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TransGlobe Energy Corporation Announces Oil Discovery In Republic Of Yemen Operations

CALGARY, ALBERTA--TransGlobe Energy Corporation ("TransGlobe" or 
the "Company") (TSX symbol "TGL"; OTC-BB symbol "TGLEF") is 
pleased to announce a new oil discovery on Block S-1 in the 
Republic of Yemen.  

Block S-1 (25% working interest) 

The second exploration well of the Block S-1 2002 drilling 
program, An Nagyah #2, was suspended as a future oil producer 
after testing light sweet oil. The well commenced drilling during 
November 2002 and was drilled to a total depth of 1,624 meters 
(5,328 feet). An Nagyah #2 encountered a gross section of 28 
meters (92 feet) of Upper Lam reservoir sandstone. A lower 9.0 
meter perforated section of the oil interval flowed at a 
sustained rate of 860 barrels of oil per day and 400 Mcf per day 
of natural gas with a 150 psi flowing pressure. An additional 5.5 
meters of oil bearing section was perforated and was flow tested 
at a maximum rate of 1,091 barrels of 45.8 degree API oil and 543 
Mcfd of natural gas with a 320 psi flowing pressure. No water was 
produced during the test. Subsequently an additional 6.5 meters 
was perforated, including a 2.0 meter overlying gas zone. This 
entire interval was tested at a sustained rate of 410 barrels per 
day and 3.7 MMcfd of natural gas with a 950 psi flowing tubing 

The An Nagyah #2 well evaluated the An Nagyah structure 
previously drilled by Shell in 1992 (An Nagyah #1). Although An 
Nagyah #1 had indicated oil and gas pay in the Lam Formation, it 
was never tested. The An Nagyah structural closure mapped on 3-D 
seismic data could be up to 18 square kilometers (7 square 
miles). The Company intends to move forward with an appraisal 
well on the An Nagyah structure in the current drilling program. 
A successful appraisal well at An Nagyah could lead to a fast 
track development of the discovery. The nearest sales pipeline 
connection that may be utilized is approximately 28 kilometers 
(18 miles) from An Nagyah. 

The drilling rig is currently moving to An Naeem #3 to drill an 
appraisal well. An Naeem #3 will test for an anticipated oil rim 
underlying the gas and condensate found in the Alif sandstone in 
An Naeem #1 and An Naeem #2.   

Block 32 (13.81% working interest) 

The Tasour #8 development well commenced drilling on December 
7th. Tasour #8 will be directionally drilled from the Tasour #1 
surface location to test the field extension and new reservoir 
found in Tasour #7. If successful, Tasour #8 could be tied in to 
the existing production line a few days after completion.  A 
second well, Ghoraf #1, is expected to immediately follow Tasour 
#8 and will test an exploration prospect on the northwestern 
portion of the Block. A new 2-D seismic survey commenced in 
December. The seismic is expected to further define several new 
exploration prospects for the 2003/2004 drilling program. 

TransGlobe Energy Corporation is a Canadian based exploration and 
production company with oil and gas projects in Canada and the 
Republic of Yemen. TransGlobe is currently producing 2,300 
barrels of oil equivalent per day. The Company's 2002/2003 
drilling program anticipates five to seven additional 
exploration, appraisal and development wells on two properties in 
the Republic of Yemen. TransGlobe also plans to drill three to 
five gas exploration wells in Canada during 2003. 

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. 


David C. Ferguson 

Vice President Finance & C.F.O. 


TransGlobe Energy Corporation
Ross G. Clarkson
President & C.E.O.
(403) 264-9888
(403) 264-9898 (FAX)


TransGlobe Energy Corporation
Lloyd W. Herrick
Vice President & C.O.O.
(403) 264-9888
(403) 264-9898 (FAX)

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