TGA Mid-Quarter Update

[dan_s]

I will take a hard look at TGA late today and post an updated forecast model for it. - Dan

CALGARY, ALBERTA--(Marketwired - Jun 20, 2013) - TransGlobe Energy Corporation ("TransGlobe" or the "Company") (TGL.TO) (TGA) is pleased to provide a mid-quarter update for the second quarter of 2013 and revised Guidance for 2013. All dollar values are expressed in United States dollars unless otherwise stated.

HIGHLIGHTS
•Q2 drilled 14 wells resulting in 12 oil wells and 2 dry holes (86% success)
•Two new pools discovered at West Bakr
•2013 YTD drilled 24 wells resulting in 20 oil wells and 4 dry holes (83% success)
•Portion of 2013 planned production ramp up delayed to 2014 due to delays outside the Company's control
•2013 Revised Production Guidance of 19,000 to 20,000 Bopd (mid-point of 19,500 Bopd) •Delay of production growth to 2014 due to an extended Block S-1 shut in, delays in access approvals at South Alamein and a delayed well stimulation program at West Gharib
•19,500 Bopd represents a 11% increase over 2012 production of 17,500 Bopd

•2013 Revised Funds flow Guidance of $145 million ($1.92/share) •Using 19,500 Bopd (mid-point of guidance) and $100/Bbl Brent pricing
•2013 Funds flow sensitivity to pricing of $11 million ($0.16/share) per $10/Bbl Brent pricing

•2013 Revised Capital Exploration and Development Budget of $80 million •Egypt $75 million (94%) and Yemen $5 million (6%)
•52% of 2013 funds flow guidance of $145 million

•TransGlobe's production averaged 19,222 Bopd in April; 17,872 Bopd in May; and 18,000 Bopd in June to date •May and June production impacted by labor strikes at the GPC processing facility
•West Gharib multi-well stimulation program commenced in late June
•Block S-1 production (1,700 Bopd) shut-in since November 11th, 2012

•Received approvals for two exploration wells in South Alamein
•Received $102 million to date from EGPC during 2013
•On June 11, 2013 the Company finalized an amendment to its banking facility, which re-established the borrowing base at $100 million (current drawings are $18.5 million). The lending syndicate now consists of Sumitomo Mitsui Banking Corporation Europe Limited ("SMBC"), Export Development Canada ("EDC"), and the International Finance Corporation ("IFC") a division of the World Bank. SMBC, our lead bank, and EDC are continuing lenders and IFC is a new participant in the facility.

[ghrcap]

From Scotiabank:
http://www.investorvillage.com/uploads/ ... june13.pdf

[dan_s]

This is the #1 thing to remember about TGA. It generates a lot of free cash flow and continues to grow proven reserves.

From the June 20 press release: "Corporate production growth in 2013 is expected to be in the 9% to 14% range, while capital spending will be reduced to the $75 million range which represents approximately 52% of forecasted funds flow for 2013."

Production rate should be over 22,000 bopd by year-end.