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Release

TransGlobe Energy Corporation Announces 2003 Second Quarter Results

CALGARY, ALBERTA--TransGlobe Energy Corporation ("TransGlobe" or 
the "Company") is pleased to announce its financial and operating 
results for the six month period ended June 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. 

HIGHLIGHTS 

/T/

- Production 2,499 Boepd in Q2 - 2003
- Successful field extension well at Tasour #10, Block 32, Republic of
  Yemen
- Successful appraisal well at An Nagyah #4, Block S-1, Republic of
  Yemen
- Four new gas wells completed in Canada
- Acquired additional acreage on gas prospects in Canada

/T/

FINANCIAL AND OPERATING UPDATE 


/T/

                                          Three Months Ended June 30
--------------------------------------------------------------------
Financial                                 2003        2002   Change
--------------------------------------------------------------------
Oil and gas revenue net of royalties 4,139,106   2,859,258       45%
Operating expense                      981,170     464,034      111%
General and administrative expense     340,545     209,899       62%
Depletion and depreciation           1,593,000   1,078,000       48%
Income taxes                           438,291     234,862       87%
Cash flow from operations            2,368,713   1,951,125       21%
 Basic and diluted per share              0.05        0.04
Net income                             775,713     873,125      (11)%
 Basic and diluted per share              0.01        0.02
Capital expenditures                 3,502,762     820,369      327%

Production
--------------------------------------------------------------------
Oil and liquids (Bpd)                    2,330       1,548       51%
 Average price ($ per barrel)            25.67       24.49        5%
Gas (Mcfpd)                              1,017       1,065       (5)%
 Average price ($ per Mcf)                5.63        2.65      112%
Total (Boed) (6 : 1)                     2,499       1,726       45%
Operating expense ($ per Boe)             4.31        2.95       46%



                                            Six Months Ended June 30
--------------------------------------------------------------------
Financial                                 2003        2002   Change
--------------------------------------------------------------------
Oil and gas revenue net of royalties 8,514,599   4,830,330       76%
Operating expense                    1,756,725     876,440      100%
General and administrative expense     615,007     404,785       52%
Depletion and depreciation           3,059,000   1,956,000       56%
Income taxes                           867,168     406,526      113%
Cash flow from operations            5,259,971   3,217,758       63%
 Basic and diluted per share              0.10        0.06
Net income                           2,200,971   1,188,128       85%
 Basic and diluted per share              0.04        0.02
Capital expenditures                 6,773,486   2,189,906      209%
Working capital                      3,389,951   2,409,891       41%
Common shares outstanding
 Basic (weighted average)           51,777,771  51,403,641
 Diluted (weighted average)         52,690,028  51,952,759

Production
--------------------------------------------------------------------
Oil and liquids (Bpd)                    2,343       1,443       62%
 Average price ($ per barrel)            27.69       22.90       21%
Gas (Mcfpd)                                992         980        1%
 Average price ($ per Mcf)                5.60        2.49      125%
Total (Boed) (6 : 1)                     2,509       1,607       56%
Operating expense ($ per Boe)             3.87        3.01       29%

/T/

EXPLORATION UPDATE 

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

The southern Tasour field extension well, Tasour #9, commenced 
production in April 2003 at an initial rate of 1,500 Bopd. The 
Tasour #7 (September 2002), #8 (January 2003) and #9 wells were 
all drilled to define the southern boundary of the field and have 
changed the structural mapping of the field. The revised 
structural picture set up a number of potential exploration 
prospects to the west and the east of the Tasour field along the 
southern, bounding fault. Additional seismic reprocessing and 
remapping work was completed and a new exploration drilling 
location at Tasour #10 was selected as a potential western 
extension of the Tasour field. The Tasour #10 well found oil in 
the main Qishn S-1A producing zone and was placed on production 
in July 2003 at an initial rate of approximately 1,200 barrels of 
oil and 3,750 barrels of water per day. This discovery extended 
the mapped Tasour field length from 3.3 kilometers to 
approximately 6.8 kilometers. A series of new development 
locations can be drilled now that the western field extension is 
confirmed by Tasour #10. The first development well at Tasour #11 
is expected to commence drilling in September 2003. 

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

The most recent drilling program (five wells) commenced in 
September 2002 was completed in May 2003, resulting in three oil 
wells, one gas/condensate well and one dry hole. In total the 
Block S-1 Joint Venture Group has drilled nine wells resulting in 
four oil wells, three gas condensate wells and two dry holes. The 
focus of recent drilling and production testing was centered 
around the An Nagyah light oil discovery. 

