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Release

TransGlobe Energy Corporation Announces Successful Wells in Republic of Yemen and Canada

CALGARY, ALBERTA--(CCNMatthews - May 26, 2004) - TransGlobe 
Energy Corporation ("TransGlobe" or the "Company") is pleased to 
announce a successful appraisal well at An Nagyah #7 on Block S-1 
in the Republic of Yemen and an update on the 2004 Canadian 
drilling program. 

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

Successful appraisal well at An Nagyah #7: 

The An Nagyah #7 well was drilled to a total depth of 1,400 
meters and completed as an Upper Lam oil well. The well 
encountered the Upper Lam sandstones with a 44 meter oil bearing 
interval. A 27 meter reservoir interval in the oil bearing 
section was perforated and flowed light oil and natural gas 
during a short test. No water was produced during the test 
period. An Nagyah #7 is located on the western edge of the An 
Nagyah structure, approximately 0.6 kilometers west of the An 
Nagyah #5 well which tested 1,150 Bopd from the Upper Lam 
formation (March 31, 2004 announcement). The An Nagyah #7 well 
will be equipped for early production via trucking and is 
expected to commence production after the drilling rig is moved 
to Harmel # 2 later this week. The Harmel #2 well will appraise 
the shallow depth, medium gravity oil discovered in Harmel #1 
(October 12, 2000). Following Harmel # 2, the rig will move to An 
Nagyah #8 to appraise the eastern portion of the An Nagyah 
structure. Additional development wells in the An Nagyah pool are 
expected to be drilled in the third and fourth quarters of 2004 
and into 2005. 

The early production (trucking) facilities at the An Nagyah field 
were installed during the first quarter 2004 and field production 
operations commenced on An Nagyah #4 on March 28, 2004. With the 
addition of An Nagyah #5 in April, An Nagyah #6 in May and An 
Nagyah #7, production capacity exceeds 3,000 Bopd. The oil 
production is currently trucked 18 miles to the Jannah Hunt 
facility where it is blended with the Marib light crude and 
transported by pipeline to the Ras Isa loading terminal on the 
Red Sea. 

BLOCK 32, REPUBLIC OF YEMEN (13.81% working interest) 

The field acquisition of a 100 square kilometer 3-D seismic 
survey over the Tasour field was completed on May 7th and the 
processing is underway in Calgary. The 3-D seismic interpretation 
will be utilized to select additional development drilling 
locations in the western Tasour extension and to define an 
exploratory location in the potential eastern Tasour area. The 
drilling rig is currently moving on to Tasour 12, located in the 
central portion of the field. 

CANADA 

Drilling Results: 

The Canadian exploration and development drilling program 
commenced in late April. As of May 26 the Company drilled five 
wells resulting in three (1.9 net) gas wells at Nevis, one (0.7 
net) potential gas well at Morningside and one (0.5 net) dry hole 
at Lone Pine. Including a well currently drilling at Nevis, the 
Company plans to drill nine more wells in Canada over the next 
five months. All of the wells are located in Central Alberta and 
are primarily gas prospects. 

Facilities and Pipeline Tie-ins: 

The pipeline connection for the Twining well was recently 
completed and the pipeline crew is now working on the Morningside 
tie-ins which are expected to be completed by the end of June. It 
is anticipated that the Twining and Morningside tie ins, combined 
with facility modifications at Nevis will add approximately 470 
Boepd to TransGlobe. 

The new wells at Nevis will be connected to the Company's 
existing gathering lines over the next few months. It is expected 
that the new Nevis wells will add approximately 1.5 MMcfd (250 
Boepd) to TransGlobe's Canadian production. 

TransGlobe is an international exploration and production company 
with its corporate office in Calgary, Alberta. Block S-1 is the 
second producing property for the Company in the Republic of 
Yemen. The Company holds a 13.8% working interest in Block 32 in 
the Republic of Yemen where oil production has been underway for 
more than three years. TransGlobe also has 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

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

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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