TransGlobe Energy Corporation

TransGlobe Energy Corporation

December 28, 2006 10:51 ET

TransGlobe Energy Corporation Announces Operations Update on Block 32, Republic of Yemen

CALGARY, ALBERTA--(CCNMatthews - Dec. 28, 2006) - TransGlobe Energy Corporation ("TransGlobe" or the "Company") (TSX:TGL) (AMEX:TGA) is pleased to announce the drilling results at Tasour #23ST and updated operations on Block 32 in the Republic of Yemen.

Block 32, Yemen (13.81% working interest)

The Tasour #23ST exploration well was drilled to a total depth of 3,139 meters and suspended as a potential upper Naifa oil well. Approximately 200 barrels of 27 API oil and 457 barrels of drilling fluids were recovered from a 10.5 meter perforated interval in the upper Naifa carbonate. The production test was terminated early (17 hours) when the large electrical submersible pump ("ESP") over-heated.

Well stimulation and horizontal drilling have led to the successful exploitation of the upper Naifa carbonates on other blocks in Yemen. Therefore the initial result on Tasour 23ST is very encouraging. To evaluate the new discovery, the Operator is preparing to stimulate the zone with acid, install a smaller ESP and place the well on a long term production test. It is expected that the production test will commence early in 2007, with oil trucked to the Tasour facility for treatment and export.

The Tasour #23ST exploration well targeted prospects in the Naifa carbonates and fractured Basement. The Tasour #23 well commenced drilling on September 5, 2006 and encountered significant drilling problems at 2,586 meters. The well was subsequently plugged back to 852 meters and side tracked on October 29. The side track well reached a total depth of 3,139 meters (approximately 300 meters into the Basement) on December 7. Testing was carried out on the Basement and on two separate Naifa carbonate zones. No hydrocarbons were recovered from tests on the Basement and the lower Naifa carbonate. The drilling rig is currently moving to a non-owned, adjacent Block.

A second drilling rig completed a two well service program in the Tasour field (a new water injector at Tasour #24 and a re-completion at Tasour #10) and is scheduled to move to Block 72 (TransGlobe 33% WI) to drill Nasim #1. The Nasim #1 exploration well is located to test prospects in the Qishn sandstones and in the Naifa carbonates and expected to commence drilling in mid January.

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.


Lloyd W. Herrick, Vice President & COO

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