TransGlobe Energy Corporation Mid-Quarter Update for Q2 2013 and Revised 2013 Guidance

TransGlobe Energy Corporation Mid-Quarter Update for Q2 2013 and Revised 2013 
CALGARY, ALBERTA -- (Marketwired) -- 06/20/13 -- TransGlobe Energy
Corporation ("TransGlobe" or the "Company") (TSX:TGL) (NASDAQ:TGA) is
pleased to provide a mid-quarter update for the second quarter of
2013 and revised Guidance for 2013. All dollar values are expressed
in United States dollars unless otherwise stated. 

--  Q2 drilled 14 wells resulting in 12 oil wells and 2 dry holes (86%
--  Two new pools discovered at West Bakr 
--  2013 YTD drilled 24 wells resulting in 20 oil wells and 4 dry holes (83%
--  Portion of 2013 planned production ramp up delayed to 2014 due to delays
    outside the Company's control 
--  2013 Revised Production Guidance of 19,000 to 20,000 Bopd (mid-point of
    19,500 Bopd) 
    --  Delay 
of production growth to 2014 due to an extended Block S-1 shut
        in, delays in access approvals at South Alamein and a delayed well
        stimulation program at West Gharib 
    --  19,500 Bopd represents a 11% increase over 2012 production of 17,500
--  2013 Revised Funds flow Guidance of $145 million ($1.92/share) 
    --  Using 19,500 Bopd (mid-point of guidance) and $100/Bbl Brent pricing
    --  2013 Funds flow sensitivity to pricing of $11 million ($0.16/share)
        per $10/Bbl Brent pricing 
--  2013 Revised Capital Exploration and Development Budget of $80 million 
    --  Egypt $75 million (94%) and Yemen $5 million (6%) 
    --  52% of 2013 funds flow guidance of $145 million
--  TransGlobe's production averaged 19,222 Bopd in April; 17,872 Bopd in
    May; and 18,000 Bopd in June to date 
    --  May and June production impacted by labor strikes at the GPC
        processing facility 
    --  West Gharib multi-well stimulation program commenced in late June 
    --  Block S-1 production (1,700 Bopd) shut-in since November 11th, 2012
--  Received approvals for two exploration wells in South Alamein 
--  Received $102 million to date from EGPC during 2013 
--  On June 11, 2013 the Company finalized an amendment to its banking
    facility, which re-established the borrowing base at $100 million
    (current drawings are $18.5 million). The lending syndicate now consists
    of Sumitomo Mitsui Banking Corporation Europe Limited ("SMBC"), Export
    Development Canada ("EDC"), and the International Finance Corporation
    ("IFC") a division of the World Bank. SMBC, our lead bank, and EDC are
    continuing lenders and IFC is a new participant in the facility.

