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TransGlobe Energy Corporation Announces Expansion of International Exploration Focus

CALGARY, ALBERTA--(CCNMatthews - Jul 20, 2004) - TransGlobe 
Energy Corporation ("TransGlobe" or the "Company") is pleased to 
announce the acquisition of a new exploration project in the Arab 
Republic of Egypt. 

Nuqra Block 1, Arab Republic of Egypt (50% working interest, 

TransGlobe Petroleum Egypt Inc. ("TransGlobe Egypt"), a wholly 
owned subsidiary of TransGlobe Energy Corporation, has entered 
into a Farmout Agreement with Quadra Egypt Limited ("QEL"), a 
subsidiary of Quadra Resources Corp. headquartered in Calgary, 
and Rampex Petroleum International ("Rampex") headquartered in 
Cairo, Egypt. This Agreement provides TransGlobe Egypt the 
opportunity to participate and earn a 50% working interest in the 
Nuqra Concession. 

Ross Clarkson, President & CEO of TransGlobe states, "The Nuqra 
Concession provides a rare exploration opportunity, a large land 
position in an under-explored rift basin. Rift basins can be very 
productive petroleum producers. To the north and south of Nuqra 
are two rift basins with large oil fields; the Gulf of Suez and 
the Muglud basin in Sudan. TransGlobe has made several 
discoveries in the Yemen rift basins and the Nuqra Concession's 
petroleum system appears to be analogous to the Masila Basin in 
Yemen. We hope that Nuqra will build upon our success in Yemen, 
while expanding and diversifying TransGlobe's presence in the 
Middle East." 

Under the terms of this agreement TransGlobe Egypt will earn 50% 
of the Nuqra Concession by paying 100% of the initial US$6.0 
million of expenditures in the Stage 1 and the Stage 2 work 
programs. TransGlobe Egypt will hold a 50% working interest in 
the Nuqra Concession, subject to the approval of the Egyptian 
government. The assignment documents were submitted for approval 
on July 20th. QEL will hold a 30% working interest in the 
Concession and Rampex will hold a 20% working interest. After 
earning, costs will be shared 60% TransGlobe Egypt, 40% QEL and 
Rampex will be carried until first production. The cost of the 
Rampex carry will be recovered by TransGlobe Egypt and QEL from 
100% of the Rampex cost oil and 50% of the Rampex production 
sharing oil. TransGlobe Egypt will become Operator of the Nuqra 

The Nuqra Concession is located in Upper Egypt near of the city 
of Luxor on the east bank of the Nile River. The concession 
encompasses over two-thirds of the Kom Ombo Basin, a rift basin 
analogous to the Gulf of Suez Basin, the Marib Basin in the 
Republic of Yemen, and the Muglad Basin in Sudan, all of which 
contain major reserves. The Nuqra Concession contains more than 
30,000 square kilometers or 7,500,000 acres of exploration lands 
with 13 seismically defined leads identified from over 4,000 km 
of existing 2D seismic. Seismic and well data have confirmed the 
existence of Jurassic and Cretaceous sediments and the presence 
of a petroleum system which could potentially hold significant 
oil reserves. The Concession fiscal terms allow for the recovery 
of costs from 40% of production. The remaining balance of 60% of 
production is then shared on a 70:30 basis between the government 
and the contractor, respectively. Production sharing above 25,000 
Bopd is shared on an 80:20 basis. 

The Nuqra Concession Agreement Stage 1 work program requires 
expenditure of US$2.0 million to reprocess existing seismic and 
to shoot new seismic within the first two years. Upon expiry of 
the Stage 1 term, there is an option to proceed to the Stage 2 
work program. Stage 2 requires completion of a two well drilling 
program, with a minimum expenditure of US$4.0 million, over a 
period of three years. Upon expiry of the Stage 2 term there is 
an option to proceed to the Stage 3 work program. Stage 3 
requires completion of a two well drilling program, with a 
minimum expenditure of US$ 5.0 million, over a final three year 
term. Exploitation of discovered commercial fields will continue 
under a Development Lease for a further 20 years. 

TransGlobe is an international exploration and production company 
with its corporate office in Calgary, Alberta. In addition to its 
50% interest in the Nuqra Concession, the Company holds, in the 
Republic of Yemen: a 25% working interest in Block S-1; a 33% 
working interest in Block 72; and a 13.81% working interest in 
Block 32. Block S-1 commenced production in March 2004 and is 
producing approximately 3,200 Bopd (800 Bopd to TransGlobe) with 
plans to increase to over 10,000 Bopd (2,500 Bopd to TransGlobe) 
in 2005. Block 72 is a new exploration area for TransGlobe where 
exploration operations are expected to commence in 2005. In Block 
32, the Tasour field was developed and placed on production in 
2000 and is currently producing approximately 20,000 Bopd 
(approximately 2,750 Bopd to TransGlobe), having produced in 
excess of 17 millions barrels to date. TransGlobe also has 
producing oil and gas properties in Alberta, Canada. Additional 
information on the Nuqra Concession and TransGlobe's other 
properties can be found on the Company's website at 

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

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



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)

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