Egyptian net present value of future net revenues (2P reserves discounted at 10%, forecast pricing, after tax) increased to $289 MM, 155% higher compared to 2020, principally due to the increased net entitlement share resulting from the Merged Concession Agreement as well as an increased Brent oil price forecast from year-end 2020.
2P drilling additions of 2.4 MMbbls (1P: 1.4 MMbbls) resulted from successful drilling in the K and H field, while improved production performance and the term extension realized from the Merged Concession Agreement resulted in positive 2P technical revisions of 3.2 MMbbls (1P: 6.8 MMbbls). Egypt represents 65% and 58% of TransGlobe’s reserves on a 1P and 2P basis, respectively.
Randy Neely, President & Chief Executive Officer of TransGlobe:‘We are thrilled with the updated year-end 2021 reserves. This puts a resounding stamp of justification on the years of hard work to both complete the Eastern Desert PSC consolidation. Although improved commodity prices contributed to the increase in reserves and value, the quantum of the reserves increase is chiefly due to both the amended commercial terms in Egypt and the strong technical and operating work done in both Egypt and Canada.