Stock Quote:
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TGA  $ 1.32  $ 0.04
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Release

TransGlobe Energy Corporation Announces 2003 Third Quarter Results

CALGARY, ALBERTA--TransGlobe Energy Corporation ("TransGlobe" or 
the "Company") (TSX symbol "TGL"; AMEX symbol "TGA") is pleased 
to announce its financial and operating results for the nine 
month period ended September 30, 2003. All dollar values are 
expressed in United States dollars unless otherwise stated. 
Conversion of natural gas to oil is made on the basis of 6,000 
cubic feet of natural gas being equivalent to one barrel of oil. 


/T/

HIGHLIGHTS

- American Stock Exchange ("AMEX") listing approved - new symbol is
  "TGA"

- Record production of 2,698 Boepd in Q3 2003

- Successful western extension of Tasour field (Tasour #10 and #11),
  Block 32, Republic of Yemen

- Tasour #10 producing 1,200 Bopd (July 2003) and Tasour #11
  producing 6,000 Bopd (October 2003), Block 32, Republic of Yemen

- Declaration of Commerciality, Approval of Development Plan and Area
  (October 2003), Block S-1 Republic of Yemen.

- 100% success on Canadian exploration program (five gas wells, one
  oil well),

FINANCIAL AND OPERATING UPDATE


                                    Three Months Ended September 30
-------------------------------------------------------------------
Financial                             2003          2002     Change
-------------------------------------------------------------------
-------------------------------------------------------------------
Oil and gas sales, net of
 royalties                       4,158,664     2,964,411        40%
Operating expense                  828,339       503,202        65%
General and administrative
 expense                           168,271       141,586        19%
Depletion and depreciation       1,902,000     1,138,000        67%
Income taxes                       928,794       182,034       410%
Cash flow from operations        2,192,540     2,111,302         4%
 Basic and diluted per share          0.04          0.04
Net income                         290,540     1,040,470       (72)%
 Basic and diluted per share          0.01          0.02
Capital expenditures             3,445,093     1,739,731        98%
Working capital
Common shares outstanding
 Basic (weighted average)
 Diluted (weighted average)

Production
-------------------------------------------------------------------
-------------------------------------------------------------------
Oil and liquids (Bpd)                2,514         1,460        72%
 Average price
  ($ per barrel)                     27.97         27.26         3%
Gas (Mcfpd)                          1,105           816        35%
 Average price ($ per Mcf)            5.24          2.27       131%
Total (Boed) (6 : 1)                 2,698         1,596        69%
Operating expense
 ($ per Boe)                          3.34          3.43        (3)%


                                     Nine Months Ended September 30
-------------------------------------------------------------------
Financial                             2003          2002     Change
-------------------------------------------------------------------
-------------------------------------------------------------------
Oil and gas sales, net
 of royalties                   12,673,263     7,794,741        63%
Operating expense                2,585,064     1,379,642        87%
General and administrative
 expense                           783,278       546,371        43%
Depletion and depreciation       4,961,000     3,094,000        60%
Income taxes                     1,795,962       588,560       205%
Cash flow from operations        7,452,511     5,329,060        40%
 Basic and diluted per share          0.14          0.10
Net income                       2,491,511     2,228,598        12%
 Basic and diluted per share          0.05          0.04
Capital expenditures            10,218,579     3,929,637       160%
Working capital                  2,137,398     2,938,267       (27)%
Common shares outstanding
 Basic (weighted average)       51,948,638    51,434,361
 Diluted (weighted average)     53,091,318    51,926,087

Production
-------------------------------------------------------------------
-------------------------------------------------------------------
Oil and liquids (Bpd)                2,400         1,450        66%
 Average price
  ($ per barrel)                     27.79         24.38        14%
Gas (Mcfpd)                          1,030           925        11%
 Average price ($ per Mcf)            5.47          2.42       126%
Total (Boed) (6 : 1)                 2,572         1,604        60%
Operating expense
 ($ per Boe)                          3.68          3.15        17%

/T/

EXPLORATION UPDATE 

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

During the third quarter, a significant western extension of the 
Tasour field was tested with Tasour #10 and further appraised 
with Tasour #11. The Tasour #10 well found oil in the main Qishn 
S-1A producing zone. The well was placed on production in July 
2003 at a rate of approximately 1,200 barrels of oil and 3,750 
barrels of water per day. This discovery has extended the mapped 
Tasour field length from 3.3 kilometers to approximately 6.8 
kilometers. The Tasour #11 well was completed as an oil well and 
placed on production in late October 2003 at an initial rate of 
approximately 6,000 barrels of oil and 3,000 barrels of water per 
day. 

