TransGlobe Energy Corporation (TGA) has recently been covered by leading advisory firm Stonegate Capital Partners that focuses on institutional investor outreach for publicly traded companies.
The capital market advisory firm issued a detailed report covering different business operations aspects of Calgary, Alberta-headquartered oil and gas company. TransGlobe works as an independent oil and gas exploration and production company currently operating in Canada and Egypt.
The company started over its operations in Canada in December 2016 after remained working in the country from 1999 to 2008 previously. On the other hand it has been operating in Egypt since 2004 with production sharing concessions in the Western Desert and the Eastern Desert regions. In Canada, the company has currently been operating with Mannville liquid-rich gas and Cardium light oil assets in the west central area of Harmattan in Alberta.
In its report, Stonegate Capital highlighted that TGA efficiently responded to the unprecedented macro environment in the face of COVID-19 as well as pressure built on the whole industry by the relaxation of OPEC production cuts. TransGlobe responded to these short-term pressures with a proactive approach by paying attention to preserve its balance sheet which was already in a strong position. The company came deferring capital investments and also realized 35% of year-over-year saving by reducing G&A expenses. TGA also remained working with the government in Egypt to quickly resume the profitability in the face of lower oil price scenario.
In fiscal 2019, average production of TGA was 16.0 Mboepd while the company reported 15.0 Mboepd of that for Q1 2020 and 14.3 Mboepd for Q2 2020. The corporate production for fiscal 2020 is likely to remain between 13.3 and 13.8 Mboepd because of the company’s reduced 2020 capital expenditure program.
TransGlobe have 25.4 MMboe of total proved (1P) reserves while reported 45.3 MMboe of total proved + probable (2P) reserves,a s reported the company based on an evaluation by GLJ Petroleum Consultants in February 2020.