West Gharib, Arab Republic of Egypt (100% working interest, operated) 
Operations and Exploration 
The Company drilled five wells in the second quarter resulting in
five oil wells (four at Arta/East Arta and one at Hana).  
The East Arta well successfully appraised a Lower Nukhul pool on the
North West edge of the East Arta block which had been discovered
prior to the 2012 EGPC bid round. The new East Arta well encountered
a Lower Nukhul reservoir with 90 feet of net pay. The well has been
perforated and is awaiting stimulation prior to being placed on
production. The original discovery well initially produced 550 Bopd
and is currently producing 370 Bopd after 18 months of production.
Based on 3-D seismic mapping the majority of the Lower Nukhul pool
appears to extend on to the NW Gharib block. The pool is estimated to
contain between 10 and 40 million barrels of
Petroleum-Initially-In-Place ("PIIP") (P90 to P10 respectively) based
on internal estimates. Approximately 22 additional locations on 40
acre spacing will be required to define the extent of this Lower
Nukhul pool. 
Two of the Arta wells were drilled west of the main Arta field to
appraise a new Upper Nukhul oil discovery drilled in the third
quarter 2012. The Arta west discovery well also encountered a new
Lower Nukhul sand which was wet. The two appraisal wells encountered
Upper Nukhul oil and one of the wells encountered a Lower Nukhul oil
reservoir with 18 feet of net pay. The Lower Nukhul pool is estimated
to contain between 2 and 10 million barrels of PIIP (P90 to P10
respectively) based on internal estimates. Approximately 10 appraisal
locations will be required to define the pool which potentially
extends on to the NW Gharib concession. The Arta west discovery well
was completed (unstimulated) in the Upper Nukhul and is producing
approximately 35 Bopd after 6 months of production. Appraisal wells
(Upper and Lower Nukhul) are being completed and will require
A development oil well was also drilled in the southern portion of
the main Arta pool and another in the Hana pool. Both wells are
scheduled for completion in the third quarter. The drilling rig is
now moving back to East Arta for additional appraisal/development
Production averaged 13,798 Bopd in April, 12,359 Bopd in May and
12,500 Bopd to date in June.  
Production was lower in May and June due to a combination of
unscheduled pump changes, several unrelated labor disputes which
restricted our ability to truck oil to the GPC truck terminal and
natural declines in production which were not offset by new wells as
planned due to a prolonged contract approval process for well
stimulations. A new well stimulation contract was approved in June
and equipment is being mobilized to the field this week to begin a
multi well stimulation program which is expected to restore
production to the 13,000 to 14,000 Bopd level later in the third
quarter. The company currently has 15 cased wells scheduled for
stimulation over the next quarter in addition to the planned drilling
for the balance of the year.  
The truck receiving terminal constructed at West Bakr K station (year
end 2012) allowed the company to produce West Gharib at reduced rates
during several unrelated labor disputes which restricted trucking to
the GPC truck terminal during May and June. The Company continues to
progress a number of infrastructure projects in the West Gharib/West
Bakr fields designed to ultimately deliver all West Gharib production
to GPC by pipeline and eliminate oil trucking outside the West Gharib
field area.  
West Bakr, Arab Republic of Egypt (100% working interest, operated) 
Operations and Exploration 
To date, the Company has drilled four wells in the second quarter
resulting in four oil wells (two oil wells in the H field, one oil
well in the M field and one oil well in the K field). 
The company drilled one development well in the H field which was
placed on production at approximately 200 Bopd and one exploration
well to the East of H field which is currently logging. Based on
preliminary log analysis, the H exploration well appears to be a new
pool discovery with approximately 16 feet of oil pay. The rig is
scheduled to move to an H field development well following the
current exploration well.  
In K field the Company drilled a vertical development well in the
main Asl A pool which encountered 148 feet of net Asl A oil pay based
on logs. The well was completed and placed on production at
approximately 100 Bopd.  
The main Asl A pool has produced approximately 28 million barrels of
oil since being discovered in 1980, or approximately 17% of the
internally estimated 169 million barrels in place. At year-end 2012,
approximately 4.5 million barrels of proved plus probable ("2P")
remaining reserves were assigned to the Asl A pool which, combined
with historical production, equates to an ultimate recovery factor of
approximately 19%. Management believes an additional 10% to 20%
recovery factor for the K field Asl A pool is possible primarily
through infill and down-spaced drilling opportunities. This could
increase the ultimate recovery to the 30%-40% range which is a more
typical recovery factor for a high quality sandstone reservoir with
an active water drive. In addition to the planned K field drilling
program the company has identified a number of work-over/remedial
well candidates to re-activate wells with un-swept oil potential in
the K field.  
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 quart
er 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
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,
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.  
South Mariut, Arab Republic of Egypt (60% working interest, operated) 
With the abandonment of Al Hammam #1 (Q1 press release May 7, 2013),
the partners have fulfilled their commitments under the terms of the
Concession Agreement and elected to not proceed to the second and
final two-year extension period.   
It is anticipated that the Company will incur a charge of
approximately $20 million against earnings for South Mariut in the
second quarter. The $20 million impairment change includes $10.7
million of drilling expenses and $9.3 million of associated
exploration/acquisition expenses. 
EGPC announced that TransGlobe was the successful bidder on four
concessions (100% working interest) in the 2011 EGPC bid round which
closed on March 29, 2012. It is expected that the new concessions
will be ratified in late 2013 or early 2014 when each concession is
passed into law.  
Block 32, Republic of Yemen (13.81% working interest)  
Operations and Exploration  
One development well was drilled at Godah during the quarter. The
Godah 13 oil well is expected to be on production by month end.  
Following Godah 13, the drilling rig is scheduled to drill a 4,300
meter exploration well (Salsala 1) located in the south western
corner of the Block. The well is expected to take approximately 40 to
60 days to reach total depth. Based on internal estimates provided by
the Operator, the Salsala 1 well is targeting an un-risked
prospective gross resource potential of 2.6 million barrels on a P
mean(most likely) basis.  
Field production has averaged approximately 2,200 Bopd (300 Bopd to
TransGlobe) to date, during the second quarter. 
Block S-1, Republic of Yemen (25% working interest)  
Operations and Exploration  
No wells were drilled during the first quarter.  
Field production has remained shut-in during 2013 primarily due to
labor negotiations with field
 employees and tender of service/support
contracts in the field. A settlement was reached with the field
employees in early April and the operator has awarded new service
contracts in late May/early June. The new contractors are currently
negotiating with the local tribes to provide labor for the respective
contracts. It is difficult to predict when the contractor
negotiations will be concluded and production will be restored. 
If gross field production is restored to pre-shut in levels of
approximately 6,800 Bopd, Block S-1 could contribute approximately
1,700 Bopd to TransGlobe going forward.  
For guidance purposes, the Company is assuming production will
commence in Q4 which would contribute an average of approximately 400
Bopd to TransGlobe in 2013. 
2013 Production Outlook  
Expected average production for 2013 has been reduced to between
19,000 and 20,000 Bopd. The reduction is due to a number of variables
outside of the Company's control such as the delay in government
approvals relating to the start of South Alamein drilling and
production, delays in government approvals for well stimulation
contracts in West Gharib and the delay of the return to operations of
Block S-1 in Yemen. Several recent labor disputes by government
employees at the GPC processing and shipping facilities at Ras Gharib
have caused disruptions to the Company's oil trucking operations
resulting in reduced production during May and June.  

