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Release

TransGlobe Energy Corporation Announces 2002 Third Quarter Results

CALGARY, ALBERTA--TransGlobe Energy Corporation ("TransGlobe" or 
the "Company") is pleased to announce its financial and operating 
results for the three month and nine month period ended September 
30, 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. 

HIGHLIGHTS 

* Record Cash Flow from operations of $2,111,302 for the third 
quarter of 2002 

* Drilling commenced on both Blocks in Yemen - eight to ten wells 
planned for 2002/2003 

* Tasour #7 field extension well successful in main producing 
zone, additional oil pool found 

* Drilling program on Block 32 expanded for 2003 


/T/

FINANCIAL AND OPERATING UPDATE

                      Three Months Ended        Nine Months Ended 
                         September 30              September 30 
Financial               2002      2001            2002      2001
                                      Change                  Change
--------------------------------------------------------------------
Oil and gas sales,
 net of royalties  2,964,411 1,928,521  54%  7,794,741  6,906,606 13%
Operating expense    503,202   390,719  29%  1,379,642  1,168,551 18%
General and
 administrative
 expense             141,586   135,134   5%    546,371    451,370 21%
Depletion and
 depreciation      1,138,000   581,000  96%  3,094,000  2,070,000 49%
Income taxes         182,034   152,150  20%    588,560    503,808 17%
Cash flow from
 operations        2,111,302 1,266,471  67%  5,329,060  4,811,090 11%
  Basic per share       0.04      0.03  33%       0.10       0.10  -
  Diluted per share     0.04      0.02 100%       0.10       0.09 11%
Net income         1,040,470   685,471  52%  2,228,598  2,724,872(18)%
 Basic and diluted
  per share             0.02      0.01 100%       0.04       0.05(20)%
Capital
 expenditures      1,739,731 1,758,329  (1)% 3,929,637  3,506,270 12%
Working capital                              2,938,267  1,473,166 99%
Common shares
 outstanding
  Basic (weighted
   average)                                 51,434,361 50,589,446
  Diluted (weighted
   average)                                 51,926,087 51,148,975
                                                                  
Production                                                        
--------------------------------------------------------------------
Oil and liquids (Bpd)  1,460     1,067  37%      1,450      1,192 22%
 Average price 
 ($ per barrel)        27.26     23.16  18%      24.38      23.41  4%
Gas (Mcfpd)              816     1,122 (27)%       925      1,143(19)%
 Average price 
  ($ per Mcf)           2.27      2.24   1%       2.42       4.17(42)%
Total (Boed) (6:1)     1,596     1,254  27%      1,604      1,383 16%
Operating expense 
 ($ per Boe)            3.43      3.39   1%       3.15       3.10  2%

/T/

EXPLORATION UPDATE 

The Company has drilled the first two wells of an eight to ten 
well exploration/appraisal drilling program planned for the 
balance of 2002 and 2003 in the Republic of Yemen. Drilling 
commenced on both Yemen projects during September resulting in 
one multi-zone producing oil well and one dry hole. 

In Canada the Company recently drilled two gas wells and will 
participate in an additional exploration well prior to year end. 

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

The Tasour #7 step out well was completed and tied in as a 
multi-zone producing oil well. The well was completed and placed 
on production at 8,501 barrels of oil per day ("Bopd"), which is 
the capacity of the pump. The Tasour #7 well encountered the main 
Upper Qishn producing zone in a structurally higher position than 
the existing producers, thereby extending the field to the south 
to an area that was previously assumed to be below the oil water 
contact. In addition to the full oil column in the main producing 
zone, the well also discovered a new pool in the Qishn sands 
below the main zone. The new zone is also being produced with the 
main Upper Qishn reservoir. The results from Tasour #7 are 
expected to increase the recoverable oil reserves for the Tasour 
field. 