The An Nagyah #4 well was drilled to a total depth of 1,547 
meters and tested 1,320 barrels of light oil (45 degrees API) 
from the Upper Lam reservoir. The An Nagyah #4 well encountered a 
much thicker gross sand package and defined a 60 meter (197 feet) 
total oil column in the Nagyah pool. A longer term test of the An 
Nagyah #4 well was carried out during June/July confirming the 
original flow rates and pressures. The successful appraisal well 
at An Nagyah #4 is anticipated to lead to development of the 
field. 

The An Nagyah structural closure is mapped by 3-D seismic data 
and the four wells drilled on the structure to date. Fekete 
Associates Inc., an independent engineering firm located in 
Calgary, has calculated a preliminary reserve estimate for the 
Upper Lam oil pool at An Nagyah. Fekete has assigned recoverable 
proven plus probable reserves of 22 million barrels of oil for 
the pool, representing 5.5 million barrels to TransGlobe (gross 
before production sharing deductions). The preliminary reserve 
estimate is based on a depletion strategy that includes pressure 
maintenance by injection of solution gas and gas from the An 
Naeem discovery. Further drilling would be required at An Nagyah 
for additional production wells. 

TransGlobe also contracted an engineering firm with experience in 
Yemen oil development projects to prepare a facility design and 
preliminary cost estimate for the development of the Block. The 
preliminary cost estimates indicate the project should be 
commercial and it is expected development will proceed, pending 
partner and Ministry of Oil and Minerals approvals. 

Canada 

With record cash flow and expected strong North American natural 
gas prices, the Company expanded the Canadian budget to focus on 
natural gas projects. To date, the Company acquired mineral 
rights on 9,000 net acres in 2003 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 Company drilled three new gas wells (100% working interest) 
and re-completed a fourth well (37% working interest) for gas 
production during June and July. One of the wells will be placed 
on production mid August and the other three are expected to be 
tied in by the end of the third quarter. The new gas wells are 
expected to add 400 Boed to TransGlobe's Canadian production. The 
Company plans to drill six to eight additional wells during the 
balance of the year. All the prospects are focused towards 
natural gas. Successful wells could be on production by late 2003 
as all the prospects are near existing infrastructure and can be 
accessed year round. 



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 six months ended June 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 
16,510 Bopd (2,280 Bopd to TransGlobe) during the second quarter 
of 2003 compared to 10,955 Bopd (1,513 Bopd to TransGlobe) during 
the second quarter of 2002. Production increases are attributed 
to the new wells (Tasour #7, #8 and #9) drilled to develop the 
southern extension of the Tasour field. Production during July 
averaged 19,040 Bopd (2,629 Bopd to TransGlobe). 

Production from Canada averaged 219 Boepd (77% natural gas) 
during the second quarter of 2003 compared to 213 Boepd during 
the second quarter of 2002. Production was partially curtailed 
during the quarter due to annual gas plant maintenance at Camao 
and Morinville. 

Net income for the second quarter 2003 was $775,713 ($0.01 per 
share) compared to a net income of $873,125 ($0.02 per share) in 
2002 with cash flow from operations for the second quarter 2003 
of $2,368,713 ($0.05 per share) compared to $1,951,125 ($0.04 per 
share) in 2002. The 11% decrease in net income is primarily a 
result of increased depletion and depreciation charges in the 
quarter, while the 21% increase in cash flow is primarily a 
result of increased production and increased commodity prices. 
Net income and cash flow from operations for the first six months 
in 2003 increased 85% to $2,200,971 and increased 63% to 
$5,259,971 respectively, mainly as a result of increased 
production (up 56%) and increased commodity prices (up 28% per 
Boe). 

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 was $4,139,106 for the second quarter 
2003 compared to $2,859,258 for the same period in 2002. In the 
second quarter 2003, revenues net of royalties were $3,579,416 
and $559,690 from Yemen and Canada respectively. In the second 
quarter 2002, revenues net of royalties were $2,564,783 and 
$294,475 from Yemen and Canada respectively. Revenue net of 
royalties for the six months 2003 increased 76% from the 
corresponding period in 2002 mainly as a result of increased 
production and increased commodity prices. 

