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TSX jumps to two-month high on U.S. inflation relief

Businessmen pass the Toronto Stock Exchange sing in Toronto, Ontario, Canada July 6, 2017. REUTERS/Chris Helgren

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  • TSX ends up 307.64 points, or 1.6%, at 19,885.94
  • Posts highest closing level since June 10
  • Tech sector jumps 4.2%
  • Financials advance nearly 2%

Aug 10 (Reuters) – Canada’s main stock index rose on Wednesday to its highest level in two months, with technology stocks leading gains after data showed U.S. inflation rising less than expected last month.

The Toronto Stock Exchange’s S&P/TSX composite index (.GSPTSE) ended up 307.64 points, or 1.6%, at 19,885.94, its highest closing level since June 10.

Wall Street also rallied after U.S. consumer price data raised hopes the Federal Reserve will cut back on super-sized interest rate increases. read more

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Investors have worried that aggressive tightening by central banks could push the global economy into a recession.

“Markets have good reason to cheer the CPI number finally,” said Barry Schwartz, portfolio manager at Baskin Financial Services. “It’s taking a lot of heavy lifting by the central banks to raise interest rates and talk down the economy and that seems to be working.”

Canada is expected to report its inflation figures next week. Investors are expecting a half-percentage-point interest rate increase by the Bank of Canada in September after it hiked last month by a full percentage point.

“I would look for more muted hikes going forward in the 50-basis-point range as commodity prices have fallen a little bit,” Schwartz said.

Energy prices have been a major driver of inflation.

The Toronto market’s technology sector jumped 4.2%, paced by a 20.5% gain for Converge Technology Solutions Corp (CTS.TO) after the company’s adjusted earnings beat estimates.

Heavily-weighed financials rose nearly 2%, while energy added just less than 1% as oil prices settled 1.6% higher at $91.93 a barrel. read more

The materials group, which includes precious and base metals miners and fertilizer companies, advanced 1.4% despite a 21.6% plunge in the shares of Centerra Gold Inc (CG.TO) after it reported quarterly results.

CAE Inc (CAE.TO) was also a drag, with the 737 MAX simulator maker’s shares tumbling 17.6% after quarterly profit missed expectations. read more

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Reporting by Fergal Smith; Additional reporting by Johann M Cherian and Shreyashi Sanyal in Bengaluru; Editing by Shailesh Kuber and Deepa Babington

Our Standards: The Thomson Reuters Trust Principles.

TSX futures edge up ahead of U.S. inflation data

By Fergal Smith

(Reuters) – Canada’s main stock index rose on Wednesday to its highest level in two months, with technology stocks leading gains after data showed U.S. inflation rising less than expected last month.

The Toronto Stock Exchange’s S&P/TSX composite index ended up 307.64 points, or 1.6%, at 19,885.94, its highest closing level since June 10.

Wall Street also rallied after U.S. consumer price data raised hopes the Federal Reserve will cut back on super-sized interest rate increases.

Investors have worried that aggressive tightening by central banks could push the global economy into a recession.

“Markets have good reason to cheer the CPI number finally,” said Barry Schwartz, portfolio manager at Baskin Financial Services. “It’s taking a lot of heavy lifting by the central banks to raise interest rates and talk down the economy and that seems to be working.”

Canada is expected to report its inflation figures next week. Investors are expecting a half-percentage-point interest rate increase by the Bank of Canada in September after it hiked last month by a full percentage point.

“I would look for more muted hikes going forward in the 50-basis-point range as commodity prices have fallen a little bit,” Schwartz said.

Energy prices have been a major driver of inflation.

The Toronto market’s technology sector jumped 4.2%, paced by a 20.5% gain for Converge Technology Solutions Corp after the company’s adjusted earnings beat estimates.

Heavily-weighed financials rose nearly 2%, while energy added just less than 1% as oil prices settled 1.6% higher at $91.93 a barrel.

The materials group, which includes precious and base metals miners and fertilizer companies, advanced 1.4% despite a 21.6% plunge in the shares of Centerra Gold Inc after it reported quarterly results.

CAE Inc was also a drag, with the 737 MAX simulator maker’s shares tumbling 17.6% after quarterly profit missed expectations.

(Reporting by Fergal Smith; Additional reporting by Johann M Cherian and Shreyashi Sanyal in Bengaluru; Editing by Shailesh Kuber and Deepa Babington)

Transglobe Energy Corporation Announces Second Quarter 2022 Financial And Operating Results For The Three And Six Months Ended June 30, 2022

(MENAFN– Newsfile Corp) TransGlobe Energy Corporation Announces Second Quarter 2022 Financial and Operating Results for the Three and Six Months Ended June 30, 2022
The information contained within this Announcement is deemed by TransGlobe Energy Corporation to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014 as it forms part of UK law by virtue of the European Union (Withdrawal) Act 2018 (‘MAR’).

Calgary, Alberta–(Newsfile Corp. – August 10, 2022) – TransGlobe Energy Corporation (AIM: TGL) (TSX: TGL) (NASDAQ: TGA) (‘TransGlobe’ or the ‘Company’) is pleased to announce its financial and operating results for the three and six months ended June 30, 2022. All dollar values are expressed in United States dollars unless otherwise stated. TransGlobe’s Condensed Consolidated Financial Statements together with the notes related thereto, as well as TransGlobe’s Management’s Discussion and Analysis for the three and six months ended June 30, 2022 and 2021, are available on TransGlobe’s website at .

FINANCIAL HIGHLIGHTS:

  • Second quarter sales averaged 12,609 boe/d including 104.0 Mbbls sold to EGPC for proceeds of $11.8 million and one cargo lifting of 451.0 Mbbls of entitlement crude oil sold for proceeds of $46.3 million;
  • Average realized price for Q2-2022 sales of $95.37/boe; Q2-2022 average realized price on Egypt sales was $101.29/bbl and on Canadian sales was $59.65/boe;
  • Funds flow from operations of $42.5 million ($0.58 per share) in the quarter;
  • Second quarter net earnings of $32.1 million ($0.44 per share), inclusive of a $0.6 million unrealized derivative gain on commodity contracts;
  • Ended the second quarter with positive working capital of $78.6 million, including cash of $61.2 million;
  • Achieved consolidated netbacks of $42.25 per boe during the second quarter, an increase of 49% from the previous quarter primarily due to improved commodity prices and the Company’s improved economic interest under the Merged Concession agreement;

OPERATIONAL HIGHLIGHTS:

  • Second quarter production averaged 12,132 boe/d (Egypt 10,338 bbls/d, Canada 1,794 boe/d), a decrease of 314 boe/d (3%) from the previous quarter, primarily due to planned maintenance at a third-party processing facility in Canada. This was partially offset by an increase in production in the Eastern desert from Q1-2022 resulting from new development wells drilled in 2022, partially offset by natural declines;
  • Production in the month of July averaged ~11,458 boe/d (Egypt ~9,257 bbls/d, Canada ~2,201 boe/d), a decrease of 6% from Q2-2022 primarily due to Egypt production being affected by higher than expected natural declines and low initial well performance from the secondary Q2 drilling campaign targets, partially offset by an increase in production in Canada after completion of the planned third-party facility turnaround in the second quarter;
  • Ended the quarter with nil entitlement crude oil inventory, a decrease of 43.4 Mbbls from Q1-2022. This decrease is due to sales outpacing production in the period primarily driven by increased sales volumes from the Q2-2022 cargo lifting and direct sales to EGPC in June;
  • Drilled and cased five development wells in the Eastern Desert of Egypt;
  • Drilled three 100% working interest horizontal Cardium reservoir development wells (two 2-mile, and one 1-mile) in the South Harmattan area in Canada. Another 1-mile 100% working interest horizontal Cardium reservoir development well was spud in June with rig release in early July. Stimulation and equipping of these wells commenced in July 2022, with first production anticipated in September 2022;
  • Increased capital budget by $4.4 million to $74.9 million (before capitalized G&A) for the year, due to increased tie-in costs in Canada and the drilling of one additional well and performance of two additional recompletions in the Eastern Desert in Egypt;

