Stock Quote:
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Release

TransGlobe Energy Corporation Announces 2003 Year End and Fourth Quarter Results

CALGARY, ALBERTA--TransGlobe Energy Corporation ("TransGlobe" or 
the "Company") is pleased to announce its financial and operating 
results for the three and twelve month periods ended December 31, 
2003. All dollar values are expressed in United States dollars 
unless otherwise stated. Per barrel of oil equivalent ("Boe") 
amounts have been calculated using a conversion of 6,000 cubic 
feet of natural gas to one barrel of oil. 

2003 HIGHLIGHTS: 

- Production increased 52% 

- Proven plus Probable reserves increased 125% 

- Commerciality declared, Block S-1 Yemen 

- Listing on the AMEX as TGA 

- Payout of all historical costs achieved on Block 32 Yemen 

- Record drilling program, 17 wells (8 oil, 7 gas, 1 potential 
gas & 1 D&A) 

- December 31 working capital of $2,537,369 with no debt 

FINANCIAL AND OPERATING UPDATE 


/T/

--------------------------------------------------------------------
                                          Three Months Ended Dec. 31
--------------------------------------------------------------------
Financial (US $'s)                         2003        2002   Change
--------------------------------------------------------------------
Oil and gas sales net of royalties    4,488,447   5,459,364     (18)%
Operating expense                     1,121,032     463,631      142%
General and administrative expense      423,059     274,320       54%
Depletion and depreciation            1,292,000   1,183,000        9%
Income taxes                         (1,488,980)    331,134    (550)%
Cash flow from operations             1,894,490   4,380,792     (57)%
 Basic per share                           0.04        0.09
 Diluted per share                         0.03        0.09
Net income                            3,413,717   3,197,791        7%
 Basic per share                           0.06        0.07
 Diluted per share                         0.06        0.06
Capital expenditures                  4,010,527   2,546,907       57%
Working capital
Common shares outstanding
 Basic (weighted average)
 Diluted (weighted average)
--------------------------------------------------------------------
Reserves (MBoe)
--------------------------------------------------------------------
Total Proven (6 : 1)
Total Proven + Probable (6 : 1)
--------------------------------------------------------------------
Production
--------------------------------------------------------------------
Oil and liquids (Bpd)                     2,535       1,979       28%
 Average price (US$ per barrel)           28.83       26.58        8%
Gas (Mcfpd)                               1,704         796      114%
 Average price (US$ per Mcf)               4.82        3.96       22%
Total (Boed) (6:1)                        2,819       2,112       33%
Operating expense (US$ per Boe)            4.32        2.39       81%
---------------------------------------------------------------------



--------------------------------------------------------------------
                                         Twelve Months Ended Dec. 31
--------------------------------------------------------------------
Financial (US $'s)                         2003        2002   Change
--------------------------------------------------------------------
Oil and gas sales net of royalties   17,161,710  13,254,105       29%
Operating expense                     3,706,096   1,843,273      101%
General and administrative expense    1,206,337     820,691       47%
Depletion and depreciation            6,253,000   4,277,000       46%
Income taxes                            306,982     919,694     (67)%
Cash flow from operations             9,347,001   9,709,852      (4)%
 Basic per share                           0.18        0.19
 Diluted per share                         0.17        0.19
Net income                            5,905,228   5,426,389        9%
 Basic per share                           0.11        0.11
 Diluted per share                         0.11        0.10
Capital expenditures                 14,229,106   6,476,544      120%
Working capital                       2,537,369   4,748,933     (47)%
Common shares outstanding
 Basic (weighted average)            52,070,638  51,449,596
 Diluted (weighted average)          53,779,217  51,944,926
--------------------------------------------------------------------
Reserves (MBoe)
--------------------------------------------------------------------
Total Proven (6 : 1)                      3,746       2,347       60%
Total Proven + Probable (6 : 1)           7,038       3,127      125%
--------------------------------------------------------------------
Production
--------------------------------------------------------------------
Oil and liquids (Bpd)                     2,434       1,583       54%
 Average price (US$ per barrel)           28.06       25.07       12%
Gas (Mcfpd)                               1,200         892       35%
 Average price (US$ per Mcf)               5.24        2.77       89%
Total (Boed) (6:1)                        2,634       1,732       52%
Operating expense (US$ per Boe)            3.85        2.92       32%
---------------------------------------------------------------------

