TransGlobe Energy to buy Egyptian oil assets for $60m
Canadian oil and gas exploration company TransGlobe Energy (TSE:TGL)(NASDAQ:TGA) said Monday it has agreed to buy all the Egyptian oil assets of Japan-based Egypt Petroleum Development for US$60 million.
The assets include two development leases covering 45.2 square kilometres in the Gulf of Suez basin of Egypt, with three fields that have 28 producing wells. According to TransGlobe, the fields produced four thousand barrels of oil per day and have 8.8 million barrels of proved plus probable reserves.
Under production sharing terms, Calgary-based TransGlobe will receive 30% of the revenue to recoup costs. The remainder of revenue will be split 15% and 85% between TransGlobe and the Egyptian government, respectively.
The deal, subject to the approval of the Egyptian government, is expected to close on July 1.
TransGlobe rose 5% to trade at $14.31 on the Toronto Stock Exchange as of 2:21 pm EST on Monday.
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