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Release

TransGlobe Energy Corporation Announces 2001 Year End and Fourth Quarter Results

CALGARY, ALBERTA--TransGlobe Energy Corporation ("TransGlobe" or 
the "Company") (TSE, symbol "TGL"; OTC-BB symbol "TGLEF") is 
pleased to announce its financial and operating results for the 
twelve month period ended December 31, 2001. 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 10,000 cubic feet of natural gas to one 
barrel of oil. 

2001 HIGHLIGHTS 

* Record average daily production up 332 % to  1,295 Boe per day 

* Record  annual cash flow  up 528% to $5,840,455  US 

* Record  annual earnings up 894% to $3,062,237 US 

* Proven reserves increased 33%, replacing 175% of production 


/T/

FINANCIAL AND OPERATING UPDATE

                          Three Months Ended      Twelve Months Ended
                                Dec. 31                  Dec. 31
                 -----------------------------------------------------
Financial(US $'s)   2001      2000 Change      2001       2000  Change
Oil and 
 gas revenue 
  net of
   royalties   1,647,479 1,498,742  10%   8,554,085  2,403,266   256%
Operating
 expense         371,818   226,414  64%   1,540,369    499,254   209%
General and 
 administrative 
  expense        115,632   188,929 (39)%    566,809  1,139,599   (50)%
Depletion and 
 depreciation    692,000   324,750 113%   2,762,000    635,400   335%
Income taxes     130,908    86,038  52%     634,716     86,038   638%
Cash flow from
 operations    1,029,365 1,013,245   2%   5,840,455    929,529   528%
  Basic per 
   share            0.02      0.02   -         0.12       0.02   500%
  Diluted per
   share            0.02      0.02   -         0.11       0.02   450%
Net income       337,365   942,627 (64)%  3,062,237    307,967   894%
  Basic and 
   diluted per
    share           0.01      0.02 (50)%       0.06       0.01   500%
Capital 
 expenditures  1,410,090 3,079,930 (54)%  4,916,360  5,991,316   (18)%
Working capital                           1,382,347    190,980   624%
Common shares 
 outstanding
Basic 
 (weighted 
  average)                               50,640,877 44,066,100    15%
Diluted 
 (weighted 
  average)                               51,118,289 46,429,961    10%
Reserves
----------------------------------------------------------------------
Total Proven(MBoe)
 (10:1)                                       1,449      1,093    33%
Production
----------------------------------------------------------------------
Oil and 
 liquids (Bpd)     1,161       652  78%       1,184        245   383%
 Average price
  (US$ per 
   barrel)         18.19     24.96 (27)%      22.11      25.27   (13)%
Gas (Mcfpd)        1,003       879  14%       1,108        548   102%
 Average price
  (US$ per Mcf)     2.10      5.40 (61)%       3.68       3.93    (6)%
Total (Boed) 
 (10:1)            1,261       740  70%       1,295        300   332%
Operating 
 expense (US$
  per Boe)          3.22      3.35  (4)%       3.26       4.56   (29)%

/T/

EXPLORATION UPDATE 

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

The 2001 seismic acquisition program, consisting of 120 kilometers
of 2-D seismic, was completed in early August. The primary focus 
of this year's seismic program was to further define the Tasour 
field and to select drilling locations on several prospects 
located in the northwestern portion of the Block 32 development 
area. Tasour #6 was completed in December and placed on production
immediately, returning total field production rates to over 10,000
Bopd. The Asswairy #1 exploration well was drilled over year end 
and was abandoned in February 2002. Minor oil shows were 
encountered. 

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

The field acquisition of a 230 square kilometer 3-D seismic and 
surface geo-chemistry program was completed in October 2001. 
Interpretation of the data and an additional 400+ square 
kilometers of 3-D seismic data traded with Jannah Hunt and 
Occidental will occupy the first quarter of 2002. The new 
exploration drilling program, along with an appraisal well on the 
Harmel structure, is planned for 2002. Three exploration wells are
planned with start-up of drilling operations expected by June, 
2002. TransGlobe's management continues to view Block S-1 as 
highly prospective for large oil accumulations and will focus a 
significant amount of exploration effort on the area. It will take
several years to evaluate the potential of Block S-1 due to the 
size of the block and the numerous potential reservoir zones. 

Canada  

TransGlobe tested gas from two separate zones at rates of 1.1 
MMcfd and 3.7 MMcfd at an exploratory well located at Cherhill, 
Alberta (100% working interest). The well was completed and placed
on production at an initial rate of 850 Mcfd during February, 
2002.  

The Company is also proceeding with the tie-in of gas wells at 
Morningside and Morinville. It is anticipated the wells will be on
stream during the second quarter of 2002 and will add production 
of 600-800 Mcfd plus 20-30 Bpd of natural gas liquids to 
TransGlobe. 