CORPORATE HIGHLIGHTS:

  • As announced on January 20, 2022, the Company executed its agreement (the ‘Merged Concession agreement’ or ‘Merged Concession’) with the Egyptian General Petroleum Corporation (‘EGPC’) to merge its three existing Eastern Desert concessions with a 15-year primary term and improved Company economics;
  • On March 16, 2022 the Company declared a dividend of $0.10 per share, which was paid on May 12, 2022 to shareholders of record on April 29, 2022. The ex-dividend date was April 28, 2022; and
  • On July 14 2022 TransGlobe and VAALCO Energy, Inc. announced that they have entered into a definitive arrangement agreement pursuant to which VAALCO will acquire all of the outstanding common shares of TransGlobe in a stock-for-stock strategic business combination transaction.

FINANCIAL AND OPERATING RESULTS

Additional financial information is provided in the Company’s Condensed Consolidated Financial Statements together with the notes related thereto, as well as TransGlobe’s Management’s Discussion and Analysis for the three months ended June 30, 2022 and 2021. These documents, along with other documents affecting the rights of securityholders and other information relating to the Company, may be found on SEDAR at and in the Company’s Annual Report on Form 40-F for the fiscal year ended December 31, 2021, filed on EDGAR at .

(US$000s, except per share, price, volume amounts and % change)

Three Months Ended June 30 Six Months Ended June 30
Financial 2022 2021 % Change 2022 2021 % Change
Petroleum and natural gas sales 109,427 85,018 29 190,937 127,295 50
Petroleum and natural gas sales, net of royalties 74,690 50,595 48 127,644 68,647 86
Realized derivative loss on commodity contracts 717 3,646 (80 ) 767 5,191 (85 )
Unrealized derivative (gain) loss on commodity contracts (569 ) 1,248 (146 ) 787 4,218 (81 )
Production and operating expense 14,830 19,722 (25 ) 28,109 29,171 (4 )
Selling costs 2,010 1,671 20 2,493 1,705 46
General and administrative expense 8,077 3,670 120 14,942 8,707 72
Depletion, depreciation and amortization expense 7,299 6,959 5 14,169 11,774 20
Income tax expense 9,381 5,605 67 17,939 10,265 75
Cash flow generated by operating activities 42,170 23,832 77 18,388 19,892 (8 )
Funds flow from operations1 42,465 17,100 148 69,596 17,181 305
Basic per share2 0.58 0.24 0.95 0.24
Diluted per share2 0.57 0.24 0.94 0.24
Net earnings (loss) 32,133 7,722 316 80,943 (3,302 ) (2,551 )
Basic per share 0.44 0.11 1.11 (0.05 )
Diluted per share 0.44 0.11 1.09 (0.05 )
Capital expenditures3 15,736 3,597 337 24,585 6,504 278
Working capital6 78,642 17,136 359 78,642 17,136 359
Long-term debt, including current portion 3,102 16,951 (82 ) 3,102 16,951 (82 )
Common shares outstanding
Basic (weighted average) 73,241 72,542 1 73,009 72,542 1
Diluted (weighted average) 73,517 72,922 1 74,337 72,954 2
Total assets 354,836 208,479 70 354,836 208,479 70
Operating
Average production volumes (boe/d) 12,132 13,077 (7 ) 12,288 12,652 (3 )
Average sales volumes (boe/d) 12,609 16,542 (24 ) 12,288 13,135 (6 )
Inventory (Mbbls) 140.3 (100 ) 140.3 (100 )
Average realized sales price ($/boe)4 95.37 56.48 69 85.85 53.54 60
Production and operating expenses ($/boe)5 12.92 13.10 (1 ) 12.64 12.27 3

1 Non-GAAP financial measure that does not have any standardized meaning under IFRS and therefore may not be comparable to similar measures presented by other companies. The most directly comparable GAAP measure for funds flow from operations is cash flow generated by operating activities. Refer to ‘Non-GAAP and Other Financial Measures’ contained within the Q2-2022 MD&A.
2 Non-GAAP ratio that does not have any standardized meaning under IFRS and therefore may not be comparable to similar measures presented by other companies. Includes a non-GAAP financial measure component of funds flow from operations. Refer to ‘Non-GAAP and Other Financial Measures’ contained within the Q2-2022 MD&A.
3 Non-GAAP financial measure that does not have any standardized meaning under IFRS and therefore may not be comparable to similar measures presented by other companies. The most directly comparable GAAP measure for capital expenditures is cash flow used in investing activities. Refer to ‘Non-GAAP and Other Financial Measures’ contained within the Q2-2022 MD&A.
4 Supplementary financial measure that is comprised of petroleum and natural gas sales, as determined in accordance with IFRS, divided by the Company’s average daily production volumes.
5 Supplementary financial measure that is comprised of production and operating expenses, as determined in accordance with IFRS, divided by the Company’s average daily production volumes.
6 Supplementary financial measure that is comprised of current assets less current liabilities, as determined in accordance with IFRS.

2022 2021
Average reference prices and exchange rates Q-2 Q-1 Q-4 Q-3 Q-2
Crude oil
Dated Brent average oil price ($/bbl) 113.54 100.30 79.59 73.47 68.83
Edmonton Sweet index ($/bbl) 106.68 92.64 73.19 66.61 63.07
Natural gas
AECO ($/MMBtu) 5.42 3.68 3.89 2.97 2.48
US/Canadian Dollar average exchange rate 1.28 1.27 1.26 1.26 1.23

CORPORATE SUMMARY

TransGlobe Energy Corporation (‘TransGlobe’ or the ‘Company’) produced an average of 12,132 barrels of oil equivalent per day (‘boe/d’) during the second quarter of 2022. Egypt production was 10,338 barrels of oil per day (‘bbls/d’) and Canada production was 1,794 boe/d. Production for the quarter was below full year 2022 guidance of 12,400 to 13,400 boe/d and 3% lower than the previous quarter. The decrease was primarily due to planned maintenance at a third-party processing facility in Canada, partially offset by an increase in production in the Eastern desert from the ongoing drilling program. It is expected that annual production will be within full-year 2022 production guidance.

TransGlobe’s Egyptian crude oil is sold at a quality discount to Dated Brent. The Company received an average price of $101.29 per barrel in Egypt during the quarter. In Canada, the Company received an average of $106.67 per barrel of oil, $44.38 per barrel of NGLs and $5.14 per thousand cubic feet (‘Mcf’) of natural gas during the quarter.

During Q2-2022, the Company had funds flow from operations of $42.5 million and ended the quarter with positive working capital of $78.6 million, including cash of $61.2 million. The Company had net earnings in the quarter of $32.1 million, inclusive of a $0.6 million unrealized derivative gain on commodity contracts which represents a fair value adjustment on the Company’s hedging contracts at June 30, 2022.

In Egypt, the Company sold one cargo lifting of 451.0 Mbbls of entitlement crude oil during the quarter for proceeds of $46.3 million, which were collected in May and June 2022. TransGlobe also sold 104.0 Mbbls of inventoried entitlement crude oil to the Egyptian General Petroleum Company (‘EGPC’) for proceeds of $11.8 million during Q2-2022. All Canadian production was sold during the quarter.