In Yemen, revenues net of royalties in the second quarter 2003 
increased 40% compared to the second quarter 2002 due to a 51% 
increase in production and a 5% increase in oil prices. Revenues 
net of royalties were offset by an increase in royalty costs due 
to TransGlobe having a lower share for a portion of the 
historical cost pools recovered during this quarter which 
resulted in approximately $343,000 reduction in revenues net of 
royalties in Yemen. These historical cost pools have now been 
fully recovered. The average oil price for the Company's 
production in Yemen for the second quarter 2003 was $25.71 per 
barrel compared to $24.56 in the second quarter 2002. Oil 
produced 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 will reduce 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 second quarter 2003 the Joint 
Venture Group's share of production was approximately 65% 
recognizing that the shift to production sharing oil occurred 
during the quarter and the significant expenditures incurred in 
the quarter. 

In Canada revenue net of royalties in the second quarter 
increased due to a 112% increase in gas prices, an 11% increase 
in oil and liquids prices and a 3% increase in production 
compared to the second quarter 2002. Gas prices averaged $5.63 
per Mcf in Canada for the second quarter in 2003 and $2.65 per 
Mcf for the same period in 2002. Oil and liquids prices in Canada 
averaged $23.95 per barrel for the second quarter of 2003 and 
$21.62 per barrel for the same period 2002. 

Operating costs of $981,170 averaged $4.31 per Boe in the second 
quarter of 2003 compared to $464,034 ($2.95 per Boe) in 2002. The 
increase is mainly a result of higher operating costs on Yemen 
Block 32 operations associated with increased water handling, 
increased workover expenses and increased transportation fees. 
The pipeline transportation tariff paid to the Ministry of Oil 
and Minerals increased $0.40 per barrel in the second quarter of 
2003. This increase was scheduled upon recovery of historical 
cost pools, which occurred in the second quarter 2003. Operating 
costs in Yemen averaged $4.06 per barrel in the second quarter 
2003 (Canada was $7.00 per Boe). Operating costs for the first 
six months in 2003 increased 29% per Boe compared to 2002. 

General and administrative expenses were $340,545 ($1.50 per Boe) 
for the three month period ended June 30, 2003 as compared to 
$209,899 ($1.34 per Boe) in the comparable period in 2002. During 
the first six months in 2003, general and administrative expenses 
were $615,007 ($1.35 per Boe) compared to $404,785 ($1.39 per 
Boe) in the comparable period in 2002. 

Depletion and depreciation was $1,593,000 for the second quarter 
2003 compared to $1,078,000 in 2002. The increase is attributable 
to the inclusion of significantly higher costs in the depletable 
base in Yemen. In Yemen, unproven properties in the amount of 
$10,139,854 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 $3,059,000 
for the first six months in 2003 compared to $1,956,000 for 
comparable period in 2002, reflecting the increase in the 
depletable costs in Yemen. 

Current income tax for the second quarter 2003 in the amount of 
$438,291 ($234,862 in 2002) represents income taxes incurred and 
paid under the laws of the Republic of Yemen pursuant to the 
Production Sharing Agreement on Block 32. The increase is due to 
increased revenues from Block 32 in Yemen. 

Capital Expenditures 

Capital expenditures in the second quarter 2003 were $2,522,763 
and $979,999 in Yemen and Canada respectively. Expenditures in 
Yemen in the second quarter 2003 on Block 32 of $1,307,920 were 
primarily for drilling costs on Tasour #9, Tasour #4 water 
disposal facilities and two additional payments for the Block 32 
acquisition purchased in 2000. Expenditures of $1,213,652 on 
Block S-1 in Yemen in the second quarter 2003 were primarily for 
the drilling and production test on An Nagyah #4. 

Canadian capital expenditures in the second quarter 2003 of 
$979,999 relate mainly to the acquisition of several oil and gas 
lease rights and drilling costs of one well drilling over the 
quarter end in the Nevis area. 

Liquidity and Capital Resources 

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

At June 30, 2003 the Company had working capital of $3,389,951, 
no debt, a revolving credit facility of Cdn$2,500,000 and an 
acquisition/development credit facility of Cdn$2,000,000. 

The Company expects to fund the balance of its 2003 exploration 
and development program (budgeted at $10 million firm and 
contingent, of which $6.8 million was incurred in the first half 
of 2003) through the use of working capital, cash flow and debt 
as required. 

Commitments and Contingencies 

The Company has a future contingent liability on Block 32 
relating to an additional working interest acquired in 2000 which 
is based on future production performance of the Block. The 
Company made three payments of $160,000 each in the first six 
months in 2003 and expects to make the balance of payments during 
the third quarter 2003 ($320,000 of the potential commitment 
remains). 

