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Release

TransGlobe Energy Corporation Announces Year End Reserve Increases in All Operational Areas

CALGARY, ALBERTA--TransGlobe Energy Corporation ("TransGlobe" or 
the "Company") is pleased to announce reserves and production for 
2003 as well as operational plans for 2004 in the Republic of 
Yemen and in Canada. 

Reserves: 

Total Proven reserves for the Company increased 60% from 2,347 
MBoe ("MBoe" thousand barrels of oil equivalent at 6 : 1) at 
December 31, 2002; to 3,746 MBoe at December 31, 2003.  The 
increase of 1,399 MBoe replaced approximately 245% of 2003 
production. The major increases in proven reserves were 
attributable to new drilling in Canada and to the western 
extension of the Tasour field in Block 32, Yemen.  The Proven 
Reserves assigned to the An Nagyah field on Block S-1 are limited 
to the early production trucking project at this time.  
Additional Proven reserves will be assigned when the full field 
development is completed. 

Total Proven plus Probable reserves for the Company increased 
125% from 3,127 MBoe at December 31, 2002 to 7,037 MBoe at 
December 31, 2003 replacing approximately 507% of 2003 
production.  The major increase in Probable reserves is 
associated with the inclusion of the eastern portion of the An 
Nagyah discovery on Block S-1.  The western portion of An Nagyah 
will be excluded from the Proven plus Probable category until 
further drilling is carried out.  It is expected that the 
majority of An Nagyah will be included in the Company reserves by 
year end 2004 as the field is developed and placed on production. 
 In addition to the Proven plus Probable Reserves assigned to An 
Nagyah at year end 2003, the Company's independent engineering 
reserve evaluator has recognized an additional 3,349 MBbls of 
Prospective Resources (P-50) in the undrilled western portion of 
the An Nagyah discovery. With the Declaration of Commerciality on 
Block S-1 in October 2003 this is the first time TransGlobe has 
included any reserves from Block S-1. 


/T/

                         Dec. 31, 2003  Dec. 31, 2002
Proven                         MBoe (a)       MBoe (a)   Increase (%)
--------------------------------------------------------------------
Canada                           1,483            772             92%
Yemen - Block 32                 2,035          1,575             29%
Yemen - Block S-1                  228              0            N/A
--------------------------------------------------------------------
Total Proven                     3,746          2,347             60%
--------------------------------------------------------------------

Proven plus Probable
Canada                           2,432          1,291             88%
Yemen - Block 32                 2,429          1,836             32%
Yemen - Block S-1                2,176              0            N/A
--------------------------------------------------------------------
Total Proven
 plus Probable                   7,037          3,127            125%
--------------------------------------------------------------------


Prospective (P-50)
 Resource, West An Nagyah        3,349              0            N/A
--------------------------------------------------------------------

(a) Working Interest before royalties.

/T/

The 2003 reserves cannot be compared directly to the 2002 numbers 
due to the adoption by the Canadian Securities Commissions of a 
more stringent reserve policy in 2003.  The 2003 year end 
reserves were prepared by the Company's independent reserve 
evaluators in accordance with the new Canadian National 
Instrument (NI) 51-101 policy. The 2002 year end reserves were 
prepared in accordance with National Policy 2-B, therefore a 
direct comparison year over year is not completely valid.  The 
Company's 2003 proven reserves were not materially affected by 
the more stringent proven definitions in (NI) 51-101.  The most 
significant change is to Probable reserves.  In the new (NI) 
51-101 policy is the adoption of a P-50 level of certainty ("at 
least a 50% probability that the quantities actually recovered 
will equal or exceed the sum of the estimated proved plus 
probable reserves") for Proven plus Probable reserves. Under the 
previous National Policy 2-B, Probable reserves were un-risked. 

It is expected that the Company's International reserves reported 
under policy (NI) 51-101, will be generally be more conservative 
than those booked by joint venture partners reporting under SEC 
standards, especially newer reserves with little or no production 
history. 

Production: 

In Yemen, oil production increased 53% from an average of 1,546 
Bopd in 2002 to 2,372 Bopd in 2003. Production averaged 2,325 
Bopd in December 2003.  The Company expects to average 2,200 Bopd 
from Tasour in 2004.  This estimate does not assume any drilling 
success on the possible eastern extension of the Tasour field or 
exploration drilling success.  On Block S-1 it is expected that 
early production via trucking could commence in the second 
quarter of 2004.  When the trucking operation is fully 
operational the Joint Venture Group plans to truck up to 2,500 
Bopd (625 Bopd to TransGlobe) from the An Nagyah discovery until 
the pipeline and facilities are fully operational in early 2005.  
The facilities are being designed to handle 10,000 Bopd (2,500 
Bopd to TransGlobe). 

In Canada, production increased 41% from an average of 186 Boepd 
in 2002 to 262 Boepd in 2003, averaging 436 Boepd in December 
2003.  The Company expects to average 1,000 Boepd (80% gas) from 
Canada in 2004. 

Operations Update: 

On Block 32 in Yemen, the acquisition of a 3-D seismic survey 
over the Tasour field started in January 2004.  The 3-D survey is 
expected to identify additional appraisal and development 
drilling locations within the Tasour field and locations on the 
western and eastern extensions of Tasour.  Additional drilling on 
Block 32 is expected to commence approximately March 15.  The 
Block 32 Joint Venture Group plans to drill four to five wells 
during 2004. 

On Block S-1 in Yemen, preparations are underway to start 
drilling An Nagyah #5 in early March to appraise the western 
portion of the An Nagyah discovery.  An Nagyah #6 and Harmel #2 
(or An Nagyah #7) are planned to follow immediately after An 
Nagyah #5.  Three to four additional wells on the An Nagyah 
structure are planned for later in the year to coincide with the 
startup of the production facilities and pipeline in early 2005. 

In Canada, the Company plans to participate in 3-4 wells prior to 
spring breakup with an additional 8 to 10 wells planned for the 
third and fourth quarter.  A portion of the planned winter 
drilling may be deferred until after spring breakup due to the 
reduced drilling equipment availability and higher costs during 
the winter drilling season. 

It is anticipated that the 2003 year end financial results will 
be released mid March 2004. 

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. 



TRANSGLOBE ENERGY CORPORATION 

s/s/ Ross Clarkson 

Ross G. Clarkson, 

President & C.E.O. 

-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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