TGL: Early Nukhul Results Encouraging

DAN GRAGER, Peters & Co. Limited (08/05/2010)
"TransGlobe released its second quarter results, with average production of 9.2 MB/d in line with of our estimate of 9.5 MB/d, Cash flow was $0.26/share, lower than our estimate of $0.29/share. The difference in cash flow was primarily due to higher government take in the quarter.

Early results from the vertical fracturing of the Nukhul formation at Arta are encouraging, with Arta #13 and Arta #14 producing 120 B/d and 600 B/d, respectively. The company increased its capital budget for 2010 to $71MM, up from $63MM previously, with the company's focus on the vertical wells at Arta and East Ghazalat appraisal drilling."

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