TGA
Posted: Fri Nov 11, 2011 9:07 am
Expert Analysis
Toby Pierce, GMP Securities (11/9/11) "TransGlobe Energy Corp. announced total Q311 record quarterly average production of 13,406 bbl/d (13% quarter-over-quarter increase), net earnings of $26.1M and guidance for 2011 funds flow is expected to be ~$120M based on production guidance of 12,000–12,300 bbl/d. The company is in a solid financial position, having exited the quarter with working capital of $164M and net long-term debt of $57.3M. . .if the two pending acquisitions of West Bakr and South Alamein are approved, total production could reach 20 Mbbl/d in 2012."
David Popowich, Macquarie Capital Markets (11/9/11) "TransGlobe Energy Corp. delivered a characteristically solid quarter, achieving record production and cash flow, while improving netbacks quarter over quarter. The company is also well capitalized, sitting on US$105M in cash and equivalents, before the pending West Bakr acquisition (which is expected to cost US$60M before closing adjustments)."
Oil and Gas Journal (11/9/11) "TransGlobe Energy Corp. plans to appraise the Boraq oil and gas discovery and further explore the 558,120 acre South Alamein concession in Egypt's Western Desert. . .the Boraq-2X well tested a combined 1,700 bbl/d. . .the concession, which covers parts of the Alamein and Tiba basins, is fully covered by 3D seismic from which a number of well-defined prospects have been identified."
Frederick Kozak, Canaccord Genuity (10/17/11) "With Transglobe Energy Corp.'s success in Egypt, we maintain our Buy rating and 12-month CA$21 target price; the company continues developing the West Gharib area, has added to this with the West Bakr acquisition and has announced a second acquisition in Egypt's Western Desert, acquiring a 50% interest and operatorship of South Alamein. We believe the ongoing market unrest presents investors with a unique opportunity to buy TransGlobe's stock at a very attractive price; this remains a growth company, fuelled by exploration with an increasing inventory of future drilling prospects."
Warren Verbonac, Union Securities (10/17/11) "TransGlobe Energy Corp.'s reserves and production, all of which are oil, are located in Egypt and Yemen. . .the stock is currently trading at a 5.6x multiple of this year's estimate. Closing of an acquisition of 4,000 bpd is anticipated before year-end and continuous drilling in Egypt will continue to provide growth in production and cash flow; we are maintaining our Strong Buy recommendation."
Toby Pierce, GMP Securities (11/9/11) "TransGlobe Energy Corp. announced total Q311 record quarterly average production of 13,406 bbl/d (13% quarter-over-quarter increase), net earnings of $26.1M and guidance for 2011 funds flow is expected to be ~$120M based on production guidance of 12,000–12,300 bbl/d. The company is in a solid financial position, having exited the quarter with working capital of $164M and net long-term debt of $57.3M. . .if the two pending acquisitions of West Bakr and South Alamein are approved, total production could reach 20 Mbbl/d in 2012."
David Popowich, Macquarie Capital Markets (11/9/11) "TransGlobe Energy Corp. delivered a characteristically solid quarter, achieving record production and cash flow, while improving netbacks quarter over quarter. The company is also well capitalized, sitting on US$105M in cash and equivalents, before the pending West Bakr acquisition (which is expected to cost US$60M before closing adjustments)."
Oil and Gas Journal (11/9/11) "TransGlobe Energy Corp. plans to appraise the Boraq oil and gas discovery and further explore the 558,120 acre South Alamein concession in Egypt's Western Desert. . .the Boraq-2X well tested a combined 1,700 bbl/d. . .the concession, which covers parts of the Alamein and Tiba basins, is fully covered by 3D seismic from which a number of well-defined prospects have been identified."
Frederick Kozak, Canaccord Genuity (10/17/11) "With Transglobe Energy Corp.'s success in Egypt, we maintain our Buy rating and 12-month CA$21 target price; the company continues developing the West Gharib area, has added to this with the West Bakr acquisition and has announced a second acquisition in Egypt's Western Desert, acquiring a 50% interest and operatorship of South Alamein. We believe the ongoing market unrest presents investors with a unique opportunity to buy TransGlobe's stock at a very attractive price; this remains a growth company, fuelled by exploration with an increasing inventory of future drilling prospects."
Warren Verbonac, Union Securities (10/17/11) "TransGlobe Energy Corp.'s reserves and production, all of which are oil, are located in Egypt and Yemen. . .the stock is currently trading at a 5.6x multiple of this year's estimate. Closing of an acquisition of 4,000 bpd is anticipated before year-end and continuous drilling in Egypt will continue to provide growth in production and cash flow; we are maintaining our Strong Buy recommendation."