TransGlobe Energy 4Q Profit Rises on Increased Production in Yemen and Canada

TransGlobe Energy 4Q Profit Rises on Increased Production in Yemen and Canada

Canadian oil and gas producer TransGlobe Energy Corp. said Thursday its fourth-quarter profit grew 9 percent, benefiting from increased production in Yemen and Canada.

Quarterly earnings rose to $4.7 million, or 8 cents per share, from $4.3 million, or 7 cents per share, in the prior-year period. Oil and gas revenue grew to $27 million from $24.8 million.

Wall Street, on average, expected quarterly earnings of 8 cents per share, according to an analyst poll by Thomson Financial.

TransGlobe said its total production rose 7 percent to 5,475 barrels of oil equivalent per day from the prior-year quarter. Higher selling prices during the quarter for oil and liquids — up 6 percent to $57.40 per barrel — helped offset weaker prices for natural gas — down 28 percent to $6.85 per 1,000 cubic feet.

Full-year earnings increased to $26.2 million, or 43 cents per share, from $19.9 million, or 33 cents per share, in 2005. Annual oil and gas revenue rose to $109.2 million from $90.4 million.

Looking ahead, TransGlobe forecast up to 6 percent growth in production for 2007, aided by projects in Yemen and Canada. It said it expects to produce between 5,300 and 5,400 barrels of oil equivalent per day during the year, up from 5,093 in 2006.

TransGlobe’s shares rose 1 cent to $4.45 in afternoon trading on the American Stock Exchange.

Source: AP

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