TransGlobe Energy Corporation provides an operation update on South Mariut. All dollar values are expressed in United States dollars unless otherwise stated.

South Mariut, Arab Republic of Egypt (60% working interest, operated)

The Al Azayem #1 well (first well of a planned three well exploration program) reached a total depth of 16,391 feet and will be plugged and abandoned. The primary Cretaceous reservoirs did not contain hydrocarbons. The Jurassic section of the well encountered a gross section of approximately 4,000 feet of Jurassic shale and tight carbonates.

The shale in the Jurassic had good hydrocarbon indicators recorded while drilling. Analysis of the drill cuttings will be carried out to determine source rock properties. It is expected that the total well cost will be approximately $9 million ($5.4 million to TransGlobe) which is lower than the budgeted $9.6 million well cost for a 14,500 foot test.

Tags: TransGlobe Energy Corporation