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TransGlobe Energy Corporation Announces Third Quarter 2019 Financial and Operating Results for the three and nine months ended September 30, 2019

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This Announcement contains inside information as defined in Article 7 of the Market Abuse Regulation No. 596/2014 ("MAR"). Upon the publication of this Announcement, this inside information is now considered to be in the public domain.

CALGARY, Alberta, Oct. 30, 2019 (GLOBE NEWSWIRE) -- TransGlobe Energy Corporation ("TransGlobe" or the "Company") (AIM & TSX:  "TGL" & NASDAQ: "TGA") is pleased to announce its financial and operating results for the three and nine months ended September 30, 2019.  All dollar values are expressed in United States dollars unless otherwise stated. TransGlobe's Condensed Consolidated Interim Financial Statements together with the notes related thereto, as well as TransGlobe's Management's Discussion and Analysis for the three and nine month periods ended September 30, 2019 and 2018, are available on TransGlobe's website at www.trans-globe.com.

Highlights:

  • Third quarter production averaged 15,943 boe/d (Egypt 13,750 bbls/d, Canada 2,193 boe/d), a decrease of 997 boe/d (6%) over the previous quarter, and sales averaged 14,122 boe/d. Production to date in October averaged approximately 15,206 boe/d (Egypt ~ 13,228 bbls/d, Canada ~ 1,978 boe/d);
     
  • Production for the nine months ended September 30, 2019 averaged 16,269 boe/d (Egypt 14,010 bbls/d, Canada 2,259 boe/d), which was above guidance and 15% higher than the same period in 2018;
     
  • 2019 production guidance is now expected to range from 15,500 to 16,000 boe/d with a midpoint of 15,750 boe/d for the year;
     
  • Positive third quarter funds flow of $9.4 million ($0.13 per share). Third quarter net earnings of $3.0 million ($0.04 per share);
     
  • Ended the third quarter with positive working capital of $47.2 million, including cash and cash equivalents of $24.4 million;
     
  • NWG 38D-1 (drilled in Q2-2019) is confirmed as an oil discovery following completion and perforation, and will be put on production in Q4-2019 following stimulation;
     
  • Completed SGZ-6X as an upper Bahariya oil producer in the Western Desert (approval received in Q3-2019), with construction of an early production facility on schedule for late Q4-2019, targeting an initial production rate of approximately 1,000 bbls/day;
     
  • Drilled four horizontal Cardium oil wells in the Harmattan area of Canada during the quarter, including three development wells and one outpost appraisal well;
     
  • Sold 380 thousand barrels ("mbbls") of inventoried entitlement crude oil to EGPC in September 2019;

  • Continues to review opportunities for inorganic growth in line with our M&A strategy;

  • Paid a dividend of $0.035 per share on September 13, 2019 to shareholders of record on August 30, 2019.

FINANCIAL AND OPERATING RESULTS
(US$000s, except per share, price, volume amounts and % change)

  Three Months Ended September 30
    Nine Months Ended September 30
 
Financial 2019   2018   % change     2019   2018   % change  
Petroleum and natural gas sales 64,388   74,345   (13 )   214,728   226,516   (5 )
Petroleum and natural gas sales, net of royalties 31,200   42,453   (27 )   111,623   135,622   (18 )
Realized derivative loss on commodity contracts (112 ) (2,430 ) 95     (1,041 ) (8,329 ) 88  
Unrealized derivative gain (loss) on commodity contracts 2,616   (3,295 ) 179     (385 ) (20,157 ) 98  
Production and operating expense 11,564   12,242   (6 )   35,507   40,182   (12 )
Selling costs 76   527   (86 )   649   1,653   (61 )
General and administrative expense 4,102   5,104   (20 )   12,743   16,683   (24 )
Depletion, depreciation and amortization expense 8,173   8,751   (7 )   26,184   26,077    
Income tax expense 6,416   6,924   (7 )   20,095   19,728   2  
Cash flow generated by operating activities 12,042   47,639   (75 )   21,096   59,370   (64 )
Funds flow from operations1 9,429   17,018   (45 )   43,700   54,440   (20 )
Basic per share 0.13   0.24       0.60   0.75    
Diluted per share 0.13   0.23       0.60   0.75    
Net earnings (loss) 2,967   (12,283 ) (124 )   4,207   (15,042 ) 128  
Basic per share 0.04   (0.17 )     0.06   (0.21 )  
Diluted per share 0.04   (0.17 )     0.06   (0.21 )  
Capital expenditures 9,292   12,783   (27 )   25,936   23,273   11  
Dividends paid 2,539   2,527       5,078   2,527   101  
Dividends paid per share 0.035   0.035      
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