TransGlobe Energy announces termination of Arrangement Agreement with Caracal TransGlobe Energy announces the termination of the Arrangement Agreement between TransGlobe and Caracal Energy, dated March 15. Caracal advised TransGlobe that it had received an unsolicited cash offer to acquire all of the outstanding shares of Caracal from Glencore Xstrata plc. Caracal further advised TransGlobe that the unsolicited offer constituted a "Superior Proposal" under the terms of the Arrangement Agreement. Accordingly, Caracal has terminated the Arrangement Agreement and has paid TransGlobe the reverse termination fee of $9.25M in accordance with the terms of the agreement.
TransGlobe lowers quarterly dividend to 2.5c per share from 5c per share TransGlobe Energy announces that its Board of Directors has approved a capital budget of $41M for 2016 and declared a quarterly dividend of 2.5c per common share, which will be paid in cash on December 31 to shareholders of record on December 15. The rationale for decreasing the dividend at this time is based on the company's philosophy that forecasted funds flow should cover development/maintenance capital and the dividend, while exploration expenditures can be financed from the company's existing working capital. Based on the capital budget set out below the company's management believes it will be able to maintain 2015 exit level production flat for 2016 in the range of 13,300-13,800 bopd.