The drilling rig has moved to a non-owned adjacent block for two 
wells as part of a multi-well, rig sharing contract to reduce 
costs. The drilling rig should be available to the Block 32 joint 
venture group in December 2002 to drill Tasour #8. The Tasour #8 
well will appraise the main field extension and new pool 
discovery set up by the Tasour #7 well. An exploratory prospect 
at Ghoraf #1 on the western portion of Block 32 will be drilled 
following Tasour #8. In total the Block 32 joint venture group 
has approved a program of four firm wells and one contingent well 
for the balance of 2002 and 2003. In addition to the expanded 
drilling program, work will begin on a 2-D seismic program early 
in 2003 to delineate several of the undrilled exploration 
prospects on the Block. These prospects could be drilled in 
future drilling programs. 

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

The first of a four well program on Block S-1, the Osaylan #1 
exploration well, commenced drilling during September 2002. The 
well was drilled to a total depth of 1,902 meters (6,242 feet) 
and was abandoned after encountering minor oil shows. The primary 
target, the Alif reservoir sandstone, was encountered. However 
the logs did not indicate commercial hydrocarbons were present. 
Evaluations of core analysis, fluid analysis and petrophysical 
interpretation will be carried out to determine if additional 
work on the Osaylan structure is warranted. 

The second well, An Nagyah #2, commenced drilling on October 31, 
2002 and is currently drilling. The An Nagyah #2 well will 
evaluate the An Nagyah #1 discovery, previously drilled by Shell, 
which had indicated pay in the Lam formation. The An Nagyah 
prospect is a 3-D seismically defined structure with potential in 
both the Alif and Lam formations. 

The third well will be drilled at An Naeem #3 to test a potential 
oil rim on the gas condensate discovery made at An Naeem during 
the 2000 drilling program. 

Canada  

At Nevis the Company drilled a 52% working interest well to 
evaluate a Leduc reef structure identified on 3-D seismic. 
Although the well did not encounter the anticipated full reef 
build up, the Leduc was completed and tested to evaluate the 
potential for additional work on the structure. The well is being 
completed as a gas well in a shallower horizon. It is expected 
that the well will commence gas production by the end of the 
year, subject to securing capacity in an adjacent pipeline. 

At Morningside, the Company drilled and completed an exploratory 
shallow gas test at 6-30 (58% working interest). The 6-30 well 
may be tied in with the 3-28 gas well (100% working interest). 
The tie-in of 3-28 was deferred pending the results of 6-30. The 
6-30 and 3-28 gas wells are expected to initially contribute an 
additional 110 Boepd of new production to the Company after the 
pipeline tie-in is completed in Q1 2003. 

OPERATING UPDATE   

Production 

In Yemen Block 32, production from the Tasour field averaged 
10,304 Bopd (1,423 Bopd to TransGlobe) during the third quarter 
2002 compared to 7,415 Bopd (1,024 Bopd to TransGlobe) during the 
third quarter 2001. The Tasour #7 well came on production at the 
end of September and is currently producing in excess of 8,500 
Bopd (1,173 Bopd to TransGlobe). The Tasour field is producing at 
a record level of up to 16,000 Bopd (2,209 Bopd to TransGlobe) 
which is the current capacity of the export pumps. TransGlobe 
expects that the Tasour field will produce at or near current 
levels until additional wells are drilled in December 2002 and 
during 2003. Contingent upon successful drilling results and 
production performance, the installation of additional export 
pumps may be undertaken during 2003 to raise the export capacity 
to 25,000 Bopd through the eight inch pipeline connecting the 
Tasour CPF (central production facility) to the Nexen export 
pipeline. If future wells at Tasour prove successful, it is 
TransGlobe's view that the total production for the Tasour field 
may reach more than 20,000 Bopd (2,762 Bopd to TransGlobe) in 
2003. 

Production from Canada averaged 173 Boepd during the third 
quarter of 2002 compared to 230 Boepd during the third quarter 
2001. In early July, gas production at Nevis and Cherhill was 
shut in for two weeks in response to very low Canadian spot gas 
prices which were below $2.00 Cdn/Mcf. Production was restored in 
mid July as spot gas prices stabilized in the $2.50-$3.00 Cdn/Mcf 
range. Effective July 1, 2002 the Company sold a minor interest 
producing property which represented approximately 8 Boepd of 
production. 

