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Release

TransGlobe Energy Corporation Announces New Discovery in Republic of Yemen

CALGARY, ALBERTA--TransGlobe Energy Corporation ("TransGlobe" or 
the "Company") (TSX symbol "TGL"; OTC-BB symbol "TGLEF") is 
pleased to announce a successful appraisal and new pool discovery 
well at An Nagyah #3 on Block S-1 in the Republic of Yemen.  

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

The An Nagyah #3 well was drilled to a total depth of 1,292 
meters and suspended as a potential oil well. An Nagyah #3 is 
located 1.3 kilometers west of the An Nagyah #2 well which tested 
light sweet oil at 1,091 Bopd from a gross 28 meter Upper Lam oil 
reservoir (December 10, 2002 announcement). Two separate 
reservoirs were encountered, the Upper Lam and the Lower Lam. 

Upper Lam Reservoir 

The An Nagyah #3 well encountered the Upper Lam sandstones in a 
structurally higher position than the An Nagyah #2 well and found 
a thicker gross reservoir section (43 meters gross thickness). 
Better porosity and permeability are indicated on the logs than 
found at An Nagyah #2. The sands were not flow tested as they 
were structurally higher and were therefore entirely above the 
gas/oil contact found in the An Nagyah #2 well. 

Lower Lam Reservoir 

In addition to the thicker Upper Lam sands, the An Nagyah #3 well 
also discovered a new pool in the Lower Lam sands. This new zone 
has a net pay of 5.0 meters and a tested oil column of more than 
50 meters. The zone was perforated and flow tested at a rate of 
240 Bopd of 42 degree API, light, sweet oil. A two meter water 
interval was confirmed at the base of the zone during testing. 
The core and test data indicate the Lower Lam reservoir has less 
porosity and permeability than the Upper Lam reservoir and 
therefore may require stimulation to enhance production. The 
discovery of a new productive horizon in the Lower Lam should 
augment development economics.  

The An Nagyah #3 well has proved the continuity and quality of 
the Upper Lam reservoir and discovered a new oil reservoir in the 
Lower Lam sandstones. This encouraging result warrants an 
additional appraisal well to determine the extent of both 
reservoirs. Therefore a new appraisal well at An Nagyah #4 will 
be drilled, located 1.2 kilometers north northwest of An Nagyah 
#3 and 2.5 kilometers west northwest of An Nagyah #2. The 
drilling rig is scheduled to move to An Nagyah #4 in the next few 
weeks.  

Commercial development of the An Nagyah discovery will be 
contingent on proving a minimum threshold reserve size. The An 
Nagyah structural closure, as mapped on 3-D seismic data, 
encompasses up to 17 square kilometers (approximately 7 square 
miles) and therefore could require several additional wells to 
prove the full extent of the oil accumulation. If threshold 
reserves are established, the proximity to pipeline facilities 
would allow "fast track" development. 

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 

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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