As announced on January 20, 2022, the agreement with the Egyptian General Petroleum Corporation to merge the Company’s three existing Eastern Desert concessions was executed. In advance of the Minister of Petroleum and Mineral Resources of the Arab Republic of Egypt (the ‘Minister’) executing the Merged Concession agreement with TransGlobe, the Company paid the first modernization payment ($15.0 million) and signature bonus ($1.0 million) as part of the conditions precedent to the official signing ceremony on January 19, 2022. Upon finalization of the agreement, TransGlobe recognized the amounts due from the effective date to closing of $67.5 million based on historical pricing at the time of production. This amount is still under discussions with the EGPC and is expected to be received through normal EGPC receivables collections. On February 1, 2022, the Company paid the second modernization payment ($10.0 million). In accordance with the Merged Concession agreement, TransGlobe will make a further four annual equalization payments of $10.0 million each beginning February 1, 2023 until February 1, 2026. The Company also has minimum financial work commitments of $50.0 million per each five-year period of the primary development term, commencing on the February 1, 2020 effective date.

The results achieved in the six months ended June 30, 2022 are inclusive of the impact of the Merged Concession.

In Egypt, during the quarter, the Company drilled and cased five development oil wells in the Eastern Desert. The K-78 development well was drilled to a total depth of 1,422 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. The second well, K-75, was drilled to a total depth of 1,396 meters and was fully logged and evaluated. The well encountered 4.9 meters of net oil pay in the Asl-A reservoir. The third well, K-74, was drilled to a total depth of 1,404 meters and was fully logged and evaluated. The well encountered 9.6 meters of net oil pay in the Asl-A Reservoir. TransGlobe drilled a fourth development oil well, K-73, to a total depth of 1,406 meters, encountering an internally estimated 20.6 meters of net oil pay in Asl-A reservoir and 1.9 meters in the Asl-B reservoir. An additional well, K-77 in K-field, was drilled to 1,410 meters. The well was fully logged and evaluated. The well encountered an internally estimated 19.4 meters of net oil pay in the Asl-A reservoir and 3.4 meters of net oil pay in the Asl-B reservoir.

In Canada, during the quarter, TransGlobe successfully drilled three 100% working interest horizontal Cardium reservoir development wells (two 2-mile, and one 1-mile) in the South Harmattan area. Another 1-mile 100% working interest horizontal Cardium reservoir development well was spud in June with rig release in early July. Stimulation and equipping of these wells commenced in July 2022, with first production anticipated in September 2022.

The Company is projecting an additional capital increase of $4.4 million for 2022 to $74.9 million (before capitalized G&A). In Canada, the increase is primarily the result of increased tie-in costs ($3.2 million). In Egypt, the increase is due to the drilling of one additional well and performing two additional recompletions in the Eastern Desert.

On July 14 2022 TransGlobe and VAALCO Energy, Inc. announced that they have entered into a definitive arrangement agreement (the ‘Arrangement Agreement’) pursuant to which VAALCO will acquire all of the outstanding common shares of TransGlobe in a stock-for-stock strategic business combination transaction (the ‘Transaction’). Under the terms of the Arrangement Agreement, VAALCO will acquire each TransGlobe share for 0.6727 of a VAALCO share of common stock, which represented a 24.9 per cent premium per TransGlobe common share based on the companies’ respective 30-day volume weighted average share prices as of market close on July 13, 2022. The Transaction will result in VAALCO stockholders owning approximately 54.5 percent and TransGlobe shareholders owning approximately 45.5 percent of the combined company.

OPERATIONS UPDATE

ARAB REPUBLIC OF EGYPT

EASTERN DESERT

(100% working interest, operated)

Operations and Exploration

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

The K-71 well was put on production from the Asl-B reservoir only and is currently producing at 480 bbls/d (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 1,422 meters. The well was fully logged and evaluated with an internally estimated 21.8 meters of net oil pay in the primary Asl-A reservoir and 10.2 meters of net oil pay in the secondary Asl-B reservoir. The Asl-B was perforated to appraise its oil productivity and put on production however, the production from this zone was with a high water cut. The Asl-B zones are currently being isolated and tested individually to assess further potential for oil production. If insufficient production results, the primary Asl-A reservoir target will be recompleted in the near future.

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. Subsequent to the quarter, the Asl-A was perforated and the well was recently put on production at 41 bbl/d (heavy crude, field estimate) and 90% water cut.

The K-74 well was drilled to a total depth of 1,404 meters. The well was fully logged and evaluated. The well encountered 9.6 meters of net oil pay in the Asl-A reservoir. Subsequent to the quarter, the Asl-A was perforated and the well put on production. It is currently producing 88 bbls/d (heavy crude, field estimate) at 60% water cut.

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 was perforated in the Asl-A reservoir subsequent to the quarter and put on production with a current rate of 126 bbls/d (heavy crude, field estimate) and 79% water cut.

The K-77 well in K-Field was drilled to 1,410 meters. The well was fully logged and evaluated. The well encountered an internally estimated 19.4 meters of net oil pay in the Asl-A reservoir and 3.4 meters of net oil pay in the Asl-B reservoir. The well was perforated in the Asl-B reservoir and is currently producing 31 bbls/d at 96% water cut. The well is scheduled for a recompletion in the Asl-A.

The Arta-76 and NWG-1E vertical wells 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 micro-seismic 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. Arta-76 is producing intermittently in the 20-30 bbl/d range and water cut ranging from ~20-30% (heavy crude, field estimate). NWG-1E is currently producing at 14 bbls/d with a 62% water cut (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 tie-in delays to some recently drilled wells are being addressed.

Production

Production averaged 10,256 bbls/d during the quarter, an increase of 2% (218 bbls/d) from the previous quarter. The increase was primarily due to the new development wells drilled in 2022, partially offset by natural declines.

Production for the month of July 2022 averaged ~9,257 bbls/d. Production was lower due to higher than expected natural declines and low initial well performance from the secondary Q2 drilling campaign targets. A well testing campaign is in progress to identify impacted wells and plan potential remedial interventions.

Sales

The Company sold 101.1 Mbbls of entitlement crude oil to EGPC and sold one cargo lifting of 451.0 Mbbls of entitlement crude oil during the quarter.

Quarterly Eastern Desert Production (bbls/d) 2022 2021
Q-2 Q-1 Q-4 Q-3
Gross production rate1 10,256 10,038 9,771 10,653
TransGlobe production sold (inventoried) 477 (482 ) 1,525
Total sales 10,733 9,556 9,771 12,178
Government share (royalties and tax) 4,648 4,440 5,549 6,050
TransGlobe sales (after royalties and tax)2 6,085 5,116 4,222 6,128
Total sales 10,733 9,556 9,771 12,178

1 Quarterly production by concession (bbls/d):
Eastern Desert – 10,733 (Q2-2022) and 10,038 (Q1-2022)
West Gharib – 2,648 (Q4- 2021), and 2,932 (Q3- 2021)
West Bakr – 6,804 (Q4- 2021), and 7,257 (Q3-2021))
North West Gharib – 319 (Q4- 2021), and 464 (Q3-2021)
2 Under the terms of the Production Sharing Concession Agreements, royalties and taxes are paid out of the government’s share of production sharing oil.

WESTERN DESERT

South Ghazalat (100% working interest, operated)

Operations and Exploration

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 93 bbls/d of light crude oil with an 83% watercut (field estimate) prior to well shut-in.

Production

Production averaged 82 bbls/d during the quarter, an increase of 58% (30 bbls/d) from the previous quarter. The increase was primarily due to the optimization of the artificial lift system, partially offset by higher water cuts than anticipated and natural declines.

There was no production in July 2022 at South Ghazalat due to the SGZ-6X shut-in.

