News of a $75m bought-deal offering at TGA.
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TGA financing news
Re: TGA financing news
TransGlobe Energy Corporation Announces Cdn$75.0 Million Bought-Deal Financing
Monday, January 10, 2011
CALGARY, ALBERTA--(Marketwire - Jan. 10, 2011) -
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES
TransGlobe Energy Corporation ("TransGlobe" or the "Company") (TSX:TGL)(NASDAQ:TGA) today announced it has entered into an agreement with a syndicate of underwriters under which the members of the syndicate have agreed to purchase for resale, on a bought-deal basis, 5,000,000 common shares ("Common Shares") of the Company at Cdn$15.00 per Common Share (the "Offering") to raise gross proceeds of approximately Cdn$75.0 million. Closing of the Offering, which is subject to customary conditions and regulatory approvals, including approval of the Toronto Stock Exchange and the NASDAQ, is expected to occur on or about February 1, 2011. TransGlobe has also granted the underwriters an over-allotment option to purchase, on the same terms, up to an additional 750,000 Common Shares. This option is exercisable, in whole or in part, by the underwriters, in their sole discretion, at any time up to 30 days after closing. The maximum gross proceeds raised under the Offering will be approximately Cdn$86.25 million, should the over-allotment option be exercised in full.
The proceeds of the Offering will be used to fund capital expenditures, to repay long-term debt and to pursue new business development opportunities in the Arab Republic of Egypt, including adding new acreage through farm-in arrangements, bid rounds or acquisitions from third parties.
The Common Shares will be offered in Canada in the Provinces of British Columbia, Alberta, Ontario, Manitoba and Quebec by way of a short-form prospectus and in the United Kingdom and certain other jurisdictions on a private placement basis.
TransGlobe Energy Corporation is a Calgary-based, growth-oriented oil and gas exploration and development company focused on the Middle East/North Africa region with production operations in the Arab Republic of Egypt and the Republic of Yemen. TransGlobe's common shares trade on the Toronto Stock Exchange under the symbol TGL and on the NASDAQ Exchange under the symbol TGA.
Monday, January 10, 2011
CALGARY, ALBERTA--(Marketwire - Jan. 10, 2011) -
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES
TransGlobe Energy Corporation ("TransGlobe" or the "Company") (TSX:TGL)(NASDAQ:TGA) today announced it has entered into an agreement with a syndicate of underwriters under which the members of the syndicate have agreed to purchase for resale, on a bought-deal basis, 5,000,000 common shares ("Common Shares") of the Company at Cdn$15.00 per Common Share (the "Offering") to raise gross proceeds of approximately Cdn$75.0 million. Closing of the Offering, which is subject to customary conditions and regulatory approvals, including approval of the Toronto Stock Exchange and the NASDAQ, is expected to occur on or about February 1, 2011. TransGlobe has also granted the underwriters an over-allotment option to purchase, on the same terms, up to an additional 750,000 Common Shares. This option is exercisable, in whole or in part, by the underwriters, in their sole discretion, at any time up to 30 days after closing. The maximum gross proceeds raised under the Offering will be approximately Cdn$86.25 million, should the over-allotment option be exercised in full.
The proceeds of the Offering will be used to fund capital expenditures, to repay long-term debt and to pursue new business development opportunities in the Arab Republic of Egypt, including adding new acreage through farm-in arrangements, bid rounds or acquisitions from third parties.
The Common Shares will be offered in Canada in the Provinces of British Columbia, Alberta, Ontario, Manitoba and Quebec by way of a short-form prospectus and in the United Kingdom and certain other jurisdictions on a private placement basis.
TransGlobe Energy Corporation is a Calgary-based, growth-oriented oil and gas exploration and development company focused on the Middle East/North Africa region with production operations in the Arab Republic of Egypt and the Republic of Yemen. TransGlobe's common shares trade on the Toronto Stock Exchange under the symbol TGL and on the NASDAQ Exchange under the symbol TGA.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: TGA financing news
IMHO this creates VERY STRONG support level at $15/share. "Buying the Dips" has worked for TGA and this is no exception. Look for TGA to soon announce an expanded drilling program or another deal in Egypt.
TGA is now on course to reach 20,000 bopd production by the end of 2012.
East Ghazalat Block (Egypt) with TGA holding 50% working interest will become another major development project by the 4th quarter.
TransGlobe has now met its three well drilling obligation to earn a 50% interest in the East Ghazalat Block in Egypt’s western desert. A recent 3-D seismic program has identified five structurally controlled prospects with combined unrisked reserve potential over 150 million bbls of oil in place. All work commitments have been met for the first exploration period and the two extension periods in this 159,000 acre block.