Further development drilling in the western extension is planned 
for 2004. The re-mapping of the Tasour field now shows a possible 
eastern extension which will be tested during 2004. 

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

On October 14, 2003 the Company announced the Declaration of 
Commerciality and the request for Conversion to a Development 
Area and a Development Plan for Block S-1. 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 Development Area 
encompasses all of the An Naeem, Harmel and An Nagyah discoveries 
as well as several additional prospects that could be drilled in 
the future. 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 existing wells. Concurrently, 
construction of a central production facility at An Nagyah and a 
28 kilometer (18 mile) 8 inch pipeline to the Jannah Hunt Halewah 
export pipeline is planned during 2004, with an anticipated 
completion by early 2005. The pipeline capacity would be in 
excess of 30,000 Bopd to allow future discoveries to be placed on 
stream quickly. The central production facility will be designed 
with an initial capacity of 10,000 Bopd (2,500 Bopd to 
TransGlobe). It is expected that the An Nagyah field development 
will consist of 13 wells to delineate and produce the field. 
Development/appraisal drilling is expected to commence on the An 
Nagyah field in the first half of 2004. The total number of wells 
will be adjusted as additional reservoir information is obtained 
from new drilling. 

In addition to the An Nagyah field development, the Block S-1 
Joint Venture Group plans to drill an appraisal well on the 
Harmel medium gravity oil discovery and to evaluate the An Naeem 
gas condensate discovery for a potential condensate gas cycling 
project. The Harmel appraisal well is expected to be drilled in 
2004. It is anticipated that the Harmel pilot production project 
will commence after the An Nagyah field has been developed. 

Canada 

To date, six wells have been drilled or re-completed resulting in 
five gas wells and one oil well. With the addition of the new 
wells, TransGlobe expects Canadian production will exit 2003 at 
1,000 Boepd, if the new wells can be placed on production by the 
end of the fourth quarter. This represents a 400% increase 
compared to 2002. Pipeline tie-in applications are in progress 
and several construction projects are underway, which are 
expected to continue through November/December 2003. 

The Company plans to drill up to six additional wells during the 
balance of the year. All the prospects are primarily focused 
towards natural gas. Successful wells could be on production 
quickly as the prospects are near existing infrastructure and can 
be accessed year round. 

To date in 2003, the Company has acquired mineral rights on 
10,000 net acres and farmed-in on an additional 5,600 (2,900 net) 
acres. The Company plans to acquire additional mineral rights and 
is negotiating several farm-in proposals. The majority of the 
land is located in Central Alberta on three main prospects, of 
which two are new focus areas for the Company. The drilling of 
these mineral rights is anticipated to continue into next year 
with up to ten wells planned for 2004. 

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 nine months ended September 30, 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 
17,783 Bopd (2,456 Bopd to TransGlobe) during the third quarter 
of 2003 compared to 10,303 Bopd (1,423 Bopd to TransGlobe) during 
the third quarter of 2002. Production increases are attributed to 
the new wells (Tasour #7, #8, #9 and #10) 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 242 Boepd (76% natural gas) 
during the third quarter of 2003 compared to 173 Boepd during the 
third quarter of 2002. One new gas well at Nevis was placed on 
production part way through this quarter. It is expected that 
production in Canada will average approximately 1,000 Boepd for 
the year 2004. 

Financial 

Net income and cash flow from operations for the nine months 2003 
increased 12% to $2,491,511 and 40% to $7,452,511 respectively, 
mainly as a result of increased production (up 60%) and increased 
commodity prices (up 21% per Boe). Net income for the third 
quarter 2003 was $290,540 ($0.01 per share) compared to a net 
income of $1,040,470 ($0.02 per share) in the third quarter 2002 
with cash flow from operations of $2,192,540 ($0.04 per share) 
compared to $2,111,302 ($0.04 per share) in the third quarter 
2002. With cash flow remaining fairly constant in the third 
quarter the decrease in net income is mainly attributed to the 
increase in depletion and depreciation expense. Depletion and 
depreciation expense is expected to decrease in the fourth 
quarter with the addition of new reserves anticipated in the year 
end evaluation. 

