TransGlobe Energy Corp (TSX:TGL) said Wednesday it's planning to spend 30 per cent more on capital projects next year than in 2009 while ramping up production and funds flow in the new year.
The Calgary-based oil and gas company said it was projecting a 2010 capital budget of US$46.1 million, which would be split between development and exploration costs.
TransGlobe said it intends to fund its entire capital budget from funds flow and working capital.
The development budget of $37.3 million is targeting 3,000 barrels of oil per day of new production and 8.7 million barrels of proved plus probable reserve additions for the year.
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The exploration budget of $8.8 million will test prospects with a total recoverable oil potential of 54 million barrels gross.
TransGlobe said it will participate in 28 wells in Egypt and Yemen over the next year.
Funds flow from operations for 2010 has been projected at $55 million.
TransGlobe shares closed at $3.79 Tuesday on the Toronto Stock Exchange.