During the fourth quarter, the Company drilled two Upper Bahariya oil wells (Sabbar #1 and Safwa #2).
Sabbar #1 was drilled to a total depth of 4,600 feet, cased and completed as a Bahariya oil well. Sabbar #1 encountered 40+ feet of net pay in the Bahariya sandstones, 27 feet structurally higher than the Safwa discovery wells. A 45 foot interval was perforated and flowed naturally at a rate of 500 Bopd on a short test. Sabbar #1 is located approximately 1.7 kilometres northeast of Safwa NW-1 which tested 250 Bopd and Safwa #1 which tested 300 Bopd from the Upper Bahariya (un-stimulated). The positive results at Sabbar #1 have increased the internally estimated gross Petroleum Initially in Place ("PIIP") to 58.0 million barrels of oil ("MMBbl"), up from the initial estimate of 20.6 MMBbl of oil using the respective probabilistic P-mean cases.
Safwa #2 was drilled to a total depth of 7,987 feet and cased as a Bahariya oil well. Safwa #2 encountered 30+ feet of net pay in the Bahariya sandstones and is the fourth Bahariya oil well drilled on the Safwa structure. Safwa #2 is a step-out appraisal well located approximately 350 metres east of Safwa #1. The Safwa #2 well will be completed and tested as part of the early production test program planned for early 2011, subject to Egyptian Government approval.
The operator, Vegas Oil and Gas SA, has indicated it plans to file for an early production approval by the first quarter of 2011. The East Ghazalat Safwa project could contribute an additional 600 to 1,000 Bopd to TransGlobe in 2011 based on internal estimates. TransGlobe will update production guidance following approval by the Egyptian Government.
The drilling rig is currently moving to the Nakhil prospect. Nakhil #1 is located approximately eight kilometres southwest of Safwa #1. The Nakhil #1 exploration well is targeting a prospect which has an internally estimated gross PIIP of 10.4 MMBbl using the probabilistic P-mean case
TGA is now on course to reach 20,000 bopd production by the end of 2012.
East Ghazalat Block (Egypt) with TGA holding 50% working interest will become another major development project by the 4th quarter.
TransGlobe has now met its three well drilling obligation to earn a 50% interest in the East Ghazalat Block in Egypt’s western desert. A recent 3-D seismic program has identified five structurally controlled prospects with combined unrisked reserve potential over 150 million bbls of oil in place. All work commitments have been met for the first exploration period and the two extension periods in this 159,000 acre block.
During the fourth quarter, the Company drilled two Upper Bahariya oil wells (Sabbar #1 and Safwa #2).
Sabbar #1 was drilled to a total depth of 4,600 feet, cased and completed as a Bahariya oil well. Sabbar #1 encountered 40+ feet of net pay in the Bahariya sandstones, 27 feet structurally higher than the Safwa discovery wells. A 45 foot interval was perforated and flowed naturally at a rate of 500 Bopd on a short test. Sabbar #1 is located approximately 1.7 kilometres northeast of Safwa NW-1 which tested 250 Bopd and Safwa #1 which tested 300 Bopd from the Upper Bahariya (un-stimulated). The positive results at Sabbar #1 have increased the internally estimated gross Petroleum Initially in Place ("PIIP") to 58.0 million barrels of oil ("MMBbl"), up from the initial estimate of 20.6 MMBbl of oil using the respective probabilistic P-mean cases.
Safwa #2 was drilled to a total depth of 7,987 feet and cased as a Bahariya oil well. Safwa #2 encountered 30+ feet of net pay in the Bahariya sandstones and is the fourth Bahariya oil well drilled on the Safwa structure. Safwa #2 is a step-out appraisal well located approximately 350 metres east of Safwa #1. The Safwa #2 well will be completed and tested as part of the early production test program planned for early 2011, subject to Egyptian Government approval.
The operator, Vegas Oil and Gas SA, has indicated it plans to file for an early production approval by the first quarter of 2011. The East Ghazalat Safwa project could contribute an additional 600 to 1,000 Bopd to TransGlobe in 2011 based on internal estimates. TransGlobe will update production guidance following approval by the Egyptian Government.
The drilling rig is currently moving to the Nakhil prospect. Nakhil #1 is located approximately eight kilometres southwest of Safwa #1. The Nakhil #1 exploration well is targeting a prospect which has an internally estimated gross PIIP of 10.4 MMBbl using the probabilistic P-mean case
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group