Cash flow from operations is a non-GAAP measure that represents 
cash generated from operating activities before changes in 
non-cash working capital. Cash flow from operations may not be 
comparable to similar measures used by other companies. 

Revenue net of royalties increased 40% to $4,158,664 for the 
third quarter 2003 compared to $2,964,411 for the same period in 
2002. In the third quarter 2003, revenues net of royalties were 
$3,559,901 and $598,763 from Yemen and Canada respectively. In 
the same period 2002, revenues net of royalties amounted to 
$2,750,801 in Yemen and $213,610 in Canada. 

In Yemen, revenues net of royalties in the third quarter 2003 
increased 29% compared to the third quarter 2002 due to a 73% 
increase in production and a 2% increase in oil prices. Revenues 
net of royalties were reduced by an increase in royalty costs. 
The Block 32 Joint Venture Group recovered all of its historical 
cost pools in the second quarter 2003, thereby reducing cost oil 
and increasing the production sharing oil which is shared with 
the Yemen government. The average oil price for the Company's 
production in Yemen for the third quarter 2003 was $28.05 per 
barrel compared to $27.40 in the third quarter 2002. Oil 
production from the Tasour field in Yemen is marketed 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. 

During the second quarter of 2003 the Company shifted from 
maximum cost oil recovery to production sharing oil. The Block 32 
Joint Venture Group share of the oil produced has reduced 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 third quarter 2003 the Joint 
Venture Group's share of production after royalty and taxes was 
approximately 42% compared to approximately 71% in the comparable 
period in 2002. 

In Canada, revenue net of royalties in the third quarter 
increased due to 131% increase in gas prices, a 12% increase in 
oil and liquids prices and a 29% increase in production compared 
to the third quarter 2002. Gas prices averaged $5.24 per Mcf in 
Canada for the third quarter in 2003 and $2.27 per Mcf for the 
same period in 2002. Oil and liquids prices in Canada averaged 
$24.73 per barrel for the third quarter of 2003 and $22.07 per 
barrel for the same period 2002. 

Operating costs of $828,339 averaged $3.34 per Boe in the third 
quarter 2003 compared to $503,202 ($3.43 per Boe) in the third 
quarter 2002. The overall increase is mainly a result of higher 
production volumes. 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. Operating costs in Yemen averaged $2.94 per barrel 
in the third quarter 2003 (Canada was $7.41 per Boe). Operating 
costs for the nine months in 2003 increased 17% per Boe compared 
to 2002 as a result of increased water handling, increased 
workover expenses and increased transportation fees on Yemen 
Block 32. 

General and administrative expense was $168,271 ($0.68 per Boe) 
for the three month period ended September 30, 2003 as compared 
to $141,586 ($0.96 per Boe) in the comparable period 2002. The 
reduction on a Boe basis is a result of increased production 
volumes during the quarter. During the nine months 2003, general 
and administrative expenses increased to $783,278 ($1.12 per Boe) 
from $546,371 ($1.25 per Boe) in the comparable period in 2002. 

Depletion and depreciation was $1,902,000 for the third quarter 
2003 compared to $1,138,000 in the same period 2002. The increase 
is attributable to the inclusion of additional costs in the 
depletable base in the Republic of Yemen and record production 
rates without any corresponding increase in the proven reserves 
attributable to field performance and these expenditures. It is 
anticipated that proven reserves will increase when the 
independent reserve evaluation is completed at year end. In 
Yemen, unproven properties in the amount of $11,041,263 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 $4,961,000 for the nine months 2003 
compared to $3,094,000 for the nine months 2002, reflecting the 
increase in the depletable costs in the Republic of Yemen. It is 
expected that the depletion and depreciation expense will 
decrease in the fourth quarter when the independent reserve 
evaluation is completed. 

Current income tax expense in the amount of $928,794 in the third 
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 $249,202 in the same period 
2002. The current income tax increase is due to increased 
revenues from Block 32 in the Republic of Yemen and increases in 
production sharing oil. The government's share of production 
sharing oil includes royalties and income taxes. 