Sales

The Company sold 2,823 bbls of entitlement crude oil to EGPC during the quarter.

Quarterly Western Desert Production (bbls/d) 2022 2021
Q-2 Q-1 Q-4 Q-3
Gross production rate 82 52 294 623
Total sales 82 52 294 623
Government share (royalties and tax) 51 32 183 388
TransGlobe sales (after royalties and tax)1 31 20 111 235
Total sales 82 52 294 623

1 Under the terms of the Production Sharing Concession Agreements, royalties and taxes are paid out of the government’s share of production sharing oil.

CANADA

Operations and Exploration

During the quarter, three 100% working interest Harmattan horizontal Cardium reservoir wells (two 2-mile, and one 1-mile) were drilled in the South Harmattan area. Another 1-mile 100% working interest horizontal Cardium reservoir development well was spud in June with rig release in early July. Stimulation and equipping of these wells commenced in July 2022, with first production anticipated in September 2022.

The Company has spudded a 100% working interest 1-mile Harmattan horizontal Cardium reservoir well, the start of a three horizontal well Harmattan Cardium reservoir summer drill program.

Production

In Canada, production averaged 1,794 boe/d during the quarter, a decrease of 562 boe/d (24%) from the previous quarter and below full year 2022 guidance of 2,400 to 2,600 boe/d. The decrease in production from the previous quarter is primarily due to planned maintenance at a third-party processing facility.

Production in July 2022 averaged ~2,201 boe/d with ~682 bbls/d of oil. The increase from Q2-2022 is due to wells being back on stream following completion of the planned third-party facility turnaround in the second quarter.

Quarterly Canada Production 2022 2021
Q-2 Q-1 Q-4 Q-3
Canada crude oil (bbls/d) 570 821 1,176 601
Canada NGLs (bbls/d) 624 768 716 677
Canada natural gas (Mcf/d) 3,600 4,598 4,832 4,734
Total production (boe/d) 1,794 2,356 2,698 2,066

Condensed Consolidated Interim Statements of Earnings (Loss) and Comprehensive Income (Loss)

(Unaudited – Expressed in thousands of U.S. Dollars, except per share amounts)

Three Months Ended June 30 Six Months Ended June 30
2022 2021 2022 2021
REVENUE
Petroleum and natural gas sales, net of royalties 74,690 50,595 127,644 68,647
Finance revenue 3 3 3 6
Other revenue 1 33 1 33
74,694 50,631 127,648 68,686
EXPENSES
Production and operating 14,830 19,722 28,109 29,171
Selling costs 2,010 1,671 2,493 1,705
General and administrative 8,077 3,670 14,942 8,707
Foreign exchange loss 13 10 5 43
Finance costs 717 333 1,271 803
Depletion, depreciation and amortization 7,299 6,959 14,169 11,774
Asset retirement obligation accretion 86 45 159 111
Gain on concession merger (7,953 )
Loss on financial instruments 148 4,894 1,554 9,409
Impairment reversal (25,983 )
33,180 37,304 28,766 61,723
Earnings before income taxes 41,514 13,327 98,882 6,963
Income tax expense – current 9,381 5,605 17,939 10,265
NET EARNINGS (LOSS) 32,133 7,722 80,943 (3,302 )
OTHER COMPREHENSIVE (LOSS) INCOME
Currency translation adjustments (1,815 ) 772 (1,083 ) 1,166
COMPREHENSIVE INCOME (LOSS) 30,318 8,494 79,860 (2,136 )
Net earnings (loss) per share
Basic 0.44 0.11 1.11 (0.05 )
Diluted 0.44 0.11 1.09 (0.05 )

Condensed Consolidated Interim Balance Sheets

(Unaudited – Expressed in thousands of U.S. Dollars)

As at As at
June 30, 2022 December 31, 2021
ASSETS
Current
Cash 61,175 37,929
Accounts receivable 74,790 12,217
Prepaids and other 5,328 4,024
141,293 54,170
Non-Current
Intangible exploration and evaluation assets 2,737 2,673
Property and equipment
Petroleum and natural gas assets 208,510 173,804
Other 2,296 2,202
Deferred taxes 6,246
354,836 239,095
LIABILITIES
Current
Accounts payable and accrued liabilities 42,707 26,112
Share-based compensation liabilities 8,286 6,174
Modernization payment liabilities 9,555
Derivative commodity contracts 858 88
Lease obligations 1,245 764
62,651 33,138
Non-Current
Long-term debt 3,102 3,040
Asset retirement obligations 11,335 14,102
Share-based compensation liabilities 1,892 3,959
Modernization payment liabilities 24,620
Lease obligations 1,005 36
Deferred taxes 6,246
104,605 60,521
SHAREHOLDERS’ EQUITY
Share capital 153,118 153,021
Accumulated other comprehensive income 755 1,838
Contributed surplus 23,905 24,896
Retained earnings (deficit) 72,453 (1,181 )
250,231 178,574
354,836 239,095

Condensed Consolidated Interim Statements of Changes in Shareholders’ Equity

(Unaudited – Expressed in thousands of U.S. Dollars)

Six Months Ended June 30
2022 2021
Share Capital
Balance, beginning of period 153,021 152,805
Stock options exercised (990 )
Transfer from contributed surplus on exercise of options 1,087
Balance, end of period 153,118 152,805
Accumulated Other Comprehensive Income
Balance, beginning of period 1,838 1,900
Currency translation adjustment (1,083 ) 1,166
Balance, end of period 755 3,066
Contributed Surplus
Balance, beginning of period 24,896 25,109
Share-based compensation expense 96 194
Transfer to share capital on exercise of options (1,087 )
Balance, end of period 23,905 25,303
Retained Earnings (Deficit)
Balance, beginning of period (1,181 ) (41,519 )
Net earnings (loss) 80,943 (3,302 )
Dividends (7,309 )
Balance, end of period 72,453 (44,821 )

Condensed Consolidated Interim Statements of Cash Flows

(Unaudited – Expressed in thousands of US Dollars)

Three Months Ended June 30 Six Months Ended June 30
2022 2021 2022 2021
OPERATING
Net earnings (loss) 32,133 7,722 80,943 (3,302 )
Adjustments for:
Depletion, depreciation and amortization 7,299 6,959 14,169 11,774
Asset retirement obligation accretion 86 45 159 111
Impairment reversal (25,983 )
Share-based compensation 2,801 816 6,231 3,587
Finance costs 717 333 1,271 803
Unrealized (gain) loss on financial instruments (569 ) 1,248 787 4,218
Unrealized loss on foreign currency translation 19 8 92 12
Gain on concession merger (7,953 )
Asset retirement obligations settled (21 ) (31 ) (120 ) (22 )
Changes in working capital (295 ) 6,732 (51,208 ) 2,711
Net cash generated by operating activities 42,170 23,832 18,388 19,892
INVESTING
Additions to intangible exploration and evaluation assets (40 ) (15 ) (64 ) (578 )
Additions to petroleum and natural gas assets (15,662 ) (3,557 ) (24,293 ) (5,887 )
Additions to other assets (34 ) (25 ) (228 ) (39 )
Changes in working capital 5,874 522 5,904 2,347
Net cash used in investing activities (9,862 ) (3,075 ) (18,681 ) (4,157 )
FINANCING
Issue of common shares (325 ) (989 )
Interest paid (42 ) (291 ) (78 ) (584 )
Increase in long-term debt 55 146 110 225
Payments on lease obligations (508 ) (479 ) (997 ) (1,071 )
Repayments of long-term debt (5,000 ) (5,000 )
Dividends paid (7,309 ) (7,309 )
Increase in modernization payment liabilities 59,027
Payments on modernization payment liabilities (26,000 )
Changes in working capital (49 ) (8 ) (17 ) (9 )
Net cash (used in) generated by financing activities (8,178 ) (5,632 ) 23,747 (6,439 )
Currency translation differences relating to cash (200 ) (155 ) (208 ) (167 )
NET INCREASE IN CASH 23,930 14,970 23,246 9,129
CASH, BEGINNING OF PERIOD 37,245 28,669 37,929 34,510
CASH, END OF PERIOD 61,175 43,639 61,175 43,639