Production Forecast                                                         
                                                               2013 Guidance
Barrels of oil per day                                       19,000 - 20,000

2013 Funds Flow from Operations Outlook  
Funds flow from operations guidance of $145 million ($1.92/share),
which is based on an average Dated Brent oil price of $100/Bbl (after
Q1) and using the mid-point of the production guidance.  

Funds Flow Forecast                                                         
($ millions)                                                   2013 Guidance
Funds flow from operations                                             145.0
Brent oil price ($ per bbl)                                           100.00
2013 Capital Budget                                                         
($ millions)                                                            2013
  Egypt                                                                 75.0
  Yemen                                                                  5.0
  Total                                                                 80.0

The 2013 capital program is split 72/28 between development and
exploration, respectively. The Company plans to participate in 46
wells in 2013. It is anticipated that the Company will fund its 2013
capital budget from funds flow from operations and working capital.  
The Company continues to grow i
n Egypt but at a slower rate than
originally planned for 2013 due to delayed approval processes and
overall macro-economic pressures in Egypt which have impacted our
ability to spend the capital originally budgeted for Egypt. We expect
that disruptions to normal business and supply processes will
continue in the medium term as Egypt works through its current
macro-economic challenges. This has and will continue to impact our
ability to execute our programs with the same predictability that we
have historically enjoyed in Egypt.   
The Company continues to work cooperatively with Government
representatives to ensure regular payments of overdue accounts
Corporate production growth in 2013 is expected to be in the 9% to
14% range, while capital spending will be reduced to the $75 million
range which represents approximately 52% of forecasted funds flow for
TransGlobe Energy Corporation is a Calgary-based, growth-oriented oil
and gas exploration and development company focused on the Middle
East/North Africa region with production operations in the Arab
Republic of Egypt and the Republic of Yemen. TransGlobe's common
shares trade on the Toronto Stock Exchange under the symbol TGL and
on the NASDAQ Exchange under the symbol TGA. 
Cautionary Statement to Investors:  
This news release may include certain statements that may be deemed
to be "forward-looking statements" within the meaning of the U.S.
Private Securities Litigation Reform Act of 1995. Such statements
relate to possible future events. All statements other than
statements of historical fact may be forward-looking statements.
Forward-looking statements are often, but not always, identified by
the use of words such as "seek", "anticipate", "plan", "continue",
"estimate", "expect", "may", "will", "project", "predict",
"potential", "targeting", "intend", "could", "might", "should",
"believe" and similar expressions. These statements involve known and
unknown risks, uncertainties and other factors that may cause actual
results or events to differ materially from those anticipated in such
forward-looking statements. Although TransGlobe's forward-looking
statements are based on the beliefs, expectations, opinions and
assumptions of the Company's management on the date the statements
are made, such statements are inherently uncertain and provide no
guarantee of future performance. Actual results may differ materially
from TransGlobe's expectations as reflected in such forward-looking
statements as a result of various factors, many of which are beyond
the control of the Company. These factors include, but are not
limited to, 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 and natural gas reserves, 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, and other factors beyond the
Company's control. TransGlobe does not assume any obligation to
update forward-looking statements if circumstances or management's
beliefs, expectations or opinions should change, other than as
required by law, and investors should not attribute undue certainty
to, or place undue reliance on, any forward-looking statements.
Please consult TransGlobe's public filings at and for further, more detailed information
concerning these matters. 
TransGlobe Energy Corporation
Scott Koyich
Investor Relations
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