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TransGlobe Energy Corporation Announces Horizontal Well Results in Republic of Yemen

CALGARY, ALBERTA--(CCNMatthews - Oct. 14, 2004) - TransGlobe 
Energy Corporation ("TransGlobe" or the "Company") is pleased to 
announce another successful development well on Block S-1 in the 
Republic of Yemen. 

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

Successful horizontal appraisal well at An Nagyah #11: 

The An Nagyah #11 well was drilled to a total depth of 1,394 
meters and suspended as an Upper Lam oil well. The An Nagyah #11 
well was tested from a 164 meter horizontal Upper Lam sandstone 
section at a stabilised rate of 3,100 barrels of light (43 degree 
API) oil per day and 1.72 million cubic feet of natural gas per 
day on a 56/64 inch choke at 365 psi flowing pressure. No water 
was produced during the test period. This is the first horizontal 
well drilled in the An Nagyah field and the first Lam formation 
horizontal well in the Republic of Yemen. 

The An Nagyah #11 well is being equipped for early production via 
trucking. The drilling rig is currently moving to An Nagyah #12 
located between the An Nagyah #5 and #4 wells. An Nagyah #12 will 
also be drilled horizontally with a planned horizontal section of 
700 meters. Following An Nagyah #12 a well is planned to test a 
possible field extension on the southern edge of the An Nagyah 
field. This will be followed by an exploration well 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. 

An Nagyah Production update: 

The An Nagyah #11 well has increased the total productive 
capacity of the An Nagyah field to approximately 8,000 Bopd 
(2,000 Bopd to TransGlobe). The current trucking capacity is 
approximately 5,000 Bopd (1,250 Bopd to TransGlobe), however it 
is expected that trucking can be increased to 6,000+ Bopd with 
the installation of additional tanks and facilities prior to year 
end. The oil production is currently being trucked 18 miles to 
the Jannah Hunt facility where it enters the Hunt pipeline system 
to the Red Sea. 

The trucking operations will be phased out following the 
construction of a central production facility ("CPF") at An 
Nagyah and a 28 kilometer (18 mile) pipeline to the Jannah Hunt 
export pipeline. The pipeline and facilities 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 Bopd (2,500 Bopd to 
TransGlobe), with expansion capabilities. 

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 38% 
per year over the past three years and expects to produce an 
average of 3,600 Boepd during 2004. It is anticipated that 
production will average 5,500 Boepd in 2005 representing a 52% 
increase over 2004. 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. 



s/s/ Lloyd W. Herrick

Lloyd W. Herrick
Vice President & C.O.O.



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


TransGlobe Energy Corporation
Lloyd W. Herrick
Vice President & C.O.O.
(403) 264-9888
(403) 264-9898 (FAX)


Executive Offices:
#2900, 330 -5th Avenue, S.W.
Calgary, AB T2P 0L4

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