Advisory on Forward-Looking Information and Statements

Certain statements included in this news release constitute forward-looking statements or forward-looking information under applicable securities legislation. Such forward-looking statements or information are provided for the purpose of providing information about management’s current expectations and plans relating to the future. Readers are cautioned that reliance on such information may not be appropriate for other purposes. Forward-looking statements or information typically contain statements with words such as ‘anticipate’, ‘strengthened’, ‘confidence’, ‘believe’, ‘expect’, ‘plan’, ‘intend’, ‘estimate’, ‘may’, ‘will’, ‘would’ or similar words suggesting future outcomes or statements regarding an outlook. In particular, forward-looking information and statements contained in this document include, but are not limited to, the Company’s estimated 2022 capital spending in Egypt and Canada, including the capital spending to be allocated to each well; the Company’s anticipated 2022 capital budget; the Company’s anticipated 2022 production, including the allocation of such production between development and exploration wells and other spending; the Company’s anticipated exit production rates; the Company’s expectations that it will increase investments and growth in Egypt and Canada; the Company’s , strategy and focus in 2022, including the drilling of wells and growing production; the Company’s plans to maximize free cash flow, to increase the Company’s production base and return to shareholder distributions; the number of and location of wells to be drilled by the Company in 2022 and the anticipated timing thereof; the focus of the Egypt 2022 capital program; the ability of the Company’s long-lead capital items to provide continuity into 2023; and other matters.

Forward-looking information and statements contained in this news release include the payment of dividends, including the timing and amount thereof, and the Company’s intention to declare and pay dividends in the future under its current dividend policy. Without limitation of the foregoing, future dividend payments, if any, and the level thereof is uncertain, as the Company’s dividend policy and the funds available for the payment of dividends from time to time will be dependent upon, among other things, free cash flow, financial requirements for the Company’s operations and the execution of its strategy, ongoing production maintenance, growth through acquisitions, fluctuations in working capital and the timing and amount of capital expenditures and anticipated business development capital, payment irregularity in Egypt, debt service requirements and other factors beyond the Company’s control. Further, the ability of the Company to pay dividends will be subject to applicable laws (including the satisfaction of the liquidity and solvency tests contained in applicable corporate legislation) and contractual restrictions contained in the instruments governing its indebtedness.

Forward-looking statements or information are based on a number of factors and assumptions which have been used to develop such statements and information but which may prove to be incorrect. Although the Company believes that the expectations reflected in such forward-looking statements or information are reasonable, undue reliance should not be placed on forward-looking statements because the Company can give no assurance that such expectations will prove to be correct. Many factors could cause TransGlobe’s actual results to differ materially from those expressed or implied in any forward-looking statements made by, or on behalf of, TransGlobe.

In addition to other factors and assumptions which may be identified in this news release, assumptions have been made regarding, among other things, anticipated production volumes; the timing of drilling wells and mobilizing drilling rigs; the number of wells to be drilled; the Company’s ability to obtain qualified staff and equipment in a timely and cost-efficient manner; the regulatory framework governing royalties, taxes and environmental matters in the jurisdictions in which the Company conducts and will conduct its business; future capital expenditures to be made by the Company; future sources of funding for the Company’s capital programs; geological and engineering estimates in respect of the Company’s reserves and resources; the geography of the areas in which the Company is conducting exploration and development activities; current commodity prices and royalty regimes; availability of skilled labour; future exchange rates; the price of oil; the impact of increasing competition; conditions in general economic and financial markets; the ability to obtain shareholder, court and regulatory approvals (if any) of the proposed arrangement; the ability to complete the proposed arrangement on the anticipated terms and timetable; the possibility that various closing conditions for the arrangement may not be satisfied or waived; risks relating to any unforeseen liabilities of VAALCO; availability of drilling and related equipment; effects of regulation by governmental agencies; future operating costs; uninterrupted access to areas of TransGlobe’s operations and infrastructure; recoverability of reserves and future production rates; that TransGlobe will have sufficient cash flow, debt or equity sources or other financial resources required to fund its capital and operating expenditures and requirements as needed; that TransGlobe’s conduct and results of operations will be consistent with its expectations; that TransGlobe will have the ability to develop its properties in the manner currently contemplated; current or, where applicable, proposed industry conditions, laws and regulations will continue in effect or as anticipated as described herein; that the estimates of TransGlobe’s reserves and resource volumes and the assumptions related thereto (including commodity prices and development costs) are accurate in all material respects; the Company’s estimated 2022 capital spending and production will be as anticipated and allocated in the manner described herein and other matters.

Forward-looking statements or information are based on current expectations, estimates and projections that involve a number of risks and uncertainties which could cause actual results to differ materially from those anticipated by the Company and described in the forward-looking statements or information. These risks and uncertainties which may cause actual results to differ materially from the forward-looking statements or information include, among other things, operating and/or drilling costs are higher than anticipated; unforeseen changes in the rate of production from TransGlobe’s oil and gas properties; changes in price of crude oil and natural gas; adverse technical factors associated with exploration, development, production or transportation of TransGlobe’s crude oil reserves; changes or disruptions in the political or fiscal regimes in TransGlobe’s areas of activity; changes in tax, energy or other laws or regulations; changes in significant capital expenditures; delays or disruptions in production due to shortages of skilled manpower equipment or materials; economic fluctuations; competition; lack of availability of qualified personnel; the results of exploration and development drilling and related activities; obtaining required approvals of regulatory authorities; volatility in market prices for oil; fluctuations in foreign exchange or interest rates; environmental risks; ability to access sufficient capital from internal and external sources; failure to negotiate the terms of contracts with counterparties; failure of counterparties to perform under the terms of their contracts; the Company’s 2022 production in Egypt and Canada will be less than anticipated; the Company’s exit production rates will be less than anticipated; the Company will not increase investments and growth in Egypt and Canada; the Company will successfully drill less than the number of wells that it anticipates; the Company will be unable to maximize free cash flow and increase the Company’s production base; the Company does not pay dividends in the future; the amount and allocation of 2022 capital spending disclosed herein will be different than anticipated; the Company’s drilling plans and the anticipated timing thereof will be different than as disclosed herein; the Company’s long-lead capital items will not provide continuity into 2023; the netback generated by the Company’s Eastern Desert acreage will be less than anticipated; the netback generated in Canada is less than anticipated; and other factors beyond the Company’s control. Readers are cautioned that the foregoing list of factors is not exhaustive. Please consult TransGlobe’s public filings at and for further, more detailed information concerning these matters, including additional risks related to TransGlobe’s business.

The forward-looking statements or information contained in this news release are made as of the date hereof and the Company undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise unless required by applicable securities laws. The forward-looking statements or information contained in this news release are expressly qualified by this cautionary statement.

Oil and Gas Advisories

Mr. Ron Hornseth, B.Sc., General Manager – Canada for TransGlobe Energy Corporation, and a qualified person as defined in the Guidance Note for Mining, Oil and Gas Companies, June 2009, of the London Stock Exchange, has reviewed the technical information contained in this report. Mr. Hornseth is a professional engineer who obtained a Bachelor of Science in Mechanical Engineering from the University of Alberta. He is a member of the Association of Professional Engineers and Geoscientists of Alberta (‘APEGA’) and the Society of Petroleum Engineers (‘SPE’) and has over 20 years’ experience in oil and gas.

