Canadian oil and gas company TransGlobe Energy Corp said it plans to raise its 2010 capital budget by 30 percent to $46.1 million.
Transglobe, which has properties in the Middle East and North Africa, also said it plans to participate in 20 firm wells and eight contingent wells in Egypt and Yemen.
The company said $37.3 million of the budget will be used to generate an estimated 3,000 barrels of oil per day (Bopd) of new production and 8.7 million barrels of proved plus probable reserve additions during 2010.
The balance $8.8 million will be used to test prospects with a total recoverable oil potential of 54 million barrels gross or 21 million barrels to TransGlobe's working interest, the company said.
Calgary-based TransGlobe, which expects to fund the capital budget from funds flow and working capital, forecast 2010 funds flow from operations of $55 million on an estimated production of 9,300 to 9,700 Bopd, with a targeted exit rate over 10,000 Bopd.
Shares of Transglobe closed at C$3.79 Tuesday on the Toronto Stock Exchange. They closed at $3.61 on Nasdaq. (Reporting by R. Manikandan in Bangalore; Editing by Vinu Pilakkott)