TGA - TransGlobe: Eastern Promise

• TransGlobe should soon be the beneficiary of a much improved Egyptian PSC: PetroGlobe.
• This should enhance oil price exposure and cashflows.
• The underlying business even before this change is attractively priced on our metrics and in TransGlobe's own AIF form.
• A rise in oil prices and a fresh drilling campaign in Egypt should show-case the improved cash generation at the company, which is largely debt free.
• We see upside to $3.6/share based on net present value calculations and SOTP (Sum of the Parts).

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