Capital Expenditures 

Capital expenditures in the third quarter 2003 were $1,811,707 
and $1,633,386 in Yemen and Canada respectively compared to 
$1,451,018 and $288,713 in Yemen and Canada respectively in third 
quarter 2002. Expenditures in Yemen in the third quarter 2003 on 
Block 32 of $910,468 were primarily for drilling and completing 
Tasour #10 and partial drilling on Tasour #11 and the Tasour high 
pressure water injection. The two final payments totalling 
$360,000 for a 4% working interest in Block 32 (acquisition 
announced in 2000) were made when the Tasour field reached 
cumulative production of 11 million and 12 million barrels during 
the quarter. No further payments are required. Block S-1 
expenditures in Yemen of $901,239 were primarily for An Nagyah #4 
long term production test, early production facilities and 
contractual bonus payments. 

Canadian capital expenditures in the third quarter 2003 of 
$1,633,386 relate mainly to the drilling and completing of five 
successful wells (4 gas, 1 oil) and one re-completion (gas). In 
addition 1,900 net acres of new oil and gas lease rights were 
acquired in the quarter. 

Liquidity and Capital Resources 

Funding for the Company's capital expenditures in the third 
quarter 2003 was provided by cash flow from operations and 
working capital. 

At September 30, 2003, the Company had working capital of 
$2,137,398, no debt, a revolving credit facility of Cdn$2,500,000 
and an acquisition credit facility of Cdn$2,000,000. 

The Company expects to fund the balance of its 2003 capital 
expenditure program (fourth quarter budgeted at $4,300,000) 
through the use of working capital and cash flow from operations. 


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 

The Company has entered into a fixed price natural gas sales 
contract for 500 GJ/day (approximately 500 Mcfpd, or less than 
50% of gas production) at a price of Cdn$7.65/GJ for the period 
March 1, 2003 to November 1, 2003. 




/T/

Consolidated Statements of Operations

(Unaudited - Expressed in U.S. Dollars)

                        Three Months Ended         Nine Months Ended
                             Sept. 30                  Sept. 30
                         2003         2002         2003         2002
--------------------------------------------------------------------
--------------------------------------------------------------------

REVENUE
 Oil and gas
  sales, net of
  royalties      $  4,158,664  $ 2,964,411 $ 12,673,263 $  7,794,741
 Other income           4,231        6,081       10,100       41,926
--------------------------------------------------------------------
                    4,162,895    2,970,492   12,683,363    7,836,667
--------------------------------------------------------------------

EXPENSES
 Operating            828,339      503,202    2,585,064    1,379,642
 General and
  administrative      168,271      141,586      783,278      546,371
 Foreign exchange
  loss (gain)          44,948      (41,527)      66,409      (15,767)
 Interest                   3        6,727          139       15,263
 Depletion and
  depreciation      1,902,000    1,138,000    4,961,000    3,094,000
--------------------------------------------------------------------
                    2,943,561    1,747,988    8,395,890    5,019,509
--------------------------------------------------------------------

Net income before
 income taxes       1,219,334    1,222,504    4,287,473    2,817,158
Income taxes
 - future                   -      (67,168)           -      (67,168)
 - current            928,794      249,202    1,795,962      655,728
--------------------------------------------------------------------
NET INCOME            290,540    1,040,470    2,491,511    2,228,598

Deficit,
 beginning
 of period        (10,097,338) (16,536,570) (12,298,309) (17,724,698)
--------------------------------------------------------------------

DEFICIT, END
 OF PERIOD       $ (9,806,798)$(15,496,100) $(9,806,798)$(15,496,100)
--------------------------------------------------------------------
--------------------------------------------------------------------

Net income per
 basic and
 diluted
 share (Note 3)  $       0.01 $       0.02  $      0.05 $       0.04
--------------------------------------------------------------------
--------------------------------------------------------------------



Consolidated Balance Sheets

(Expressed in U.S. Dollars)

                             September 30, 2003   December 31, 2002
-------------------------------------------------------------------
-------------------------------------------------------------------
                                     (Unaudited)

ASSETS
Current
 Cash                             $   3,932,121       $   2,595,170
 Accounts receivable                  1,183,866           2,984,000
 Prepaid expenses                        99,486              88,837
-------------------------------------------------------------------
                                      5,215,473           5,668,007

Capital assets
 Republic of Yemen                   17,879,103          15,066,835
 Canada                               6,117,616           3,651,305
-------------------------------------------------------------------
                                     23,996,719          18,718,140
-------------------------------------------------------------------

                                  $  29,212,192       $  24,386,147
-------------------------------------------------------------------
-------------------------------------------------------------------