The Company has entered into a fixed price natural gas sales 
contract for 500 GJ/day (approximately 500 Mcfpd, or less than 
50% of current 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            Six Months Ended
                            June 30                     June 30     
                       2003         2002          2003          2002
--------------------------------------------------------------------

REVENUE
 Oil and gas
  sales net of
  royalties     $ 4,139,106  $ 2,859,258   $ 8,514,599   $ 4,830,330
 Other income         4,943       35,445         5,869        35,845
--------------------------------------------------------------------
                  4,144,049    2,894,703     8,520,468     4,866,175
--------------------------------------------------------------------

EXPENSES
 Operating          981,170      464,034     1,756,725       876,440
 General and
  administrative    340,545      209,899       615,007       404,785
 Foreign
  exchange loss      15,206       27,743        21,461        25,760
 Interest               124        7,040           136         8,536
 Depletion and
  depreciation    1,593,000    1,078,000     3,059,000     1,956,000
--------------------------------------------------------------------
                  2,930,045    1,786,716     5,452,329     3,271,521
--------------------------------------------------------------------

Net income
 before income
 taxes            1,214,004    1,107,987     3,068,139     1,594,654
Income taxes        438,291      234,862       867,168       406,526
--------------------------------------------------------------------
NET INCOME          775,713      873,125     2,200,971     1,188,128

Deficit,
 beginning of
 period         (10,873,051) (17,409,695)  (12,298,309)  (17,724,698)
--------------------------------------------------------------------

DEFICIT, END
 OF PERIOD     $(10,097,338)$(16,536,570) $(10,097,338) $(16,536,570)
--------------------------------------------------------------------

Net income
 per basic and
 diluted share       $ 0.01       $ 0.02        $ 0.04        $ 0.02
--------------------------------------------------------------------



Consolidated Balance Sheets
(Expressed in U.S. Dollars)
                                            June 30,    December 31,
                                               2003            2002
-------------------------------------------------------------------
                                         (Unaudited)
ASSETS
Current
 Cash                                   $ 3,543,335     $ 2,595,170
 Accounts receivable                      1,912,331       2,984,000
 Prepaid expenses                           124,716          88,837
-------------------------------------------------------------------
                                          5,580,382       5,668,007
-------------------------------------------------------------------
Capital assets
 Republic of Yemen                       17,758,396      15,066,835
 Canada                                   4,685,230       3,651,305
-------------------------------------------------------------------
                                         22,443,626      18,718,140
-------------------------------------------------------------------

                                       $ 28,024,008    $ 24,386,147
-------------------------------------------------------------------
-------------------------------------------------------------------

LIABILITIES
Current
 Accounts payable and accrued
  liabilities                           $ 2,190,431       $ 919,074
Provision for site restoration and
 abandonment                                133,209         122,209
-------------------------------------------------------------------
                                          2,323,640       1,041,283
-------------------------------------------------------------------

SHAREHOLDERS' EQUITY
Share capital                            35,797,706      35,643,173
Deficit                                 (10,097,338)    (12,298,309)
-------------------------------------------------------------------
                                         25,700,368      23,344,864
-------------------------------------------------------------------

                                        $28,024,008     $24,386,147
-------------------------------------------------------------------
-------------------------------------------------------------------



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

                          Three Months Ended        Six Months Ended
                                June 30                 June 30
                            2003        2002        2003        2002
--------------------------------------------------------------------
CASH FLOWS RELATED
 TO THE FOLLOWING
 ACTIVITIES:

OPERATING
 Net income            $ 775,713   $ 873,125 $ 2,200,971 $ 1,188,128
 Items not involving
  cash:
  Performance bonus
   expense paid in
   shares                      -           -           -      73,630
  Depletion and
   depreciation        1,593,000   1,078,000   3,059,000   1,956,000
--------------------------------------------------------------------
 Cash flow from
  operations           2,368,713   1,951,125   5,259,971   3,217,758
 Change in non-cash
  working capital       (106,821)   (277,005)  2,080,485    (443,156)
--------------------------------------------------------------------
                       2,261,892   1,674,120   7,340,456   2,774,602
--------------------------------------------------------------------

FINANCING
 Issue of share
  capital                157,300           -     195,800        (308)
 Repurchase of share
  capital                      -           -     (41,267)          -
 Revolving demand
  loan                         -   1,071,758           -   1,071,758
--------------------------------------------------------------------
                         157,300   1,071,758     154,533   1,071,450
--------------------------------------------------------------------