This news release contains a number of oil and gas metrics which do not have standardized meanings or standard methods of calculation and therefore such measures may not be comparable to similar measures used by other companies and should not be used to make comparisons. Such metrics have been included herein to provide readers with additional measures to evaluate TransGlobe’s operating results; however, such measures are not reliable indicators of the future performance of TransGlobe and future performance may not compare to the performance in previous periods and therefore such metrics should not be unduly relied upon. Management of TransGlobe uses these oil and gas metrics for its own performance measurements and to provide securityholders with measures to compare TransGlobe’s operations over time. Readers are cautioned that the information provided by these metrics, or that can be derived from the metrics presented in this news release, should not be relied upon for investment or other purposes.

Boes may be misleading, particularly if used in isolation. A Boe conversion ratio of six thousand cubic feet of natural gas to one barrel of oil equivalent (6 MCF: 1 Bbl) is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Given that the value ratio based on the current price of crude oil as compared to natural gas is significantly different from the energy equivalency of 6:1, utilizing a conversion on a 6:1 basis may be misleading as an indication of value.

The following abbreviations used in this press release have the meanings set forth below:

bbl barrels
bbls/d barrels per day
Mbbls/d thousand barrels per day
Mbbls thousand barrels
boe barrel of oil equivalent
boe/d barrels of oil equivalent per day
Mboe/d thousand barrels of oil equivalent per day
MMbtu One million British thermal units
Mcf thousand cubic feet
Mcf/d thousand cubic feet per day
NGL Natural Gas Liquids

Financial Measures Advisories

TransGlobe’s Condensed Consolidated Financial Statements and notes thereto (the ‘financial statements’) and Management’s Discussion and Analysis (‘MD&A’) as at and for the three and six months ended June 30, 2022, are available on TransGlobe’s website at and under the Company’s SEDAR profile at . The disclosure under the section ‘Non-GAAP and Other Financial Measures’ in TransGlobe’s MD&A as at and for the three and six months ended June 30, 2022 is incorporated by reference into this news release.

NON-GAAP AND OTHER FINANCIAL MEASURES

Throughout the MD&A and in other materials disclosed by the Company, TransGlobe employs certain measures to analyze financial performance, financial position, and cash flow. These non-GAAP and other financial measures do not have any standardized meaning prescribed under IFRS and therefore may not be comparable to similar measures presented by other entities. The non-GAAP and other financial measures should not be considered to be more meaningful than GAAP measures which are determined in accordance with IFRS, such as net earnings (loss), cash flow from operating activities, and cash flow used in investing activities, as indicators of the Company’s performance.

Non-GAAP financial measures

Capital Expenditures

TransGlobe uses capital expenditures to measure its capital investments compared to the Company’s annual capital budgeted expenditures. The Company’s capital budget excludes the accounting impact of any accrual changes. The most directly comparable measure under IFRS is cash flow used in investing activities. The table below details the composition of capital expenditures and its reconciliation to cash flow used in investing activities.

Three Months Ended June 30 Six Months Ended June 30
($000s) 2022 2021 2022 2021
Net cash used in investing activities (9,862 ) (3,075 ) (18,681 ) (4,157 )
Changes in non-cash working capital (5,874 ) (522 ) (5,904 ) (2,347 )
Capital expenditures (15,736 ) (3,597 ) (24,585 ) (6,504 )
2022 2021 2020
($000s) Q-2 Q-1 Q-4 Q-3 Q-2 Q-1 Q-4 Q-3
Net cash used in investing activities (9,862 ) (8,819 ) (9,082 ) (5,982 ) (3,075 ) (1,082 ) (1,254 ) (2,320 )
Changes in non-cash working capital (5,874 ) (30 ) 388 (5,642 ) (522 ) (1,825 ) 1,000 1,883
Capital expenditures (15,736 ) (8,849 ) (8,694 ) (11,624 ) (3,597 ) (2,907 ) (254 ) (437 )

Funds flow from operations

TransGlobe uses funds flow from operations to measure the Company’s ability to generate the necessary funds to maintain production at current levels, enable future growth through capital investment and repay debt. Management believes that such a measure provides an insightful assessment of TransGlobe’s operations on a continuing basis by eliminating certain non-cash charges. The most directly comparable measure under IFRS is cash flow generated by operating activities. The tables below details the composition of funds flow from operations and its reconciliation to cash flow generated by operating activities.

Three Months Ended June 30 Six Months Ended June 30
($000s) 2022 2021 2022 2021
Net cash generated by operating activities 42,170 23,832 18,388 19,892
Changes in non-cash working capital 295 (6,732 ) 51,208 (2,711 )
Funds flow from operations 1 42,465 17,100 69,596 17,181

1 Funds flow from operations does not include interest costs. Interest expense is included in financing costs on the Condensed Consolidated Interim Statements of Earnings (Loss) and Comprehensive Income (Loss). Cash interest paid is reported as a financing activity on the Condensed Consolidated Interim Statements of Cash Flows.

2022 2021 2020
($000s) Q-2 Q-1 Q-4 Q-3 Q-2 Q-1 Q-4 Q-3
Net cash generated by (used in) operating activities 42,170 (23,782 ) (1,956 ) 27,026 23,832 (3,940 ) 14,180 (3,349 )
Changes in non-cash working capital 295 50,913 17,225 (14,645 ) (6,732 ) 4,021 (6,978 ) 3,672
Funds flow from operations 1 42,465 27,131 15,269 12,381 17,100 81 7,202 323

1 Funds flow from operations does not include interest costs. Interest expense is included in financing costs on the Condensed Consolidated Interim Statements of Earnings (Loss) and Comprehensive Income (Loss). Cash interest paid is reported as a financing activity on the Condensed Consolidated Interim Statements of Cash Flows.

Netback is a measure of operating results and is computed as petroleum and natural gas sales, net of royalties (all government interests, net of income taxes), production and operating expenses, current taxes and selling costs. The Company’s netbacks include sales and associated costs of production from inventoried crude oil sold during the period. Royalties and taxes associated with inventoried crude oil are recognized in the financial statements at the time of production. As a result, netbacks fluctuate depending on the timing of entitlement crude oil sales. Management believes that netback is a useful supplemental measure to analyze operating performance and provide an indication of the results generated by the Company’s principal business activities prior to the consideration of other income and expenses. Netback does not have any standardized meaning under IFRS and therefore may not be comparable to similar measures used by other companies.

Refer to the ‘Netback’ section of the Q2-2022 MD&A which includes the most directly comparable GAAP measure, petroleum and natural gas sales.

Non-GAAP financial ratios

Netback per boe

TransGlobe calculates netback per boe as netback divided by average daily production. Netback is a non-GAAP financial measure component of netback per boe. Management believes that netback per boe is a key industry performance measure of operational efficiency and one that provides investors with information that is also commonly presented by other crude oil and natural gas producers. The Company’s netback per boe is disclosed in the ‘Netback’ section within the MD&A.

Funds flow from operations per share

TransGlobe presents funds flow from operations per share by dividing funds flow from operations by the Company’s diluted or basic weighted average common shares outstanding. Funds flow from operations is a non-GAAP financial measure. Management believes that funds flow per share provides investors an indicator of funds generated from the business that could be allocated to each shareholder’s equity position.

Supplementary Financial Measures

‘Average realized sales price’ is comprised of total petroleum and natural gas sales, divided by the Company’s average daily production volumes.