/T/



EXPLORATION UPDATE 

Block 32, Republic of Yemen (13.81087% working interest) 

During the fourth quarter, a significant western extension of the 
Tasour field, discovered on Tasour #10, was further appraised 
with Tasour #11. The Tasour #11 well found oil in the main Qishn 
S-1A producing zone. The well was placed on production in 
November 2003 at a rate of approximately 6,000 barrels of oil per 
day. The western field extension combined with continued field 
performance increased proven plus probable reserves 32% and 
replaced 169% of 2003 production. The mapping of the 2-D seismic 
data now indicates the Tasour field could extend both to the west 
and to the east of the current wells. Therefore the Block 32 
partners are currently conducting a 100 square kilometer 3-D 
seismic survey over the greater Tasour area to refine future 
drilling locations. It is anticipated that the 3-D seismic will 
be completed and interpreted by June 2004. Further 
development/appraisal drilling of three to four wells in the 
western and potential eastern extension is planned for 2004. One 
infill well is planned for the central Tasour pool in April 2004 
(Tasour #12). 

Block S-1, Republic of Yemen (25% working interest) 

On October 14, 2003 the Company announced the Declaration of 
Commerciality and on October 15, 2003 the Ministry of Oil and 
Minerals approved the Block S-1 Development Plan and Development 
Area of approximately 1,152 square kilometers (285,000 acres). 
The large Development Area encompasses the An Naeem, Harmel and 
An Nagyah discoveries as well as numerous additional prospects 
for future exploration drilling. The Development/Production 
period will extend until 2023 with an optional five year 
extension also possible. 

The initial field development is focused on the An Nagyah light 
oil pool which was discovered and appraised during the 2002/2003 
drilling program. The plan provides for early production 
commencing in the first quarter of 2004 by trucking up to 2,500 
Bopd (625 Bopd to TransGlobe) from An Nagyah wells. The equipment 
required to begin trucking is now in place and the final stages 
of construction are underway. It is anticipated that trucking the 
first oil from An Nagyah #4 will commence in late March 2004. 

The construction of a central production facility ("CPF") at An 
Nagyah and a 28 kilometer (18 mile) pipeline to the Jannah Hunt 
Halewah export pipeline is planned during 2004, with an 
anticipated completion by early 2005. The pipeline design was 
increased from an 8 inch to a 10 inch pipeline to allow future 
discoveries to be placed on stream quickly (ultimate capacity of 
80,000 Bopd). The CPF is designed for an initial capacity of 
10,000 Bopd (2,500 Bopd to TransGlobe), with expansion 
capabilities. The initial front end engineering and design 
("FEED") study is complete and bids for major equipment are 
pending Yemen government approval. The bid for the detailed 
engineering was issued on March 4, 2004. 

It is expected that the An Nagyah field development will consist 
of 13 wells to delineate and produce the field. The first 
development/appraisal well (An Nagyah #5) commenced drilling on 
the western area of the An Nagyah field on March 8, 2004. 
Following An Nagyah #5 the rig is expected to drill another 
development well (An Nagyah #6) and an appraisal well at Harmel 
#2. Additional development wells in the An Nagyah pool are 
expected to be drilled in the third and fourth quarters of 2004 
and into 2005. 