INVESTING
 Purchase of capital
  assets
  Republic of Yemen   (2,522,763)   (717,686) (5,491,561) (1,777,319)
  Canada                (979,999)   (102,683) (1,281,925)   (412,587)
 Changes in non-cash
  working capital        146,918    (256,460)    226,662    (357,269)
--------------------------------------------------------------------
                      (3,355,844) (1,076,829) (6,546,824) (2,547,175)
--------------------------------------------------------------------

NET INCREASE
 (DECREASE) IN CASH     (936,652)  1,669,049     948,165   1,298,877

CASH, BEGINNING OF
 PERIOD                4,479,987     804,674   2,595,170   1,174,846
--------------------------------------------------------------------

CASH, END OF PERIOD  $ 3,543,335 $ 2,473,723 $ 3,543,335 $ 2,473,723
--------------------------------------------------------------------
--------------------------------------------------------------------


Supplemental
 Disclosure:
 Cash interest paid        $ 124     $ 7,040       $ 136     $ 8,536
 Cash taxes paid       $ 438,291   $ 234,862   $ 867,168   $ 406,526
--------------------------------------------------------------------
--------------------------------------------------------------------


/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 six month periods ended June 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
Share repurchase                         (100,000)           (41,267)
--------------------------------------------------------------------
Balance, June 30, 2003                 52,284,801       $ 35,797,706
--------------------------------------------------------------------
--------------------------------------------------------------------


Continuity of stock options                                     2003
--------------------------------------------------------------------
Balance, December 31, 2002                                 3,624,500
Granted                                                            -
Exercised                                                   (890,000)
Expired                                                            -
--------------------------------------------------------------------
Balance, June 30, 2003                                     2,734,500
--------------------------------------------------------------------
--------------------------------------------------------------------

/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           Six Months Ended
                             June 30                    June 30
--------------------------------------------------------------------
                         2003        2002           2003        2002
--------------------------------------------------------------------
Compensation costs   $ 58,000    $ 10,000      $ 126,000    $ 10,000
Net earnings:
 As reported        $ 775,713   $ 873,125    $ 2,200,971 $ 1,188,128
 Pro forma          $ 717,713   $ 863,125    $ 2,074,971 $ 1,178,128
Net earnings per
 common share:
 Basic and diluted
  As reported          $ 0.01      $ 0.02         $ 0.04      $ 0.02
  Pro forma            $ 0.01      $ 0.02         $ 0.04      $ 0.02
--------------------------------------------------------------------
--------------------------------------------------------------------

/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 is as follows: 


/T/

---------------------------------------------------
Risk free interest rate (%)                    5.05
Expected lives (years)                         5.00
Expected volatility (%)                       66.35
Dividend per share                             0.00
---------------------------------------------------
---------------------------------------------------

/T/

3. Per share amounts 

The weighted average number of common shares and diluted common 
shares outstanding during the six months ended June 30, 2003 was 
51,777,771 (2002 - 51,403,641) and 52,690,028 (2002 - 
51,952,759), respectively. 

4.  Segmented information 


/T/

                          Three Months Ended        Six Months Ended
                                June 30                 June 30
                            2003        2002        2003        2002
--------------------------------------------------------------------
Oil and gas sales net of
 royalties
 Republic of Yemen   $ 3,579,416 $ 2,564,783 $ 7,409,409 $ 4,337,855
 Canada                  559,690     294,475   1,105,190     492,475
--------------------------------------------------------------------
                       4,139,106   2,859,258   8,514,599   4,830,330
Operating
 Republic of Yemen       841,424     338,238   1,479,434     635,515
 Canada                  139,746     125,796     277,291     240,925
--------------------------------------------------------------------
                         981,170     464,034   1,756,725     876,440
Depletion and
 depreciation
 Republic of Yemen     1,447,000     996,000   2,800,000   1,799,000
 Canada                  146,000      82,000     259,000     157,000
--------------------------------------------------------------------
                       1,593,000   1,078,000   3,059,000   1,956,000
--------------------------------------------------------------------
Segmented operations   1,564,936   1,317,224   3,698,874   1,997,890
Other income               4,943      35,445       5,869      35,845
General and
 administrative          340,545     209,899     615,007     404,785
Foreign exchange
 loss                     15,206      27,743      21,461      25,760
Interest                     124       7,040         136       8,536
Income taxes             438,291     234,862     867,168     406,526
--------------------------------------------------------------------
Net income             $ 775,713   $ 873,125 $ 2,200,971 $ 1,188,128
--------------------------------------------------------------------
--------------------------------------------------------------------


/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. 



TRANSGLOBE ENERGY CORPORATION 



"Signed" 

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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