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EGYPT: TransGlobe Energy Provides Operations Update

Eastern Desert (100% WI)

The Company continued to use the EDC-64 rig in its Eastern Desert drilling campaign, managing to drill and case four additional development wells in the K-Field during the quarter to date.

The K-71 well, reported on in the previous operations update of April 6, 2022, was put on production from the Asl-B reservoir only and is currently producing at 480 Bopd (heavy crude, field estimate) and 20% water cut. The Asl-A reservoir was not perforated and was internally estimated to have 19 m of net oil pay. The Asl-A is a potential future recompletion.

The K-78 well was drilled to a total depth of 1,420 meters. The well was fully logged and evaluated with an internally estimated 21.8 meters of net oil pay in the Asl-A reservoir and 10.2 meters of net oil pay in the Asl-B reservoir. The Asl-B was perforated and put on production with a current field estimated rate of 10 Bopd (heavy crude, field estimate) and 97% water cut. The well is being evaluated for either a work over to shut-off water production from the Asl-B reservoir, or to move ahead with an early recompletion to the Asl-A reservoir.

The K-75 well was drilled to a total depth of 1,396 meters. The well was fully logged and evaluated. The well encountered 4.9 meters of net oil pay in the Asl-A. The Asl-A was perforated and the well is scheduled to be put on production.

The K-74 well was drilled to a total depth of 1,399 meters. The well was fully logged and evaluated. The well encountered 9.6 meters of net oil pay in the Asl-A reservoir. The Asl-A was perforated and the well is scheduled to be put on production.

The K-73 well was drilled to a total depth of 1,406 meters. The well was fully logged and evaluated with an internally estimated 20.6 meters of net oil pay in the Asl-A reservoir and 1.9 meters in the Asl-B reservoir. The well is currently waiting on completion and tie-in.

The K-77 well in K-Field has recently been spudded by the EDC-64 rig.

The Arta-76 and NWG-1E vertical wells, previously reported as drilled in the April 6, 2022 operations update, have been stimulated. These wells confirmed the presence of oil in the Nukhul, were cored to provide data to update the reservoir models, and have successfully delineated the reservoir for optimal targeting of the forthcoming horizontal wells. Both wells are expected to be used for microseismic monitoring of the multi-stage stimulation of the horizontal wells, and this data will be used to calibrate our stimulation model for optimization of the future horizontal well development program. Meanwhile, the two wells have been put on production with the Arta-76 currently producing at 14 Bopd with a 28% water cut, and NWG-1E currently producing while cleaning up at 32 Bopd with an 70% water cut (both heavy crude, field estimate).

The Company continues working to proactively mitigate potential supply chain issues by engaging alternative materials suppliers. In the short term, materials shortages causing delays to the tie-in of some recently drilled wells are being addressed.

Western Desert – South Ghazalat (100% WI)

A problem with the rigless artificial lift system deployed on SGZ-6X well at South Ghazalat is under investigation. On artificial lift, the lower Bahariya reservoir at SGZ-6X was producing 128 Bopd of light crude oil with an 82% watercut (field estimate) prior to well shut-in.

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