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Transglobe mentionedBelow you will find an excerpt from the Energy summary (Stockwatch Business Reporter) (thanks to "carswell" on the $PEAK board): L. Energy Summary for Sept. 18, 2017 2017-09-18 20:27 ET - Market Summary by Stockwatch Business Reporter Egypt- and Alberta-focused TransGlobe Energy Corp. (TGL) added eight cents to $1.38 on a heavier-than-usual 1.58 million shares. Much of the volume came from Canaccord Genuity, which crossed 1.13 million shares at $1.38 this morning. TransGlobe has not released news since Aug. 14, when it announced its second quarter financials. These did nothing to halt the stock's stubborn slide from nearly $2.50 at the start of the year. Although TransGlobe enjoyed improved oil sales during the quarter (sales being an often tricky business in Egypt, where the company gets most of its production), three out of the five Egyptian wells it drilled during the quarter were dry, and the company also lowered its full-year production guidance to a range of 15,500 to 16,500 barrels of oil equivalent a day from a range of 15,500 to 18,500 barrels a day. The guidance drop partly reflected a new budget of $40-million (U.S.) to $45-million (U.S.). TransGlobe previously planned to spend $56.4-million (U.S.), although it had also said that just $35.2-million (U.S.) of that was considered "firm," with the remaining $21.2-million (U.S.) being dependent on commodity prices, drill results and other factors. Investors remained indifferent following the second quarter financials. TransGlobe is now hoping to impress them with its activity in the third quarter, including its very first drilling at its Canadian assets. It acquired these assets last December by buying Cardium/Mannville properties in the Harmattan area of Alberta from Bellatrix Exploration Ltd. (BXE: $3.42) for $80-million. The properties were producing roughly 3,000 barrels a day at the time. When TransGlobe released its initial 2017 budget on Feb. 2, one day after it took over field operations at its new properties, it reckoned that it would drill four to eight wells in order to keep Harmattan's production at around 2,500 to 3,000 barrels a day. Last month, however, it reduced the drill program to three wells and lowered its production expectations to a range of 2,500 to 2,700 barrels a day. Management played down the reduction and instead emphasized that drilling had started, with encouraging indications so far. During a conference call on Aug. 14, president and chief executive officer Ross Clarkson declared himself both "incredibly impressed" and "really optimistic," adding that TransGlobe might even expand the Canadian drill program if oil prices start to improve heading into 2018. He promised that the results of the new Canadian wells would likely arrive with the company's next quarterly update. That could mean anywhere from October to mid-November, with some observers hoping for results even sooner than that. Scotia Capital analyst Gavin Wylie, for example, reckoned in a recent research note that investors might see the Canadian results by the end of this month. |
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