TransGlobe Energy Corporation Reports Revenue Results for the Year Ended December 2015 and Production Results for the Month, Fourth Quarter and Full Year Ended December 2015; Expects to Mobilize A Second Drilling Rig Later in 2016; Revises Production Guidance for the First Quarter of 2016
Production averaged approximately 12,800 Bopd in December 2015.
At year-end 2015, the company had approximately 923,000 barrels of entitlement oil in inventory.
The company expects to mobilize a second drilling rig later in 2016, dependent on the status of the extension request. It is expected that drilling costs will be 20+% lower than the 2014 program due to re-tendering and well planning conducted in 2015.
For year end 2015, the company reported after tax future net revenues of $195 million.
It is expected production will be in the 12,000 Bopd range during the first quarter of 2016. The forecast 10% reduction in production is principally due to natural declines, shut in/curtailed high cost (high water cut) producers and delayed recompletion/workover investments in response to significantly lower oil prices in December/January.