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Release

TransGlobe Energy Corporation Announces 2002 Year End and Fourth Quarter Results

CALGARY, ALBERTA--TransGlobe Energy Corporation ("TransGlobe" or 
the "Company") (TSX, symbol "TGL"; OTC-BB symbol "TGLEF") is 
pleased to announce its financial and operating results for the 
three and twelve month periods ended December 31, 2002. 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. 

2002 HIGHLIGHTS: 

* Cash flow increased 66% to $9,709,852 

* Net income increased 77% to $5,426,389 

* Production increased 27% to 1,732 Boed 

* Proven reserves increased 33% to 2,347,000 Boe 

* Working capital of $4,748,933 with no debt 


/T/

FINANCIAL AND OPERATING UPDATE

----------------------------------------------------------------------
                         Three Months                Twelve Months    
                         Ended Dec. 31               Ended Dec. 31    
                     ---------------------       ---------------------
Financial (US $'s)   2002      2001 Change       2002      2001 Change
----------------------------------------------------------------------
Oil and gas                                                           
 revenue net                                                          
 of royalties   5,459,364 1,647,479   231% 13,254,105  8,554,085  55% 
Operating                                                             
 expense          463,631   371,818    25%  1,843,273  1,540,369  20% 
General and                                                           
 administrative                                                       
 expense          274,320   119,239   130%    820,691    570,609  44% 
Depletion and                                                         
 depreciation   1,183,000   692,000    71%  4,277,000  2,762,000  55% 
Income taxes      331,134   130,908   153%    919,694    634,716  45% 
Cash flow from                                                        
 operations     4,380,792 1,029,365   326%  9,709,852  5,840,455  66% 
  Basic per share    0.09      0.02   350%       0.19       0.12  58% 
  Diluted per share  0.09      0.02   350%       0.19       0.11  73% 
Net income      3,197,791   337,365   848%  5,426,389  3,062,237  77% 
 Basic per share     0.07      0.01   600%       0.11       0.06  83% 
 Diluted per share   0.06      0.01   500%       0.10       0.06  67% 
Capital                                                               
 expenditures   2,546,907 1,275,981   100%  6,476,544  4,782,251  35% 
Working capital                             4,748,933  1,382,347 244% 
Common shares                                                         
 outstanding                                                          
  Basic (weighted                                                     
   average)                                51,449,596 50,640,877   2% 
  Diluted (weighted                                                   
   average)                                51,944,926 51,118,289   2% 
Reserves                                                              
----------------------------------------------------------------------
Total Proven (MBoe)                                                   
 (6:1)                                          2,347      1,770  33% 
Production                                                            
----------------------------------------------------------------------
Oil and liquids                                                       
 (Bpd)              1,979     1,161    70%      1,583      1,184  34% 
  Average price                                                        
   (US$ per barrel) 26.58     18.19    46%      25.07      22.11  13% 
Gas (Mcfpd)           796     1,003   (21)%       892      1,108 (19)%
 Average price (US$                                                   
  per Mcf)           3.96      2.00    98%       2.77       3.68 (25)%
Total (Boed) (6:1)  2,112     1,328    59%      1,732      1,369  27% 
Operating expense                                                     
 (US$ per Boe)       2.39      3.04   (21)%      2.92       3.08  (5)%
----------------------------------------------------------------------

/T/

Production 

In the Republic of Yemen, production increased 37% from an 
average of 1,131 Bopd in 2001, to an average of 1,545 Bopd in 
2002, with an exit rate of 1,996 Bopd for the month of December 
2002. Production from the Tasour field was restricted to 16,000 
Bopd (2,210 Bopd to TransGlobe) during January and February 2003 
due to limited export pump capacity. The expansion of export 
pumping capacity at the Tasour production facility was completed 
in February 2003. It is expected that production will exceed 
20,000 Bopd (2,762 Bopd to TransGlobe) in March as shut in wells 
are returned to production. Production increases in 2002 are 
primarily attributed to the field extension and to the new pool 
discovery drilled at Tasour #7 in September 2002. The field 
extension was successfully appraised at Tasour #8 in January 
2003. It is anticipated that another development well will be 
drilled at Tasour #9 in April 2003. 