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, 2002 and 
2001 and the audited financial statements and MD&A for the year 
ended December 31, 2001 included in the Company's annual report. 
All dollar values are expressed in United States dollars unless 
otherwise stated. 

Operating Results 

Net income for the third quarter 2002 was $1,040,470 ($0.02 per 
share) compared to a net income of $685,471 ($0.01 per share) in 
2001 with cash flow from operations of $2,111,302 ($0.04 per 
share) compared to $1,266,471 ($0.03 per share) in 2001. The 
increase in net income and cash flow in the third quarter is 
primarily a result of a 27% increase in production along with an 
18% increase in oil and liquids prices. Net income for the nine 
months 2002 decreased to $2,228,598 from $2,724,872 in the 
corresponding period 2001 mainly as a result of increased 
depletion and depreciation charges. 

Revenue net of royalties was $2,964,411 for the third quarter 
2002 compared to $1,928,521 for the same period in 2001. In the 
third quarter 2002, revenues net of royalties were $2,750,801 and 
$213,610 from Yemen and Canada respectively. In the same period 
2001, revenues net of royalties amounted to $1,678,285 in Yemen 
and $250,236 in Canada. Revenues net of royalties in Yemen 
increased 64% due to a 39% increase in production and an 18% 
increase in oil prices. The average oil price for the Company's 
production in Yemen for the third quarter 2002 was $27.40 per 
barrel compared to $23.24 in the third quarter 2001. 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. Revenue in Canada decreased due to a 25% 
decrease in production. Gas prices averaged $2.27 per Mcf in 
Canada for the third quarter 2002 and $2.24 per Mcf for the same 
period 2001. Oil and liquids prices in Canada averaged $22.07 per 
barrel for the third quarter 2002 and $21.08 per barrel for the 
same period 2001. Consolidated revenues net of royalties for the 
nine months 2002 increased 13% from the corresponding period 2001 
mainly as a result of a 16% increase in production for the 
period. 

Operating costs of $503,202 averaged $3.43 per Boe in the third 
quarter 2002 compared to $390,719 ($3.39 per Boe) in 2001. The 
increase is a direct result of increased production volumes. 
Operating costs averaged $2.98 and $7.12 per Boe in the third 
quarter 2002 in Yemen and Canada, respectively. The high Boe 
costs in Canada are a reflection of third party processing, 
transportation and compression fees. Operating costs of 
$1,379,642 remained flat on a Boe basis, averaging $3.15 for the 
nine months 2002 compared to $1,168,551 ($3.10 per Boe) for the 
comparable period in 2001. 

The netback per Boe was $16.76 during the third quarter 2002. The 
comparable figure for the same period in 2001 was $13.33 per Boe. 
The increase is primarily a result of a 20% increase in overall 
commodity prices in the quarter. The netback per Boe for the nine 
months 2002 was $14.65 compared to $15.20 for the same period 
2001. This 4% decrease is a reflection of the decrease in gas 
prices and a small increase in operating and royalty costs for 
the nine months. 

General and administrative expense was $141,586 ($0.96 per Boe) 
for the three month period ended September 30, 2002 as compared 
to $135,134 ($1.17 per Boe) in the comparable period. The 
reduction on a Boe basis is a result of increased production 
volumes during the quarter. During the nine months 2002, general 
and administrative expenses increased to $546,371 ($1.25 per Boe) 
from $451,370 ($1.20 per Boe) in the comparable period 2001. 

Depletion and depreciation was $1,138,000 for the third quarter 
2002 compared to $581,000 in the same period 2001. The increase 
is attributable to the inclusion of significantly higher costs in 
the depletable base in the Republic of Yemen. In Yemen, unproven 
properties in the amount of $10,452,861 were excluded from costs 
subject to depletion and depreciation. This amount represents all 
costs incurred on Block S-1 and a portion of the costs on Block 
32 relating to exploration and development not directly incurred 
on the currently producing property. These costs will be included 
in the depletable base over the period of the development term of 
20-25 years as the Blocks become fully developed. Depletion and 
depreciation increased to $3,094,000 for the nine months 2002 
compared to $2,070,000 for the nine months 2001, reflecting the 
increase in the depletable costs in the Republic of Yemen. 

