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Release

TransGlobe Energy Corporation Announces Year End Reserve Increases In All Operational Areas

CALGARY, ALBERTA--(CCNMatthews - Jan. 31, 2005) - TransGlobe Energy 
Corporation (TSX:TGL) (AMEX:TGA) ("TransGlobe" or the "Company") is 
pleased to announce reserves and production for 2004 in the Republic of 
Yemen and in Canada.

Reserves:

Total Proven reserves for the Company increased 78% from 3,746 MBoe 
("MBoe" thousand barrels of oil equivalent at 6 : 1) at December 31, 
2003; to 6,665 MBoe at December 31, 2004. The increase of 2,919 MBoe 
replaced approximately 307% of 2004 production. The major increases in 
proven reserves were attributable to the An Nagyah field on Block S-1, 
Yemen and new drilling in Canada.

Total Proven plus Probable reserves for the Company increased 48% from 
7,037 MBoe at December 31, 2003 to 10,427 MBoe at December 31, 2004 
replacing approximately 340% of 2004 production. The major increases in 
Proven plus Probable reserves were attributable to the An Nagyah field 
on Block S-1, Yemen, continued reservoir performance in the Tasour field 
on Block 32, Yemen and new drilling in Canada.

/T/

--------------------------------------------------------------------
                          Dec. 31, 2004  Dec. 31, 2003
Proven                          MBoe (1)       MBoe (1)  Increase (%)
--------------------------------------------------------------------
Yemen                             4,422          2,263           95%
--------------------------------------------------------------------
Canada                            2,243          1,483           51%
--------------------------------------------------------------------
Total Proven                      6,665          3,746           78%
--------------------------------------------------------------------

Proven plus Probable
--------------------------------------------------------------------
Yemen                             7,217          4,605           57%
--------------------------------------------------------------------
Canada                            3,210          2,432           32%
--------------------------------------------------------------------
Total Proven plus Probable       10,427          7,037           48%
--------------------------------------------------------------------
(1) Working Interest before royalties.

/T/

The 2004 year end reserves assigned to Block S-1, Yemen, do not include 
any reserves (proven or proven plus probable) from the medium gravity 
oil discovery at Harmel, the condensate associated with the An Naeem 
pool or the light gravity Lam 'B' oil reservoirs at An Nagyah. 
Additional work on these projects is planned for 2005, which may result 
in reserve additions to Block S-1 in the future.

The 2004 year end reserves were prepared by the Company's independent 
reserve evaluators, DeGolyer and MacNaughton Canada Limited, in 
accordance with the Canadian National Instrument (NI) 51-101 policy. The 
Canadian National Instrument (NI) 51-101 policy was adopted in 2003 in 
Canada. The most significant change to the previous policy was to 
Probable reserves. The (NI) 51-101 policy has adopted a P-50 level of 
certainty ("at least a 50% probability that the quantities actually 
recovered will equal or exceed the sum of the estimated proved plus 
probable reserves") for Proven plus Probable reserves. Under the 
previous National Policy 2-B, Probable reserves were un-risked.

It is expected that the Company's International reserves reported under 
policy (NI) 51-101 will be generally be more conservative than those 
booked by joint venture partners reporting under SEC standards, 
especially newer reserves with little or no production history.

Disclosure provided herein in respect of Boes may be misleading, 
particularly if used in isolation. A Boe conversion ratio of 6 Mcf : 1 
Bbl is based on an energy equivalency conversion method primarily 
applicable at the burner tip and does not represent a value equivalency 
at the wellhead.

The recovery and reserve estimates of crude oil, NGLs and natural gas 
reserves provided herein are estimates only and there is no guarantee 
that the estimated reserves will be recovered. Actual crude oil, NGLs 
and natural gas reserves may be greater than or less than the estimates 
provided herein.

Production:

In Yemen, oil production increased 34% from an average of 2,372 Bopd in 
2003 to 3,187 Bopd in 2004. Production averaged 4,427 Bopd in December 
2004.

In Canada, production increased 157% from an average of 263 Boepd in 
2003 to 677 Boepd in 2004, averaging 890 Boepd in December 2004.

In total, the Company production increased 47% from an average of 2,635 
Boepd in 2003 to an average of 3,864 Boepd in 2004. Production averaged 
5,317 Boepd in December 2004. The Company expects to average 6,000 Boepd 
in 2005, with the completion of the An Nagyah pipeline and central 
production facility in mid year.

It is anticipated that the 2004 year end and fourth quarter financial 
results will be released mid March 2005.

This release includes certain statements that may be deemed to be 
"forward-looking statements" within the meaning of the US Private 
Securities Litigation Reform Act of 1995. All statements in this 
release, other than statements of historical facts that address future 
production, reserve potential, exploration drilling, exploitation 
activities and events or developments that the Company expects, are 
forward-looking statements. Although TransGlobe believes the 
expectations expressed in such forward-looking statements are based on 
reasonable assumptions, such statements are not guarantees of future 
performance and actual results or developments may differ materially 
from those in the forward-looking statements. Factors that could cause 
actual results to differ materially from those in forward-looking 
statements include oil and gas prices, exploitation and exploration 
successes, continued availability of capital and financing, and general 
economic, market or business conditions.

/T/

TRANSGLOBE ENERGY CORPORATION


s/s Ross Clarkson


Ross G. Clarkson,
President & C.E.O.

/T/

-30-

TransGlobe Energy Corporation
Ross G. Clarkson
President & C.E.O.
(403) 264-9888
(403) 264-9898 (FAX)

or

TransGlobe Energy Corporation
Lloyd W. Herrick
Vice President & C.O.O.
(403) 264-9888
(403) 264-9898 (FAX)
Email: trglobe@trans-globe.com
Website: www.trans-globe.com

or

Executive Offices (effective Feb 7,2005):
#2500, 605 -5th Avenue, S.W.,
Calgary, AB T2P 3H5

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