TGL Lays the Groundwork

WARREN VERBONAC, Union Securities Ltd. (08/05/2010)
"TransGlobe released its Q210 operating and financial results. . .cash flow of US$0.26 for the quarter came in ahead of our estimate of US$0.23. Notable success was achieved at the Arta field in Egypt (100% interest) where production is now 969 bd (up from 130 bd at the beginning of the year) due to successful fracturing of recent wells, a program which will be continued. Results from the recent drilling indicate estimated petroleum initially in place of 36M barrels, up from the previous estimate of 28M bbls. Fracturing will be expanded to four other fields in West Gharib. The company's budget for the year has increased from US$63M to US$71M. . .building on recent success and laying the groundwork for continued growth in 2011."

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