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Release

TransGlobe Energy Corporation Announces Operations Update

CALGARY, ALBERTA--(CCNMatthews - Aug. 23, 2004) - TransGlobe 
Energy Corporation ("TransGlobe" or the "Company") announces the 
results from the Al Hareth #1 exploration well on Block S-1 in 
the Republic of Yemen and an update on Canadian drilling 
activity.  

BLOCK S-1, REPUBLIC OF YEMEN (25% Working Interest)  

The Al Hareth #1 exploration well was drilled to a total depth of 
1,400 meters (4,239 feet) and was abandoned. The primary target, 
the Alif reservoir sandstone, was encountered however the open 
hole well logs did not indicate commercial hydrocarbons were 
present. Evaluations of core analysis, fluid analysis and 
petrophysical interpretation will be carried out to determine if 
additional work on the Al Hareth structure is warranted.  

To date, the Block S-1 Joint Venture group has drilled seven 
wells in 2004 program resulting in six oil wells (five producing 
oil wells at An Nagyah and one potential oil well at Harmel). The 
drilling rig is now moving to the An Nagyah field to resume 
additional development drilling at An Nagyah #10. In addition to 
continued An Nagyah development drilling, it is anticipated that 
one additional exploration well may be drilled prior to year end. 
 

CANADA  

In Canada, the Company commenced its third quarter drilling 
program in early August with two drilling rigs, resulting in 
three (2.5 net) potential gas wells (Nevis, Gadsby and Cynthia) 
and one well drilling (Cynthia).  

To date, the Company participated in drilling nine wells (6.6 
net) resulting in seven gas wells, one oil well and one D&A well 
for an overall success rate of 89% in 2004. In addition to the 
well currently drilling, four to five more wells are expected to 
be drilled during the next few months. All of the prospects are 
natural gas focused and are located in Central Alberta, which 
generally affords year round access.  

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. 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 W. Herrick 
Lloyd W. Herrick 

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

/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

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