Direct Energy

Direct Energy

May 01, 2008 07:00 ET

Direct Energy Completes Acquisition of Canadian Assets From TransGlobe Energy

CALGARY, ALBERTA--(Marketwire - May 1, 2008) - Direct Energy, one of North America's largest energy and energy-related services providers, today announced the successful completion of its offer to acquire the Canadian-based oil and gas assets of TransGlobe Energy Corporation (TSX:TGL)(NASDAQ:TGA), for a total cash consideration of C$56.7 million.

Deryk King, Chairman and Chief Executive Officer of Direct Energy said, "These assets are a strong strategic and operational fit with our existing upstream gas portfolio and this acquisition is in line with our strategy of increasing the level of vertical integration across Direct Energy. We continue to evaluate opportunities to add reserves and production to our upstream business where value can clearly be added from such acquisitions."

The assets acquired are located next to Direct Energy's current gas portfolio in Alberta. In addition to a production base of 8.7 Mmcfe per day (of which 75 per cent is natural gas), the acquisition also includes 50,000 acres of land with development potential. Internal assessments indicate that this acquisition will increase Direct Energy's reserves by at least 15 Bcfe.

Direct Energy owns and operates approximately 3,600 natural gas wells in Alberta with production of 112 Mmcfe/d and proven plus probable reserves of over 375 Bcfe.

About Direct Energy

Direct Energy is one of North America's largest energy and energy-related services providers with over 5 million residential and commercial customer relationships. Direct Energy provides customers with choice and support in managing their energy costs through a portfolio of innovative products and services. A subsidiary of Centrica plc (LSE:CNA), one of the world's leading integrated energy companies, Direct Energy operates in 21 states plus DC and 10 provinces in Canada. To learn more about Direct Energy, visit www.directenergy.com.

About TransGlobe Energy Corporation

TransGlobe Energy Corporation is a Calgary-based, growth-oriented oil and gas exploration and development company focused on the Middle East/North Africa region with production operations in the Arab Republic of Egypt and the Republic of Yemen. TransGlobe's common shares trade on the Toronto Stock Exchange under the symbol TGL and on the NASDAQ Exchange under the symbol TGA.

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