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TransGlobe Energy Corp. confirmed the closing of the share purchase agreement to acquire the shares of Cepsa Egypt SA B.V., a wholly owned subsidiary of Compania Espanola De Petroleos S.A.U., which holds a 50% working interest in the South Alamein concession.
The South Alamein concession is onshore the Western Desert of Egypt and includes portions of the prolific Alamein and Tiba basins. The current gross size of this exploration concession is 1,423 sq km. The concession is in the final two-year exploration phase. The concession includes an oil discovery well, Boraq-2X. The primary Cretaceous zone tested at a rate of 800 to 1,323 barrels of of 34° API oil per day (b/d) with no water and a 13% pressure drawdown. The well should be capable of initial production of approximately 1,700 b/d.
The company has scheduled a drilling rig to commence an initial five-well drilling program starting in mid to late 4Q of 2012. The program will include two appraisal wells in the Boraq area followed by three exploration wells. The timing to drill development and exploration wells at South Alamein will be dependent upon receiving the required well permitting approvals.