‘DD&A expense per boe’ is comprised of DD&A expense, as determined in accordance with IFRS, divided by the Company’s average daily production volumes.

‘G&A expense per boe’ is comprised of G&A expense, as determined in accordance with IFRS, divided by the Company’s average daily production volumes.

‘Production and operating expenses per boe’ is comprised of production and operating expenses, as determined in accordance with IFRS, divided by the Company’s average daily production volumes.

‘Royalties and taxes as a percentage of revenue’ is comprised of royalties and current taxes, as determined in accordance with IFRS, divided by the Company’s petroleum and natural gas sales.

‘Royalties and taxes per boe’ is comprised of royalties and current taxes, as determined in accordance with IFRS, divided by the Company’s average daily production volumes.

‘Selling costs per bbl’ is comprised of selling costs, as determined in accordance with IFRS, divided by the Company’s average daily production volumes.

‘Working capital’ is a supplementary financial measure that is comprised of current assets less current liabilities, as determined in accordance with IFRS.

Production Disclosure

Production Summary (WI before royalties and taxes):
July – 22 Q2 – 22 Q1 – 22 Q4 – 21 Q3 – 21 Q2 – 21
Egypt (bbls/d) 9,257 10,338 10,090 10,065 11,276 10,727
Eastern Desert of Egypt (bbls/d) 9,257 10,256 10,038 9,770 10,653 9,917
Heavy Crude (bbls/d) 8,690 9,628 9,404 9,225 10,014 9,736
Light and Medium Crude (bbls/d) 567 628 634 545 639 181
Western Desert of Egypt (bbls/d) 82 52 295 623 810
Light and Medium Crude (bbls/d) 82 52 295 623 810
Canada (boe/d) 2,201 1,794 2,356 2,698 2,066 2,350
Light and Medium Crude (bbls/d) 682 570 821 1,176 601 687
Natural Gas (Mcf/d) 4,346 3,600 4,598 4,832 4,734 4,834
Associated Natural Gas Liquids (bbls/d) 795 624 768 716 677 857
Total (boe/d) 11,458 12,132 12,446 12,763 13,342 13,077

About TransGlobe

TransGlobe Energy Corporation is a cash flow-focused oil and gas exploration and development company whose current activities are concentrated in the Arab Republic of Egypt and Canada. TransGlobe’s common shares trade on the Toronto Stock Exchange and the AIM market of the London Stock Exchange under the symbol TGL and on the NASDAQ Exchange under the symbol TGA.

For further information, please contact:

TransGlobe Energy Corporation
Randy Neely, President and CEO
Eddie Ok, CFO
+1 403 264 9888

or via Tailwind Associates

Tailwind Associates (Investor Relations)
Darren Engels
+1 403 618 8035

Canaccord Genuity (Nomad & Joint-Broker)
Henry Fitzgerald-O’Connor
James Asensio
+44(0) 20 7523 8000

Shore Capital (Joint Broker)
John More
Toby Gibbs
+44(0) 20 7408 4090



To view the source version of this press release, please visit

MENAFN10082022004218003983ID1104674510

TWC Enterprises Limited Announces Reinstatement of Dividend Reinvestment Plan

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KING CITY, Ontario, Aug. 09, 2022 (GLOBE NEWSWIRE) — TWC Enterprises Limited (“TWC”) is reinstituting a Dividend Reinvestment Plan (“DRIP”) to enable Canadian resident shareholders to automatically reinvest all of the cash dividends paid on their TWC common shares (the “TWC Shares”) in additional TWC common shares (the “DRIP Shares”). Participation in the DRIP is optional and will not affect shareholders’ cash dividends, unless they elect to participate in the DRIP.

Only future dividends declared by TWC will be eligible for reinvestment in the DRIP, commencing with the dividend to be paid on September 15, 2022 for TWC shareholders on record as of August 31, 2022. TWC Shares to be issued under the DRIP will be issued from the treasury of TWC at a price equal to the volume-weighted average trading price of the TWC Shares on the Toronto Stock Exchange for the five (5) trading days immediately preceding the relevant dividend payment date.

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To participate in the DRIP, registered shareholders must deliver a properly completed enrollment form to TSX Trust Company (the “Agent”) a minimum of five (5) business days before the applicable dividend record date. Registered shareholders who wish to participate in the DRIP for the September 15, 2022, dividend must deliver a completed enrollment form to the Agent no later than 5:00 p.m. (EDT time) on August 24, 2022.

Beneficial shareholders who wish to participate in the DRIP should contact their financial advisor, broker, investment dealer, bank, financial institution or other intermediary through which they hold their TWC Shares to inquire about the applicable enrollment deadline and to request enrollment in the DRIP.

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TWC’s largest shareholder, Mr. Rai Sahi, has indicated that the TWC Shares owned by him and his holding company will be participating in the DRIP. Mr. Sahi and his holding company own approximately 80% of TWC (on a non-diluted basis).

No commissions, service charges or brokerage fees will be payable by participants in connection with the DRIP. However, beneficial shareholders who wish to participate in the DRIP through their financial advisor, broker, investment dealer, bank, financial institution or other intermediary should consult that intermediary to confirm what fees, if any, the nominee may charge to enroll in the DRIP on their behalf or whether the nominee’s policies might result in any costs otherwise becoming payable by the beneficial shareholder. Commissions, service charges, brokerage fees and other administrative fees may be payable in connection with the termination of participation in the DRIP or the withdrawal or disposition of DRIP Shares.

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Participation in the DRIP does not relieve TWC shareholders of any liability for taxes that may be payable in respect of dividends that are reinvested in DRIP Shares. Shareholders should consult their tax advisors concerning the tax implications of their participation in the DRIP having regard to their particular circumstances.

The foregoing is a summary of the key attributes of the DRIP. A complete copy of the DRIP and the enrollment form will be available on the Agent’s website at www.tsxtrust.com, on TWC’s website at www.twcenterprises.ca and will be filed on TWC’s SEDAR profile at www.sedar.com. Shareholders should carefully read the complete text of the DRIP before making any decisions regarding their participation in the DRIP. For more information on how to enroll for registered shareholders or any other inquiries, contact the Agent at 1-800-387-0825 or shareholderinquiries@tmx.com.

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Corporate Profile

TWC is engaged in golf club operations under the trademark, “ClubLink One Membership More Golf.” TWC is Canada’s largest owner, operator and manager of golf clubs with 47.5 18-hole equivalent championship and 2.5 18-hole equivalent academy courses (including two managed properties) at 36 locations in Ontario, Quebec and Florida.

For further information please contact:

Andrew Tamlin
Chief Financial Officer
15675 Dufferin Street
King City, Ontario L7B 1K5
Tel: 905-841-5372 Fax: 905-841-8488
atamlin@clublink.ca

Management’s discussion and analysis, financial statements and other disclosure information relating to the Company is available through SEDAR and at www.sedar.com and on the Company website at www.twcenterprises.ca

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Selling Bitcoin doesn’t mean you’re not bullish: Cypherpunk CEO

Despite a massive wave of liquidations on the cryptocurrency market, some companies that sold their crypto over the past few months are not bearish on Bitcoin (BTC) at all.

Canada-based investment firm Cypherpunk Holdings was one of the companies that opted to sell crypto amid the crypto winter of 2022, liquidating 100% of its Bitcoin and Ether (ETH) by June. One of the first public companies in the world to ever invest in Bitcoin, Cypherpunk said at the time that it maintained its long-term “bullish outlook on crypto” despite selling all its digital coins.

One may find Cypherpunk’s crypto liquidation somewhat odd as the company’s stock is publicly trading under the ticker symbol HODL on the Toronto Stock Exchange. The acronym is widely used in the crypto community to refer to “Hold On for Dear Life,” or the bullish strategy of holding onto Bitcoin no matter what the market circumstances are.

