TransGlobe Exercises Underwriters' Over-Allotment Option

TransGlobe Energy reports that, in connection with the Company's bought deal financing which closed on November 24, 2004, the underwriters have exercised their over-allotment option to acquire an additional 379,500 common shares at Cdn$4.35 per share, resulting in additional gross proceeds to the Company of approximately Cdn$1,650,825.

Proceeds from the exercise of the over-allotment option will be used for TransGlobe's existing capital expenditure programs in the Republic of Yemen and the Arab Republic of Egypt.

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 news release shall not constitute an offer to sell or the solicitation of an offer to buy the securities in any jurisdiction. The common shares offered will not and have not been registered under the United States Securities Act of 1933 and may not be offered or sold in the United States absent registration or applicable exemption from registration requirements.