TransGlobe Energy Falls After Reporting Dry Hole: Calgary Mover

TransGlobe Energy Corp. (TGL), the Calgary-based oil producer with operations in Egypt, declined the most in six months after reporting a dry hole at the first of three planned exploration wells at its South Mariut project.

TransGlobe fell 6.4 percent to C$8.85 at the close in Toronto, the biggest drop since July 5.

The Al Azayem No. 1 well will be plugged and abandoned after TransGlobe found no hydrocarbons in what was expected to be the primary reservoir, the company said today in a statement. TransGlobe operates South Mariut and holds a 60 percent stake.

The rig will be moved 15 kilometers (9 miles) north to drill the second planned well, Al Nahda No. 1, into a different formation that may contain 19 million barrels of oil, according to the company’s “best estimate” in the statement. A location for the third well hasn’t been chosen.

Shale and other dense rock removed from the Al Azayem well will be analyzed for hydrocarbon content, the company said.

To contact the reporter on this story: Jim Polson in New York at jpolson@bloomberg.net

To contact the editor responsible for this story: Susan Warren at susanwarren@bloomberg.net

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