TransGlobe cuts 2013 output outlook due to delay in Egypt permits

Thu Jun 20, 2013 10:23am EDT
 
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* Reduces outlook to 19,000-20,000 bopd from 21,000-24,000

* Slashes 2013 capex budget by 38 pct to $80 mln

* To take $20 mln impairment charge in second quarter

* Shares fall as much as 10 pct

June 20 (Reuters) - Oil and gas producer TransGlobe Energy Corp cut its full-year production outlook, citing delays in getting government approvals in Egypt, and said it will take a $20 million impairment charge.

TransGlobe shares fell as much as 10 percent to C$6.52 on the Toronto Stock Exchange on Thursday morning - their lowest in three years.

The company said it now expects to produce 19,000 to 20,000 barrels of oil per day (bopd) in 2013, down from its previous outlook of 21,000 to 24,000 bopd.

Production at Boraq well in Egypt's Western Desert has been deferred to 2014 from the fourth quarter of this year due to delayed military approvals, the company said.

"The appetite for international exploration and production is jaded at the moment, investors would like to see some good news coming from the company," said RBC Capital Markets analyst Al Stanton, who has a "sector-perform" rating on TransGlobe Energy's stock.

The company, which also has operations in Yemen, said it expects to take a $20 million impairment charge in the second quarter after abandoning a well in Egypt last month.

Calgary-based TransGlobe cut its 2013 capital expenditure and development budget to $80 million from $129 million. (Reporting by Krithika Krishnamurthy in Bangalore; Editing by Joyjeet Das)