According to Cypherpunk CEO Jeffrey Gao, crypto investors can still remain bullish despite cashing out their crypto from time to time.

“We’re in this business because we are net bullish on crypto over the long term,” Gao said in an interview with Cointelegraph. Cypherpunk can go back into Bitcoin or into “any crypto or any basket of crypto” tomorrow if they want, and those are ​​”certainly opportunities” that the firm is actively pursuing, the CEO noted.

Gao said that the industry has seen forced liquidations as even “supposedly the most sophisticated” institutions like Voyager, Three Arrows Capital and Celsius got involved in operations that were “completely devoid of risk management.” According to the CEO, the absence or near absence of risk management is what really separates the crypto industry from something that is more mature. Gao added:

“Going forward, that mentality towards risk management while still being bullish over the long term is very important. […] You can be bullish on crypto, but you can still sell out of the market.”

According to Gao, Cypherpunk started the liquidation process in early May, right before the Terra (LUNA) — now renamed Terra Classic (LUNC) — network collapse, with the algorithmic stablecoin TerraUSD (formerly UST) losing its U.S. dollar peg on May 10. “By the time that it happened, we probably offloaded about 30% or 40% of the risk,” Gao said, adding that Cypherpunk then sold another portion when BTC briefly traded above $30,000 in late May. “The final one-third we probably got rid of was sometime in June,” Gao noted.

Related: Elon Musk: US ’past peak inflation’ after Tesla sells 90% of Bitcoin

“We basically made no progress, but we also avoided much of the capital destruction,” Gao said. He went on to say that he is very optimistic about altcoins like Ether and Solana (SOL), despite some issues with the Solana ecosystem issues in early August.

“Over the longer term, at least at this point in time, I would be more bullish on Bitcoin conservatively than those other tokens. But over the next two or three months, I’m probably more partial towards Ethereum and Solana,” the CEO noted.

Numly™ Announces its Third Annual Numly™ SKILLS’future 2022 Program


Numly™ Announces its Third Annual Numly™ SKILLS’future 2022 Program – Toronto Stock Exchange News Today – EIN Presswire
























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Fairfax Financial proposes taking Recipe Unlimited private at $1.2 billion value

VAUGHAN, Ont. – Fairfax Financial Holdings Ltd. has proposed taking Recipe Unlimited Corp. private in the latest phase for the almost 140-year-old restaurant company.

The deal announced by Recipe Unlimited Tuesday puts a $1.2 billion value on Canada’s oldest and largest full-service restaurant chain, which counts Swiss Chalet, Harvey’s and The Keg among its roughly two-dozen brands.

Fairfax is already the controlling shareholder of Recipe Unlimited, owning 38.5 per cent of the equity interest as of the end of last year for about 61 per cent of the voting rights.

The other major shareholder is Cara Holdings Ltd., the holding company of the Phelan family, which would continue as an investor in the company once it goes private.

Recipe Unlimited first went public in 1968, then known as CARA for the first two letters of Canadian Railway, which links back to the company’s original founding in 1883 as the Canada Railway News Co. that catered to railway travellers.

Cara Holdings Ltd. took the company private again in 2004 and in 2013 Fairfax made a deal to bring several restaurants including East Side Mario’s and Casey’s into the company’s portfolio before the company relisted publicly in 2015.

The deal announced Tuesday would see a group of Fairfax affiliates acquire all outstanding shares, except for some shares held by Cara Holdings, at $20.73 in cash.

The offer price represents a 53.4 per cent premium to Recipe Unlimited’s closing price on Aug. 8, according to a company statement. Recipe, however, was trading at about $21 a share as recently as last November before it started declining along with the wider market, and traded above $36 a share in its first year of returning to the market in 2015.

The deal requires the approval of most of the minority shareholders and Recipe Unlimited says its board intends to recommend that shareholders vote in favour of the proposed transaction at a special meeting of shareholders to be held on the matter.

The deal comes only a few days after Fairfax said it and partners were also taking private U.K.-based Atlas Corp., which owns the Seaspan shipping company and APR Energy.

The Atlas deal has Fairfax and partners buying shares at $14.45, which represents a 32.1 per cent premium over the 30 day average closing price on the New York Stock Exchange, but is in line with where the company was trading in late March.

Recipe shares have been under pressure during the pandemic as it had been forced to close in-restaurant dining at many locations.

The company has seen sales rebound lately as restrictions ease, reporting last week that its system sales were up 55 per cent to $873 million. Recipe Unlimited had 1,223 restaurants at the end of the quarter, down from 1,330 last year.

This report by The Canadian Press was first published Aug.9, 2022.

Companies in this story: (TSX:RECP, TSX:FFH)

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Corus Entertainment Gets TSX Approval to Increase Stock Repurchases

By Glenn Johnson

Corus Entertainment Inc. received approval to more than double its target for share repurchases.

The Toronto Stock Exchange approved an amendment to Corus’s normal course issuer bid, increasing the maximum number of Class B non-voting shares that may be repurchased to 19.3 million from 9.7 million. That would represent about 10% of the company’s public float as of Jan. 3, Corus said.

Corus Class B shares closed at 3.78 Canadian dollars, or $2.94, on Monday. Year to date, the shares are down about 21%.

The Toronto-based media company said it wants to repurchase the shares as it believes the market price may not fully reflect their long-term value.

Corus maintains a portfolio of multimedia units including 33 specialty television services, 39 radio stations, 15 conventional television stations, a suite of digital and streaming assets, animation software, technology and media services.


Write to Glenn Johnson at Glenn.Johnson@WSJ.com

FTSE 100 Live: Retail sales get heatwave boost, Nvidia warning

WSP unveils £591m takeover move, FTSE 100 steady

Professional services giant WSP today unveiled a takeover swoop worth £591 million for London-listed firm RPS.

The move for RPS, an Oxfordshire-based consultancy employing 5,000 staff across property, energy, transport, water, defence and government services, was delivered at a hefty premium of 76% to last night’s closing price. RPS’s project management portfolio includes work on the Woolwich Exchange regeneration scheme.

WSP, whose engineering services have been used to help deliver the net zero targets of Western Europe’s second tallest building at 22 Bishopsgate in the City, is listed on the Toronto Stock Exchange and is worth around £12 billion.

Its other recent deals have included John Wood’s environment and infrastructure business for $1.8 billion (£1.5 billion).

Shares in former FTSE 250-listed RPS jumped by 87p to 204p after its board backed WSP’s proposal.

The developments came as investment bank Peel Hunt reported a further slowdown in UK takeover activity after 2021’s record year.

It said that 30 UK companies are currently under offer, reflecting a flurry of action in the natural resources sector but still lower than 38 at the end of June as rising interest rates and the uncertain outlook cool interest in merger and acquisitions.

The lack of takeover activity hasn’t impacted the recent performance of the FTSE 100 index, which continues to be near its highest level in two months after adding 6.84 points to 7489.21 today.

Companies with momentum include London Stock Exchange and investment platform Hargreaves Lansdown, with their shares up a further 2% and 1% after results on Friday boosted confidence.

The FTSE 250 index eased 18.57 points to 20,099.87, with defence technology company Qinetiq up 2% or 7.4p to 388.2p after following Friday’s acquisition of US-based Avantus Federal with a $45 million (£37.2 million) contract win.

Shares in serviced offices provider IWG fell 11% or 22p to 171p despite the benefits of hybrid working helping the former Regus business to narrow half-year losses.

Revenues grew 23% year-on-year but IWG is also facing inflationary pressures on employment costs and utilities as well as accelerated investment.

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