Canada 

The year 2003 represented an increased focus on Canadian natural 
gas for TransGlobe. The Company drilled nine wells resulting in 
six gas wells, two oil wells and one potential gas well during 
the second half of 2003. The Canadian proven plus probable 
reserves were increased 88%, replacing 1,292% of 2003 production. 
The Company had anticipated an exit rate of 1,000 Boepd could 
have been achieved if all the new wells were placed on production 
by year end. Unfortunately, several projects have been delayed 
due to surface landowner and government permitting approvals. 
Production averaged 436 Boepd in December, 2003 and is expected 
to average 450 to 550 Boepd during the first quarter of 2004. An 
additional 470 Boepd of production at Nevis, Twining and 
Morningside is awaiting installation of pipelines and facilities. 
It is anticipated that these projects could be on production 
during the first half of 2004. 

In addition to the ongoing well tie ins, the Company plans to 
drill fourteen wells during 2004. All the prospects are primarily 
focused towards natural gas and are located in Central Alberta. 

MANAGEMENT'S DISCUSSION AND ANALYSIS 

Management's discussion and analysis ("MD&A") should be read in 
conjunction with the unaudited interim financial statements for 
the three months and twelve months ended December 31, 2003 and 
2002 and the audited financial statements and MD&A for the year 
ended December 31, 2002 included in the Company's annual report. 
All dollar values are expressed in United States dollars unless 
otherwise stated. 

Operating Results 

Production 

In Yemen Block 32, production from the Tasour field averaged 
17,689 Bopd (2,443 Bopd to TransGlobe) during the fourth quarter 
of 2003 compared to 14,083 Bopd (1,945 Bopd to TransGlobe) during 
the fourth quarter of 2002. Production increases are attributed 
to the new wells (Tasour #8, #9, #10 and #11) drilled to develop 
the southern and western extension of the Tasour field. The 
Tasour field has produced at peak rates in excess of 23,000 Bopd 
(3,177 Bopd to TransGlobe) during November with the addition of 
Tasour #11. It is expected that production from the Tasour field 
will average approximately 16,000 Bopd (2,210 Bopd to TransGlobe) 
for the year 2004, which is consistent with the predicted natural 
declines for the field. Production from Canada averaged 376 Boepd 
(76% natural gas) during the fourth quarter of 2003 compared to 
167 Boepd during the fourth quarter of 2002. 

Financial 

Net income for the twelve months 2003 increased 9% to $5,905,228 
and cash flow from operations decreased 4% to $9,347,001. Cash 
flow from operations was affected by a significant decrease in 
after royalty revenues in Yemen as a result of recovery of all 
historical cost pools on Block 32 in Q2, 2003. In 2002 TransGlobe 
received a cost oil adjustment of $1,496,000 and in 2003 
TransGlobe incurred a final cost oil adjustment of $1,245,000. 
This cash flow from operations decrease is offset by a 52% 
increase in production on a consolidated basis and a 17% increase 
in commodity prices on a Boe basis. Net income is also increased 
by a future income tax recovery of $2,448,088 which is a result 
of recognizing future tax benefit in Canada. 

Cash flow from operations is a non-GAAP measure that represents 
cash generated from operating activities before changes in 
non-cash working capital. Management considers cash flow from 
operations a key measure as it demonstrates the Company's ability 
to generate the cash flow necessary to fund future growth through 
capital investment. Cash flow from operations may not be 
comparable to similar measures used by other companies. 

Revenue net of royalties decreased 18% to $4,488,447 for the 
fourth quarter 2003 compared to $5,459,364 for the same period in 
2002. In the fourth quarter 2003, revenues net of royalties were 
$3,655,578 and $832,869 from Yemen and Canada respectively. In 
the same period 2002, revenues net of royalties amounted to 
$5,150,055 in Yemen and $309,309 in Canada. 

