TransGlobe Energy Corporation

TransGlobe Energy Corporation

February 28, 2005 13:06 ET

TransGlobe Energy Corporation Announces Update on International Operations


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: TRANSGLOBE ENERGY CORPORATION

TSX SYMBOL: TGL
AMEX SYMBOL: TGA

FEBRUARY 28, 2005 - 13:06 ET

TransGlobe Energy Corporation Announces Update on
International Operations

CALGARY, ALBERTA--(CCNMatthews - Feb. 28, 2005) - TransGlobe Energy
Corporation ("TransGlobe" or the "Company") (TSX:TGL) (AMEX:TGA)
announces an operations update on Block S-1, Block 32 and Block 72 on in
the Republic of Yemen and on the Nuqra Block in the Arab Republic of
Egypt.

Block S-1, Yemen (25.0% working interest)

Malaki #1, which commenced drilling on January 18, 2005, has reached a
total depth of 2,315 meters. The well is being plugged and abandoned
after encountering minor hydrocarbon shows. The Lam 'A' sandstone
reservoirs were encountered structurally lower than the oil/water
contact in the An Nagyah field and were water saturated. The drilling
rig is preparing to move to the next drilling location at An Nagyah #15.
The An Nagyah #15 well is planned as an 800 meter horizontal well in the
northwest area of the An Nagyah field, adjacent to An Nagyah #12.

The pipeline and facility construction for the An Nagyah field is on
schedule with a planned start up in June 2005. The An Nagyah field
production is anticipated to increase to over 10,000 Bopd (2,500 Bopd to
TransGlobe) when the facilities and pipeline are operational.

A service rig is currently installing pumps on Harmel #1 and #2 in
preparation for a long term test. A three to six month production test
is planned to determine stabilised production rates which will determine
if a full scale development of the Harmel field can proceed.

Block 32, Yemen (13.81% working interest)

The Tasour #16 well has been suspended after encountering 6.0 meters of
oil pay overlying 3.0 meters of water bearing sandstone. The dip meter
indicates a structurally higher location can be reached by sidetracking
the well to the south of the current bottom hole location. The sidetrack
drilling is planned after Tasour #17. The rig is currently drilling
Tasour #17 to test a possible eastern extension of the Tasour field. The
eastern extension was identified on the recent 3-D seismic survey and by
the Tasour #15 water injection well. Tasour #15 was drilled as a water
injector nearby the central production facility and found a 2.5 meter
oil column, which indicates the Tasour field could extend eastward.

Block 72, Yemen (33% working interest)

The Block 72 Production Sharing Contract has been approved by the
Cabinet and is currently before the Yemen Parliament for final approval.
Following parliamentary approval the Block 72 partnership plans to
acquire 3-D seismic to identify drilling locations. Drilling is
anticipated to commence late in 2005 or early 2006.

Nuqra Block, Egypt (50% working interest)

TransGlobe has obtained the older seismic on the Nuqra Block and is
currently reprocessing the data to improve the resolution. A new seismic
acquisition program is anticipated to commence in the fourth quarter
2005. A field geological survey is also underway to investigate surface
outcrops and oil seeps in the Nuqra area. It is expected that a drilling
program will commence in late 2006.

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, exploitation and exploration
successes, continued availability of capital and financing, and general
economic, market or business conditions.


TRANSGLOBE ENERGY CORPORATION

s/s Ross Clarkson

Ross G. Clarkson President & CEO

-30-

Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    TransGlobe Energy Corporation
    Ross G. Clarkson
    President & C.E.O.
    (403) 264-9888
    (403) 264-9898 (FAX)
    or
    TransGlobe Energy Corporation
    Lloyd W. Herrick
    Vice President & C.O.O.
    (403) 264-9888
    (403) 264-9898 (FAX)
    Email: trglobe@trans-globe.com
    Website: www.trans-globe.com
    or
    Executive Offices
    #2500, 605 -5th Avenue, S.W.,
    Calgary, AB T2P 3H5