -------
Light and Medium Crude (bbls/d) 189 233 201 - -
------- -------- ------- ------- -------
Canada (boe/d) 2,294 2,310 2,453 2,531 2,193
------- -------- ------- ------- -------
Light and Medium Crude (bbls/d) 667 706 860 908 666
------- -------- ------- ------- -------
Natural Gas (mcf/d) 4,542 4,665 4,996 5,334 5,652
------- -------- ------- ------- -------
Associated Natural Gas Liquids
(bbls/d) 870 826 761 735 585
------- -------- ------- ------- -------
Total (boe/d) 12,439 14,300 14,997 15,362 15,943
------- -------- ------- ------- -------
Production Guidance
Low High Mid-Point
------- ------- ----------
Egypt (bbls/d) 11,200 11,600 11,400
------- ------- ----------
Heavy Crude (bbls/d) 10,304 10,672 10,488
------- ------- ----------
Light and Medium Crude (bbls/d) 896 928 912
------- ------- ----------
Canada (boe/d) 2,100 2,200 2,150
------- ------- ----------
Light and Medium Crude (bbls/d) 646 677 661
------- ------- ----------
Natural Gas (mcf/d) 4,294 4,499 4,397
------- ------- ----------
Associated Natural Gas Liquids
(bbls/d) 738 774 756
------- ------- ----------
Total (boe/d) 13,300 13,800 13,550
------- ------- ----------
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
IR SFFSSFESSEEA
(END) Dow Jones Newswires
August 11, 2020 02:00 ET (06:00 GMT)
Transglobe Energy (LSE:TGL)
Gráfico Histórico do Ativo
De Jan 2025 até Fev 2025
Transglobe Energy (LSE:TGL)
Gráfico Histórico do Ativo
De Fev 2024 até Fev 2025