Current income tax expense in the amount of $249,202 in the third 
quarter 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 $152,150 in the same period 
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 in the third quarter 2002 were $1,451,018 
and $288,713 in Yemen and Canada respectively compared to 
$1,484,378 and $273,951 in Yemen and Canada respectively in third 
quarter 2001. Expenditures in Yemen on Block 32 were primarily 
for drilling and completing Tasour #7, Masila capacity expansion 
and well workovers at Tasour. Block S-1 expenditures were 
primarily for contractual bonus payments, pre-drilling inventory 
and drilling at Osaylan #1. 

Canadian capital expenditures in the third quarter 2002 relate 
mainly to the drilling at Nevis and Morningside and capitalized 
geological overhead. Proceeds on disposal of oil and gas 
properties in the amount of $156,805 represent the disposition of 
the Wildmint property and disposal of surplus equipment. 

Liquidity and Capital Resources 

TransGlobe expects to fund its capital requirements for the 
balance of 2002 and 2003 out of working capital, cash flow, debt 
and equity financing as may be required. At September 30, 2002, 
the Company had working capital of $2,938,267, a revolving credit 
facility of Cdn$2,500,000 and an acquisition credit facility of 
Cdn$2,000,000 to support its capital expenditure program. The 
Company has flexibility in adjusting its Canadian capital 
expenditure program should commodity price fluctuations affect 
cash flows and thus its ability to borrow funds. 

OUTLOOK 

The Company has revised its 2002 cash flow estimate upwards to 
$7,600,000 or $0.15 per share. The revision is due to higher than 
anticipated oil prices, the excellent production performance of 
the Tasour field and expected increased production with the 
addition of the Tasour #7 well. This revised forecast is based on 
an average oil price of $24.00 for the Tasour production in the 
fourth quarter 2002. 


/T/

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

                         Three Months Ended         Nine Months Ended
                               Sept. 30                  Sept. 30
                          2002         2001         2002         2001
---------------------------------------------------------------------
REVENUE           
 Oil and gas sales
  net of royalties $ 2,964,411 $  1,928,521 $  7,794,741 $  6,906,606
 Interest income         6,081       11,808       41,926       15,870
---------------------------------------------------------------------
                     2,970,492    1,940,329    7,836,667    6,922,476
---------------------------------------------------------------------
EXPENSES                                                             
 Operating             503,202      390,719    1,379,642    1,168,551
 General and
  administrative       141,586      135,134      546,371      451,370
 Foreign exchange
  loss (gain)          (41,527)      (4,147)     (15,767)        (193)
 Interest                6,727            2       15,263        4,068
 Depletion and
  depreciation       1,138,000      581,000    3,094,000    2,070,000
---------------------------------------------------------------------
                     1,747,988    1,102,708    5,019,509    3,693,796
---------------------------------------------------------------------
Net income before
 income taxes        1,222,504      837,621    2,817,158    3,228,680
Income taxes
 - future              (67,168)           -      (67,168)           -
 - current             249,202      152,150      655,728      503,808
---------------------------------------------------------------------
                       182,034      152,150      588,560      503,808
---------------------------------------------------------------------
NET INCOME FOR THE
 PERIOD              1,040,470      685,471    2,228,598    2,724,872
DEFICIT, BEGINNING
 OF PERIOD         (16,536,570) (18,747,534) (17,724,698) (20,786,935)
---------------------------------------------------------------------
DEFICIT, END OF
 PERIOD           $(15,496,100)$(18,062,063)$(15,496,100)$(18,062,063)
---------------------------------------------------------------------
Net income per basic
 and diluted
 share            $       0.02 $       0.01 $       0.04 $       0.05
---------------------------------------------------------------------



TRANSGLOBE ENERGY CORPORATION
Consolidated Balance Sheets 
(Expressed in U.S. Dollars)
                                          
                           September 30, 2002       December 31, 2001
---------------------------------------------------------------------
                                   (Unaudited)
                                                                     
