TransGlobe Undertaking 3-D Survey on Block 32 in Yemen

TransGlobe Energy reports that the acquisition of a 3-D seismic survey over the Tasour field in Block 32 in Yemen started last month. The 3-D survey is expected to identify additional appraisal and development drilling locations within the Tasour field and locations on the western and eastern extensions of Tasour. Additional drilling on Block 32 is expected to commence approximately March 15. The Block 32 Joint Venture Group plans to drill four to five wells during 2004.

On Block S-1 in Yemen, preparations are underway to start drilling An Nagyah #5 in early March to appraise the western portion of the An Nagyah discovery. An Nagyah #6 and Harmel #2 (or An Nagyah #7) are planned to follow immediately after An Nagyah #5. Three to four additional wells on the An Nagyah structure are planned for later in the year to coincide with the startup of the production facilities and pipeline in early 2005.

In Yemen, oil production increased 53% from an average of 1,546 Bopd in 2002 to 2,372 Bopd in 2003. Production averaged 2,325 Bopd in December 2003. The Company expects to average 2,200 Bopd from Tasour in 2004. This estimate does not assume any drilling success on the possible eastern extension of the Tasour field or exploration drilling success. On Block S-1 it is expected that early production via trucking could commence in the second quarter of 2004. When the trucking operation is fully operational the Joint Venture Group plans to truck up to 2,500 Bopd (625 Bopd to TransGlobe) from the An Nagyah discovery until the pipeline and facilities are fully operational in early 2005. The facilities are being designed to handle 10,000 Bopd (2,500 Bopd to TransGlobe).