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Release

TransGlobe Energy Corporation Announces Exploration Well Results in Republic of Yemen

CALGARY, ALBERTA--(CCNMatthews - Jan. 12, 2005) - TransGlobe Energy 
Corporation (TSX:TGL) (AMEX:TGA) ("TransGlobe" or the "Company") is 
pleased to announce a successful exploration well on Block S-1 in the 
Republic of Yemen and increased production rates for December 2005.

BLOCK S-1, REPUBLIC OF YEMEN (25% working interest)

New oil accumulation found at An Nagyah #14:

The An Nagyah #14 well was drilled to a total depth of 1,365 meters and 
suspended as a Lam 'B' oil well. The An Nagyah #14 well encountered a 19 
meter oil column in the Lam 'B' (lower Lam) sandstone. The well was swab 
tested at a rate of approximately 80 barrels of light (40 degree API) 
oil per day. No water was produced during the test period. This 
discovery is located south of the An Nagyah field in a separate fault 
block.

Ross Clarkson, TransGlobe's President and Chief Executive Officer said, 
"The An Nagyah #14 oil test has identified a new exploration fairway 
south of the main An Nagyah field. Additional work will be required to 
incorporate the well results and remap the seismic in this area to 
identify future drilling locations. This successful test is further 
confirmation of the potential of the Lam reservoir in Block S-1."

The oil production from the An Nagyah field is currently being trucked 
18 miles to the Jannah Hunt facility where it enters the Hunt pipeline 
system to the Red Sea. Trucking operations will be phased out following 
the construction of a CPF at An Nagyah and a 28 kilometer (18 mile) 
pipeline to the Jannah Hunt export pipeline. The pipeline and facilities 
construction are underway and they are expected to be operational by mid 
2005. The 10 inch pipeline is designed to allow an ultimate capacity of 
80,000 Bopd so that future discoveries can be placed on stream quickly. 
The CPF is designed for an initial capacity of 10,000 to 12,000 Bopd 
(2,500 to 3,000 Bopd to TransGlobe), with expansion capabilities.

The drilling rig is currently moving to another exploration well (Malaki 
#1) on a separate structure located nine kilometers southwest of the An 
Nagyah field. Additional development wells on An Nagyah and several 
exploration wells are planned for the 2005 drilling program.

In addition to the current drilling activities, a workover rig has been 
on location completing the Harmel #2 well. Harmel #2 was drilled in June 
2004 to appraise the shallow oil reservoirs found in the discovery well, 
Harmel #1. It is anticipated that the Harmel #1 and #2 wells will be 
equipped with pumps and production testing equipment by the end of the 
first quarter. Both Harmel wells will then be production tested for 
several months. Production and test data obtained from the Harmel #1 and 
#2 wells will help to determine the commerciality of the medium gravity 
oil (22 degree API).

PRODUCTION UPDATE

TransGlobe's production during December 2004 averaged approximately 
5,325 Boepd, surpassing the target 2004 exit rate of 5,000 Boepd and 
setting a new record production level for the Company. The An Nagyah 
field December production was approximately 7,407 Bopd (1,852 Bopd to 
TransGlobe). The Block 32 production during December averaged 18,630 
Bopd (2,573 Bopd to TransGlobe). TransGlobe's Canadian production 
averaged 900 Boepd during December. Canadian production was curtailed by 
higher gathering pipeline pressures in the Nevis and Twining areas and 
well performance. The Company plans to install field booster compression 
during 2005 to offset the increased pipeline pressures.

TransGlobe is a growth oriented international exploration and production 
company with its corporate office in Calgary, Alberta, Canada. 
TransGlobe has achieved a production growth rate of 84% per year over 
the past four years. TransGlobe is well positioned for continued growth 
with interests in three production sharing agreements in the Republic of 
Yemen (two producing, one exploration), one exploration concession in 
the Arab Republic of Egypt and producing oil and gas properties in 
Alberta, Canada.

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/ Lloyd Herrick

Lloyd W. Herrick,
Vice President & C.O.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:
#2900, 330 -5th Avenue, S.W.
Calgary, AB T2P 0L4

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