In Yemen, revenues net of royalties in the fourth quarter 2003 
decreased 29% compared to the fourth quarter 2002 although 
production increased 26% and oil prices increased 8%. The 
decrease in revenue net of royalties is a result of two events. 
The first event was a cost oil adjustment in the fourth quarter 
of 2002 for recovery of TransGlobe's costs during the farm-in 
period, which increased revenues net of royalties by $1,496,241. 
The second event is the recovery of all historical cost pools in 
the first and second quarters 2003, thereby reducing cost oil and 
increasing the production sharing oil which results in increased 
royalties to the Yemen government. The payout of historical costs 
results in the Block 32 Joint Venture Group's share of the oil 
produced reducing from approximately 71% after royalty and taxes 
during maximum cost oil recovery to a range of approximately 40% 
to 50% after royalty and taxes depending on commodity prices, 
operating costs and future capital expenditures. During the 
fourth quarter 2003 the Joint Venture Group's share of production 
after royalty and taxes was approximately 44% compared to 
approximately 71% in the comparable period in 2002. 

The average oil price for the Company's production in Yemen for 
the fourth quarter 2003 was $28.97 per barrel compared to $26.65 
in the fourth quarter 2002. Oil production from the Tasour field 
in Yemen is purchased by Nexen Marketing International Ltd. and 
the oil price is based on an average dated Brent price less a 
quality/transportation differential between the dated Brent blend 
and the Yemen Masila crude oil blend. 

In Canada, revenue net of royalties in the fourth quarter 
increased 169% due to a 22% increase in gas prices, a 9% increase 
in oil and liquids prices and a 125% increase in production 
compared to the fourth quarter 2002. Gas prices averaged $4.82 
per Mcf in Canada for the fourth quarter in 2003 and $3.96 per 
Mcf for the same period in 2002. Oil and liquids prices in Canada 
averaged $24.96 per barrel for the fourth quarter of 2003 and 
$22.81 per barrel for the same period 2002. 

Operating costs of $1,121,032 averaged $4.32 per Boe in the 
fourth quarter 2003 compared to $463,631 ($2.39 per Boe) in the 
fourth quarter 2002. Operating costs in the fourth quarter 2003 
in Yemen averaged $3.87 per barrel and in Canada averaged $7.29 
per Boe. Operating costs for the twelve months in 2003 increased 
32% per Boe compared to 2002 as a result of increased water 
handling, increased workover expenses, increased transportation 
fees on Yemen Block 32 and the strengthening of the Canadian 
dollar. In Yemen, the pipeline transportation tariff paid to the 
Ministry of Oil and Minerals increased $0.40 per barrel in the 
second quarter 2003. This increase was scheduled upon recovery of 
historical cost pools, which occurred in the second quarter 2003. 
Also, Canadian operating costs have increased $0.78 per Boe due 
to the strengthening of the Canadian dollar against the United 
States dollar both in the fourth quarter and the year. 

General and administrative expense was $423,059 ($1.63 per Boe) 
for the fourth quarter 2003 as compared to $274,320 ($1.41 per 
Boe) in the comparable period 2002. The increase on a Boe basis 
during the quarter is mainly a result of the strengthening of the 
Canadian dollar against the United States dollar as the majority 
of our general and administrative expenses are incurred in 
Canadian dollars ($0.16 per Boe increase). During the twelve 
months 2003, general and administrative expenses increased to 
$1,206,337 ($1.25 per Boe) from $820,691 ($1.30 per Boe) in the 
comparable period in 2002. The strengthening of the Canadian 
dollar had a $0.12 per Boe effect on an annualized basis. 

Depletion and depreciation was $1,292,000 for the fourth quarter 
2003 compared to $1,183,000 in the same period 2002. In Yemen, 
unproven properties in the amount of $11,683,986 were excluded 
from costs subject to depletion and depreciation. This amount 
represents a portion of the costs incurred on Block S-1. These 
costs will be included in the depletable base as Block S-1 is 
developed or as impairment is determined. Depletion and 
depreciation increased to $6,253,000 for the twelve months 2003 
compared to $4,277,000 for the twelve months 2002, reflecting the 
increase in the depletable costs in the Republic of Yemen and 
Canada. 