In Canada, production declined 21% from an average of 238 Boepd 
in 2001 to 187 Boepd in 2002 with an exit rate of 184 Boepd for 
the month of December 2002. The production decline is attributed 
to natural declines, to the divestiture of minor properties and 
to shut in production due to low gas prices. To ensure continuous 
production during the traditionally weaker summer market, the 
Company has entered into a fixed price natural gas sales contract 
for 500 GJ/day (approximately 500 Mcfd, or less than 50% of 
current production) at a price of Cdn$7.65/GJ for the period 
March 1, 2003 to November 1, 2003. Canadian production increased 
to 250 Boepd during February 2003 and is expected to reach 300 
Boepd by the second quarter of 2003. 

TransGlobe's consolidated production increased 27% from an 
average 1,369 Boepd for 2001 to an average 1,732 Boepd for 2002. 
During February 2003 consolidated production averaged 2,700 
Boepd, a new record. 

Operating Results 

Net income for the year 2002 was $5,426,389 ($0.11 per share 
basic and $0.10 per share diluted) compared to a net income of 
$3,062,237 in 2001. Cash flow from operations was $9,709,852 
($0.19 per share, basic and diluted) in 2002 compared to 
$5,840,455 in 2001. The increases in net income and in cash flow 
in 2002 are due mainly to increased production (27%) and to 
increased net backs (29%) resulting from increased commodity 
prices and from cost oil sharing adjustments with partners in the 
Republic of Yemen. 

Revenue net of royalties was $13,254,105 for the year 2002, 
compared to $8,554,085 for the year 2001, reflecting increased 
production volumes, increased commodity prices. In the Republic 
of Yemen cost oil adjustments increased revenue net of royalties 
in the amount of $1,496,241 during the fourth quarter of 2002. In 
2002, revenues net of royalties were $12,238,711 and $1,015,394 
from Yemen and Canada respectively. In 2001, revenues net of 
royalties amounted to $7,000,676 in Yemen, $1,553,409 in Canada. 
Revenue in Canada decreased due to a 22% decrease in production 
and to a 21% decrease in commodity prices. Gas prices averaged 
$2.77 per Mcf in Canada in 2002 and $3.68 per Mcf in 2001. Oil 
and liquid prices in Canada averaged $20.48 per barrel in 2002 
($21.57 per barrel in 2001). The average oil price for the 
Company's production in Yemen for the year 2002 was $25.18 per 
barrel ($22.14 per barrel in 2001). 

The Block 32 PSA allows for the recovery of historical costs out 
of production. TransGlobe's share of historical cost pools varies 
between 8.9% and 56% due to acquisitions and the original farm-in 
by TransGlobe in 1997. During the fourth quarter of 2002 
TransGlobe recovered its higher percentage cost pools from the 
1997 farm-in period. It is anticipated that the balance of the 
historical cost pools will be recovered during 2003. TransGlobe 
has a lower working interest share of the pre-1997 cost pools 
which will reduce the cost oil received by the Company from 
13.81087% to approximately 8.9% until the historical costs are 
recovered (estimated second quarter of 2003). With full recovery 
of historical cost pools in 2003, the Block 32 Joint Venture 
Group's total share of oil will reduce from 71.1% to an estimated 
40%-50% of production, depending upon gross revenue, operating 
costs and future eligible capital expenditures. 

Operating costs of $1,843,273 ($2.92 per Boe) in 2002 compared to 
$1,540,369 ($3.08 per Boe) in 2001. The total operating cost 
increase is a direct result of increased production volumes. 
Operating costs averaged $2.47 and $6.61 per Boe in the year 2002 
in Yemen and Canada respectively. The higher operating costs per 
Boe in Canada in 2002 reflect third party processing, 
transportation and compression fees. The overall reduction of 
operating costs on a Boe basis is a reflection of distributing 
fixed operating costs in the Republic of Yemen over increased 
volumes. 

The netback (oil and gas revenues net of royalties and operating 
expenses) was $18.05 per Boe during 2002. The comparable figure 
for 2001 was $14.04 per Boe. The increase in netbacks between 
years is due mainly to an increase in oil prices during the year 
and to cost oil adjustments in the Republic of Yemen. 

General and administrative expense was $820,691 ($1.30 per Boe) 
for the year 2002 as compared to $570,609 ($1.14 per Boe) in the 
comparable period in 2001. The increase is due to increases in 
salaries, consulting costs, office rent, insurance and 
professional services. 

Depletion and depreciation was $4,277,000 in 2002 compared to 
$2,762,000 in the same period in 2001. The increase is 
attributable to the inclusion of additional costs in the 
depletable base in the Republic of Yemen. In Yemen, unproven 
properties in the amount of $7,184,372 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. 