ASSETS                                                               
Current                                                              
 Cash                            $  2,018,222            $  1,174,846
 Accounts receivable                1,633,160                 975,773
 Prepaid expenses and inventory        70,378                  60,687
---------------------------------------------------------------------
                                    3,721,760               2,211,306
                                                                     
Capital assets                                                       
 Republic of Yemen                 13,955,774              13,591,437
 Canada                             3,371,241               3,044,746
---------------------------------------------------------------------
                                 $ 21,048,775            $ 18,847,489
---------------------------------------------------------------------
LIABILITIES                                                          
Current                                                              
 Accounts payable and accrued
  liabilities                    $    783,493            $    828,959
Provision for site restoration
 and abandonment                      118,209                 106,209
---------------------------------------------------------------------
                                      901,702                 935,168
---------------------------------------------------------------------
SHAREHOLDERS' EQUITY                                                 
Share capital                      35,643,173              35,637,019
Deficit                           (15,496,100)            (17,724,698)
---------------------------------------------------------------------
                                   20,147,073              17,912,321
---------------------------------------------------------------------
                                 $ 21,048,775            $ 18,847,489
---------------------------------------------------------------------



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

                            Three Months Ended      Nine Months Ended
                                 Sept. 30                Sept. 30
                             2002        2001        2002        2001
---------------------------------------------------------------------
CASH FLOWS RELATED TO THE
 FOLLOWING ACTIVITIES:                                               
                                                                     
OPERATING                                                            
 Net income           $ 1,040,470 $   685,471 $ 2,228,598 $ 2,724,872
 Items not involving cash:                                    
  Performance bonus
   expense paid in shares       -           -      73,630      16,218
  Depletion and
   depreciation         1,138,000     581,000   3,094,000   2,070,000
  Future income taxes     (67,168)          -     (67,168)          -
---------------------------------------------------------------------
 Cash flow from
  operations            2,111,302   1,266,471   5,329,060   4,811,090
 Changes in non-cash working
  capital                (471,810)    145,742    (914,966)    770,394
---------------------------------------------------------------------
                        1,639,492   1,412,213   4,414,094   5,581,484
---------------------------------------------------------------------
FINANCING                                                            
 Issue of share capital         -      27,500        (308)     55,000
 Revolving demand loan
  (repayment)          (1,071,758)          -           -     (77,634)
---------------------------------------------------------------------
                       (1,071,758)     27,500        (308)    (22,634)
---------------------------------------------------------------------
INVESTING                                                            
 Purchase of capital assets                                           
  Republic of Yemen    (1,451,018) (1,484,378) (3,228,337) (2,544,196)
  Canada                 (288,713)   (273,951)   (701,300)   (962,074)
 Proceeds on disposal 
  of oil and gas
  properties              156,805           -     156,805           -
 Changes in non-cash
  working capital         559,691     231,860     202,422    (868,225)
---------------------------------------------------------------------
                       (1,023,235) (1,526,469) (3,570,410) (4,374,495)
---------------------------------------------------------------------
NET INCREASE (DECREASE)
 IN CASH                 (455,501)    (86,756)    843,376   1,184,355
                                                                     
CASH, BEGINNING OF
 PERIOD                 2,473,723   1,336,025   1,174,846      64,914
---------------------------------------------------------------------
CASH, END OF PERIOD   $ 2,018,222 $ 1,249,269 $ 2,018,222 $ 1,249,269
---------------------------------------------------------------------
Cash flow from operations
 per share                                                           
  Basic               $      0.04 $      0.03 $      0.10 $      0.10
  Diluted             $      0.04 $      0.02 $      0.10 $      0.09
---------------------------------------------------------------------
Supplemental disclosure                                              
  Cash interest paid  $     6,727 $         2 $    15,263 $     4,068
  Cash taxes paid     $   249,202 $   152,150 $   655,728 $   503,808
---------------------------------------------------------------------

/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, 2002 and 2001 
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, 2001, except as outlined in Note 2. 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, 2001. 

2. Change in accounting policies 

Effective January 1, 2002, Canadian accounting standards require 
disclosure of the impact on net earnings of using the fair market 
value method for stock options issued on or after January 1, 
2002. 