Current income tax expense in the amount of $959,105 in the 
fourth quarter 2003 represents income taxes incurred and paid 
under the laws of the Republic of Yemen pursuant to the 
Production Sharing Agreement on Block 32 compared to $331,134 in 
the same period 2002. The current income tax increase is due to 
increased production volumes of which the Yemen government's 
share has increased due to recovery of all historical costs. The 
government's share of production sharing oil includes royalties 
and income taxes. The future income tax recovery of $2,448,085 is 
a result of recognizing a portion of the future tax benefits in 
Canada. The recording of these future tax benefits in Canada is a 
direct result of the successful drilling program carried out in 
2003 in Canada. 


/T/

                            2003                       2002
               ------------------------------------------------------
                                 Proved +                    Proved +
                     Proved      Probable        Proved      Probable
---------------------------------------------------------------------
---------------------------------------------------------------------
Total capital
 expenditure   $ 14,229,107  $ 14,229,107  $  6,476,544  $  6,476,544
Net change from
 previous year's
 future capital   2,158,637    11,303,354       634,524       465,967
---------------------------------------------------------------------
               $ 16,387,744  $ 25,532,461  $  7,111,068  $  6,942,511
---------------------------------------------------------------------
Reserve
 additions and
 revisions
 (MBoe)             2,360.7       4,872.5       1,209.7       1,390.2
Average cost
 per Boe       $       6.94  $       5.24  $       5.88    $     4.99
Three year
 average cost
 per Boe       $       6.40  $       5.47  $       6.75  $       6.36
---------------------------------------------------------------------
---------------------------------------------------------------------

/T/

The finding and development costs shown above have been 
calculated in accordance with Canadian National Instrument 
51-101, Standards of Disclosure for Oil and Gas Activities 
introduced in 2003 and the 2002 numbers have been restated to 
reflect the new Standards. 

The aggregate of the exploration and development costs incurred 
in the most recent financial year and the change during that year 
in estimated future development costs generally will not reflect 
total finding and development costs related to reserves additions 
for that year. 

Boe's may be misleading, particularly if used in isolation. A Boe 
conversion ratio of 6 Mcf : 1 Bbl is based on an energy 
equivalency conversion method primarily applicable at the burner 
tip and does not represent a value equivalency at the wellhead. 

Liquidity and Capital Resources 

Funding for the Company's capital expenditures in the fourth 
quarter 2003 was provided by cash flow from operations, working 
capital and issuance of share capital. 

At December 31, 2003, the Company had working capital of 
$2,537,369, no debt, a revolving credit facility of Cdn$2,500,000 
and an acquisition credit facility of Cdn$2,000,000 (both 
facilities were undrawn at year end). 

In December 2003, the Company issued 1,363,637 flow through 
common shares in a private placement at Cdn$2.20 per share for 
net proceeds of US$2,053,005. Insiders of the Company subscribed 
for 65,000 shares. The terms of the flow through shares provide 
that the Company renounce Canadian tax deductions in the amount 
of Cdn$3,000,001 to the subscribers with the entire amount to be 
expended by the Company by December 31, 2004. 

The Company expects to fund the 2004 capital expenditure program 
(budgeted at $20,000,000) through the use of working capital, 
cash flow from operations, debt and equity financing as required. 


Commitments and Contingencies 

In February, 2004 the Company entered into a fixed price natural 
gas sales contract for 1,500 GJ/day in Canada (approximately 
1,500 Mcfpd) at a price of Cdn$5.795/GJ for the period April 1, 
2004 to November 1, 2004. 