Current income tax expense in the amount of $986,862 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 compared to $634,716 in the same period in 2001. The 
increase is due to increased revenues from Block 32 in the 
Republic of Yemen. Future income tax recovery of $67,168 is a 
result of offsetting unrecorded future tax benefits against the 
future tax effect of tax renunciations to flow through 
shareholders. 

Capital Expenditures 

Capital expenditures were $5,435,398 and $1,041,146 in Yemen and 
Canada respectively in 2002. Expenditures in Yemen on Block 32 
were predominantly for a three well drilling program, a facility 
expansion, a water disposal well, and for various well workovers. 
On Block S-1, costs were mainly for a three well drilling 
program, contractual government payments, pre-drilling inventory 
and capitalized general and administrative overhead from the 
operator and TransGlobe. Canadian capital expenditures in 2002 
relate to the drilling of three wells, several mineral lease 
acquisitions and pipeline tie-in costs. 

Liquidity and Capital Resources 

Funding for the Company's capital expenditures in 2002 was 
provided by cash flow from operations and from working capital. 

At December 31, 2002 the Company had working capital of 
$4,748,933, nil debt and 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 its 2003 exploration and development 
program (budgeted at $10.0 million firm and contingent) through 
use of working capital, cash flow, and debt as required. 

Outlook 

To position TransGlobe for another year of strong growth in 2003, 
an aggressive drilling program is planned for the Republic of 
Yemen and Canada. The 2003 Yemen drilling program will be the 
most active in the Company's history. Four wells have been 
drilled to date, resulting in one oil well, one gas/condensate 
well, one dry hole and one well testing at the time of this 
report. An additional three to five wells are planned for the 
balance of the year. The 2003 capital budget for Canada was 
expanded to focus on natural gas prospects. Four to eight wells 
are planned in central Alberta during the second and third 
quarters of 2003. 


/T/

Consolidated Statements of Income and Deficit                         
(Expressed in U.S. Dollars)                                           
                                     Year Ended             Year Ended
                               December 31, 2002     December 31, 2001
----------------------------------------------------------------------
                                                                      
REVENUE                                                               
 Oil and gas sales, net                                               
  of royalties                     $ 13,254,105          $   8,554,085
 Other income                            42,108                 16,470
----------------------------------------------------------------------
                                     13,296,213              8,570,555
----------------------------------------------------------------------
                                                                      
EXPENSES                                                              
 Operating                            1,843,273              1,540,369
 General and                                                          
  administrative                        820,691                570,609
 Foreign exchange                                                     
  (gain) loss                            (6,988)                (3,800)
 Interest                                16,154                  4,424
 Depletion and                                                        
  depreciation                        4,277,000              2,762,000
----------------------------------------------------------------------
                                      6,950,130              4,873,602
----------------------------------------------------------------------
                                                                      
Net income before                                                     
 income taxes                         6,346,083              3,696,953
                                                                      
Income taxes                                                          
 - future                               (67,168)                     -
 - current                              986,862                634,716
----------------------------------------------------------------------
                                        919,694                634,716
----------------------------------------------------------------------
NET INCOME                            5,426,389              3,062,237
                                                                      
Deficit, beginning of                                                 
 year                               (17,724,698)           (20,786,935)
----------------------------------------------------------------------
                                                                      
Deficit, end of year               $(12,298,309)         $ (17,724,698)
----------------------------------------------------------------------
                                                                      
Net income per share                                                  
 Basic                             $       0.11          $        0.06
 Diluted                           $       0.10          $        0.06
----------------------------------------------------------------------



Consolidated Balance Sheets                                           
(Expressed in U.S. Dollars)                                           
                                                                      
                              December 31, 2002      December 31, 2001
----------------------------------------------------------------------
                                                                      
ASSETS                                                                
Current                                                               
 Cash                              $  2,595,170           $  1,174,846
 Accounts receivable                  2,984,000                975,773
 Prepaid expenses                        88,837                 60,687
----------------------------------------------------------------------
                                      5,668,007              2,211,306
----------------------------------------------------------------------
Capital assets                                                        
 Canada                               3,651,305              3,044,746
 Republic of Yemen                   15,066,835             13,591,437
----------------------------------------------------------------------
                                     18,718,140             16,636,183
----------------------------------------------------------------------
                                                                      
                                   $ 24,386,147           $ 18,847,489
----------------------------------------------------------------------
                                                                      
LIABILITIES                                                           
Current                                                               
 Accounts payable and                                                 
  accrued liabilities              $    919,074           $    828,959
                                                                      
