Harmattan

TransGlobe re-entered Canada through acquisition of the Harmattan property in central Alberta in December 2016

Harmattan is located approximately 80 kilometres north of Calgary, Alberta. This property produces oil and associated natural gas from the Cardium and Viking zones and liquids-rich natural gas from zones in the Lower Mannville and Rock Creek formations at vertical depths of 1,200 to 2,600 metres. The majority (~88%) of the production from the area is operated by TransGlobe. TransGlobe owns a 100% working interest in a large oil battery and a compressor station where a majority of oil volumes are handled. All gas is delivered to a third party non-operated gas plant for processing.

The Harmattan property covers 42,183 gross (37,560 net) acres of developed land and 38,732 gross (35,560 net) acres of undeveloped land.

Canadian Cardium light oil and liquids-rich gas production

• The prolific Cardium formation has produced hydrocarbons in central Alberta for over 60 years; there are currently ~10,000 producing wells (of which ~3,900 are horizontal wells)
• Favourable royalty and tax structure in current low-price environment
• High quality light oil and liquids yield attractive netbacks

Canada contains low-risk development upside

• Well defined Cardium and Ellerslie horizontal drilling locations provide for production growth
• Access to surplus infrastructure capacity to support production growth