Release
TransGlobe Energy Corporation Announces Update on Republic of Yemen and Canadian Operations
CALGARY, ALBERTA--TransGlobe Energy Corporation ("TransGlobe" or the "Company") (TSE symbol "TGL"; OTC-BB symbol "TGLEF") announces the completion of a wildcat exploration well at Asswairy #1 in the Republic of Yemen and the commencement of gas production in Canada. Block 32, Yemen (13.81% working interest) The Asswairy #1 wildcat exploration well, which commenced drilling December 17, 2001, was plugged and abandoned. Several horizons with oil shows were production tested, however no hydrocarbons were recovered. The drilling rig will be moved to the adjacent non-owned Block 53 for a development drilling program. The Block 32 joint venture group has the option to move the drilling rig back to Block 32 for an additional one or two exploration wells. It is anticipated that the drilling rig will be available to the Block 32 group in four to five months. TransGlobe has identified two exploration locations that could be targeted for future drilling and has eight additional prospect leads on Block 32 that will be the focus of future work. Canada Tie-in work has commenced on TransGlobe's (100% working interest) gas well at Cherhill, Alberta. The deeper zone in the well was completed and production tested in January 2002 at rates up to 1.6 million cubic feet per day. It is anticipated that the well will be placed on production in late February at an initial rate of 1.0 million cubic feet per day. 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 first quarter of 2002 and will add production of 600-800 thousand cubic feet per day plus 20-30 barrels per day of natural gas liquids to TransGlobe. 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 Lloyd W. Herrick, Vice President & C.O.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
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