/T/

Consolidated Statements of Income and Deficit
(Expressed in U.S. Dollars)

                       Three Months Ended        Twelve Months Ended
                                  Dec. 31                    Dec. 31
                       2003          2002         2003          2002
--------------------------------------------------------------------

REVENUE
 Oil and gas
  sales, net
  of royalties $  4,488,447  $  5,459,364  $17,161,710  $ 13,254,105
 Other income       364,139           182      374,239        42,108
--------------------------------------------------------------------
                  4,852,586     5,459,546   17,535,949    13,296,213
--------------------------------------------------------------------

EXPENSES
 Operating        1,121,032       463,631    3,706,096     1,843,273
 General and
  administrative    423,059       274,320    1,206,337       820,691
 Foreign
  exchange
  (gain) loss        90,724         8,779      157,133        (6,988)
 Interest             1,034           891        1,173        16,154
 Depletion and
  depreciation    1,292,000     1,183,000    6,253,000     4,277,000
--------------------------------------------------------------------
                  2,927,849     1,930,621   11,323,739     6,950,130
--------------------------------------------------------------------

Income before
 income taxes     1,924,737     3,528,925    6,212,210     6,346,083

Income taxes
 - future        (2,448,085)            -   (2,448,085)      (67,168)
 - current          959,105       331,134    2,755,067       986,862
--------------------------------------------------------------------
                 (1,488,980)      331,134      306,982       919,694
--------------------------------------------------------------------
NET INCOME        3,413,717     3,197,791    5,905,228     5,426,389

Deficit,
 beginning
 of period       (9,806,798)  (15,496,100) (12,298,309)  (17,724,698)
--------------------------------------------------------------------

Deficit, end
 of period     $ (6,393,081) $(12,298,309) $(6,393,081) $(12,298,309)
--------------------------------------------------------------------
--------------------------------------------------------------------

Net income
 per share
 Basic         $       0.06  $       0.07  $      0.11  $       0.11
 Diluted       $       0.06  $       0.06  $      0.11  $       0.10
--------------------------------------------------------------------
--------------------------------------------------------------------



Consolidated Balance Sheets
(Expressed in U.S. Dollars)
                                            December        December
                                            31, 2003        31, 2002
--------------------------------------------------------------------
--------------------------------------------------------------------

ASSETS
Current
 Cash and cash equivalents              $  4,451,751    $  2,595,170
 Accounts receivable                       2,383,459       2,984,000
 Prepaid expenses                            161,011          88,837
--------------------------------------------------------------------
                                           6,996,221       5,668,007
--------------------------------------------------------------------
Property and equipment                                              
 Canada                                    8,083,428       3,651,305
 Republic of Yemen                        18,562,857      15,066,835
--------------------------------------------------------------------
                                          26,646,285      18,718,140
--------------------------------------------------------------------
Future income tax asset                    1,572,310               -
--------------------------------------------------------------------
                                        $ 35,214,816    $ 24,386,147
--------------------------------------------------------------------
--------------------------------------------------------------------

LIABILITIES
Current
 Accounts payable and accrued
  liabilities                           $  4,458,852    $    919,074

Provision for site restoration
 and abandonment                             153,209         122,209

--------------------------------------------------------------------
                                           4,612,061       1,041,283
--------------------------------------------------------------------
                                                                    
SHAREHOLDERS' EQUITY
Share capital                             36,995,836      35,643,173
Deficit                                   (6,393,081)    (12,298,309)
--------------------------------------------------------------------
                                          30,602,755      23,344,864
--------------------------------------------------------------------

                                        $ 35,214,816    $ 24,386,147
--------------------------------------------------------------------
--------------------------------------------------------------------


Consolidated Statements of Cash Flows
(Expressed in U.S. Dollars)

                       Three Months Ended        Twelve Months Ended
                                  Dec. 31                    Dec. 31
                       2003          2002         2003          2002
--------------------------------------------------------------------
--------------------------------------------------------------------

CASH FLOWS
 RELATED TO THE
 FOLLOWING
 ACTIVITIES:

OPERATING
 Net income    $  3,413,717  $  3,197,791  $ 5,905,228  $  5,426,389
 Adjustments for:
  Depletion and
   depreciation   1,292,000     1,183,000    6,253,000     4,277,000
  Gain on sale
   of property
   and equipment   (363,142)            -     (363,142)            -
  Performance
   bonus expense
   paid in shares         -             1            -        73,631
  Future
   income taxes  (2,448,085)            -   (2,448,085)      (67,168)
--------------------------------------------------------------------
 Cash flow from
  operations      1,894,490     4,380,792    9,347,001     9,709,852

 Changes in
  non-cash
  working
  capital           534,987    (1,563,734)   3,117,398    (2,478,700)
--------------------------------------------------------------------
                  2,429,477     2,817,058   12,464,399     7,231,152
--------------------------------------------------------------------

FINANCING
 Issue of share
  capital         2,073,905             -    2,269,705          (308)
 Repurchase of
  share capital           -             -      (41,267)            -
--------------------------------------------------------------------
                  2,073,905             -    2,228,438          (308)
--------------------------------------------------------------------

INVESTING
 Purchase of
  property and
  equipment
  Yemen          (1,708,754)   (2,207,061)  (9,012,022)   (5,435,398)
  Canada         (2,301,773)     (363,064)  (5,217,084)   (1,041,146)
 Proceeds on
  disposal of
  property and
  equipment         442,103             -      442,103       133,587
 Changes in
  non-cash
  working
  capital          (415,328)      330,015      950,747       532,437
--------------------------------------------------------------------
                 (3,983,752)   (2,240,110) (12,836,256)   (5,810,520)
--------------------------------------------------------------------

NET INCREASE IN
 CASH AND CASH
 EQUIVALENTS        519,630       576,948    1,856,581     1,420,324

CASH AND CASH
 EQUIVALENTS,
 BEGINNING OF
 PERIOD           3,932,121     2,018,222    2,595,170     1,174,846
--------------------------------------------------------------------

CASH AND CASH
 EQUIVALENTS,
 END OF
 PERIOD        $  4,451,751  $  2,595,170  $ 4,451,751  $  2,595,170
--------------------------------------------------------------------
--------------------------------------------------------------------


Segmented information

                       Three Months Ended        Twelve Months Ended
                                   Dec.31                    Dec. 31
                       2003          2002         2003          2002
--------------------------------------------------------------------
--------------------------------------------------------------------

Oil and gas
 sales, net
 of royalties
 Republic of
  Yemen        $  3,655,578  $  5,150,055  $14,624,888  $ 12,238,711
 Canada             832,869       309,309    2,536,822     1,015,394
--------------------------------------------------------------------
                  4,488,447     5,459,364   17,161,710    13,254,105
--------------------------------------------------------------------
Operating
 Republic of
  Yemen             868,836       368,839    3,011,620     1,394,379
 Canada             252,196        94,792      694,476       448,894
--------------------------------------------------------------------
                  1,121,032       463,631    3,706,096     1,843,273
--------------------------------------------------------------------
Depletion and
 depreciation
 Republic of
  Yemen           1,025,000     1,096,000    5,516,000     3,960,000
 Canada             267,000        87,000      737,000       317,000
--------------------------------------------------------------------
                  1,292,000     1,183,000    6,253,000     4,277,000
--------------------------------------------------------------------
                  2,075,415     3,812,733    7,202,614     7,133,832
Other income,
 includes a
 gain on sale
 of property and
 equipment in the
 United States
 of $363,142        364,139           182      374,239        42,108
General and
 administrative     423,059       274,320    1,206,337       820,691
Foreign
 exchange
 (gain) loss         90,724         8,779      157,133        (6,988)
Interest              1,034           891        1,173        16,154
Income taxes     (1,488,980)      331,134      306,982       919,694
--------------------------------------------------------------------
Net income     $  3,413,717  $  3,197,791  $ 5,905,228  $  5,426,389
--------------------------------------------------------------------
--------------------------------------------------------------------

/T/



The above 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/

s/s/ Ross G. Clarkson

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



TransGlobe Energy Corporation 
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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