Vintage Submits Development Plan for Block S-1 in Yemen

Vintage Petroleum says that the Block S-1 Joint Venture Group has submitted a Notice of Commercial Discovery, along with a Request for Conversion to a Development Area and a Development Plan to the Yemen Ministry of Oil and Minerals.

The Development Plan provides the framework for an integrated multi-field development and for continued exploration within the substantial 285,000 acre Development Area.

The initial field development is focused on the An Nagyah light oil pool which was discovered and appraised during the 2002/2003 drilling program. The plan provides for early production commencing in the first quarter of 2004 by trucking up to 2,500 Bopd from existing wells. Concurrently, construction of a central production facility at An Nagyah and a 28-kilometer, 8-inch pipeline to the Jannah Hunt Halewah export pipeline is planned during 2004, with an anticipated completion by early 2005. The pipeline capacity would be in excess of 30,000 Bopd to allow future discoveries to be placed on stream quickly. The central production facility will be designed with an initial capacity of 10,000 Bopd. It is expected that the An Nagyah field development will consist of 13 wells to delineate and produce the field. Development/appraisal drilling is expected to commence on the An Nagyah field in the first half of 2004. The total number of wells will be adjusted as additional reservoir information is obtained from new drilling.

In addition to the An Nagyah field development, the Block S-1 Joint Venture Group plans to drill an appraisal well on the Harmel medium gravity oil discovery and to evaluate the An Naeem gas condensate discovery for a potential condensate gas cycling project. The Harmel appraisal well is expected to be drilled in 2004. It is anticipated that the Harmel pilot production project will commence after the An Nagyah field has been developed.

The Block S-1 Joint Venture Group anticipates the Ministry of Oil and Minerals to approve the Request for Conversion to a Development Area and the Development Plan within the next few days.

Ross Clarkson, President & CEO, said: "The declaration of commerciality on Block S-1 is a significant milestone for TransGlobe as it represents the second oil development for the Company in the Republic of Yemen. We have enjoyed excellent cooperation from the Government of the Republic of Yemen and in particular from the Ministry of Oil and Minerals. TransGlobe has grown from 200 Boepd in 1999 to a 2003 exit target rate of more than 3,000 Boepd primarily as a result of success in our first Yemen project. We are now targeting 5,000 Boepd when the Block S-1 development is commissioned."

The Block S-1 Joint Venture Group is comprised of TransGlobe through its wholly owned subsidiary TG Holdings Yemen Inc. (25% working interest) and Vintage Petroleum Yemen, Inc. (75% working interest) as operator.