TransGlobe Energy Corporation

TransGlobe Energy Corporation

January 31, 2007 11:08 ET

TransGlobe Energy Corporation Announces Well Results and Operations Update, Block S-1, Yemen

CALGARY, ALBERTA--(CCNMatthews - Jan. 31, 2007) - TransGlobe Energy Corporation ("TransGlobe" or the "Company") (TSX:TGL) (AMEX:TGA) is pleased to announce a new Lam B oil producer at An Nagyah #23 and commencement of production at Osaylan #2.

Block S-1, Republic of Yemen (25% working interest)

An Nagyah #23, which commenced drilling on December 25, 2006, reached a total depth of 2,327 meters and was completed as a producing oil well after flowing at a stabilized rate of 651 barrels of light (43 degree API) oil per day and 0.337 million cubic feet of gas per day at a flowing pressure of 220 psi on a 30/64 inch choke.

The An Nagyah #23 well was completed in a 916 meter horizontal section in the Lam B sandstone reservoir. The well is on production through a pipeline connected to the An Nagyah facilities.

The drilling rig is currently moving to Osaylan #1 which encountered oil shows in the Lam formation (October 25, 2002 Press Release). The Osaylan #1 well will be re-entered to test and evaluate the Osaylan #2 oil discovery which tested 1,307 Bopd of 42.1 API oil (November 17, 2006 Press Release). Osaylan #1 is located 1.2 kilometers east southeast of Osaylan #2. The Osaylan discovery is located 18 kilometers from the An Nagyah central production facility.

The Osaylan #2 well was placed on production on January 23, 2007 utilizing a newly constructed well test facility. Production was increased during the past week to a current rate of 756 Bopd. Production from the Osaylan facility is trucked to the Halewah truck terminal which was constructed for early production from the An Nagyah field. If the Osaylan #1 well tests at a commercial oil rate, it will be connected to the Osaylan #2 well production facility and placed on production.

TransGlobe is a growth oriented international energy company engaged in the exploration, development and production of crude oil and natural gas in the Republic of Yemen, the Arab Republic of Egypt and Alberta, Canada.

This release includes certain statements that may be deemed to be "forward-looking statements" within the meaning of the US Private Securities Litigation Reform Act of 1995. All statements in this release, other than statements of historical facts that address future production, reserve potential, exploration drilling, exploitation activities and events or developments that the Company expects, are forward-looking statements. Although TransGlobe believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include oil and gas prices, well production performance, exploitation and exploration successes, continued availability of capital and financing, and general economic, market or business conditions.


Ross G. Clarkson, President & C.E.O.

Contact Information

  • TransGlobe Energy Corporation
    Ross G. Clarkson
    President & C.E.O.
    (403) 264-9888
    (403) 264-9898 (FAX)
    TransGlobe Energy Corporation
    Lloyd W. Herrick
    Vice President & C.O.O.
    (403) 264-9888
    (403) 264-9898 (FAX)
    Executive Offices
    #2500, 605 - 5th Avenue, S.W.
    Calgary, AB T2P 3H5