LIABILITIES

Current
 Accounts payable and
  accrued liabilities             $    3,078,075      $     919,074
Provision for site
 restoration and abandonment             143,209            122,209
-------------------------------------------------------------------
                                      3,221,284           1,041,283
-------------------------------------------------------------------

SHAREHOLDERS' EQUITY
Share capital (Note 2)               35,797,706          35,643,173
Deficit                              (9,806,798)        (12,298,309)
-------------------------------------------------------------------
                                     25,990,908          23,344,864
-------------------------------------------------------------------

                                  $  29,212,192       $  24,386,147
-------------------------------------------------------------------
-------------------------------------------------------------------




Consolidated Statements of Cash Flows

(Unaudited - Expressed in U.S. Dollars)

                            Three Months Ended    Nine Months Ended
                                 Sept. 30                Sept. 30
                             2003         2002       2003       2002
--------------------------------------------------------------------
--------------------------------------------------------------------

CASH FLOWS RELATED TO THE
 FOLLOWING ACTIVITIES:

OPERATING
 Net income            $  290,540   $1,040,470 $2,491,511 $2,228,598
 Items not
  involving cash:
  Performance bonus
   expense paid in
   shares                       -            -          -     73,630
  Depletion and
   depreciation         1,902,000    1,138,000  4,961,000  3,094,000
  Future income taxes           -      (67,168)         -    (67,168)
--------------------------------------------------------------------
 Cash flow from
  operations            2,192,540    2,111,302  7,452,511  5,329,060
 Changes in non-cash
  working capital         501,926     (471,810) 2,582,411   (914,966)
--------------------------------------------------------------------
                        2,694,466    1,639,492 10,034,922  4,414,094
--------------------------------------------------------------------
--------------------------------------------------------------------

FINANCING
 Issue of share capital         -            -    195,800       (308)
 Repurchase of share
  capital                       -            -    (41,267)         -
 Revolving demand loan
  (repayment)                   -   (1,071,758)         -          -
--------------------------------------------------------------------
                                -   (1,071,758)   154,533       (308)
--------------------------------------------------------------------

INVESTING
 Purchase of capital
  assets
  Republic of Yemen    (1,811,707)  (1,451,018)(7,303,268)(3,228,337)
  Canada               (1,633,386)    (288,713)(2,915,311)  (701,300)
 Proceeds on disposal
  of oil and gas
  properties                    -      156,805          -    156,805
 Changes in non-cash
  working capital       1,139,413      559,691  1,366,075    202,422
--------------------------------------------------------------------
                       (2,305,680)  (1,023,235)(8,852,504)(3,570,410)
--------------------------------------------------------------------

NET INCREASE
 (DECREASE) IN CASH       388,786     (455,501) 1,336,951    843,376

CASH, BEGINNING OF
 PERIOD                 3,543,335    2,473,723  2,595,170  1,174,846
--------------------------------------------------------------------

CASH, END OF PERIOD    $3,932,121   $2,018,222 $3,932,121 $2,018,222
--------------------------------------------------------------------
--------------------------------------------------------------------

Supplemental
 Disclosure:
 Cash interest paid    $        3   $    6,727 $      139 $   15,263
 Cash taxes paid       $  928,794   $  249,202 $1,795,962 $  655,728
--------------------------------------------------------------------
--------------------------------------------------------------------

/T/

Notes to the Consolidated Financial Statements 

1. Basis of presentation 

The interim consolidated financial statements of TransGlobe 
Energy Corporation ("TransGlobe" or the "Company") for the three 
month and nine month periods ended September 30, 2003 and 2002 
have been prepared by management in accordance with accounting 
principles generally accepted in Canada on the same basis as the 
audited consolidated financial statements as at and for the year 
ended December 31, 2002. These interim consolidated financial 
statements should be read in conjunction with the consolidated 
financial statements and the notes thereto in TransGlobe's annual 
report for the year ended December 31, 2002. 

2. Share capital 

The Company is authorized to issue 500,000,000 common shares with 
no par value. 


