TransGlobe Energy Corporation Announces Fourth Quarter and Year End 2013 Financial and Operating Results

March 5, 2014

CALGARY, ALBERTA--(Marketwired - Mar 5, 2014) - TransGlobe Energy Corporation ("TransGlobe" or the "Company") ( TGL.TO )( TGA ) is pleased to announce its financial and operating results for the three months and year ended December 31, 2013. All dollar values are expressed in United States dollars unless otherwise stated.

2013

  • Production increased to 18,284 barrels of oil per day ("Bopd") from an average 17,432 Bopd in 2012, a growth rate of 5%;
  • Funds flow from operations of $139.1 million ($1.70/share diluted) based on average Brent oil pricing of $108.64 in 2013;
  • Net earnings of $58.5 million ($0.65/share diluted), which includes $30.1 million in impairment losses;
  • Signed four new 100% WI concession agreements in Egypt that were won in the 2011/2012 EGPC bid round;
  • Year-end 2013 Proved plus Probable ("2P") reserves decreased 7% to 45.3 MMBbl, representing a production replacement for the year of 48%;
  • Three-year weighted average finding and development costs of $10.02/Bbl (2P) with a recycle ratio of 2.21;
  • Three-year weighted average finding, development and acquisition costs of $10.23/Bbl (2P) with a recycle ratio of 2.17;
  • Collected $275.2 million in Egyptian receivables during the year (including $127.4 million in Q4) reducing the total receivables outstanding at year end to $148.3 million from $221.0 million in 2012; and
  • Ended the year with $122.1 million in cash and cash equivalents; positive working capital of $242.0 million or $154.4 million net of debt (including convertible debentures).

2014

  • Production guidance of 20,000 to 21,000 Bopd, a 12% increase over 2013 using the mid-point of 20,500 Bopd;
  • Funds Flow guidance of $146.0 million, based on an average Dated Brent oil price of $100.0/Bbl and using the mid-point production of 20,500 Bopd;
  • January production 18,932 Bopd; February production 18,000 Bopd;
  • Development lease for North Dabaa gas/condensate discovery (East Ghazalat) approved February 18, 2014;
  • Expect to introduce a quarterly dividend ($0.05/share) in 2014 (subject to lender and regulatory approvals).

A conference call to discuss TransGlobe's 2013 fourth quarter and year-end results presented in this news release will be held Wednesday, March 5, 2014 at 9:00 AM Mountain Time (11:00 AM Eastern Time) and is accessible to all interested parties by dialing 416-340-8527 or toll free at 800-446-4472 (see also Tra...