Canada - Harmattan

TransGlobe re-entered Canada through acquisition of the Harmattan property in central Alberta;
in December 2016

Harmattan is located approximately 80 kilometres north of Calgary, Alberta.  This property produces oil and associated natural gas from the Cardium and Viking zones and liquids-rich natural gas from zones in the Lower Mannville and Rock Creek formations at vertical depths of 1,200 to 2,600 metres.   The majority (88%) of the production from the area is operated by TransGlobe.  TransGlobe owns a 100% working interest in a large oil battery and a compressor station where a majority of oil volumes are handled.  All gas is delivered to a third party non-operated gas plant for processing. 

As at September 30, 2017, the Harmattan property represented 43,000 gross (38,000 net) acres of developed land and 44,000 gross (39,000 net) acres of undeveloped land.

• Land Position:  77,000 net acres (87,000 gross acres) 
• Q3 2017 Production: ~2,600 Boepd1 (~57% liquids-weighted)
• 2P Reserves: 21.3 MMBoe2  (62.9% liquids-weighted)
• 45 net proved + probable horizontal locations assigned with an additional 100+ net horizontal locations identified by management.2, 3

Canadian Cardium Light Oil and Liquids-Rich Gas Production
• The prolific Cardium formation has produced hydrocarbons in central Alberta for over 60 years; there are currently ~10,000 producing wells (of which ~3,900 are horizontal wells)4
• Stable geopolitical environment 
• Favorable royalty and tax structure in current low price environment
• Low historical operating costs (<$8.00/boe Cdn) 
• High quality light oil and liquids yielding attractive netbacks

Acquisition Adds Low-Risk Development Upside
• Well defined Cardium and Ellerslie horizontal drilling locations provide for significant production and cash flow growth
• Access to surplus infrastructure capacity to significantly grow production


Fracc’ing Underway - October 2017
Rigging Up Pump Jacks - October 2017

1. September 2016 field estimate. (BOEs may be misleading, particularly if used in isolation.  A BOE conversion ratio of 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) 
2. All reserves, net present value estimates and proved and probable locations in respect of the Harmattan assets are based on DeGolyer and MacNaughton Canada Limited September 30, 2016 evaluation
3. Potential drilling opportunities based on TransGlobe internal estimate prepared in accordance with the COGE Handbook by a non-independent qualified reserves evaluator
4. Source: GeoScout (9,830 active wells targeting the Cardium formation, of which 3,858 are horizontal wells) as of 10/30/16