Provision for site                                                    
 restoration and                                                      
 abandonment                            122,209                106,209
                                                                      
----------------------------------------------------------------------
                                      1,041,283                935,168
----------------------------------------------------------------------
                                                                      
SHAREHOLDERS' EQUITY                                                  
Share capital                        35,643,173             35,637,019
Deficit                             (12,298,309)           (17,724,698)
----------------------------------------------------------------------
                                     23,344,864             17,912,321
----------------------------------------------------------------------
                                                                      
                                   $ 24,386,147           $ 18,847,489
----------------------------------------------------------------------



Consolidated Statements of Cash Flows                                 
(Expressed in U.S. Dollars)                                           
                                                                      
                                     Year Ended             Year Ended
                              December 31, 2002      December 31, 2001
----------------------------------------------------------------------
                                                                      
CASH FLOWS RELATED TO THE                                             
 FOLLOWING ACTIVITIES:                                                
                                                                      
OPERATING                                                             
Net income                          $ 5,426,389            $ 3,062,237
Adjustments for:                                                      
 Depletion and                                                        
  depreciation                        4,277,000              2,762,000
 Performance bonus                                                    
  expense paid in shares                 73,631                 16,218
 Future income taxes                    (67,168)                     -
----------------------------------------------------------------------
Cash flow from                                                        
 operations                           9,709,852              5,840,455
                                                                      
Changes in non-cash                                                   
 working capital                     (2,478,700)               621,196
----------------------------------------------------------------------
                                      7,231,152              6,461,651
----------------------------------------------------------------------
                                                                      
FINANCING                                                             
 Issue of share capital                    (308)               210,797
 Issuance (repayment)                                                 
  of long-term debt                           -                (77,634)
----------------------------------------------------------------------
                                           (308)               133,163
----------------------------------------------------------------------
                                                                      
INVESTING                                                             
 Purchase of capital                                                  
  assets                                                              
   Yemen                             (5,435,398)            (3,406,363)
   Canada                            (1,041,146)            (1,375,888)
 Proceeds on disposal                                                 
  of oil and gas                                                      
  properties                            133,587                      -
 Changes in non-cash                                                  
  working capital                       532,437               (702,631)
----------------------------------------------------------------------
                                     (5,810,520)            (5,484,882)
----------------------------------------------------------------------
                                                                      
NET INCREASE IN CASH                  1,420,324              1,109,932
                                                                      
CASH, BEGINNING OF                                                    
 YEAR                                 1,174,846                 64,914
----------------------------------------------------------------------
                                                                      
CASH, END OF YEAR                   $ 2,595,170            $ 1,174,846
----------------------------------------------------------------------
                                                                      
Cash flow from                                                        
 operations per share                                                 
 Basic                              $      0.19            $      0.12
 Diluted                            $      0.19            $      0.11
----------------------------------------------------------------------



Segmented Information                                                  
                                                                       
                                Three Months             Twelve Months 
                                Ended Dec.31             Ended Dec. 31 
                              2002        2001         2002        2001
-----------------------------------------------------------------------
Oil and gas sales,                                                     
 net of royalties                                                      
 Republic of Yemen     $ 5,150,055 $1,443,980  $12,238,711  $ 7,000,676
 Canada                    309,309    203,499    1,015,394    1,553,409
-----------------------------------------------------------------------
                         5,459,364  1,647,479   13,254,105    8,554,085
Operating                                                              
 Republic of Yemen         368,839    289,721    1,394,379    1,133,092
 Canada                     94,792     82,097      448,894      407,277
-----------------------------------------------------------------------
                           463,631    371,818    1,843,273    1,540,369
-----------------------------------------------------------------------
Depletion and                                                          
 depreciation                                                          
 Republic of Yemen       1,096,000    607,000    3,960,000    2,405,000
 Canada                     87,000     85,000      317,000      357,000
-----------------------------------------------------------------------
                         1,183,000    692,000    4,277,000    2,762,000
-----------------------------------------------------------------------
                         3,812,733    583,661    7,133,832    4,251,716
Other income                   182        600       42,108       16,470
General and
 administrative            274,320    119,239      820,691      570,609
Foreign exchange
 (gain) loss                 8,779     (3,607)      (6,988)      (3,800)
Interest                       891        356       16,154        4,424
Income taxes               331,134    130,908      919,694      634,716
-----------------------------------------------------------------------
Net income             $ 3,197,791 $  337,365  $ 5,426,389  $ 3,062,237
-----------------------------------------------------------------------

/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 

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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