TransGlobe reports mid-year reserves, Q3 update
TransGlobe reported its mid-year reserves and provided an update for Q3. Mid-year 2016 corporate proved crude oil reserves increased 11% from year-end 2015 to 19.5M barrels "as a result of positive technical additions of 4.3M barrels of 1P crude oil reserves primarily due to the Arta Red Bed pool performance/simulation results and pool performance at Hana and Hana West," minus production for the first six months of 2016 of 2.2M barrels, resulting in a 1P production replacement ratio of 195%. Mid-year corporate proved plus probable crude oil reserves increased to 30.3M barrels, 6% higher than year-end 2015, resulting in a 2P production replacement ratio of 173%. Mid-year after tax 2P future net revenues increased 33% to $259M from year-end 2015. Q3 production of 11,730 barrels of oil per day exceeded guidance of 11,400 BOPD by 3%, with September production of approximately 12,470 BOPD. The production recovery plan is on target to achieve 13,000-14,000 BOPD by year end, the company added. TransGlobe sold approximately 480,000 barrels in September for net proceeds of $17.5M, expected to be received in late October.