TransGlobe Announces Results at Yemen Well

TransGlobe Energy Corp. on Tuesday announced well results at Nasim #1, Block 72, Republic of Yemen and provided a drilling update on the Nuqra Block 1, Arab Republic of Egypt.

Block 72, Republic of Yemen (33% working interest)

The Nasim #1 exploration well, operated by DNO ASA (Oslo Stock Exchange: DNO), was drilled to a total measured depth of 2,305 meters and subsequently plugged and abandoned. The Nasim #1 well tested Qishn and Naifa prospects defined by 2-D seismic. Nasim #1 was the first of a two-well commitment in the first exploration period on Block 72. A 3-D seismic program is planned for the 2nd and 3rd quarters of 2007 to reduce risk on future exploration wells. A second commitment well is scheduled for the 4th quarter of 2007.

Block 32, Republic of Yemen (13.81% working interest)

The drilling rig used to drill the Nasim #1 will be used to drill a non-owned well on an adjacent block before drilling the Godah #5 well on Block 32 early in the second quarter. TransGlobe and its partners previously announced new discoveries on Godah #1, #2 and #3. The Current gross production rate from Block 32 is 10,500 barrels of oil per day. The Godah #2 and #3 wells are producing approximately 1,500 barrels of oil per day.

Nuqra Block 1, Arab Republic of Egypt (50% working interest)

TransGlobe Petroleum Egypt Inc., a wholly owned subsidiary of TransGlobe Energy Corporation, is rigging up the ECDC #2 drilling rig to drill the Set #1, a 30-million-barrel gross unrisked target prospect. The Set #1 exploration well is the first of a two-well commitment targeting Cretaceous and Jurassic prospects in the Nuqra/Kom Ombo rift basin located near Aswan, Egypt. Drilling will commence at Set #1 approximately February 17 with results expected in late March. Following Set #1, the drilling rig will move to the second exploration commitment well at Narmer #1, located approximately 30 kilometers east of Set #1.

The planned, two well, exploration program will fulfill the work commitments of the first (three-year) exploration extension period approved July 18, 2006, on the 5.5 million acre Nuqra Block 1 concession. Upon expiry of the first three-year extension (July 17, 2009), there is an option to proceed with a second three-year extension and work program. The second exploration extension requires a mandatory relinquishment of 25% of the original Block and completion of a two-well drilling program. Exploitation of any discovered commercial fields will continue under a development lease for a further 20 years.

TransGlobe Energy is an oil and gas producer with proved reserves and production operations in The Republic of Yemen and in Alberta, Canada. TransGlobe has an active exploration and development program planned for 2007 in The Republic of Yemen, the Arab Republic of Egypt and in Canada. The Company owns working interests in more than 6.6 million acres across their operating regions. In 2006, the Company set new records for total proved reserves and annual production.