TransGlobe Energy Corporation

Arab Republic of Egypt

TransGlobe's initial entry into Egypt occurred in July 2004 when the Company entered into a farm-out agreement with a number of other, small international oil and gas exploration companies, and earned a 50% interest in the Nuqra Concession. Subsequently, TransGlobe's interest in the property has increased to 71.43% (July 2008).

The Nuqra Concession is located in Upper Egypt near of the city of Aswan on the east bank of the Nile River. The concession encompasses over two-thirds of the Kom Ombo/Nuqra Basin, a rift basin analogous to the Gulf of Suez Basin in Egypt, the Marib Basin in the Republic of Yemen, and the Muglad Basin in Sudan, all of which contain major reserves. The Nuqra Concession contains 14,250 square km or 3,650,000 acres of exploration lands with several seismically defined leads identified from over 4,000 km of 2-D seismic data. Seismic and well data have confirmed the existence of Jurassic and Cretaceous sediments and the presence of a petroleum system which could potentially hold significant oil reserves. A commercial oil discovery on the adjacent Block 2 (located on the west side of the Nile) has confirmed a working petroleum system in the basin.

In September 2007, TransGlobe significantly expanded its Egyptian operations with the acquisition of approximately 55% and operatorship of the West Gharib Concession; this was followed by the acquisition of an additional 30% in February 2008, and the final 15% in August 2008, to give the Company 100% of the West Gharib Concession.

In January 2010, TransGlobe farmed into a 50% interest of the Western Desert East Ghazalat exploration concession. The block covers an area of 858 square km located 250 km southwest of Cairo. The concession is in the northern part of the prolific Abu Gharadig Basin. It is surrounded by well established oil production and transportation facilities.   

On March 28, 2011, TransGlobe announced the signing of a Sale and Purchase Agreement to acquire a 100% working interest in the West Bakr Concession agreement in Egypt from The Egyptian Petroleum Development Co. Ltd. (of Japan), subject to customary due diligence, closing conditions and the approval of the Egyptian Government. The West Bakr Concession is 45.2 square kilometres (11,600 acres) in two development leases, is located immediately adjacent to TransGlobe’s existing West Gharib development leases and produces approximately 4,000 Bopd.

On June 29, 2011, TransGlobe announced the signing of a Sale and Purchase Agreement to acquire a 50% operated working interest in the South Alamein Concession in the Western Desert of the Arab Republic of Egypt from Cepsa Egypt SA B.V., subject to the approval of the Egyptian Government and customary closing conditions. The South Alamein Concession is 2,258 square kilometres (558,120 acres) and includes portions of the Alamein and Tiba basins, surrounded by several oil and gas fields producing from the Cretaceous and Jurassic formations. The concession includes an oil discovery well, Boraq-2X, which tested a combined 1,700 Bopd of 38° to 40° API oil from two Cretaceous zones.