/T/

Continuity of common shares                         2003
--------------------------------------------------------------------
--------------------------------------------------------------------
                                             Shares           Amount
                                        ----------------------------
Balance, December 31, 2002               51,494,801     $ 35,643,173
Share options exercised                     890,000          195,800
Shares repurchased                         (100,000)         (41,267)
--------------------------------------------------------------------
Balance, September 30, 2003              52,284,801     $ 35,797,706
--------------------------------------------------------------------
--------------------------------------------------------------------

Continuity of stock options                                     2003
--------------------------------------------------------------------
--------------------------------------------------------------------
Balance, December 31, 2002                                 3,624,500
Granted                                                      120,000
Exercised                                                   (890,000)
Expired                                                            -
--------------------------------------------------------------------
Balance, September 30, 2003                                2,854,500
--------------------------------------------------------------------
--------------------------------------------------------------------

/T/

The Company accounts for its stock-based compensation plans using 
the intrinsic-value of the options granted whereby no costs have 
been recognized in the financial statements for stock options 
granted to employees and directors at market values. Effective 
January 1, 2002 under Canadian generally accepted accounting 
principles, the impact of using the fair value method on 
compensation costs and recorded net earnings must be disclosed. 
If the fair value method had been used, the Company's net 
earnings per share would approximate the following pro forma 
amounts (the pro forma amounts shown do not include the 
compensation costs associated with stock options granted prior to 
January 1, 2002): 


/T/

                           Three Months Ended      Nine Months Ended
                                Sept. 30               Sept. 30
                            2003        2002        2003        2002
--------------------------------------------------------------------
--------------------------------------------------------------------

Compensation costs     $   5,500 $    65,000 $   131,500 $    75,000

Net earnings:
 As reported           $ 290,540 $ 1,040,470 $ 2,491,511 $ 2,228,598
 Pro forma             $ 285,040 $   975,470 $ 2,360,011 $ 2,153,598

Net earnings per
 common share:
 As reported -
  basic and diluted    $    0.01 $      0.02 $      0.05 $      0.04
 Pro forma - basic     $    0.01 $      0.02 $      0.05 $      0.04
           - diluted   $    0.01 $      0.02 $      0.04 $      0.04
--------------------------------------------------------------------
--------------------------------------------------------------------

/T/

The fair value of each option granted is determined on the date 
of grant using the Black-Scholes option-pricing model with 
weighted average assumptions for grants as follows: 


/T/

--------------------------------------------------------------------
--------------------------------------------------------------------
Risk free interest rate (%)                                     5.40
Expected lives (years)                                          2.50
Expected volatility (%)                                        97.01
Dividend per share                                              0.00
--------------------------------------------------------------------
--------------------------------------------------------------------

/T/

3. Per share amounts 

The weighted average number of common shares and diluted common 
shares outstanding during the nine months ended September 30, 
2003 was 51,948,638 (2002 - 51,434,361) and 53,091,318 (2002 - 
51,926,087), respectively. 

4. Segmented information 


/T/

                           Three Months Ended     Nine Months Ended
                                Sept. 30               Sept. 30
                             2003       2002        2003        2002
--------------------------------------------------------------------
--------------------------------------------------------------------

Oil and gas sales,
 net of royalties
 Republic of Yemen    $ 3,559,901 $2,750,801 $10,969,310 $ 7,088,656
 Canada                   598,763    213,610   1,703,953     706,085
--------------------------------------------------------------------
                        4,158,664  2,964,411  12,673,263   7,794,741
--------------------------------------------------------------------

Operating
 Republic of Yemen        663,350    390,025   2,142,784   1,025,540
 Canada                   164,989    113,177     442,280     354,102
--------------------------------------------------------------------
                          828,339    503,202   2,585,064   1,379,642
--------------------------------------------------------------------

Depletion and
 depreciation
 Republic of Yemen      1,691,000  1,065,000   4,491,000   2,864,000
 Canada                   211,000     73,000     470,000     230,000
--------------------------------------------------------------------
                        1,902,000  1,138,000   4,961,000   3,094,000
--------------------------------------------------------------------

Segmented operations    1,428,325  1,323,209   5,127,199   3,321,099
Other income                4,231      6,081      10,100      41,926
General and
 administrative           168,271    141,586     783,278     546,371
Foreign exchange loss
 (gain)                    44,948    (41,527)     66,409     (15,767)
Interest                        3      6,727         139      15,263
Income taxes              928,794    182,034   1,795,962     588,560
--------------------------------------------------------------------
Net income            $   290,540 $1,040,470 $ 2,491,511 $ 2,228,598
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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. 


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TRANSGLOBE ENERGY CORPORATION

"signed"

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

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

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-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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