TGA Update

[dan_s]

TransGlobe Energy (TGA) issued a mid-quarter operations update on June 20. An updated Net Income & Cash Flow Forecast model has been posted under the Watch List Tab.

IMO the market has over-reacted (as usual) to TGA's lowered guidance for 2013. The important point is that the low guidance has nothing to do with well performance. Labor and access issues have just pushed some projects into 2014.

You can find my adjusted Fair Value Estimate at the bottom of forecast model.

TGA is now likely to report a loss in Q2 as a result of the $20 million non-cash impairment charge on South Mariut, which is being abandoned. Cash flow per share for Q2 should be approximately $0.44 and they are on-track for over $1.80 CFPS from operations for the year.

[dan_s]

Anna, one of out top interns (ever) has been assigned the task of updating TGA's profile for the mid-quarter update. We will publish it next week.