Stock Quote:
TGL  $ 3.18  $ 0.12
TGA  $ 2.39  $ 0.08
BZQ18  $ 75.71  $ 2.66


TransGlobe Energy Corporation Announces Update on Canadian Operations and 2005 Corporate Targets

CALGARY, ALBERTA--(CCNMatthews - Sept. 20, 2004) - TransGlobe 
Energy Corporation ("TransGlobe" or the "Company") (TSX symbol 
"TGL"; AMEX symbol "TGA") is pleased to announce continued 
exploration success in Canada and new Corporate production and 
cash flow targets for 2005. 


To date, the Company has drilled 11 wells (8.6 net wells) in 2004 
resulting in 8 gas wells, 2 oil wells and 1 dry hole for an 
overall success rate of 91%. The Company is currently drilling 
one well (100%) at Twining and re-entering one well (100%) at 
Nevis. Production in Canada is currently 1,000 Boepd and it is 
anticipated that production will increase to 1,250-1,500 Boepd by 
the first quarter of 2005 when the new wells are pipeline 
connected and after subtracting the predicted, normal declines 
from existing wells. 

In addition to the wells currently drilling, it is expected that 
the Company will drill another two to four wells prior to year 
end, for a total program of 15 to 17 wells in Canada during 2004. 
All the prospects are focused towards natural gas. Successful 
wells could be on production quickly as these prospects are near 
existing infrastructure and can be accessed year round. To date, 
the Company has acquired mineral rights on 8,000 net acres in 
2004. The Company plans to acquire additional mineral rights and 
is negotiating several farm-in proposals. The majority of the 
land is located in Central Alberta, on three main prospects, of 
which two are new focus areas for the Company. Drilling of these 
mineral rights is anticipated to occur in 2005 with 10 to 15 
additional wells planned. 

2005 Outlook 

With increasing production in Canada and in Yemen, it is expected 
that total Company production will reach 5,000 Boepd during the 
first quarter of 2005. It is anticipated that pipeline and 
facilities construction on the An Nagyah discovery on Block S-1 
in Yemen will be completed by mid 2005. This development, coupled 
with the production increases in Canada, is expected to increase 
the Company's total production to approximately 6,000 Boepd. The 
average production for 2005 is projected to be 5,500 Boepd with a 
cash flow estimate of US$24.0 million (assuming a Brent oil price 
of US$35.00 and a natural gas price of Cdn $6.00/Mcf) for the 
year 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. 



s/s Ross Clarkson

Ross Clarkson
President & C.E.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)


TransGlobe Energy Corporation
#2900, 330 -5th Avenue, S.W.
Calgary, AB T2P 0L4

View Print Version