Transglobe Has Increased Production from Block 32 in Yemen

TransGlobe Energy reports that production rates on Block 32 in the Republic of Yemen have been increased. The oil production from the Tasour-field was increased to more than 17,500 BOPD at the end of January due to the installation of increased pump capacity for the export pipeline. Additional work on the export pump system to expand the shipping capacity to 25,000 Bopd is expected to be complete by the end of February. Currently there are three wells shut in as the production capability exceeds the export pump capacity. With the completion of the additional work, Tasour field has the capacity to produce more than 20,000 Bopd with all six wells on full production.

Drilling of a well on the Haibish structure to the northwest of Tasour is now almost completed. The well did not encounter hydrocarbons of commercial quantities. TransGlobe's share of the well costs will be recovered from future cost-oil from Tasour production. The drilling rig will be moved to a non-owned adjacent block for one well as part of a multi-well rig sharing contract to reduce costs. It is expected that the drilling rig will be available to the Block 32 Joint Venture group in June 2003, to drill a development well at Tasour #9.