CALGARY, ALBERTA--(Marketwire - 07/18/11) - TransGlobe Energy Corporation (TSX:TGL - News) (NASDAQ:TGA - News) ("TransGlobe" or the "Company") announces the repair of the Yemen export pipeline to the Red Sea and resumption of production at Block S-1.
Block S-1, Yemen (25% non-operated working interest)
TransGlobe was advised on July 16th that the export pipeline from Marib to the Ras Issa facility on the Red Sea was repaired on July 15th. The operator of Block S-1 began shipping sales crude oil on July 16th and commenced production from the An Nagyah field. The operator is currently ramping up production from the field and is producing approximately 8,300 Bopd Gross (2,075 Bopd to TransGlobe) this morning. Block S-1 produces a high quality (43 API) sweet crude oil and typically receives Brent pricing.
Block S-1 production (approximately 2,300 Bopd to TransGlobe) was shut in since March 17th, 2011 due to damage to the export pipeline.
The Company will provide updated Guidance for 2011 with the second Quarter financial results which are scheduled for release on Monday, August 8th.
TGA: Yemen Block S-1 is back on-line
TGA: Yemen Block S-1 is back on-line
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: TGA: Yemen Block S-1 is back on-line
I will be updating my Net Income and Cash Flow model for TGA tonight. It will be posted under the Sweet 16 tab (just click on the TGA logo) tomorrow morning.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: TGA: Yemen Block S-1 is back on-line
Thanks for revising the model so quickly. Let's hope you have to raise estimates again on August 9 when we learn what Bakr will add going forward.
Re: TGA: Yemen Block S-1 is back on-line
TGA sells 100% of its oil on contracts tied to Brent.
West Texas Intermediate (WTI) now selling at a $20/bbl discount to Brent
The price difference between the world’s two most important oil benchmarks has risen back above $20 a barrel as Brent outperforms West Texas Intermediate crude.
WTI futures, once seen as the global benchmark for oil prices, have been trading below similar crudes as production in Canada and the central US has added millions of barrels of stocks to the contract’s landlocked delivery point. The stocks in Cushing, the storage and pipeline hub in Oklahoma, may not dissipate until new pipelines connect the hub to higher-priced markets.
Brent, already supported by declining production in the North Sea, has received an extra jolt this year after the fighting in Libya knocked out most of the country’s output. The North African country produces a crude oil of similar quality to Brent and the losses had forced refiners to bid up for Brent supplies.
The WTI-Brent spread on Monday rose to $20.28 a barrel, approaching the all-time high of $23.57 set earlier this month. Brent fell $1.66 to $115.60 a barrel, while WTI dropped $2.19 to $95.05 a barrel.
The International Energy Agency, the western countries’ oil watchdog, said in a report last week that WTI generally sold at a 5 per cent premium to Brent between 1994 and 2010. The relationship “totally collapsed” this year, with Brent on average 13 per cent higher than WTI.
The IEA said “the magnitude as well as the duration of the current episode raises questions about the causes of this new ‘reality’ and whether the weakening of WTI and strengthening of Brent prices are temporary or permanent phenomena.”
The stubborn WTI discount over Brent has been a drag on returns for commodity investors over the past year and a half.
Kevin Norrish and Amrita Sen, commodities analysts at Barclays, put the shortfall at $25bn. Investors had $195bn tracking commodities indices, up from a little over $115bn since 2010 began, they said.
“Making the simple assumption that the WTI-linked portions of index investors exposures had gained the same as the Brent portions, we estimate that but for the poor performance of WTI, total index assets under management could have reached approximately $220bn by now. In other words, the dislocation of WTI from global crude oil benchmarks has cost index investors about $25bn since early 2010,” they said.
For investors tracking the S&P GSCI, returns of 10 per cent since early 2010 are half what they would have been without the disparity.
West Texas Intermediate (WTI) now selling at a $20/bbl discount to Brent
The price difference between the world’s two most important oil benchmarks has risen back above $20 a barrel as Brent outperforms West Texas Intermediate crude.
WTI futures, once seen as the global benchmark for oil prices, have been trading below similar crudes as production in Canada and the central US has added millions of barrels of stocks to the contract’s landlocked delivery point. The stocks in Cushing, the storage and pipeline hub in Oklahoma, may not dissipate until new pipelines connect the hub to higher-priced markets.
Brent, already supported by declining production in the North Sea, has received an extra jolt this year after the fighting in Libya knocked out most of the country’s output. The North African country produces a crude oil of similar quality to Brent and the losses had forced refiners to bid up for Brent supplies.
The WTI-Brent spread on Monday rose to $20.28 a barrel, approaching the all-time high of $23.57 set earlier this month. Brent fell $1.66 to $115.60 a barrel, while WTI dropped $2.19 to $95.05 a barrel.
The International Energy Agency, the western countries’ oil watchdog, said in a report last week that WTI generally sold at a 5 per cent premium to Brent between 1994 and 2010. The relationship “totally collapsed” this year, with Brent on average 13 per cent higher than WTI.
The IEA said “the magnitude as well as the duration of the current episode raises questions about the causes of this new ‘reality’ and whether the weakening of WTI and strengthening of Brent prices are temporary or permanent phenomena.”
The stubborn WTI discount over Brent has been a drag on returns for commodity investors over the past year and a half.
Kevin Norrish and Amrita Sen, commodities analysts at Barclays, put the shortfall at $25bn. Investors had $195bn tracking commodities indices, up from a little over $115bn since 2010 began, they said.
“Making the simple assumption that the WTI-linked portions of index investors exposures had gained the same as the Brent portions, we estimate that but for the poor performance of WTI, total index assets under management could have reached approximately $220bn by now. In other words, the dislocation of WTI from global crude oil benchmarks has cost index investors about $25bn since early 2010,” they said.
For investors tracking the S&P GSCI, returns of 10 per cent since early 2010 are half what they would have been without the disparity.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: TGA: Yemen Block S-1 is back on-line
dan, do you have any idea as to when tga will report next earnings? i expected the news of yemen production being back would light a fire, but nothing. so maybe we have to wait for a report for next movement??
jim
jim