Also effective January 1, 2002, Canadian accounting standards 
require that revolving debt with terms of 364 days or less is to 
be included in current liabilities. There have been no changes in 
the terms or conditions of the facility. 

3. Share capital 

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


/T/

Continuity of common shares                             2002
---------------------------------------------------------------------
                                                Shares         Amount
                                            -------------------------
Balance, December 31, 2001                  51,244,801   $ 35,637,019
Stock bonus                                    250,000         73,630
Private placement, issue costs                       -           (308)
Tax effect of flow through shares                    -        (67,168)
---------------------------------------------------------------------
Balance, September 30, 2002                 51,494,801   $ 35,643,173
---------------------------------------------------------------------

Continuity of warrants
---------------------------------------------------------------------
Balance, December 31, 2001                                  4,414,806
Expired                                                    (4,414,806)
---------------------------------------------------------------------
Balance, September 30, 2002                                         -
---------------------------------------------------------------------

Continuity of stock options
---------------------------------------------------------------------
Balance, December 31, 2001                                  2,379,500
Granted                                                     1,400,000
Exercised                                                           -
Expired                                                      (155,000)
---------------------------------------------------------------------
Balance, September 30, 2002                                 3,624,500
---------------------------------------------------------------------

/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
                              September 30, 2002   September 30, 2002
---------------------------------------------------------------------
Compensation costs                 $      65,000        $      75,000
Net earnings:
 As reported                       $   1,040,470        $   2,228,598
 Pro forma                         $     975,470        $   2,153,598
Net earnings per common share
 Basic and diluted
  As reported                      $        0.02        $        0.04
  Pro forma                        $        0.02        $        0.04
---------------------------------------------------------------------

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

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

/T/

4. Per share amounts 

The weighted average number of common shares and diluted common 
shares outstanding during the nine months ended September 30, 
2002 was 51,434,361 (2001 - 50,589,446) and 51,926,087 (2001 - 
51,148,975), respectively. 

5. Segmented information 


/T/

                         Three Months Ended       Nine Months Ended
                               Sept. 30                  Sept. 30
                          2002        2001         2002        2001
-------------------------------------------------------------------
Oil and gas sales net
 of royalties
 Republic of Yemen $ 2,750,801 $ 1,678,285  $ 7,088,656 $ 5,556,696
 Canada                213,610     250,236      706,085   1,349,910
-------------------------------------------------------------------
                     2,964,411   1,928,521    7,794,741   6,906,606
Operating                                                       
 Republic of Yemen     390,025     281,410    1,025,540     843,371
 Canada                113,177     109,309      354,102     325,180
-------------------------------------------------------------------
                       503,202     390,719    1,379,642   1,168,551
Depletion and
 depreciation                                                        
 Republic of Yemen   1,065,000     488,000    2,864,000   1,798,000
 Canada                 73,000      93,000      230,000     272,000
-------------------------------------------------------------------
                     1,138,000     581,000    3,094,000   2,070,000
-------------------------------------------------------------------
Segmented operations 1,323,209     956,802    3,321,099   3,668,055
Other income             6,081      11,808       41,926      15,870
General and
 administrative        141,586     135,134      546,371     451,370
Foreign exchange
 loss (gain)           (41,527)     (4,147)     (15,767)       (193)
Interest                 6,727           2       15,263       4,068
Income taxes           182,034     152,150      588,560     503,808
-------------------------------------------------------------------
Net income         $ 1,040,470  $  685,471  $ 2,228,598 $ 2,724,872
-------------------------------------------------------------------

/T/

6. Commitments 

The Company has issued a three year letter of credit in the 
amount of $1,500,000 in support of the commitments of the second 
exploration period on Block S-1 in Yemen. This letter of credit 
is secured by a guarantee obtained from Export Development 
Canada. The Company's obligation to Export Development Canada is 
secured by a first floating charge debenture (subordinated to the 
Bank's interest in the Canadian assets and first to the foreign 
assets). This letter of credit will be released upon the 
fulfillment of the remaining Block S-1 second exploration period 
commitments which consist of drilling two wells. One well has 
been drilled and the other is presently drilling. 

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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