Global Contrarian
Contrarian, long-term horizon, value, growth at reasonable price

Transglobe Energy: 50-100% Upside With A Margin Of Safety And Low Expectations

Market Capitalization: US$525m P/E (2013F): 7.1x

Enterprise Value: $400m P/TNAV (2012A):1.4x

30 day ADVT: $4.9m P/OCF (2013F): 4.0x

Auditor: Deloitte LLP P/OCF (2014F): 3.7x

EV/EBITDA (2013F): 3.1x

Introduction

Transglobe is an upstream oil company, with production assets predominantly in Egypt; dual listed in Canada and USA.

Contrarian due to multiple factors impacting sentiment, despite a strong track record in value creation and potentially material near-term cash returns to shareholders.

Whilst country risk is perennial, the substantial "noise" has resulted in a well run company, with meaningful upside and limited downside (in all but a disastrous scenario) having being mispriced by the market, providing a very favourable overall risk/reward.

Why is it Contrarian?

Egypt: the onset of the Egyptian revolution and

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