TGL: Financing Closes; Buying Opportunity Now

J. FREDERICK KOZAK, Canaccord Genuity (02/01/2011)
"We are reinstating our estimates after being research restricted due to the company's recent financing. Despite the current unrest in Egypt, we reiterate our BUY rating and our CAD$19 target price. TransGlobe continues to delineate a developing oil discovery in the Nukhul Formation on the West Gharib Concession in eastern Egypt.

Investment highlights: Active drilling program planned for 2011 with three rigs and up to 44 Nukhul Formation wells drilled in West Gharib; Production of ~11,000 bbl/d currently remains unaffected by civil unrest, at present confined to Egypt's major cities; and Production should continue to increase toward our estimated 2011 exit rate of just over 15,000 bbl/d."

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