OPERATING UPDATE 

Production 

The production from the Tasour field in Block 32, Yemen, has 
exceeded our budgeted projections by 8% to date. The first full 
year of production for the Tasour field yielded an average 
production rate of 1,131 Bopd to TransGlobe. The field commenced 
production in November 2000. The proven reserves were increased by
39% from 591 thousand barrels to 823 thousand barrels to 
TransGlobe, representing a 156% replacement of 2001 annual 
production. The proven reserve increases were attributed to 
overall Tasour field performance and successful development 
drilling at Tasour #5 and Tasour #6. 

Production from Canada averaged 164 barrels of oil equivalent per 
day ("Boed") in 2001 compared to 119 Boed in 2000. The increase in
production is attributable to new gas wells brought into 
production at the end of 2000 and during 2001. With the addition 
of new gas production, 68% of TransGlobe's Canadian production was
gas and 32% was oil and liquids in 2001. The proven reserves were 
increased by 25% from 502 thousand Boe to 625 thousand Boe to 
TransGlobe, representing a 305% replacement of 2001 annual 
production. Canadian proven reserve increases were primarily a 
result of new drilling in 2001. 

Operating Results 

Net income for the year 2001 was $3,062,237 ($0.06 per share, 
basic and diluted) compared to a net income of $307,967 in 2000. 
Cash flow from operations was $5,840,455 ($0.12 per share basic 
and $0.11 per share diluted) in 2001 compared to $929,529 in 2000.
The increase in net income and cash flow in 2001 is primarily a 
result of the addition of production from Block 32 in the Republic
of Yemen for the full year. 

Revenue net of royalties was $8,554,085 for the year 2001 compared
to $2,403,266 for the year 2000 reflecting the impact of Yemen 
production on TransGlobe's operations. In 2001, revenues net of 
royalties were $7,000,676 and $1,553,409 from Yemen and Canada 
respectively. In 2000, revenues net of royalties amounted to 
$949,039 in Yemen, $1,151,400 in Canada and $302,827 in the United
States. The properties in the United States were divested in 2000 
to fund activity in Yemen. Revenue in Canada increased due to a 
38% increase in production. Gas prices averaged $3.68 per Mcf in 
Canada in 2001 and $3.93 per Mcf in 2000. Oil and liquid prices in
Canada averaged $21.57 per barrel in 2001 and $25.41 per barrel in
2000. The average oil price for the Company's production in Yemen 
for the year 2001 was $22.14 per barrel ($24.34 per barrel in 
2000). The Tasour field oil production is marketed by Nexen 
Marketing International Ltd. and the oil price is based on a Brent
price less a quality/transportation differential between the Brent
blend and the Yemen Masila crude oil blend.  

The netback was $14.84 per Boe during 2001. The comparable figure 
for 2000 was $17.37 per Boe. The decrease in netbacks between 
years is primarily due to the decrease in oil and gas commodity 
prices during the year. 

Capital Expenditures 

Capital expenditures were $3,406,363 and $1,375,888 in Yemen and 
Canada respectively in 2001. Expenditures in Yemen on Block 32 
were primarily for drilling and completing Tasour #5 and #6, a 
portion of the drilling costs on Asswairy #1 and the seismic 
program. On Block S-1 costs were primarily for the Harmel long 
term production test and the 3-D seismic program. Canadian capital
expenditures in 2001 relate to several Crown land purchases, 
drilling wells at Morningside, Elk Island, Pakowki Lake and 
Cherhill and recompletion costs in the Morinville, Morningside and
Thorsby areas. 

OUTLOOK 

The Company's growth strategy will continue to favor exploration 
and development on the Yemen properties. Field acquisition of 
seismic data is now complete on both our Yemen projects. The 
Company expects to participate in a high-impact drilling program 
consisting of five to seven wells in Yemen during the upcoming 
year. The first well in this program, Tasour #6, was completed as 
a producing well in December 2001. Additional drilling is planned 
for Block 32 during 2002. In Block S-1 a multi-well drilling 
program consisting of an appraisal well at Harmel and several new 
exploration wells is planned to commence in June, 2002. The 
Canadian focus will continue to be on the exploration and 
development of oil and gas prospects in Central Alberta. 

The recent world events have not disrupted our operations in the 
Republic of Yemen nor have they reduced our confidence in our 
ability to carry out future operations. The Company's management 
intends to continue with the successful business plan developed 
over the previous three years. That strategy is to focus the 
majority of our capital and efforts on our highly prospective 
projects in Yemen. We will continue to grow our expanding 
production base in both Yemen and Canada to provide a strong 
financial and operating platform for our international endeavors. 

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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